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East Meadow budget presentation flags special education, health and transportation as largest cost drivers
Summary
District finance staff told the Board of Education that special education spending and rising health and retirement costs are driving a large part of next year's projected increase; transportation costs also rose after a recent contract rebid.
East Meadow Union Free School District officials told the Board of Education on March 12 that the district's largest budget pressures for 2025—26 are special education, salaries and benefits, and transportation.
In a presentation titled "Budget Presentation No. 2," Ms. Frasenda, the district's finance presenter, said district health insurance costs have increased more than 74% over the past 10 years and remain a major driver. "Over the past 10 years, our health insurance costs... have increased over 74%," she told the board.
Frasenda also highlighted retirement costs. She said that although the employer contribution percentages for the Teachers' Retirement System (TRS) and Employees' Retirement System (ERS) have fallen as a percentage, they apply to higher salaries, so total employer costs remain elevated.
Special education costs, she said, show the biggest single-year increase in the district's budget projections: about a $13,000,000 rise when comparing the proposed 2025—26 budget to actual expenditures in 2022—23. Frasenda said both CSE (Committee on Special Education) and CPSE (Committee on Preschool Special Education) expenditures are increasing.
Transportation costs rose sharply after a recent contract rebid. Frasenda said the first year following the new in-district contract with Guardian produced a 32% increase and that the district absorbed roughly a $4,000,000 increase in transportation costs when the contract started in 2022—23.
On the allowable tax levy, Frasenda said the figure has not changed since the prior meeting and remains at 3.7%.
Board members discussed the regional nature of special education cost growth. Dr. Luce said the increase is not unique to East Meadow and described it as "a region wide" phenomenon since COVID. Board members and staff noted the district is planning to expand in-district programs such as local teacher-pipeline classes that can provide dual credit and encourage students to enter teaching careers.
Frasenda and the superintendent said the district will continue contingency planning and multi-year budgeting to manage increases, while noting final state aid figures have not been finalized. "If this were to end today and the state aid that was kind of run number 1 was given to us as is, we should have no cuts to programs," a district official said, adding that state aid runs remain subject to final adjustments.
Ending: Board members thanked finance staff for their work and said they look forward to the next budget presentation and continuing the five-year planning process.
