Rochester district unveils $953M preliminary 2025-26 budget; board urged to preserve fund balance amid federal uncertainty

The Rochester City School District presented a preliminary draft budget for 2025-26 on Feb. 27, proposing total revenue and appropriations near $953 million and laying out budget assumptions, program priorities and projected cost pressures.

Acting Chief Financial Officer Derek Blair reviewed the unaudited financial reports through Jan. 31, 2025, saying the district reported a total ending cash balance of $424,000,000 for the period and explaining expected revenue and appropriation drivers for the coming fiscal year.

What was proposed: The administration presented a draft general-fund revenue estimate of roughly $790.7 million and a draft total budget of about $953 million. Key assumptions included an increase of about $41 million in Foundation Aid in the governor's executive budget, a projected $21.5 million increase in employee benefit costs, and continued charter-school tuition and transportation pressures. Blair also flagged a $4 million projected increase in information and technology costs.

Superintendent Demarino Strickland said the administration had shifted some positions funded previously by federal grants into the general fund to protect staffing and services in case federal revenues decline. "We are going to provide a budget presentation later in the meeting and we will explain exactly what, you know, we would possibly need to do," he said.

Board concerns and federal risk: Commissioners focused on the district's fund balance and the potential for federal funding cuts. Commissioner Santiago asked where the current fund balance appears in the report; staff replied that the district's fund-balance position is in the low hundreds of millions and discussed mechanics of contingency transfers tied to school closings.

Commissioner Elliott and Commissioner LeBron urged caution, pointing to the risk of large federal funding reductions. CFO Blair told the board that certain federal streams from the U.S. Department of Education could total roughly $60 million (about 4% of the district's budget), but commissioners noted broader uncertainty. Commissioner LeBron warned that a large federal cut could have catastrophic local consequences: "We would be looking at massive school closures, massive class-packed rooms, massive layoffs," he said.

Spending priorities retained: The draft continues investments in early literacy, instructional coaches, special education, expanded supports for English-language learners and a reimagined instructional-coaching model for high schools modeled in part on East High School's approach. The administration said it would maintain certain counselor and social-work positions and sustain targeted bilingual supports.

Balancing steps and next steps: The administration noted several balancing actions under consideration, including further central-office reductions, contract re-evaluations and continued vacancy management. Blair emphasized that budget figures would be revised if the legislature's final state aid numbers change.

Accepted financial report: Earlier in the meeting the board accepted the unaudited financial report for the period ending Jan. 31, 2025. That motion was made by Commissioner Elliott, seconded by Vice President Malloy, and carried.

Ending: Commissioners asked the administration to preserve fund-balance reserves while the district continues planning for multiple scenarios. Staff said a more detailed budget presentation and formal adoption timeline will follow; the board and administration agreed to keep contingency plans and scenario modeling on the agenda as federal funding discussions unfold.