New Rochelle proposes $359.5 million budget, seeks 3.95% tax-levy override; up to 200 layoffs possible

The New Rochelle City School District on Tuesday presented a proposed 2025–26 budget that would exceed the state's tax cap with a 3.95% tax-levy increase, require a 60% voter override and still leave the district facing a roughly $20.2 million deficit unless the board or voters approve additional measures.

Superintendent Dr. Reynolds told the Board of Education that a 3.95% levy "is necessary to preserve core programs for our students," and that with that levy the district's anticipated total revenue would be $359,468,597. He said that the district's projected expenditures to maintain current programming approach $379 million, leaving a shortfall of about $20,216,317.

Why it matters: Because the proposed tax levy exceeds the state cap, the budget would require 60% approval from voters on May 20. If voters defeat the budget and the board does not successfully pass a revised budget on a second vote, the district would be forced to adopt a contingency budget that is limited to the prior year's tax levy, which the superintendent warned would require deeper cuts.

What the proposal would change: The district outlined a mix of revenue and spending actions intended to close the gap, including the 3.95% tax-levy proposal (the same percentage approved last year), reductions to contracted professional services, tighter control of overtime, a transportation plan that staggers elementary bell times to allow buses to run two runs per day, and "balancing" class-size ratios districtwide. Dr. Reynolds said the district may need to "undertake the difficult process of reducing our workforce by up to 200 positions across the district, including at our central office, including administrators, teachers and clinicians, custodial staff, and security personnel." He added the district will first pursue retirements, attrition and not filling vacancies before moving to the contractually mandated layoff process.

Transportation and scheduling: Under the transportation proposal, three elementary schools ' Davis, Trinity and Ward ' would begin at about 8:00 a.m. and end at 3:00 p.m., while Barnard, Columbus, Jefferson and Webster would start at 8:45 a.m. and end at 3:45 p.m. Officials said the staggered schedule would allow buses to perform two runs and that the plan is considered essential even if the budget passes, because the district faces multi-year increases in transportation costs and limited vendor competition.

Class-size changes and special education: The presentation described targeted changes to average class-size ranges across grades (for example, proposed ranges in some grades shifting toward the higher end of previously stated ranges). The district stressed that special-education classroom ratios are required by state law and would not be changed except as allowed by students' individualized education plans.

Revenue drivers and constraints: The presentation detailed several compounded revenue pressures: lower-than-expected state aid in parts of the governor's executive budget despite a 2% "hold-harmless" increase to foundation aid; higher employee health insurance and transportation costs; use of reserves and appropriated fund balance in recent years that reduced available savings; and a newly proposed charter school that the district estimated could require setting aside approximately $1.9 million (the district estimated roughly $19,210 per additional charter student and projected about 100 New Rochelle students in its planning model). Officials also said an increase in payments in lieu of taxes (PILOTs) reduced the district's allowable tax levy under the state formula.

Timeline and vote: The board was told that the board must approve the proposed budget for submission and that the public budget hearing is scheduled for May 6, 2025, with the districtwide vote on May 20, 2025; because the proposal exceeds the cap it requires 60% of votes cast to pass. If the budget is defeated, the district can submit a revised budget for a revote on June 17 or adopt a contingency budget limited to the prior year's levy.

Responses and public comment: Board members thanked staff for the detail and transparency while expressing concern about the human impact of reductions. In public comment, community speakers pressed for clearer data on transportation and discretionary versus mandatory spending; one commenter, Vincent Malfitano, urged the district to consider higher taxes on wealthier property owners rather than service reductions, saying, "Let's make the rich pay their bill." Another commenter asked whether bus routes could be changed or smaller buses used in low-density areas.

What's next: District staff said more detailed work sessions will follow, covering function-code line-item detail (administration, BOCES, transportation, operations and instruction) and that the board will continue public work sessions on March 4 and March 11 before the board considers the budget on March 20. The district provided two email contacts for questions: boe@nredlearn.org for the board and budgetquestions@nredlearn.org for budget-specific questions.