Batavia school budget draft shows $2.36% tax-levy increase, $2.36M in additional state aid projected

Batavia City School District business officials presented the first draft of the 2025-26 general fund budget showing a preliminary 2.36% maximum allowable tax-levy increase, a projected 7.18% total increase in state aid (about $2.36 million), and a plan to reduce reliance on appropriated fund balance by more than $1 million.

Mister Lane reviewed projected revenue and appropriations. Key points included:

- State aid: The budget draft reflects a 7.18% year-to-year increase in total state aid, driven primarily by a rise in foundation aid tied to a higher count of students with extraordinary need in the district. Officials said the governor's recent adjustments to the foundation aid formula contributed to the increase.

- Tax levy: The current draft includes a preliminary tax-levy increase of 2.36, which equates to about $480,000. The business office said the figure is within the district's maximum allowable tax-levy calculation and could be revised during the budget process.

- Fund balance: The district intends to reduce the amount of appropriated fund balance used to balance next year's budget by more than $1 million in line with its long-range financial plan and external auditor recommendations.

- Transportation: Officials warned of expected increases in both home-to-school and special-education transportation costs. The district is working through rebidding and contracting after its current vendor signaled it might not renew; the draft assumes roughly a 10% increase in total contract transportation costs.

- Maintenance and operations: Facilities staff prepared a preventive-maintenance and replacement cycle (parking-lot and gym-floor refinishing, boiler repairs, preventive equipment replacement), which contributed to higher maintenance appropriations.

- Debt service: Scheduled reductions in debt service create some budget flexibility; the business office proposed an interfund transfer to the capital project fund to reduce future borrowing and stabilize the tax impact.

The draft budget presented a balanced general fund at approximately $62.58 million and assumes some additional interest earnings (projected around $250,000) due to changed investment strategies. Lane said the budget will be refined across subsequent presentations, with public documentation and a budget hearing scheduled ahead of the May vote.

The board received the presentation and had no immediate vote on the budget at the session; officials said further hearings and work sessions will follow.