New Rochelle board warns of 'fiscal cliff' as state aid falls; budget workshop outlines possible cuts and added public meetings

The City School District of New Rochelle held a budget workshop during its public meeting at Trinity Elementary on Feb. 10, 2025, where district leaders warned that a sharp slowdown in state foundation aid has created a potential “fiscal cliff” that could force program and staff reductions.

Dr. Corey Reynolds, superintendent, said the state’s current proposed increases fall well short of expectations: “We didn’t get enough money this year to do what we feel we need to do for our students,” he said, adding that the shortfall arrived faster than district leaders anticipated.

The assistant superintendent for business and operations, Carlos Liao, and business administrator Joy Mike presented revenue and tax-cap detail. The governor’s proposal for 2025–26 shows foundation aid rising about 2% compared with larger increases in prior years; the district’s working estimate of available revenue for 2025–26 is $350,668,762. Liao warned that the 2% foundation aid figure produces only a modest $1.3 million increase in foundation aid for New Rochelle compared with the prior year.

Joy Mike reviewed the state-mandated tax-cap formula and calculated a maximum allowable levy under current assumptions of roughly 0.33% (about $760,000), a smaller allowance than in recent years. She also summarized other revenue streams—pilot payments-in-lieu-of-taxes, Westchester County sales tax, federal and other state grants—and the district’s reserves, noting many reserve lines are already committed to specific purposes such as debt service, workers’ compensation and capital projects.

The presentation listed current staff counts and vacancies: about 1,160 building- and instructional staff with eight vacancies, 467 building operations and support staff with 24 vacancies, and a total workforce of roughly 1,845 employees with about 47 vacancies. Liao noted that some vacancies yield short-term savings but may require substitute or leave-replacement costs, and that administrative positions cannot be eliminated without contract steps.

Because the projected revenues and allowable levy are smaller than prior years’ expectations, district leaders proposed reversing the usual order of the budget discussion—present revenues first, then potential expenses and trade-offs—and recommended adding additional public meetings to allow fuller community input before the May 20 budget hearing and vote.

Board members and trustees urged strong advocacy with state lawmakers. Trustee Miss Ross and others said the board is coordinating with state legislators and with organizations such as the New York State School Boards Association to press for larger foundation-aid increases. Dr. Reynolds said he would continue advocacy with state officials and pledged not to present options that would underserve students without community input.

Next steps: district staff will return with several budget scenarios (including “doomsday” and more optimistic cases), detail proposed staffing and program reductions if needed, and schedule additional public sessions and informational materials so the board and community can weigh priorities.

Votes at a glance

- Motion to go immediately into executive session to meet with district counsel and discuss employment history of particular persons (may lead to employment of a particular person): Moved by Ross; second Castellano Minaya; voice vote “Aye”; motion carried. (Action recorded at start of meeting.)

- Motion to reconvene the public session (after executive session): Moved Castellano Minaya; second Brooks; voice vote “Aye”; motion carried.

- Motion to accept minutes of the regular meeting of 01/07/2024 and special meeting of 01/21/2024: Moved Castellano Minaya; second Ross; voice vote “Aye”; motion carried.

- Motion to approve the personnel consent agenda (resolutions 25-26011 through 25-26021, 25-2631–10, 25-2641–6, 25-2651–14 as listed on the agenda): Moved Williams; second Lewis; voice vote “Aye”; motion carried.

- Motion to approve the general consent agenda (resolutions 25-266 through 25-280 as listed on the agenda): Moved Clayton Fernandez; second Lewis; voice vote “Aye”; motion carried.

- Motion to go immediately back into executive session near the end of the meeting: Moved Williams; second Castellano Minaya; voice vote “Aye”; motion carried.

(All recorded outcomes above reflect motions and board voice votes as captured in the transcript.)