Byram Hills officials warn reserves are being used to balance budget; 2026–27 may require action

The Byram Hills Central School District presented a year-end budget-to-actual review on Nov. 4 that showed tight margins and substantial reserve use during 2024–25.

Business official Kelly told the board the district’s total budget was $103,400,000 and that salary and benefits accounted for roughly 79% of that total — about 53% for salaries and 26% for benefits. Kelly said that, after removing capital-project spending, the district’s operational expenditures were roughly in line with the budget but that the district used $7,800,000 in reserves during FY 2024–25 to balance the books and applied $1.7 million of prior-year appropriations into 2025–26.

"So in terms of the total, we needed $7,800,000 from reserves from 2425," Kelly said during the presentation. Trustees and staff discussed that the capital reserve funded $4.1 million in projects and that, after excluding capital-reserve funds, the district’s undesignated reserves were approximately $6,200,000 at the start of the current year.

Why it matters: presenters and trustees said continuing to draw down reserves is not sustainable. With existing debt service payments ending next year, the district will have a lower tax cap but still could face pressure on the tax levy and may need to consider an override or other budget reductions for 2026–27.

Details and next steps: Kelly reviewed revenue variances (additional tax levy receipts of $143,000 and $177,000 of state aid beyond original estimates) and noted $1.8 million in other revenue above projections (largely interest and county sales tax). Trustees discussed options to reduce reserve usage, restore fund balance and plan detailed budget work at an upcoming board retreat. The board approved distribution of budget materials for public review and scheduled a budget workshop and retreat to identify potential reductions and strategies.

The presentation included Q&A on TRS/ERS retirement rate changes, insurance and utility pressures and how the district tracks and applies purchase-order transfers and prior-year obligations. No formal vote was taken on structural budget changes at this meeting; staff will return with recommended actions.