District staff presented an overview of the Locust Valley Central School District’s proposed 2026 operating budget, fund-balance position and next steps for budget review.

Presenter Karen said the current operating budget for 2026 is $98,289,000, a 1.95% increase over the previous year, and that the tax levy supporting the budget is $90,158,000, an increase of 2.36% year over year. She explained that the tax levy provides more than 91% of district revenue, with state aid accounting for roughly 5.41% of the total. Karen noted the state’s tax‑cap calculation includes the consumer price index and a tax-base growth factor provided by New York State; several Nassau County districts were still awaiting the tax‑base growth factor at the time of the presentation.

On reserves, staff said the district’s total reserves have decreased intentionally between June 2023 and June 2025 because capital reserves are being used for planned projects including the cafeteria, library renovation, parking lot, fuel-tank replacement and an HVAC unit at the high school. The unassigned fund balance was reported at $3,900,000, which staff said represents about 4% of the operating budget — the statutory maximum under state rules — providing a cushion for cash flow and emergencies.

Karen emphasized that salaries and benefits remain the primary budget driver, accounting for roughly 70% of expenses, and identified special-education placements, transportation contracts and capital transfers as other significant cost drivers. The board set a budget-review meeting for Jan. 28 to examine non-instructional budgets, facilities, security and transportation before subsequent reviews of employee benefits and final summary items.

No final budget vote occurred at the meeting; trustees were asked to provide feedback and will return for further review.