East Ramapo board hears budget gap and large transportation cost increases
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Summary
District finance staff presented a preliminary maximum allowable tax levy of $169,878,588 (about $7 million, 4.35%), projected revenues near $334 million and a roughly $10 million projected use of fund balance; transportation contract and bidding increases will require a budget transfer, staff said.
Finance director Eric Stark presented a preliminary maximum allowable tax levy calculation of $169,878,588 for 2026 that staff said reflects an increase of a little more than $7 million, or about 4.35%.
Stark told the board that statewide foundation aid rose but East Ramapo's foundation aid stayed roughly flat because enrollment dropped by about 400500 students, offsetting any per-pupil increases. "We actually had a tax levy that was flat from the prior year," Stark said, then read the calculated limit: "$169,878,588, which represents an increase of a little over $7,000,000, and is equivalent to a 4.35% increase." He emphasized this is the calculation required for the controller's office and not necessarily the amount the board will propose.
Stark outlined projected revenue of about $334,000,000 and projected expenditures that leave the district roughly $10,000,000 short for the year, which would be covered with fund balance if approved. He said some expense-driven aids, such as BOCES and transportation reimbursements, are expected to increase but that timing can affect cash flow; additional transportation aid, he said, may arrive as a special payment in September.
Board members asked about transportation costs. Stark described substantial increases in contracted transportation: "transportation services actual expense, 2324 was 59,000,000, '24,'25 63,000,000, and then you're projecting '25,'26" and said the district will need "a large budget transfer into the transportation line" at an upcoming meeting to cover unencumbered costs and higher-than-anticipated bids.
Stark said the district negotiated to reduce some bid amounts for year one with a planned cap and a smaller increase in year two if contractors renew. He also listed planned capital uses of a fund-balance transfer, including boiler replacements at two schools and parking lot paving not covered by ARPA funds.
The presentation concluded with staff saying a summary of draft revenue and expenditure budgets will be presented on Feb. 24 and that principals have been trained on the district's financial package for detailed line-item review.
The board did not take a final budget vote at the meeting; staff said further reviews and a formal proposal will follow at future meetings.
