Binghamton schools project $4 million operating gap; district eyes reserves and deeper cuts for 2026–27

District finance staff presented a midyear fiscal review on Jan. 27, telling the Board of Education that the 2025–26 projection shows revenues of just over $151,000,000 and projected expenditures of just over $155,000,000, producing an operating loss of nearly $4,000,000.

Angela Rogers, presenting the district's projection work, said rising costs — notably health insurance increases and tuition for out-of-district special-education placements — are the primary drivers of the deficit. Rogers said the district is projecting to draw on three restricted reserves (the ERS reserve, the TRS reserve and the health-insurance reserve) to partially offset 2526-year shortfalls but emphasized statutory and accounting limits on how those reserves may be used.

Rogers and Jennifer Bell laid out long-range assumptions used in the five-year plan: a 7% assumption for health-insurance costs in early planning, TRS at 8.75% and ERS at 16.3%. They described other pressure points — contract transportation, increased legal fees and staffing/fringe costs — and said the board should expect further work to close a larger gap in 2026–27. Rogers said the district’s unaudited unassigned fund balance is projected to fall from about $34.7 million to roughly $30.7 million by year end, reflecting the planned use of reserves.

Board members and staff discussed state-level factors. Presenters noted the governor’s executive budget proposal fully funds Foundation Aid and proposes a 1% minimum increase for districts; staff estimated Binghamton’s formula-driven increase would be about 1.22% under that plan. Rogers warned that even proposed increases would not fully offset local expense growth.

Rogers said the fiscal-stress calculator used by the state shows the district’s environmental stress is moderate; presenters emphasized that many of those stress indicators (poverty, transient student populations) are outside local control but inform planning. The board also heard that the district is watching federal/state policy and enrollment trends and will return with budget options focused on preserving equity while reducing costs.

The board asked for further detail on proposed reductions and advocacy steps on state aid; staff said more specific budget proposals for 2026–27 will appear in future meetings.

The presentation concluded with staff recommending cautious use of restricted reserves and continued attention to staffing, contracts and program prioritization in the formal 2627 budget development process.