Kingston BOE hears narrow foundation-aid increase, tax-levy cap and reserve picture ahead of 2026–27 budget
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Summary
District staff told the board the executive budget proposes a 1% foundation-aid increase (about $680,000), the district's maximum tax-levy increase is 4.04% (~$4.7M), enrollment declines and classification changes reduced aid, and combined reserves and fund balance exceed 17%; the Comptroller labeled the district 'susceptible' because of low unassigned fund balance.
District leaders briefed the Board of Education on the fiscal landscape for the 2026–27 budget and the pressures shaping revenue and expenses.
A presenter said the state executive budget proposed a 1% increase in foundation aid for Kingston City School District, translating to roughly $680,000. "Even if it's doubled when the budget is passed... that still provides less than $1,500,000 in foundation aid," the presenter warned, signaling that state increases are unlikely to offset other revenue declines.
Staff noted two structural challenges: declining enrollment reduces per-pupil state aid and changes in the district—s classification altered expense-based aid such as transportation and building aid. A board member said the district lost "$9,000,000 of foundation aid between '23–'24 and '24–'25" when the district moved from a higher-need aid pool to a lower category.
The presenter said the district—allocated $5.5 million of fund balance in the prior budget to preserve programs and supports, and that "combined reserves and fund balance levels" put the district above 17% when taken together. The presenter also clarified a recent Comptroller communication: Kingston has not been designated "fiscally stressed"; rather the Comptroller labeled the district as "susceptible" because the unassigned fund balance is below the usual 4% threshold.
On the revenue side, the presenter said the district's maximum tax-levy increase this year is 4.04%, about $4.7 million. Trustees discussed expense drivers including transportation (aid falling from 71% to 59% in one year) and rising insurance costs, and staff said they are examining transportation and other expense drivers and looking for efficiencies.
Board members asked for more graphical budget materials at a future meeting to help the public understand the tradeoffs; the presenter said a fuller budget presentation with charts and graphics would be provided to the board.
Next steps described at the meeting included continued internal financial analysis and work on the draft budget; trustees did not vote on the budget at the session.