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Hampton Bays administrators warn enrollment decline and rising insurance costs tighten 2026 budget
Summary
District administrators told the board enrollment is down to 1,904 students and that a nearly $937,000 increase in health-insurance premiums, a 1.93% tax levy cap and only modest state-aid growth leave limited room for the 2026–27 budget.
An unidentified district administrator told the Hampton Bays Union Free School District Board of Education on Feb. 10 that the district’s enrollment has declined to 1,904 students and that early budget work shows tight margins under the property tax cap.
“Today, we sit at 1904 kids,” the administrator said, reporting a drop from 1,935 students recorded in September. The administrator said kindergarten registration is underway but that the pace of new enrollments — particularly among families moving from abroad — has slowed.
The administrator flagged several budget drivers the board will weigh as it develops the 2026–27 budget: health insurance, transportation and special-education costs. He told the board that the district’s tax-cap calculation currently shows an allowable levy increase of about 1.93%, equivalent to roughly $993,000, and that the district is seeing a projected budget-to-budget increase of about 2.16% (approximately $1.3 million on a roughly $68.9 million budget), subject to final state calculations.
“Just the increase alone in NYSHIP … is $937,000,” the administrator said, noting that the spike in employee health-insurance premiums consumes most of the district’s allowable levy room for the year.
Officials said state and federal aid will shape the district’s options. The administrator summarized the governor’s early proposal for increased education funding but cautioned that foundation-aid growth in the current proposal is modest; foundation aid was described as a roughly 1% local increase in this presentation. He outlined the schedule for budget development: department budgets will be finalized this month and the board is likely to consider a proposed budget to reach approval by the board’s April meeting.
Board members were told the district will continue advocacy with state and federal officials as state-aid figures firm up in March and April. The administrator also warned of longer-term fiscal risks, including litigation exposure tied to the state’s Child Victims Act and rising transportation costs driven by state zero-emission bus requirements.
Next steps: administrators will finalize department budget packets this month, refine assumptions when state aid numbers are available in March and present a recommended budget for board action in April.
