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Taconic Hills board approves 3.5% tax levy after debate over large fund balance
Summary
The Taconic Hills Central School District board voted 5–4 to approve a 3.5% property tax levy totaling $26,506,443 for the 2025–26 budget. A board member urged using more of the district's fund balance to hold taxes steady; the motion passed after a sharp exchange.
The Taconic Hills Central School District board voted 5–4 to approve a 3.5% property tax levy that will raise $26,506,443 to support the 2025–26 budget.
The levy proposal drew a split board. A board member objected to the increase and argued the district should use more of its fund balance to reduce the tax impact. "I can't support the 3.5 tax levy index," the board member said, adding that the levy "does use $3,000,000 from our fund balance to offset the taxes" and that the district had a historically high fund balance that could be applied to hold the levy to 0 percent.
Supporters said the levy is necessary to sustain district programs and future needs. Another board member said, "I will assume all risk and responsibilities. I think that we should have more money. It's for the future of the school that begins in our community. I'm in favor of that." The chair framed the choice in household terms, noting regular cost increases for everyday items.
The board discussed auditors' notes and state guidance on fund-balance limits during the exchange; the dissenting member cited repeated audit attention to unusually high balances and a commissioner ruling requiring excess operating funds to be applied to reduce the tax levy. Other members stressed the need to preserve resources for programs and operations.
After discussion the motion to set the levy at 3.5 percent carried on a 5–4 vote.
What it means: The approved levy funds the district’s proposed 2025–26 operating budget. Board members opposed to the levy said additional use of the unassigned fund balance could keep taxes flat; supporters said the budgetary and programmatic needs justify the increase. The board did not name specific line-item reductions tied to the difference between a 0% and 3.5% levy during the meeting.
Next steps: The levy is part of the budget propositions the board moved to place on the ballot; voters will decide the overall budget and associated propositions according to the district’s public notice and voting schedule.
