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Sachem budget team previews 2026–27 plan, flags about $15M shortfall and $5M health-insurance spike
Summary
District business staff told the board the 2026–27 budget process is underway, with state aid and the tax levy driving more than 93% of revenues; preliminary figures show a projected $5 million increase in health-insurance costs and an estimated funding gap of roughly $15 million that trustees must close with revenue or cuts.
At the Sachem Central School District Board of Education meeting on Dec. 17, the district’s business presenter outlined the 2026–27 budget development schedule and preliminary revenue and expenditure projections. The board was told that the budget process begins each July with year-end closeouts and financial audits that feed state aid calculations and that the district will post a more complete update after the governor’s January aid runs.
The business presenter said the district currently counts roughly $98 million in foundation aid and a $216 million tax levy in the current year, and that state formulas and the tax-levy calculation together dictate about 93.5% of the district’s revenue. She described a preliminary tax-levy projection of a 2.35% increase (about $5 million) driven by the tax-base growth factor and other formula inputs.
Nut graf: The budget presentation stressed limited local discretion in revenue, significant upward cost pressure on employee benefits and salaries, and a hole the board will need to address before the March levy submission deadline. The presenter said health-insurance premium changes released in November produced an approximate $5,000,000 increase in projected district health costs; health insurance accounts for roughly $50,000,000 of the district’s budget.
Board members pressed for arithmetic and context. One trustee summarized the current arithmetic: combined salary, benefit and debt-service totals are moving from about $292 million to $302 million in preliminary projections, the district used about $13.6 million of fund balance this year, and contractual increases and unresolved transportation costs add roughly $10 million in pressure — leading to an illustrative shortfall near $15 million that officials will have to fill with either additional revenue or programmatic cuts. The presenter cautioned that many numbers are preliminary and depend on January state-aid runs and final CPI inputs for the tax-cap calculation.
Exchanges: Trustee Mike asked whether the combined increases and reduced discretionary revenue left a hole; the board’s recap framed it as "10 plus 13 minus 8," producing the roughly $15 million gap the group repeatedly referenced. On benefits, the presenter said plainly: "$5,000,000 increase in health insurance," and noted opt-out payments of roughly $9.4 million.
Next steps and timing: The presenter said the next detailed budget presentation will be Jan. 21 after the governor’s preliminary aid numbers are available and reminded trustees that the tax-levy submission is due to the comptroller’s office by March 1. Staff said they will continue revising projections as new data arrives and provide a more granular "anatomy of a dollar" breakdown and updated object charts in upcoming packets.
The meeting record shows the board received the overview for discussion; no budget resolution or final levy was adopted that night. The board will review a more complete set of figures in January and proceed toward public meetings and the legal deadlines for levy submission.
