Niagara Falls board hears third budget presentation; staff report roughly $6.7M gap and discuss reserves, tax cap
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Summary
District staff presented the third budget update for 2026, reporting a remaining gap of about $6.7 million after savings and one‑time adjustments. The board discussed using debt‑service reserves, BOCES cost pressures and the property tax cap/levy limit.
District business staff and the superintendent presented the third budget update on March 2, reporting continued cost pressure and a projected general‑fund gap of roughly $6.7 million even after expense reductions and use of reserves.
Julie (district business officer) walked the board through recent revenue and expenditure changes, noting utility‑tax and Medicaid receipts slightly exceeded expectations and allowing a modest $100,000 revenue upward adjustment. She said payroll “breakage” from retirements and contract adjustments trimmed anticipated costs, and that the district is comfortable removing some one‑time summer professional‑development expenses.
Julie presented the district’s property‑tax cap calculation and a levy‑limit figure ($26,406,518) to be certified in the state portal by March 1. She said the board could increase the levy up to that limit but indicated there was no current intention to do so.
Superintendent Mark Laurrie summarized the operating environment: inflation of utilities and health insurance (district estimates of 10%–15% increases) that outpace the governor’s CPI assumptions, uncertainty in foundation‑aid “true‑up” amounts tied to enrollment, and special‑education cost pressures driven by higher BOCES administrative charges.
Board members discussed trade‑offs, including partial use of Smart Schools funds for devices vs. using reserves or BOCES procurement strategies. Several board members warned that drawing heavily on reserves could affect the district’s bond rating and fiscal‑stability reporting.
Julie and Laurrie said staff plan two tasks before the next presentation: verify enrollment counts to secure projected foundation aid and conduct an asset inventory (estimated $70,000) to inform replacement and capital planning.
What’s next: The board will receive a fourth and likely final budget presentation with updated numbers; staff will continue to search for non‑programmatic reductions, verify enrollment counts for foundation aid, and return with recommended reductions and procurement options.