Superintendent previews 2026–27 budget: tax-cap expected near 2%, pre-K funding could rise

The Menands Union Free School District superintendent led a Feb. 9 budget workshop for the Board of Education, laying out staff assumptions and scheduling for the 2026–27 budget and flagging several items that could affect the district’s levy and services.

The presentation walked the board through the tax-cap calculation and key inputs. The tax-base growth factor is 1.0046 percent; with exclusions for debt service and BOCES capital and no retirement-exclusion this year (employer contribution increases under 2 percent), the current internal calculation shows a maximum allowable levy just over $8.1 million — roughly a 2.5 percent increase compared with the adjusted prior levy of about $7.9 million. The superintendent said staff expect that figure will drop closer to about 2 percent as outstanding factors (pilot payments, final assessment information and building-aid adjustments) are finalized. She reminded the board that the tax-cap calculation must be filed with the state comptroller by March 1 and that the final tax rate homeowners see will still depend on August assessments.

Why it matters: the levy decision determines the dollar amount the district asks taxpayers to fund; assessment shifts and state-aid changes can make the ‘felt’ tax-rate change different from the levy percentage. The superintendent reiterated that the board — not staff — ultimately decides the levy to present to voters.

State aid and pre-K: the superintendent reviewed the executive budget’s aid runs and said foundation aid would yield a modest 1 percent increase for the district (about $15,000 under hold-harmless rules). She noted building-aid runs did not fully capture a bond closed in December; staff now estimate about $139,000 in additional building aid. The district currently receives $5,400 per pre-K seat. The executive-budget proposal to move pre-K reimbursement to $10,000 per seat would raise aid substantially (an estimated roughly $82,000 increase in aid for the district if enacted), making program expansion more feasible. The district currently caps pre-K at 18 seats (one teacher and one aide) and said space and staffing would determine whether it can expand toward the 22-seat threshold discussed.

Transportation and contracts: transportation remains a large budget item; the district contracts all bus services and earlier used a one-year CPI extension. Staff noted CPI around 3.5 percent trending, and the board must decide whether to rebid or roll over the contract. To help with that decision the board authorized hiring a firm to manage transportation planning and the bidding process, citing the technical complexity of bids and evolving options such as electric buses.

Fund balance and purchases: the superintendent reported an unassigned fund balance of about 5.12 percent (above New York State Comptroller guidance of roughly 4 percent) and recommended continuing to appropriate reserves to smooth tax impacts. Staff discussed using BOCES for some tangible purchases to maximize aid in the next aid run.

Capital project timing: architects and financial advisers met with the district; staff said an eight-week state review is currently possible but that planning timelines remain fluid. Starting a capital project earlier could reduce escalation costs but could also change debt-service timing and affect exclusions used in the tax-cap calculation; staff asked financial advisers to analyze options and present recommendations.

Schedule and next steps: staff will return with a rollover budget at the Feb. 23 workshop (assumptions: current staffing and PD levels); draft 1 is expected March 9, draft 2 March 30, adoption April 22, and the formal budget hearing and mailed newsletter follow ahead of the March 19 vote (staff cautioned the state budget and aid runs sometimes arrive later than the April 1 target). The board will use updated state-aid figures, transportation projections and insurance-rate information as they refine the proposal.

"Right now based on our current calculation, we are allowed to go to our taxpayers with a 2.5 percent increase," the superintendent said, adding staff expect the number to come down. She emphasized that final levy decisions rest with the board and that staff will bring updates as state-aid and assessment information becomes available.

The board scheduled follow-up budget workshops and will deliberate whether adjustments to staffing, programming or capital timing are required once staff deliver updated revenue estimates and FTE projections.

Ending: staff will present a rollover budget at the next workshop and follow the planned draft timeline toward a final budget adoption and voter presentation.