Business office outlines reserves and capital plan; board debates levy scenarios amid electric‑bus concerns
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Summary
Assistant Superintendent for Business presented the business & transportation budgets, projected higher health/insurance and TAN borrowing, and a $63M five‑year capital plan; board members questioned a state electric‑bus mandate’s cost and discussed levy scenarios to present to voters.
The business office reviewed the district's business and transportation budgets and brought a five‑year capital plan and reserve‑use options to the board.
Assistant Superintendent for Business (speaker S2) said the business office projects a modest operating increase (1.6% cited for the department) but noted significant drivers across the budget: a health‑insurance estimate increase (about $730,000, an 8% assumption), several insurance lines not yet priced (estimated 14% increase), and retirement contribution adjustments (TRS projected to fall from 9.59% to 8.24%). He said the district borrowed about $10 million via a tax anticipation note (TAN) this year and expects to need about $12 million next year.
On transportation, S2 said transportation comprises 7.45% of the overall budget with a budget‑to‑budget increase of 7.69%, largely driven by contractual obligations (the Huntington Coach contract will increase approximately 5% in year three). "Transportation is a very large part of our budget. It is 7.45% of the overall budget," S2 said.
Electric bus mandate: Board members raised questions about the New York State electric‑bus mandate and whether a waiver might apply. A board member asked whether the district could seek a waiver; S2 said waivers typically apply to districts that operate their own fleet and noted the district contracts with Huntington Coach. Board members and public commenters warned about depot infrastructure costs and maintenance challenges for electric buses and urged early planning and engagement with local and state officials.
Capital planning and reserves: S2 reviewed the revised building condition survey and Mark Design Studios' five‑year capital plan, which totaled roughly $63 million. He recommended several reserve uses as options for the upcoming budget year (examples cited in the presentation included transfers from accrued liability and retirement reserves and a suggestion to consider up to about $1.2 million from fund balance and $2.46 million from appropriation reserve as one option to augment revenues). He also proposed reinstating a separate purchasing agent role to centralize procurement and compliance.
Tax‑levy scenarios: Board members debated presenting multiple levy iterations to the public. Several breakpoints were suggested for staff to model — examples included 1.25%, 1.75%, 1.95% and a range up to 2.5% — with the idea of producing three to five budget iterations to inform a public decision ahead of the April adoption deadline.
Next steps: staff will produce budget iterations and cut lists by levy scenario, continue capital planning work and monitor external mandates such as the electric‑bus rule as contract and infrastructure implications become clearer.
