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Binghamton school leaders propose 1.98% tax levy, plan staff reductions amid rising health costs
Summary
District finance staff presented a 2026–27 budget that proposes a 1.98% tax levy, uses reserves to balance near‑term gaps and would cut roughly 45.6 positions alongside $570,000 in operating reductions; administrators warned a 17% rise in health insurance premiums is a major driver of the shortfall.
Binghamton City School District administrators on March 17 presented a preliminary 2026–27 budget that proposes a 1.98% tax levy and a series of spending reductions to close a multi‑million‑dollar gap.
The district said the proposed levy arrives from a combination of allowable growth factors, PILOT (payments in lieu of taxes) impacts and an effort to preserve future levy capacity. “So this slide, you'll see the anticipated revenue for next year,” an administrator said while outlining revenue streams including PILOTs, interest, BOCES aid and appropriated reserves.
Why it matters: rising health and transportation costs are the principal pressures. The presentation said the district projects a 17% increase in health‑insurance costs driven by recent high‑cost claims in the self‑insured plan: “That is going to be increasing next year at 17%,” the presenter said. To offset those increases and declining enrollment, the budget proposes strategic reductions.
What’s proposed: the administration listed roughly $570,000 in near‑term operating reductions (about $150,000 from operations and $370,000 from contract services) and a planned elimination of approximately 45.6 positions districtwide. Specific cuts cited include elementary classroom reductions tied to Roosevelt building redistribution, several secondary instructional positions, shared fine‑arts positions, some special‑education roles and unfilled teaching‑assistant and clerical positions. The presentation described role restructuring (for example, shifting one coordinator role to a dean of students and moving some district technology functions to BOCES) as part of the savings plan.
State aid uncertainty: finance staff explained that declining enrollment reduces calculated foundation aid and that many districts fall into a 'hold harmless' position under the governor’s proposal, which would guarantee at least a 1% minimum increase. The district noted a negotiated 2% minimum would generate an estimated $720,000 more in foundation aid and proposed placing any additional state aid into reserves to reduce the planned draw on appropriated fund balance.
Board response and next steps: board members asked for clearer historical levy tables for public comparisons and pressed staff on measurement of student progress tied to program reductions. Administrators said they will provide more detail in upcoming budget hearings and that the district anticipates adopting a tax levy proposal for public notice in April and final adoption later in the spring budget cycle.
Financial highlights and clarifying figures disclosed at the meeting: - Proposed preliminary tax levy increase: 1.98% (presented as the district's allowable maximum). - Operating reductions identified: approximately $570,000 total ($150,000 operations; $370,000 contract services). - Planned position reductions: approximately 45.6 full‑time equivalent positions (across elementary, secondary and district roles). - Projected health‑insurance increase: ~17% next year. - If the state approves a 2% foundation‑aid floor, the district estimated an additional $720,000 in revenue.
The board is expected to discuss and refine the proposal at follow‑up meetings before any formal adoption.
