Kingston board warns of $20.9M budget gap, staff to seek maximum tax levy
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Summary
District budget staff told the board the 2026–27 plan shows a $20.9 million gap driven by declining enrollment and reduced state reimbursements; staff said they will recommend levying the maximum allowable 4.4% tax cap to close the shortfall.
The Kingston City School District is facing a projected $20.9 million shortfall for 2026–27, district budget staff told the Board of Education on April 8.
A presenter for the district said the working budget is $249,500,000, current revenues are estimated at $242,300,000 and projected expenses near $263,000,000, leaving a gap of $20,900,000. The district’s calculated maximum allowable tax levy for 2026–27 is $130,877,575, a 4.4% increase over last year; staff said they will recommend levying the maximum allowable amount "out of necessity." (Presenter, first referenced in meeting materials.)
The presentation pointed to two primary drivers: falling enrollment and shrinking state reimbursements. District presenters reported a loss of 891 students since 2020 and said changes in foundation and expense-based aid have reduced the reimbursements the district receives for transportation, special-education placements and BOCES services.
"It truly is the perfect storm of circumstances coming together in this moment," the Presenter said, summarizing the combined effects of enrollment decline, aid reductions and rising costs.
Transportation and special-education costs were singled out as major pressure points. The board heard that transportation operates across a 98‑square‑mile district and that out‑of‑district special-education placements have risen substantially, increasing both service needs and net costs.
Superintendent (speaker 4) and staff described steps under consideration to narrow the gap, including reviewing contract terms, reallocating line items, reimagining service delivery, and strategic realignment of class sizes and school assignments. Staff reaffirmed commitments to retain small class sizes where feasible and to preserve programs such as bilingual elementary services and universal pre‑K.
Board members pressed staff on how market volatility and fuel costs were modeled. Staff replied that many transportation contracts have fuel components baked into the price and that some contracts lock in pricing, while interest rates and borrowing costs will affect capital project financing.
The board scheduled an additional budget workshop for the following week to dig deeper into assumptions and options, and staff reiterated that a formal levy decision will be considered at a later public meeting.
