Chester Union Free School District hears 2026–27 budget overview from OU BOCES and district finance staff
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Summary
OU BOCES and district business officials presented the proposed 2026–27 administrative and undistributed budgets, citing a 1.7% administrative increase at BOCES, retiree health costs driving a large share of charges, and a $314,000 rise in district debt service tied to capital financing. The board is scheduled to consider adoption April 21.
Mark Coleman, assistant superintendent for finance at OU BOCES, told the Chester Union Free School District board that this year’s BOCES administrative budget is “a little boring,” a deliberate choice in budget planning, and that the administrative portion is up about 1.7 percent. He said retiree health insurance represents a large share of certain costs: “69% of our chart of our budget is actually retiree health insurance costs,” and provided program figures: “We have 583 retirees. There's 20 new retirees this year that are anticipated, and we lost 7 retirees over the past year.”
Coleman outlined revenue offsets the BOCES applied to lower charges to component districts, including $250,000 in interest and earnings applied up front and roughly $1,050,000 in administrative fees charged to noncomponent districts. He also described capital‑project accounting: the district’s capital project bond figures were finalized, producing a fixed capital charge cited as 12,000,008, and he explained a temporary warehouse lease to pre‑purchase HVAC equipment that he estimated has saved about $1.2 million on procurement and tariff exposure.
Nicole D'Souza, assistant superintendent for business, reviewed the district’s undistributed expenses and central services for 2026–27. She said benefits are “essentially flat with less than a point 2% change” as rising health‑insurance costs are largely offset by a lower Teachers’ Retirement System employer rate. D'Souza told the board that debt service is up by $314,000 due to capital‑project financing and that an interfund transfer increased by $10,000 to cover required summer special‑education costs.
Superintendent O'Hara framed the district’s proposed 2026–27 priorities as strengthening academic excellence, advancing college and career pathways, and optimizing infrastructure for safety, security, and sustainability. O'Hara and D'Souza reiterated that state budget uncertainty remains an important variable: the state had not enacted its 2026–27 budget and the district is currently in a ‘safe, harmless’ position that caps foundation aid growth under some proposals. D'Souza urged the board to note the calendar for next steps: a proposed adoption is expected at the board’s April 21 meeting, a public budget hearing is scheduled for May 6, and the budget vote is set for May 19.
What happened next: the board did not take a final vote on the district’s budget at this meeting; staff asked the board to review the materials posted online and prepare to consider adoption at the April 21 meeting. OU BOCES’ administrative budget will be subject to its own cooperative vote on April 21 at the BOCES annual meeting.
Why it matters: administrative and undistributed expenses determine how much of the district’s operating costs are allocated to schools and services. With large proportions of some charges driven by retiree health and with the state budget unresolved, district leaders said they are managing modest increases to limit impacts on classroom programs.
