Saranac Lake school board outlines budget forecast that draws on roughly $2.5 million in reserves

Board Chair opened the March meeting and heard a detailed budget forecast from district finance staff that showed the district intends to use a significant portion of its unallocated fund balance to balance next year’s budget.

Staff member (the district finance presenter) said unallocated fund balance stood at about $3,997,000 as of June 3 and that the district anticipates using roughly $2.499 million of that to help balance the 2026–27 budget while leaving an estimated $1,000,000 as a year-end cushion. “We are anticipating using a lot of that 2.499, for next year’s, to balance next year’s budget,” the presenter said.

The presenter described the revenue side as tight after the district’s property tax cap was calculated at about 0.75%, which the presenter said allows roughly $189,000 of additional levy revenue. “So we can collect an additional $190,000 there,” the presenter said, and cautioned that state aid remains a projection tied to ongoing legislative negotiations.

Board members and staff discussed why districts maintain reserves and noted that reserves are typically used for unplanned or emergency costs that cannot be covered without voter approval. The presenter gave a practical example: when a bus was rendered undrivable after an accident, the district rented a bus rather than immediately replacing the vehicle because capital purchases would have required voter approval.

Board members asked whether repeated reliance on reserves is sustainable. One committee member asked about prior-year withdrawals and whether the district is replenishing fund balance. The presenter said the district used about $1.5 million this fiscal year and approximately $2,035,000 in the year before that, and described the current plan as a transitional budget tied to reconfiguration work and a pending superintendent change.

Staff also listed restricted reserve balances the district holds: a capital improvement reserve of $2,700,000; a transportation and maintenance equipment reserve of $2,200,000; and a repair reserve of $1,700,000. The presenter said the board does not plan to withdraw from those restricted reserves this year except from the transportation reserve when necessary to cover bus costs.

Cost pressures were cited as drivers of reserve use: staff reported a 22% increase in health insurance costs and noted rising energy and fuel expenses. The presenter said those combined pressures, together with the tax cap, limit the district’s ability to increase ongoing revenue.

The presenter characterized the proposal as an “honest, livable budget” that aims to leave the incoming superintendent with a workable starting point. The board did not take a final vote on the full budget at the meeting; staff said they will monitor how the state budget settles and make any adjustments as required before adoption.

The board heard multiple reports and committee updates after the budget discussion, and the meeting proceeded to several routine votes on separate resolutions.