West Islip board outlines $98.7M levy, taps reserves to shrink budget gap to $465,000

The West Islip Union Free School District presented a proposed tax levy of $98,700,000 for 2026–27 — a 2.5% increase — and reported a remaining budget shortfall of $465,000 after three draft budgets, expenditure reductions and reserve draws.

"The proposed tax levy for the 2627 school year is 98,700,000, a 2.5% increase for the current year," Miss White said in the district's budget presentation. She traced the gap from an initial draft of more than $8 million to the current figure after applying reserves and cuts.

Miss White told the board the district used $4.1 million of reserves in Draft 1, made more than $2 million in cuts in Draft 2 while increasing reserves used to $4.5 million, and in Draft 3 made another $1 million in cuts and slightly increased reserve use to reduce the gap to $465,000. She said the district remains hopeful for a prospective 2% state aid increase, which the district estimates would add about $265,000 in state aid if authorized.

The presentation emphasized that local revenue options are limited: the district said roughly 93% of its funding is effectively set by the state, with the tax levy representing about 68% and state aid about 25% of the district's revenue. Inflation and rising costs across utilities, supplies and insurance were cited as the largest drivers of the shortfall.

To manage the gap without immediate program cuts, officials described multiple measures including using a planned $4.5 million appropriation from restricted reserves, staffing adjustments through attrition (not filling some vacated custodial, maintenance, clerical and teaching positions), operational reductions, and modest increases or changes to user fees such as discontinuing district payment of IB and AP exam fees and adding participation fees for some summer programs.

The district reported the five restricted reserves totaled $18.8 million as of June 30, 2025, and said it appropriated $4.4 million from those reserves during the current year, estimating the restricted-reserve balance could decline to roughly $14.4 million by June 30, 2026. Miss White warned that some reserves will be drawn down substantially: the TRS reserve is projected to fall to about $66,000 and the workers' compensation reserve was described as effectively "wiped out" under the proposed appropriations.

Miss White said the district's options also include pursing additional revenue from tenant lease renegotiations; the board noted that piercing the tax levy cap would require a community supermajority vote and has not previously been used in the district.

Key dates announced: the board hopes to have a final proposed budget at the next work session on April 16, plans to adopt the budget April 21, will hold a public hearing May 5 and will host the district budget vote on May 19 from 7 a.m. to 9 p.m. in the high school gymnasium.

What happens next: the board is scheduled to review the final proposed budget at its April 16 work session and vote to adopt the budget on April 21. If state aid or other revenues change before adoption, the board may revisit the remaining gap.