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Averill Park district outlines 2025–26 budget with 3.99% levy under cap amid rising benefits, insurance and utility costs
Summary
District presenters described a proposed 5.42% budget increase for 2025–26 driven by higher employer retirement costs, rising health insurance and utilities; the board previously resolved to set the tax levy at 3.99% (under the cap) and the presentation detailed staffing changes, reserve use and the May 19 referendum logistics.
The Presenter opened the May 5 budget hearing for the Averill Park Central School District and said the proposed 2025–26 budget represents a 5.42% year‑to‑year increase, driven primarily by employer retirement contributions, rising health insurance costs and increased utility expenses.
Presenter said employer retirement obligations—participation in both the teacher retirement system (TRS) and the employee retirement system (ERS)—are set by the state and that a roughly 1 percentage‑point increase in employer rates would cost the district about $240,000. Health insurance increases and plan costs were cited as a major pressure; the Presenter said plan cost examples of about $42,000 and $16,000 depending on coverage, and that medical plan increases contribute more than $1,000,000 to the budget. Electricity costs have risen about 60% over three years, with an estimated current budget impact near $200,000.
The Presenter said projected year‑end expenses are close to 97% of budget (leaving roughly 3% in reserves) and warned that the district has increased the use of fund balance and reserves across cycles; if major unplanned expenses occur, it may be difficult to fully replenish reserves. Revenue projections are modestly higher—about a 1.4% uptick in state aid runs—leaving the district with an estimated half‑million dollars in projected year‑end margin under current assumptions.
On state aid, the Presenter reviewed long‑term changes in the revenue mix: in 2000 the district received roughly 60% of revenues from the state but by 2025 state aid covers about 36.5% while local taxpayers cover about 53%. The Presenter noted that foundation aid is the primary state aid source for the district and that the most recent runs show a 2.34% increase in foundation aid in the current update.
Discussing the tax cap, the Presenter reviewed past levy choices and said the board had previously decided to set the 2025–26 levy at 3.99%, which is under the maximum allowed by the cap but higher than recent years' practice. The Presenter offered a 10‑year illustration of money “left on the table” if the board went under the cap, noting the compounding effect of smaller levies over time.
The Presenter outlined several staffing adjustments linked to declining enrollment and attrition: one high‑school science position removed, two 0.5 FTE language positions phased, one literacy position at Algonquin and a clerical vacancy in the district office not being refilled. The Presenter stressed these were largely attrition‑driven decisions.
Presenter also described program priorities and capital impacts, including the capital project debt service that contributes significantly to the budget increase; the district expects a $1.5 million revenue increase tied to project and aid changes and emphasized that debt service was anticipated when voters approved prior propositions.
The hearing closed with logistical reminders: the district will hold the referendum on May 19 from 7 to 9 p.m. in the auxiliary gym; the Presenter invited follow‑up questions after the meeting or by email.
The hearing did not record a formal budget adoption vote; the session served as the public presentation and opportunity for board and community questions ahead of the referendum and any subsequent board actions.
