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District finance official says using $2 million ERS reserve narrows 2026–27 deficit to $2 million
Summary
The district’s finance presenter reported a narrowed deficit, proposed using $2,000,000 of ERS reserve as one‑time revenue, previewed a bus bond with modest vehicle cost increases and estimated a $169 tax impact on a $200,000 home if current figures hold.
Don Keegan, a district finance presenter, told the North Syracuse Central School District board the district has narrowed its projected deficit for 2026–27 to about $2 million after a series of adjustments and one‑time moves.
Keegan said the administration proposes using $2,000,000 from the district’s Employees’ Retirement System (ERS) reserve as a onetime revenue source to help close the gap. "One of the things that we we realize is that we're still in transition ... we would once again use, $2,000,000 of our ERS reserve," Keegan said, adding the sum would come off the balance sheet and should not be treated as recurring revenue.
Keegan warned the approach reduces reserves: he projected the ERS reserve balance would fall to about $594,000 if the $2 million transfer is used. He also said the administration does not expect an increase in state aid when the budget is finalized and is relying on the governor’s proposed numbers for planning.
On the tax side, Keegan estimated the school property tax increase under the current model would be about $169 for a home assessed at $200,000. He described the ERS use and other adjustments as part of a broader effort that includes rightsizing staff through retirements and modest reductions in salaries and wages; he said roughly nine positions were candidates for not being refilled.
Keegan reviewed other budget drivers: an increase in BOCES costs for additional services, anticipated savings in health benefits based on updated projections, a TRS (Teachers' Retirement System) contribution drop from 9.59% toward a projected 8.24% rate next year, and vehicle procurement costs. He said vehicle quotes show roughly a 4% increase in bus costs and that an extended warranty could add about $4,000 per bus.
The presentation included a preview of a bus bond proposition and procedural milestones: Keegan said the board will receive a revised budget update on March 23 and that the board hopes to adopt the budget at its April meeting to prepare for the subsequent budget hearing and vote.
Board members thanked Keegan for the update and raised concerns about inflationary pressures, fuel price volatility and the district’s population needs. One member noted the district serves economically vulnerable neighborhoods and warned rising costs for fuel, food and housing will affect families and likely budget pressures going forward.
The board did not take a final vote on a budget document at this meeting; Keegan said more information and final numbers would be presented at the next meeting.
