Trustees authorize larger deficit borrowing, unveil staffing cuts to address $8.1M shortfall

The South Country Central School District Board of Education on March 25 voted to expand its deficit-borrowing authorization from $12 million to $15 million and heard a detailed staffing and budget presentation that administration says is necessary to close a multi-year shortfall.

Superintendent Mr. Santana told the board the slides presented are "not a set of choices we want to make. It's a set of decisions that we have to make," citing declining enrollment and rising mandatory costs in special education, employee health care and transportation as drivers of the district's fiscal gap. "At this point in time for the 2025-26 year . . . we have a cumulative deficit of about $8.1 million," the administration said.

Board members passed the resolution to increase the special-act borrowing authorization and extend the period for borrowing to June 30, 2027. Mr. Belmont, presenting the financing options, said the added authority is intended to give the district flexibility: "This is just the authority to give us the runway, if you will, to borrow up to that amount of money. We will only be borrowing what we need." The resolution was described in the meeting as unanimously approved.

The administration's staffing analysis, delivered by Mr. Huntsman, outlined projected reductions that together amount to approximately 59.5 full-time-equivalent positions for 2026-27 (27.5 identified as expected attrition and 32 identified as excess positions), with roughly 61.2 FTE cited elsewhere in slides reflecting different counting conventions. The plan proposes consolidations and increases in class sizes in some grade levels; the district said it plans to preserve core programs where possible and to base some elective offerings on minimum student-request thresholds (20 students for an elective to run; AP/college-level offerings to run with at least 15 requests).

Mr. Belmont and staff also identified targeted non-staff reductions and cash-flow measures: eliminating four late high-school buses at the 2:30 slot (saving about $416,000 annually), identifying approximately $577,000 in other reductions in the current draft, reviewing roughly $14.5 million in contracts for special-services (Boces/BOSIE-type services) and pursuing state-level options including a lottery-aid advance or one-time "bullet aid." The business official warned that any state advances or special-act financing will carry reporting and oversight requirements.

Administration slides emphasized that about 82% of district spending is mandated (salaries, benefits, special-education obligations), leaving roughly 18% discretionary and only 5-8% considered truly adjustable, numbers administration tied to the need for hard choices.

Several board members and the administration repeatedly emphasized that borrowing is an authorization, not an immediate draw: "If we do not require the $15 million, we will only borrow what we need," Mr. Belmont said. He also noted the administration is seeking a shorter-than-normal repayment schedule where possible to minimize future years' debt service.

The board scheduled additional public budget forums for April 1 and April 15 to gather community input ahead of final budget adoption.

What happens next: the board passed the resolution expanding deficit-borrowing authority and will continue the budget development process; the administration said more reductions or adjustments may follow as projections and state actions evolve.