Hoosic Valley officials propose 8.5% tax-levy increase after budget workshop to shore up reserves

Business Manager Jody Burchin told the Hoosic Valley Central School District board at a budget workshop that the district's current expenditures total about $25,227,546 while projected revenues sit near $25,22,121, leaving a nominal deficit of $5,425.

Burchin reviewed a five-year long-range analysis, prepared with district staff, that projects revenues rising about $1.5 million while expenditures could climb roughly $6.1 million, widening an operating gap if no changes are made. "This is the long-range analysis to show the progression and to tell a story of where we're going to be in five years if we don't make some considerations," she said.

She told the board the district benefited in recent years from an unbudgeted, one-time refund of about $500,000 from its self-funded prescription plan but that revenue is not guaranteed next year. "We got lucky this year. We had a refund of $500,000," Burchin said, adding that without that refund the district will rely more heavily on appropriated fund balance and reserves.

Burchin also traced the district's tax-levy history to 2012-13 and said years of levying below the allowable cap have left roughly $18 million in potential taxes uncollected. "We actually have left $18 million in taxes that we did not tax," she said, urging the board to consider a plan to "rightsize" the levy over multiple years rather than rely on reserves.

Board members discussed options and trade-offs: smaller, steady increases that remain within or near the cap versus a one-time, larger increase that would close more of the gap but carries higher political risk and could require a supermajority if it exceeds the cap. Burchin ran live scenarios for 3%, 4%, 5% and higher levy paths and showed illustrative homeowner impacts (for example, an additional $43 on a $100,000 home for a 4% levy example).

After discussion, board members informally agreed to propose an 8.5% increase to the tax-levy for the 2026-27 budget as the initial public ask to begin closing the district's multi-year revenue shortfall. Staff said they will update the preliminary budget with that assumption, rework reserve use, and prepare communications and year-end reserve projections before a planned April board adoption of the expenditure budget and the formal May budget hearing.

Burchin emphasized that the long-range projection is a planning tool, not a final prediction: "The picture that we're seeing is... our revenue budget is stagnant. Our expenditure budget is going to grow," she said, adding that each year the district will revisit assumptions and aim to smooth increases to avoid sudden spikes.

The board did not record a formal motion or vote at the workshop; the 8.5% figure was adopted by consensus as the staff's recommended levy for the public proposal. Staff also noted outstanding state and pension variables (including pending legislative action on foundation aid and upcoming insurance premium notices) that could change the final levy request before publication and the public vote.

Next steps include staff delivering updated budget numbers to the full board, preparing messaging that explains the levy impact on homeowners and the district's spending-per-student context, and presenting year-end fund-balance projections at a future meeting.

The budget adoption by the board and the public budget hearing remain the formal steps; the workshop focused on policy and planning rather than taking a binding vote.