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Three Village budget workshop projects $2.86 million gap as tax-cap could top 4%
Summary
District business official Jeff Carlson told the Three Village Central School District board that rising health and benefit costs, a proposed doubling of capital spending and mixed state-aid prospects leave a roughly $2.86 million shortfall; options include staffing changes, recruiting tuition students and seeking more state aid.
Jeff Carlson, who led the budget presentation, told the Three Village Central School District Board of Education that the district faces a roughly $2.86 million budget gap for the coming year.
Carlson reviewed the budget timeline and enrollment, noting the board's earlier plan to increase capital projects from $1.5 million to $3 million. He warned that combining that capital plan with the levy-growth and tax-base growth factors could push the district's tax-cap scenario to about 4.54% under current assumptions.
On state revenue, Carlson said the governor's executive budget proposes a 1% minimum increase in foundation aid, which he estimated at about $300,000 for Three Village. He said the district is building its budget on the conservative assumption that universal prekindergarten (UPK) aid will be zero because Three Village currently runs a half-day program and a previously granted waiver may not be renewed.
Health-insurance and retirement changes are driving much of next year's cost growth. Carlson said employee retirement system (ERS) contribution rates rose while teachers' retirement (TRS) rates fell, and that health-insurance costs alone could increase by more than $4.5 million.
On the expense side, the district projects savings from 21 teacher retirements (roughly $1.8 million) and from not replacing 11 of those positions (about $1.2 million). The business office also implemented a 25% reduction to many contracted-services and supplies budget codes across buildings, a move Carlson said will save about $3 million.
Using the governor's proposed state-aid numbers and assuming no UPK funding, Carlson said estimated revenues would be just under $246 million and that the remaining gap was approximately $2,860,000. He outlined the options to close that gap: further staffing reductions, administrative reconfiguration under negotiation, recruiting additional out-of-district tuition students for the district's academy program, or awaiting a possibly larger final state budget. If the budget were to fail and the district moved to contingency, Carlson warned, the result would be no tax-levy increase and roughly $8.1 million in additional cuts.
The board scheduled follow-up budget workshops on March 25 and April 15, with a public budget hearing on May 6 and the budget vote on May 19 at Melville High School. Carlson said the district will publicize early-voting and absentee options on the website and social channels.
