South Country board hears options to close $8.7 million shortfall; trustees warned of steep cuts if state help fails

The South Country Central School District’s board received a condensed budget briefing Tuesday that framed an $8.7 million multi‑year shortfall and outlined three principal ways to cover the gap: special‑act legislation to authorize long‑term deficit financing, short‑term borrowing (tax anticipation or deficit notes) for cash flow, or deep program and staff cuts that would bring the levy under the state cap.

District presenters told the board they had identified more than $8 million of reductions so far and were trying to preserve classroom programs and staff. The presentation included a draft‑five budget of $150.5 million (a 2.28% spending increase) that would require a proposed tax levy increase of about 13.45% unless outside funding arrives. Presenters described a separate transportation referendum that, if approved by voters, could reduce the effective levy to about 12.19%.

Why it matters: Board members were told the single most reliable way to eliminate the 2025–26 deficit without severe program cuts is legislation authorizing the district to borrow and amortize the deficit over multiple years. Officials said the state had been engaged and that an advance of up to $7 million of general aid was promising as a cash‑flow tool but not guaranteed; until the state budget includes authorization the district cannot rely on those funds.

What administrators told the board: The finance presenter emphasized the tradeoffs of short‑term borrowing, describing revenue‑anticipation notes and deficit notes as mechanisms that address immediate cash needs but shift liabilities into future years. “Those options may get us through 2025–26,” the presenter said, “but they move that payment into 2027–28 — we don’t want to kick the can down the road.” Board members were also shown scenarios that would require an additional $5.67 million in cuts to reach a tax‑cap level of roughly 5.67% below the proposed levy.

Board questions focused on contingency plans and timing. Trustees pressed administration for more detailed personnel lists and clear explanations of recent equipment purchases made during periods of spending controls. Several members said draft materials were posted to the public and the board with shorter lead time than required, raising open‑meetings concerns.

Public comment and exit: During public comment, dozens of residents and staff urged the board to avoid cuts that would directly affect classroom offerings and extracurriculars. Several speakers asked for release of a completed forensic audit and for clearer accounting of prior overspending before asking voters to approve a higher tax levy.

What happens next: The board must adopt an initial budget this coming Wednesday; administrators said they will continue to pursue special‑act relief and state aid advances while preparing contingency cuts in the event the state or legislation does not materialize.