Saugerties board adopts $83.76 million budget, taps $4.5M in reserves to preserve student programs

The Saugerties Central School District Board of Education adopted a $83,758,576 budget for the 2026–2027 school year after a presentation from district leaders who said the plan preserves all student programs while closing a roughly $4.5 million gap.

District presenters framed the proposal around student needs and long-term financial stability. “This budget preserves all student programs and opportunities,” said Dr. Warlick, who led the presentation and reviewed district demographics, noting 2,463 students, 613 students with disabilities, 69 English-language learners and 1,027 students classified as low socioeconomic.

Why it matters: The board chose to meet rising costs without cutting classroom offerings, citing mandatory drivers such as contractual salaries, health benefits, transportation and special-education expenses. To bridge the shortfall, administrators proposed a mix of attrition-driven staffing reductions, efficiency measures and one-time use of reserves.

How the gap is closed: Administrators proposed using roughly $4.4–$4.5 million in one-time funds — including $1.1 million from the employee retirement (ERS) reserve, $2.0 million from the teacher retirement (TRS) reserve and about $1.3 million from the unassigned fund balance — and additional line-item reductions. The district has approximately $12 million in designated reserves ($14.4 million when combined with some fund balance items), the presentation said.

Student supports and special education: Board members were repeatedly told the district would prioritize keeping students in-district where possible. Ms. Churchill, a district administrator, said placing a high-needs student out of district can cost “upwards of $100,000” annually when tuition and therapy are included, arguing that adding in-district placements and staff is both educationally preferable and cost-effective.

Security and staffing changes: To reduce costs while maintaining safety, administrators proposed cutting armed security from four positions to one (retaining the armed guard at the secondary campus), adding two school resource officers and hiring three door monitors to staff locked vestibules. “The safest school is a locked school,” Dr. Warlick said, describing the secured entry systems and Raptor visitor screening as key safeguards.

Other cost drivers and potential savings: The presentation called out sharp market increases — property insurance up about 52%, BOCES costs up roughly 15% and transportation rising about 13% — and identified transportation as a major budget item (presenters cited a $6 million figure). The administration flagged a transportation opt‑out/opt‑in survey showing about 69% of families rely on buses and said conservative route changes could yield significant savings after further study.

Capital and facilities: The proposed budget includes the district’s annual $100,000 Smart Schools Bond Act / capital outlay allowance for small projects and discussed longer-term capital priorities — including Riccardi road improvements, ADA work and roof or rooftop-unit replacements — as possible future referendum items (a potential capital vote in December 2027 was mentioned).

BOCES and insurance procurement: The board reviewed a short Ulster BOCES video outlining the county BOCES administrative budget and considered vendor recommendations from a recent RFP for the district’s insurance program. Administrators said they received four proposals and recommended Marshall & Sterling as the recommended carrier/broker; the consent agenda including the carrier selection was approved in open session.

Board action: After returning from executive session to discuss legal-counsel selection, the board adopted the 2026–2027 budget by roll call. Dr. Haas moved the resolution; Ms. Vermilya seconded. During roll call, all trustees present voted yes: Christine Bilotta; Gideon Emerson Hall; Michelle Vermilya; Steven Myers Zaretsky; Carol Calder; Michael Meyer; Jeffrey Razzi; and Timothy Wells. The resolution passed.

What comes next: The district scheduled a public budget hearing on May 5, the budget vote at the junior high on May 19 and acceptance of results on May 26. Board members asked administration to provide ongoing fiscal reporting and a five‑year financial plan in future meetings to track the assumptions underlying the current package.

Votes at a glance: The board approved the recommended insurance carrier and other consent items in the F1–F5 motion, and it approved the budget resolution adopting $83,758,576 by unanimous roll-call vote.

The meeting adjourned; the district will present further details and follow-up items at upcoming meetings.