Board hears three FY26 budget options, directs staff to bring options 1 and 3 for first reading

The New York County Board of Trustees on Monday reviewed three draft FY26 budgets that staff said will require drawing on fund balance and directed staff to present two of those options for the first reading at the next meeting.

Presenter: “We budget a fund balance deficit of 527,000. . . . Our current projections project about a $1,500,000 deficit at the end of FY '26,” the presenter told the board as he walked through revenue and expense assumptions. He said the district closed FY25 with about $24.5 million in fund balance and currently projects roughly $23 million after adjustments.

Why it matters: Personnel costs make up more than 85% of the district budget, leaving limited flexibility. Board members and staff discussed mandated state changes to the teacher pay scale that staff estimate will cost the district roughly $1.5 million in mandated expenditures and shown scenarios that deliver different combinations of step increases, one-time bonuses and cost-of-living adjustments.

Revenue and cost drivers: The presenter said he raised the delinquent-tax projection to $650,000 and increased miscellaneous local revenue estimates by about $80,000, but cautioned state revenues are uncertain. “We are not gonna hit our budget mark for [motor-carrier reimbursement],” the presenter said, explaining state reimbursements for that line have fallen. He also warned a recent law reducing the watercraft tax rate will reduce collections by about $170,000 next year and exceed $300,000 in FY28 when fully realized.

Teacher pay options: The board reviewed three budget options. Option 1 does not include a full $2,000 increase on every teacher pay line but includes the proposed reorganization savings; Option 2 funds a full $2,000 per pay line and raised the deficit by about $600,000; Option 3 combines steps and a 1% cost-of-living increase and costs more than Option 2. “If we do the $2,000 to every [pay line], it cost us another $600,000,” the presenter said.

Use of fund balance and trade-offs: The presenter reminded the board that the district historically funds one‑time items such as the Christmas bonus from fund balance. “Those are all done out of fund balance,” he said. Board members emphasized the need to preserve a healthy fund-balance cushion and identified about $18 million as a threshold where they would consider more urgent measures such as preparing a tax-anticipation note.

Next steps: After discussion, members agreed staff should return for first reading with two options. The presenter said he would include the selected options in the board packet and on the PowerPoint so the public can review them in advance.

The board moved to executive session later in the meeting for employment recommendations and returned to accept hiring recommendations; the budget first reading is scheduled Monday when the selected options will be presented.