Batavia board reviews 2026–27 draft budget showing $1.45 million gap; 2% levy proposed

Administrators for the Batavia City School District presented a second draft of the 2026–27 general‑fund budget at the board meeting, saying the plan currently shows about $66.8 million in proposed expenditures, roughly $65.3 million in projected revenue and a development‑stage gap of approximately $1.45 million.

Mr. Lang, who led the presentation, said the draft uses a 2% tax‑levy increase as a placeholder — generating about $415,000 — while noting the state tax‑cap calculation would allow a maximum levy increase of 2.8% (about $583,194). He urged the board to consider three primary levers to close the gap: raising the levy (within the cap), using appropriated fund balance or reserves, or identifying expenditure reductions.

The presentation highlighted several revenue and expense drivers. State aid remains the district’s largest revenue source (over 60% of total revenue), and Mr. Lang projected a 2.9% increase in foundation aid and a roughly $720,000 increase in building aid related to recent capital projects. Local revenues such as pilot payments, interest and utility tax receipts were forecast to be flat or slightly lower.

On the expenditure side, Mr. Lang warned of two major pressures: a healthcare‑plan rate increase he described as 30% for the 2026–27 school year and rising special‑education outplacement tuition. He said outplacement tuition can range substantially and that a single outplacement can cost the district tens of thousands of dollars annually; the draft adds contingency to account for potential placements. Administrators also built budget contingencies for potential collective bargaining settlements across three bargaining units and said an earlier proposal to add 12 FTEs has been removed from this draft (no net increase in instructional staff in the current version).

Mr. Lang said the draft proposes using $2.5 million of appropriated fund balance — about 3.75% of the general fund — and tapping unemployment and retirement reserves. He cautioned that reliance on reserves should be limited and that any withdrawals should be replenished from future surpluses to avoid unsustainable depletion.

Board members asked for clearer public comparisons and requested a workshop slide showing levy impacts per $100,000 of assessed value and projecting assessment/equalization uncertainties. Mr. Lang agreed to prepare those examples and to continue reviewing revenue and expenditure options before the board’s March and April budget milestones.

The administration said the next public presentations will aim for a more final draft in March with board adoption planned for April and a subsequent budget vote and Board of Education election to follow.