Salem Central School District presents draft 2026–27 budget; staff recommend using ERS reserve to close ~$400K gap

Salem Central School District officials presented a draft 2026–27 budget at a public workshop, laying out program, administrative and capital spending and recommending the board use $350,000 from the district's ERS pension reserve and $46,000 of appropriated fund balance to bridge an estimated budget gap just under $400,000.

Bill Brown, the district's business official, said the program budget is the largest portion of the proposed plan because it covers teachers, transportation and employee benefits. "The program budget is the largest of the three because it includes so many things that the students are in contact with every day," Brown said, pointing to instructional staff, bus drivers and benefits as primary cost drivers.

The draft keeps current staff positions, adds a second full-day prekindergarten classroom and teacher, preserves a recently added English teacher, and adds five career-and-technical-education (CTE) seats (increasing CTE enrollment from 28 to a projected 33). Brown also noted new regents lab requirements that will require additional science lab work next year and maintained the student computer replacement plan.

Officials explained revenue and spending assumptions that shape the draft. The presenters said they increased some textbook, library and technology expenditures to maximize state aid following a transition away from ARP and Smart Schools grant spending. Brown said projected medical insurance premiums are up about 4.7% while the district's TRS teacher retirement contribution drops from 10.11% to 8.75%, which partly offsets cost pressure.

On transportation, the draft proposes replacing two older vans (approximately $100,000 for the pair) and noted that buying buses with serial bonding can postpone levy impact this year, while leasing buses would raise the tax-levy pressure immediately.

The presentation included an explainer video and slides describing New York State's tax-levy limit formula; presenters emphasized that the often-cited "2% cap" is one element of a multi-step formula and not an absolute cap on taxpayers' bills. Based on current calculations and exclusions, staff said the district's allowable levy figure for the coming year is about 2.65%.

Staff projected total proposed expenses of about $17,557,000 against projected New York State and local revenues of roughly $17,161,000, creating a gap just under $400,000. To cover that shortfall, Brown recommended using $350,000 of the ERS reserve (currently described in the presentation as roughly $900,000) and $46,000 of appropriated fund balance. He said the ERS reserve has not been used since 2019 and that using a portion of it now would reduce the need to deplete general fund balance while preserving the board's option to replenish reserves in future favorable years.

Brown also explained the procedural steps required to move reserve funds: the district must post public notice and the board must vote to transfer reserve money at an upcoming meeting, typically timed with payment of the ERS bill.

No formal budget vote occurred at the workshop. Presenters said they will double-check BOCES/CTE service agreements that may slightly change totals and will present a more summative long-range analysis at a follow-up meeting scheduled for early April before presenting a final budget for board adoption.

The workshop concluded with board members praising the clarity of the presentation and highlighting the district's stated priorities: retaining staff, expanding prekindergarten access, and maximizing state aid opportunities.