Superintendents outline school finances and say potential merger could bring $83.9 million in state aid

In a joint informational video, Dr. Karen Geelan, interim superintendent of Fort Plain Central School District, and Nick Fitzgerald, superintendent of Canajoharie Central School District, explained how New York State school funding works and why both districts are facing steep financial pressure.

The presenters said state aid is the primary revenue source for both districts—roughly 65–68 percent of annual revenue—supplemented by local property taxes (about 30–32 percent) and a small share of federal grants, mainly Title funding for students with disabilities and economically disadvantaged students. They noted many reimbursable categories—BOCES services, building projects and transportation—are paid the following year, with examples in the video of about 70–75 percent reimbursement for BOCES expenses and roughly 90 percent reimbursement for transportation and building projects.

The video warned that revenue growth is limited: foundation aid and local tax bases have risen only about 1–2 percent annually (the presenters gave rough dollar examples of $100,000–$200,000 in additional foundation aid and $75,000–$150,000 in additional tax revenue per district). At the same time, the districts’ largest cost drivers—salaries, health insurance and retirement systems (TRS and ERS)—are growing much faster, the presenters said, together accounting for about 65–70 percent of typical district budgets. They added debt service and BOCES services push the top six budget categories to roughly 80–85 percent of expenditures.

Using reserve funds and fund balance to fill recurring gaps was presented as unsustainable. The video explained that districts cannot raise additional revenue during a fiscal year, so reserves and contingency lines are necessary for cash flow and emergencies; regular reliance on reserves, they said, would prevent future reserve-building and indicate structural budget problems.

Citing a five‑year forecast prepared by consultant Dr. Rick Timms, the presenters said Canajoharie faces a projected budget gap of more than $5.2 million by 2031 and Fort Plain about $4.1 million. Without a merger, the video stated the communities would need tax increases in the neighborhood of 12–15 percent over the next few years to maintain current services; the alternative would be deep staffing and program cuts.

The video outlined a merger incentive from New York State that, according to the presenters, would guarantee $83.9 million in aid to the new district over 14 years. They said that incentive would allow immediate equalization of tax rates in the merged district, could lower taxes for some areas initially, and would increase building aid to as much as 95 percent for capital projects, reducing the local share of construction costs.

The presentation repeated that federal funding has decreased in recent years and noted an asserted $6.5 billion reduction in K‑12 federal funding projected in the 2027 federal budget (as stated in the video). The presenters also warned that changes to retirement policy (they referenced a possible repeal of a "Tier 6" retirement provision) could raise pension costs another 4–6 percent, further pressuring local budgets.

The video concluded by summarizing revenue and expense pressures, reiterating the possible fiscal outcomes if no change occurs, and inviting residents to contact district offices with questions. The presentation did not record any formal board actions or votes; it was an informational overview prepared for community outreach.