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Port Jervis board hears budget update proposing 2% tax-levy increase to reduce deficit
Summary
At the March 9 Port Jervis City School District board meeting, the assistant superintendent for business presented a revised budget plan that would rely on a proposed 2% tax-levy increase, continued use of fund balance and contingent state aid to close a multi-million-dollar gap; public hearing and vote dates were announced.
The Port Jervis City School District on March 9 received a budget update from Assistant Superintendent for Business Jonathan outlining steps to close a projected deficit, including a proposed 2% tax-levy increase and continued limited use of fund balance.
Jonathan told the board the district trimmed a previously presented figure (quoted in the meeting as $107,487,286) and presented a revised budget figure shown in the presentation as roughly $106,250,000. To reduce the shortfall, he proposed using a combination of a 2% tax-levy increase, adjustments to the fund balance appropriation, and hoped-for increases in state foundation aid.
Why it matters: The board must adopt a proposed budget before the public hearing and final vote. Jonathan said a 2% levy would increase the district's total levy by roughly 2% but cautioned individual homeowner bills will vary because of local assessments and state equalization rates.
Key details
- Levy proposal and impact: Jonathan proposed a 2% tax-levy increase, telling the board, “if for every $1,000 you pay, it'll blow up $20,” while noting equalization and assessment differences mean taxpayers may see more or less than that amount on their bill. He said the district’s allowable increase is 3.3% without a supermajority.
- Fund balance and state aid: Jonathan outlined scenarios in which increases in foundation/state aid would reduce the district’s reliance on the fund balance; he said any state aid uptick would be applied to lower the fund-balance appropriation.
- Drivers of cost: He listed inflation, contractual obligations, transportation, special-education costs, debt service and a roughly 7% increase in health insurance premiums as pressure points in the budget.
- Timeline and next steps: Jonathan said the board expects to adopt a proposed budget at the next meeting (about one month away, as stated), scheduled a public budget hearing for May 5, voter registration on April 29 at the district office, and a budget vote and school board election on May 19 at two locations (the high school and HPD polling site).
Board context and reaction
Board members asked technical questions about equalization rates, local assessment timing and how those mechanisms can make the same levy produce different bills for homeowners in different municipalities. Jonathan repeatedly emphasized that the district collects 2% more revenue under a 2% levy but individual bills depend on assessors and state equalization adjustments.
What’s next
The board will consider Jonathan’s revised numbers at the upcoming meeting and is scheduled to adopt a proposed budget before the May 5 public hearing and the May 19 vote. The assistant superintendent said he expects to have additional state information to refine fund-balance reliance at the next meeting.
