001Good evening, ladies and gentlemen. Tonight is a budget meeting. It is roughly about, I believe, the fifth or sixth budget meeting of our process. Uh, as tonight is a budget meeting. You'll notice that Mr. Christmas, our board president, is away for family business at this point and our vice president, Miss Susan Lvarski, is going to step in and lead us through the agenda. But at this time, I would like everyone to rise for the pledge of allegiance. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Yeah, >> welcome to our um budget development meeting tonight, April 16th. And I'm turning the presentation over to Dr. Douglas. >> As usual, we're waiting for the
002PowerPoint to load up, but it will be up there. Uh ladies and gentlemen of the public that are viewing tonight as well as members of the board of education. Uh we've had several meetings and we have got come here tonight with the direction from the board at the last meeting about trying to balance the budget. We were hopeful that the state would have a budget but unfortunately there is a lot of non-talking going on at the state level. There is almost a 0% chance it will be settled by next Tuesday is what we're being told as today they left Albany and there is no agreement. So we have had to do our own adjustments to plan for the worst case scenario and we've been through this before and we will take you through this. I
003will come back on the summary, but we have the budget resolved and I'm going to turn it over to our assistant superintendent for business, Miss Katie Bazetti, at this point and I'll do the summary and finalization of what we need from the board. >> Hey, good evening. Uh, so yes, as Dr. Douglas has mentioned, we have no final state budget. Um, there is an extension until Monday. Um but again um no hope of really anything happening um with that extension. Um so we went ahead with what we what with with what we could work with. Um so the change for state aid that we could make at this time was what we talked about last week um is the change in the Boseies aid. There were the three areas that um are new to Boseies
004that were able to uh get Bosey's aid on. the summer learning academy program, our sports officials, and a portion of the teacher salaries for those that teach our ACE courses. again presentation. Uh so the summary of budgeted revenues um again the change in the state aid relates to the increase in the Bose aid. Um because we don't have a final state budget, we had to look at some other avenues um to balance the budget. One of those avenues was looking at our reserve balances. Um we do talk about what's what's prudent and what's um a safe and comfortable amount to use. We did start the cycle this year using 500,000 of our DRS reserve. uh looking at our balances um of what we have this year um and what we had funded in this past
005year, we were comfortable increasing it at this time by an additional $250,000 uh for a total ERS use of uh $750,000. And we also updated the calculation for the um overhead cost from the school lunch fund uh for an increase for that purpose of $21,000. So that brought our total revenue up to $112 million. Uh total change in revenue over prior year 6.95%. Expense budget. Uh these are the similar areas that we um have been working on over the course of the budget. Um so we continue to make adjustments in the areas of salaries benefits and the other miscellaneous items supplies contractional and equipment. Uh so based on changes made in those areas, we were able to make reductions in the amount of $170 uh,000, which balances against our revenue of $112,000 of budgeted expenditures,
0066.95. This budget includes all the priorities that we brought to the board at the beginning of the uh budget development season. The increase in the health claims, the three assistant principles, the two uh replacement trucks, increase to the laptop replacement cycle, and the two floating bus monitors. Pending items that we talked about the last time that we are going to continue to review. The last three are checkarked um that I've already addressed. Um, again, the final state budget, um, still in limbo. Um, when the final state budget appears, um, we're hoping to see, um, some additional foundation aid, and we're hoping to see, um, an increase in the UPK allocation per student. Um, that seems to be popular across all chambers of the state government. Um so likely we'll see those changes come after the
007budget is adopted by the board next week. So they'll the the additional state money will be considered surplus um when it's received um after the fact. So we see our revenue reports next year. You'll see it as excess revenue. um it'll be used to support um our healthcare costs most likely as we can continue to see those costs rise um and to support our our reserve use. So um since it comes in after the fact and it's not specifically budgeted, it'll go into our fund balance calculation at the end of the year and hopefully we'll have a surplus that we can use to replenish our reserves. This is a summary of our reserve balances um to date um as of March 31st and projected through the end of the fiscal year. Um ERS um currently
008has a balance of uh just around $4 million. Recall at the end of this past fiscal year, we were fortunate enough to put $2.7 million back into this reserve um because we had a strong year end. Uh we are proposing taking $750,000 out of this reserve um to support the budget at this time because of the lack of state information at this time. Um with the $4 million balance, we we do feel okay taking that amount of money out. Um the taxert reserve um remains at 310. There is a settlement that um is going to the board next week for approval. So that amount has been removed from the projected balance. The employee benefits acrewed liability reserve. Uh we did appropriate 200,000 uh for this year's budget. That amount has not been taken out yet
009because that amount will not be calculated until June. we can only use what we need. So, we don't pull out the the actual amount until until June when that figure is calculated. Uh capital reserve, that's separate. That's what we're holding aside um for potential future referendum. And the debt service fund is the money we use to um bring down the tax levy percentage. This year we allocated 1.3 million our towards that deduction and that amount has already been um reduced. Um the 630 projected balance does include all projected interest that we're anticipating to get from investments. Currently we have $8 million um invested from all of our reserve balances. We had 5 million um returning in June and 3 million during May. So, as you can see from earlier discussions, we weren't planning on utilizing
010additional reserves, but our reserves are strengthening. That's what we said. Two to four years, we're near three. You're seeing that straining. But because the state did not get off the bubble in time and get their budget done, we have to estimate. So for us, that's our calculation and why we chose to do what we did by recommending some more research because we also have a high confidence that it will return once the budget's done and replace that if we need it or be used as surplus. So ultimately our job is to balance the budget and that's what we did with the board with um the resources we have because now we're past the April 1st date. We know our sections for next year. We know we have more than enough seats in all grade levels.
011So we've set our sectioning levels. That's where uh earlier we saw livelihood and that is something we get the question about. We have retirements. We have positions that come open and even between now and August we usually have positions that come open. So we have not lost any of our staff that we did not intend to not have here for next year even with the section counts because where we've lost some sections sometimes we have to put a section at another one such as the intermediate but that is the normal operations of what we've done from year to year. We have stayed staff strong and we've stayed programmatically strong and we are strengthening our position as well as our reserve position. And on top of it, what's left? You can see additional state aid and
012budget we can't anticipate. So, we're at a final point. We know our tax levy is at the 2% which is 4.91. Really, what we need to know is is the board okay first with the budget and any questions on that? And I just need a thumbs up if you're okay because this is what you said. If we could get to we were okay. Are we still okay with what's been presented? Thumbs up, thumbs down. Question. Go ahead. >> Thank you. Um just two questions. So with the salaries, you mentioned there's been no livelihood um affected by it, which is fantastic. And you just mentioned there's been no programs reductions by it. >> That were aware. Okay. So, last year we did cut Spanish from seventh grade. >> Yes. >> Is there some Is there a
013plan at all to bring that back? >> Okay. Thank you. >> They have one more. Sorry. >> Sure. >> Sorry. Um and then because that transportation truck is no new money added for this purchase, should we remove it from that expense budget includes? because it can be deceiving that we're adding that additional 80,000. >> We struggle with that just because of the fact we're trying to be transparent. We're purchasing it. If we remove it, then we buy two trucks and people see us only with one, they'll say you might. >> Okay. >> No, that's fine. I just wanted to make sure that >> Okay. Thank you. Okay. >> Um I guess are the classroom sections that are being reviewed or removed are they through all the grades of the school >> that contractual requirements or
014below. >> Okay. And what happens if we have to add a section because the enrollment increases? >> If we had to add section, we would have to do that within budget. But at this point, we have enough seats and the flexibility to add many students at any rate level and still address that without adding the section. >> Okay. >> Very good question. >> Um I was curious to know where where your confidence comes from when it comes to the state. um hoping that the funding comes through that is appropriate for what we need for our school district to be uh uh to run effectively. Where does this confidence come from from your you and your team? I said on the state superintendent's legislative uh walk. Okay. We also work with the big fives. We also
015work with the educational conference board which is NISA. It's sis. It's NISBA. It's NIScus. It's ADA. It's a regular lobby. There has been hardly any discussion on education aid. It's not even a factor in their discussions. high probability is everybody came forward with pretty much virtually the same thing especially on prek which has been a state initiative. Now they're actually putting money towards it for us going from 4,000 to 10,000 for 136 kids that's a lot of adjustment. So that's where the confidence comes from and on top of it uh we already know the least amount is from the governor's proposal. We're being told that no matter what there's schools that are being harmed, so they're going to have to change that. And usually if they go to 2%, we will see something. I'm expecting
016maybe 50 to 70,000 at the most. But last year, that's what I expected. We got 270,000. So that's where that confidence comes from. But because they aren't talking about it and they aren't even using it as a pawn, they're really focused on New York City high uh wage earners. now like announcement yesterday about high second home loans being the area, but the governor's also saying she's not going to tax the rich. Uh so that's where the focus is and that's climate. It's not on education for the first time in probably a good two or three decades. Usually we're the sticking point. There has been no fight on initiations. What a different position we're in this year, right? It's so nice to see. Thank you. Um I understand that we had to use additional reserves. Um
017I understand that. I just need to speak it through and have you nod your head. Yes. that when I if things for prek come through, those additional funds will be used to reset the reserve to build up the reserve again or where do those funds go? >> We have to use the reserve, >> right? That's why we felt comfortable enough here. If they don't come, we still felt strong enough in our reserves that we could do that even if the state said, "Nope, Zill's not." >> Okay, that was my assumption. I just needed to talk it through and have you shake your head to say yes, that will be replenished when if uh UPK comes through. Thank you. Great job. You know, thank you. Is it's nice to be in, you know, definitely in much
018more comfortable position than we were last year. Um, and you know, if if Katie, if you feel comfortable with the reserves than I feel comfortable with the reserves because I know you're always very cautious and and conservative about it. Um, well, no, you you are, but Katie is very But I um I agree and I and it's it's nice to know though that if that extra money from the state that we do have a plan that that's that it would go into replenish because I >> exactly >> Right. But we >> Right. Right. Um, and I'm happy that we're able to add in the things that, you know, we, you know, some of the things that we had wanted to add in last year that we couldn't and we're able to add those in. So,
019I think that's great. Um, I'm assuming when we do this presentation next week or at least when we do the um the the community what I forget what the public hearing, sorry, you're going to do the chart that shows the tax levy and tax rate chart. >> Right. Right. But I just >> Right. I just want to make sure because I think that's that's also very powerful to look at the history and kind of look at even though it's always an estimate. Right. But okay. Okay. This is moreformational than anything. um because I I think it'll come up over and over again about the decision we made last year about the Spanish program and what we did there. So, as I recall, the issue was we had a Spanish teacher that was uh a French
020teacher that was duly certified and they could have shifted into Spanish and we could have maintained the Spanish program as it existed and then we would have had to look for a French teacher and all of the focus was on the English and we couldn't pirate another Spanish teacher from another district. So if we had made the decision to preserve the Spanish program as it was, we would have had to look for a French teacher and that would have been in the spring of 2025. We would have been looking for a French teacher. No evidence to my knowledge. We weren't successful in pirating a Spanish teacher. So, I don't know what evidence would exist that we would be successful in pirating a French teacher. So, I found this out last summer and it just kind
021of confirmed for me that we made the right decision. the entire state of New York, the entire state Sunni school system. In the spring of 2025, two individuals graduated with the credentials to teach French. Now, maybe my colleagues would think those people would sl to teach French. I don't happen to hold that opinion even though I'm generally a glass full type of guy but I think we preserve programs here which was the objective and I think we might have been talking about not having a French program because because we could not have found a French teacher. So even though we didn't know it at the time, the labor market would have dictated decisions that said we would have become a one language school district rather than a two language school district. So that's all I
022wanted to. So I'm happy with the budget and thank you for all your hard work. So from what I'm hearing, everybody's okay with talking sums up because you don't need to vote on it because it's not the final budget. Good. Now the last piece you saw that you see the property tax we use debt service last year. We don't know what the tax rate is, but what I'm asking the board to give us permission. We want to try to bring that down. We want to try to get it into the low fours or high threes. And if we can do that, whatever we get back to you on Wednesday, are you good with it? If we can do that reduction with debt service, and that's using that debt service to try to lower strategically the
023tax rate on behalf of our taxing uh base. Would that be preferable or would you rather us go out 4.91? My recommendation is please allow us to work with tax assessment tax rates and try to use debt service to get that below four even though that budget will be less than the 2% maximum allowable tax limit which is still good and it won't harm us. We're just trying to find and make sure that the district has several tools in the out years as well and balancing from 1.3. We were at 2 million the year before 1.3 that we'd be looking in that 500,000 to $700,000 range. Go ahead. >> Sorry. Can you remind me what we used last year for? >> Thank you. >> I'm good with it. Thank you. >> 2.1 or two. Yeah.
024In other words, we don't want to come next Wednesday and then all of a sudden people say, "Well, let's get it lower. Let's get it higher and do a calculation." That's not good physics. If you're okay with it, that's what I need to know because once you're okay, we're going to get to work and and hopefully we get the state budget before then, but if we don't, at least we know the plan and we know what the board is looking for on behalf of the the voters of the district. So our goal is get that low four, high threes somewhere there and balance with the dedicated reserve which I think would be a great use of that extra fund that we can't use any other way. >> Okay. >> Notice by thumbs up. Oh Christine,
025>> I'm okay with it. Um yeah, I'm definitely okay with it. I just would like it to be lowered than what we used last year. >> Yeah, I think we will be there. That's no problem. But we're in that same position. >> Okay. >> So when you said cut in half last time, like you're talking >> you step off of your new like say you did two millions one year. The next year you try to target around one. We needed 1.3. >> We were comfortable enough because we were generating money through the interest and different thing and have to place it back in. Now we're at 1.3. Okay. If it was one 500,000 1.3. So, I don't I don't know what your ability to do this on the fly is, and you could tell me
026I can't, and you'll get back to me at another time. I don't know. But what you're talking to do that percent decrease, is there a dollar an estimated% >> about 500 500,000? >> Okay. >> So, if we use 500,000, we're going to be somewhere right around 39. >> Okay. That that helps me. Thank you. >> So, we're in that box. We're trying to build the best possible budget that is only required to have a 50% plus one. And I think I hope that the board would see that like they have before. Every budget we put out has been approved. >> Okay. And you have a thumbs up. >> So one last just survey of the board. Are you okay that if I bring you that budget and give that presentation and we're at those type
027of numbers that we're talking about with the budget, this board is going to approve that that tax report. I think Mr. Christmas starting new that's why he said it's somewhere in that rece thumbs up thumbs down okay done >> awesome >> Warren please record this as a short meeting >> oh okay can't come on Sorry. >> No, it's not. And the reason being is I know the board knows this, but the community may not. Uh, it's been getting out and we put out a letter to our colleagues today. It is with great sadness that we inform the board, the community that we lost a member of our school community. Mr. Chris Weiss, a buzz driver with the district since 2025, passed away due to an unexpected medical emergency earlier this week. Staff members took immediate
028action to assist and emergency responders arrived on the scene within minutes of the call being placed. We are grateful for their quick actions and their life-saving efforts. Supportive counselors have been made available to the transportation department this week. In addition, EAP services are always available to our employees. We are a family here at Horseheads District and we'll work together to make sure everyone has the support they need. At this time, we do ask that you respect the privacy of the family to who we send our deepest condolences. Please keep them in your thoughts during this difficult time as arrangements may be made in the near future. If I could, I'd ask the board and everyone for a moment of silence. Thank you, ladies and gentlemen. Just a couple other things because I'm getting attacked in
029the hallways uh lately at the high school and it's not because of start times or anything, but you never know. Uh anyways, what happens is every year and the board kind of heard about morale at the beginning of the year, but morale is very unique and subjective to everyone. Our job as the district is to look after the students in the community. Our job is also to be an employer and look at the best interests of our contracts and so forth. with that each year uh it has become an expectation that snow days are given back but officially for the past four years we have not had to give back anything because it's not contractually required. However, we have always tried to understand that education is not the easiest profession as it was even when
030it wasn't easy back when I first started even when Warren started. Uh but what happens is you try to do things that you can and in our position we have very limited tools except trying to be good stewards of the district, trying to update the district as we've been doing and trying to do where we can the little things without gifts of public funds. And what we say is with these snow days, I am about to adapt the calendar as long as the board's okay, which I'm sure you will be. uh because you won't want those kids coming after you. Uh but I'm going to adopt those as the best interest of a long difficult trying year in a nonprecence setting way like we've done because we know it's the right thing to do for
031our students, for our families, and most importantly for our staff. But hopefully everybody always remembers that this is some of the few ways that we can. and by giving them a longer weekend when they're maybe upset about the snow days that maybe we didn't call or the late mornings. Hopefully, Memorial Day will be a beautiful long weekend so everybody can enjoy. So, I'm going to adjust the calendar that Friday, May 22nd, 2026 and Tuesday, May 26, 2026 will be now days off due to a snow day give back and that people be remindful that 12-month employees in certain groups do not get that. But we will still be here and we will address them for their dedicated service over the summer with some type of additional recognition uh as we can. We just want to
032be fair to everybody and I know the board has always helped with that. So in the meantime, we hope that this helps people's morale as they've gone through the year. And if there is concern with that, please address your unit leadership as they are the ones that are responsible for their unit members and we are responsible for the district. So hopefully the board likes that. I'm sure those kids will thank me tomorrow in the hall if they come up and they won't throw anything at me. But that's where we are at at this point. I want to thank everybody for their gracious patience through the budget process. You have been outstanding and I think we've delivered a good option for the community. Does anyone else want to say anything before we adjourn? Okay. Can I
033have a motion to adjurnn? All in favor? Opposed? We're all f Okay. Motion adjourned or meeting adjourned. Thank you.