Board of Education Budget Workshop #1
School Board Attachment 2026.02.24

2026-27 Budget Workshop #1.pdf

February 24, 2026 · 10 min read · extracted text · View original

Budget Workshop #1 February 24, 2026

Agenda ✓ Data Dive For State Aid Purposes ✓ Operational Expenditure Areas ✓ Benefits ✓ Questions

Foundation Aid Update Time Frame

Total Dollar Amount

November Database Estimate

$49,939,736

January Governor Proposal

$49,939,736

Variance Between Nov. & Gov.

$0

February Database Estimate

$49,891,359

Updated Difference with Gov.

($48,377)

What Changed? ✓ Slight reduction in the Pupil Needs Index ○ November 1.265 ○ February 1.264 ✓ Slight reduction in the 3-year Small Area Income & Poverty Estimates (SAIPE) ○ November .0621 ○ February .0601

What Changed? ✓ Consumer Price Index changed ■ November 2.8% ■ February 2.7% ✓ What does this mean for Webster? ■ We are still above the hold harmless level despite the slight reduction ■ 2.9% increase in Foundation Aid ■ 1.0% increase is considered “Hold Harmless”

On To Budget Now…

Central Services

2026-27 Preliminary Budget

Central Services

2026-27 Preliminary Budget

BOCES

✓ Largest part of our central budget ✓ Includes all of our required BOCES administrative costs ✓ Budget climbing at 2.88%

Liability & Student Accident Insurance ✓ Trending higher ⚬ Very litigious environment in New York State ⚬ Child Victims Act claims are an industry wide issue ⚬ Student accident claims also spiking ⚬ 3.23% increase over last year

Supplies and Contractuals ✓ All spending lines remain flat from last year’s reductions

Salaries ✓ Non-Instructional salaries up 4% ✓ Instructional salary slight decrease due to retirement breakage

Central Services Budget Numbers Category

2024-25

2025-26

2026-27

Variance

%Change

Instructional Salaries

$ 733,000

$ 789,500

$ 788,000

$ (1,500)

-0.19%

Non-Instructional Salaries

$ 1,053,755

$ 1,095,500

$ 1,140,560

$ 45,060

4.11%

Supplies

$ 46,210

$ 37,000

$ 37,000

$-

0.00%

Contractuals

$ 667,150

$ 669,000

$ 669,000

$-

0.00%

Insurance

$ 689,040

$ 775,000

$ 800,000

$ 25,000

3.23%

BOCES Services

$ 1,990,000

$ 2,017,000

$ 2,075,000

$ 58,000

2.88%

Total

$ 5,179,155

$ 5,383,000

$ 5,509,560

$ 126,560

2.35%

Buildings & Grounds 2026-27 Preliminary Budget

Buildings & Grounds

2026-27 Preliminary Budget

Salary Increases ✓ Keeping pace with the changes in minimum wage ✓ Staffing shortages increase overtime costs

BOCES

✓ Trending higher than normal ⚬ All of our facilities management systems are networked ⚬ Creates a larger year-over-year cost to maintain ⚬ HVAC systems, security systems, visitor management system ⚬ 6.38% increase

Energy ✓ Cost increases are significant in spite of our usage curtailment ■ Natural gas and Electricity impacted the most

Supplies & Contractuals ✓ Maintaining budget lines the same as last year

Buildings & Grounds Budget Numbers 2024-25

2025-26

2026-27

Variance

% Change

Non-Instructional Salaries

$7,597,900

$8,095,000

$8,466,000

$371,000

4.58%

Equipment

$325,000

$325,000

$325,000

$0

0.00%

Fuel

$110,000

$110,000

$110,000

$0

0.00%

Natural Gas

$1,725,000

$1,725,000

$1,825,000

$100,000

5.80%

Electricity

$725,000

$725,000

$825,000

$100,000

13.79%

Contractuals

$654,000

$529,000

$529,000

$0

0.00%

Supplies

$653,000

$643,000

$643,000

$0

0.00%

Repairs

$625,000

$240,000

$240,000

$0

0.00%

BOCES Services

$440,000

$470,000

$500,000

$30,000

6.38%

Total

$12,854,900

$12,862,000

$13,463,000

$601,000

4.67%

Buildings & Grounds

2026-27 Transfer to Capital Projects

$500,000 Transfer Project ✓ Webster Thomas High School ■ Replace lighting in Gymnasium and Field House ■ Replace electrical panels in several locations throughout the building ■ Upgrade localized HVAC units ● Purpose-Energy savings with improvement in the viewing environment

$100,000 Capital Outlay Project

✓ Still hopeful that the state will up this limit to $250,000 ✓ Willink ■ LED lighting conversion in Cafetorium and Gymnasium

Transportation

2026-27 Preliminary Budget

Transportation

2026-27 Preliminary Budget Salaries ✓ Increase is not based on new drivers ✓ Increase is really on the amount of overtime for office staff, drivers, and mechanics due to short staffing

Contract Transportation ✓ BOCES doing fewer runs for the district ✓ Increases are offset by BOCES limitations to provide additional service

Contractuals

✓ Increase in usage of bid contract with Ontario Bus ✓ Auto insurance premiums increasing this line items

Supplies ✓ No reduction in supply lines as all are necessary for continuation of yearly operations

Transportation Budget Numbers 2024-25

2025-26

2026-27

Variance

% Change

Non-Instructional Salaries

$5,976,300

$6,005,000

$6,350,000

$345,000

5.75%

Supplies

$273,900

$273,900

$273,900

$0

0.00%

Insurance

$90,000

$125,000

$125,000

$0

0.00%

Fuel

$750,000

$750,000

$750,000

$0

0.00%

Contractuals

$230,250

$237,700

$312,700

$75,000

31.55%

BOCES Contract Transportation

$1,325,000

$1,200,000

$1,200,000

$0

0.00%

Totals

$8,645,450

$8,591,600

$9,011,600

$420,000

4.89%

Debt Service 2026-27 Preliminary Budget

Debt Service

2026-27 Preliminary Budget

Bus Borrowing

✓ Slight increase from last year ✓ Have not received grant money yet for the EV Bus purchase

Capital Borrowing ✓ 4 projects officially on the books ✓ 2014, 2016, 2018, 2023 Project Votes are what make up our capital debt ✓ New this year is a small payment for the 2023 project to increase our project cash flow

Transfers

✓ $600,000 Transfer to Capital ■ $100K capital outlay project plus the $500K transfer to capital project ✓ $240,000 Transfer to the Federal fund ■ The local portion of summer programs for students with disabilities

Debt Service Budget Numbers Description

2024-25

2025-26

2026-27

Variance

Principal-Construction

$5,545,000

$6,325,000

$6,810,000

$485,000

Interest-Construction

$4,340,525

$4,319,725

$5,004,163

$684,438

Total Construction Debt

$9,885,525

$10,644,725

$11,814,163

$1,169,438

Principal-Bus Bonds

$1,610,000

$1,530,000

$1,595,000

$65,000

Interest-Bus Bonds

$171,240

$161,545

$214,736

$53,191

Total Bus Borrowing Debt

$1,781,240

$1,691,545

$1,809,736

$118,191

Total Debt Service

$11,666,765

$12,336,270

$13,623,899

$1,287,629

Transfer to Capital

$100,000

$600,000

$600,000

$0

Transfer to Federal Fund

$240,000

$240,000

$240,000

$0

Total Transfers

$340,000

$840,000

$840,000

$0

Community Education

2026-27 Preliminary Budget

Community Education 2026-27 Preliminary Budget

Staffing

✓ All costs driven by minimum wage ✓ Retirement and employee transitions have allowed for flat salary costs ✓ Very few full time employees in this budget (5 FTE)

Other Budget Items ✓ Reduced where practical ■ Contractual line held flat ■ Supply lines held flat ■ 95% of supplies are for pool chemicals ■ Equipment line remains the same as previous years’ ● If something breaks the whole pool goes down ● Health and safety item

Community Education Budget Numbers Category

2024-25

2025-26

2026-27

Variance

% Change

Non-Instructional Salaries

$ 1,012,900

$ 1,099,000

$ 1,099,000

$-

0.00%

Equipment

$ 25,000

$ 25,000

$ 25,000

$-

0.00%

Supplies

$ 45,000

$ 43,000

$ 43,000

$-

0.00%

Contractuals

$ 75,600

$ 65,600

$ 65,600

$-

0.00%

Totals

$1,158,500

$1,232,600

$1,232,600

$-

0.00%

Employee Benefits

2026-27 Preliminary Budget

Benefit Updates Pensions ✓ Salaries drive rates

✓ TRS down to 8.24%-came in lower than anticipated from December ✓ ERS up to 17.6% - largest rate gap between the two plans since 1988-89 ✓ Will there be any changes from the legislature ■ Some lobby to make adjustments to the TIER 6 pension level ■ It is an election year, so…..maybe

Other Items

✓ Worker’s Compensation is flat for next year

✓ Dental rates and life insurance plans also flat ✓ HRA contributions down, but HSA contributions are up ✓ FICA costs have a small increase due to salary breakage

TRS-8.24% of total payroll

*Average-10.72%

*Since 1978

Projected 2026-27 Bill: $8,325,060

ERS-17.6% of total payroll

Projected 2026-27 Bill: $4,000,000

*Average-10.26%

*Since 1978

Healthcare Budget

2026-27 Preliminary Budget

Retiree Plans

✓ RASHP 1 (Medicare Plans) increase ✓ Projecting a large (50%) increase for next year* ✓ Total cost to the district was offset by migration from expensive to lower cost plans ✓ Inflation Reduction Act changes will impact for years

Active Employee Plans

✓ Always difficult to budget for ■ January 1-December 31 fiscal year creates budgeting challenges ■ All districts in the consortium have to make educated estimates on what will happen the second half of the school fiscal year (January 1- June 30) ■ We have a large enough population that movement between plans swings year to year increases ● There are cost differences associated with every change, we have 100’s of changes a year! ● Both active and retiree plans over the next fiscal years should present budget challenges as rates are not predicted to come down from the mid teen’s for percentage increases when combined

*Premium Rates ≠ Budget Rates

*9% Premium Rate Increase Start of RASHP 2

Let’s Show An Example ● It’s October Open Enrollment of 2025 ● 20 (1% of staff) people have a buyout for $3,500 = $70,000 ● A Lot of changes happen in a year ● Those 20 people switch to a benefit plan ● Average plan is $26,453 in district costs x 20 = $529,050 ● Enrollment change of $459,050 ● That represents a 1.3% increase in the budget before rates

FICA Payroll Tax-The Hidden Cost

2024-25

2025-26

2026-27

Variance

ERS

$ 3,364,885

$ 3,878,000

$ 4,000,000

$ 122,000

TRS

$ 8,162,100

$ 8,550,000

$ 8,325,060

$ (224,940)

FICA

$ 8,124,480

$ 8,900,000

$ 8,960,355

$ 60,355

Worker's Comp

$ 1,300,000

$ 1,200,000

$ 1,200,000

$-

Life Insurance

$ 45,000

$ 50,000

$ 50,000

$-

Unemployment

$ 140,000

$ 140,000

$ 140,000

$-

Health

$ 30,653,260

$ 36,110,000

$ 39,690,000

$ 3,580,000

Dental

$ 1,181,000

$ 1,216,430

$ 1,216,430

$-

Buyouts

$ 1,100,000

$ 1,250,000

$ 1,250,000

$-

HRA 105 Plans

$ 900,000

$ 800,000

$ 750,000

$ (50,000)

Flexible Spending Administration

$ 85,000

$ 85,000

$ 85,000

$-

$ 700,000

$ 700,000

$-

$ 62,879,430

$ 66,366,845

$ 3,487,415

Retirement Benefit Total

$ 55,055,725

$110,047,515 Total Presented This Evening

Albany Updates Foundation Aid

✓ Focus will be on the “hold harmless districts” ■ Since we are at 2.9% ■ Not expecting anything more than what the formula is giving us

On time Budget ✓ Prediction- better odds than last year

Other Items

✓ Universal meals will continue ✓ EV Bus mandate? ✓ One house budgets come out next week for greater detail ✓ UPK is promising, but want more guidance details ✓ Heading to Albany on Thursday

Next Up……

Workshop #2

Workshop #3

Budget Adoption

Budget Hearing

March 24

April 7

April 14

May 5

Thank You Questions?

Budget Website

End of document