2026-27 Tax Cap & Governor's Budget Proposal.pdf

2026-27 Tax Cap & Governor’s Budget Proposal February 3, 2026 Webster Central School District

Let’s Review the Formula

Major Points of Calculation ●

Tax Base Growth Factor ○ ○

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PILOTS ○ ○

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Payments in Lieu of Taxes Balance out unless there is a change year to year (budgeted number)

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Comes from NYS Tax & Finance Changes in taxable property in a district

Based on inflation, 2% or lower Inflation has ranged from 0.12%-8.0% Currently trending at 3.1%

Pension Exclusions ○ ○

The pension change must exceed an increase of 2% for the exclusion to kick in No exclusion for this year

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Major Points of Calculation ● Capital Exclusions (Capital Expenses - State Aid) ○ Total Budget Capital Expenses ■ ■ ■ ■ ■

Principal and Interest for Construction and Buses Transfers to Capital Fund Energy Performance Contracts Capital Leases BOCES expenses for rent and capital expenditures

○ Total Aid ■ ■ ■

Building Aid (some exemptions) Transportation Aid BOCES Aid for Rent and Capital 4

Average = 1.0063

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Tax Levy Limit

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2026-27 State Budget Proposal ✘

The executive budget proposes an increase in aid for districts that totals just over $779 million more than 2025-26 (excluding UPK) ✗

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Foundation Aid Changes ✗

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2.96% increase Rockefeller Institute Recommendations ✗ No further updates based on the report recommendations ✗ 1% minimum increase for all districts ✗ Any other changes are based on enrollment and other data points

Expense Based Aids ✗

Fully funds all formula aids (BOCES, Transportation, Building, etc.)

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Highest $ Increase $3.4Million

Highest % Increase 7.35%

1% Minimum

Average $ Increase = $820,376

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Average % Increase =2.45%

Why-Driving Factors For The Foundation Aid Formula Highest % Increase In Poverty Measures 245 Student Increase

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2026-27 State Budget Proposal ✗

UPK Changes ✗ Aid per pupil moves to $10,000 per kid ($5,400 current funding) ✗ No cap on the number of kids in the program ✗ Beginning in 2028-29 all slots must be full day, no half day allowed ✗ Still a grant application process ✗ But takes two current grant programs and reduces to one ✗ State aid shows a total funding based on 2024-25 student counts ✗ No longer a maximum funding amount ✗ Changes as enrollment does ✗ Student count is frozen on May 15th

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2026-27 State Budget Proposal ✗

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Governor’s Numbers What Does it Mean for Webster?

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State Aid Changes-Deviations from Governor’s Projections Excess Cost Aids (53.9% and 86.5%) ✗ ✗ ✗

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BOCES Aid (63.1%) ✗ ✗ ✗

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Based on Fall projections for total expenditures, Governor’s projection is always high Aid ratio has gone down slightly as well from this current year BOCES salary cap change will have an increase in aid, BOCES still working on that amount for districts

Building Aid (73.1%) ✗ ✗ ✗ ✗

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Based on projected student counts at a snapshot in time-not final until mid way through 2026-27 Spring release with legislature is a little more accurate Aid ratios went down slightly from this current year

Based on fall projections (October 15, 2025) Timing of project completion for final reports (December 31, 2026 & June 30, 2027) Governor’s projection is usually lower than projected for the final numbers because of that timing Impacts tax cap as well for capital exclusions as aid ratio is lower than last year by 0.8%

Transportation Aid (67.7%) ✗ ✗ ✗

Based on project expenditures in the fall Will update in March/April with a more accurate expense projection for this year Projecting right now to remain the same as 2025-26 with aid ratio lower than last year by 1% 14

THANK You!

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