2026-27 Budget Kick-Off December 9, 2025
Agenda ✓ State Budget Learning ✓ State Updates ✓ Formula Predictions ✓ Budget Area Updates ○ Pension Systems ○ Healthcare
State Outlook New York's fiscal outlook improves in mid-year update as impact of federal budget bill looms STATE OF POLITICS
BY Jack Arpey New York State PUBLISHED 7:44 PM ET Oct. 31, 2025
In the States
New York Anticipates Higher Tax Revenue While Facing Budget Gap Nov. 12, 2025, 2:50 PM EST
New York’s mid-year budget forecast disputed by: Johan Sheridan Posted: Dec 1, 2025 / 02:31 PM EST Updated: Dec 1, 2025 / 02:32 PM EST
Albany Updates Foundation Aid
✓ Will any more recommendations from the Rockefeller Report make their way into the formula?
On-Time Budget ✓ Prediction - probably not done by April 1
Other Items
✓ EV Bus Mandate ✓ UPK funding and operations ✓ More state holidays? ✓ It’s an election year, so expect surprises
Foundation Aid 2026-27 (November Database)
✓ NYS does not make it easy! ✓ Concerns on no data yet? ✓ Questions?
Budget Updates Pensions ✓ Salaries drive rates
✓ TRS rate is estimated between 8.25%-8.75% ■ Becomes final in February ■ That will be down from 9.59% currently ■ Salary increase plus a rate decrease is more than likely budget-neutral ✓ ERS rate is going up to 17.6% ■ That is final already ■ That is up from 16.5% ■ Salary increase plus a rate increase is a double increase
Other Items ✓ Worker’s Compensation budget rate setting is next week
✓ Small % increase in dental rates and life insurance plans ✓ Minimum Wage moving to $16.00, then to increases at the rate of inflation
Healthcare Budget
2025-26 Preliminary Budget
Retiree Plans-RASHP 1
✓ RASHP 1 (Medicare Plans) up 44% ✓ 3-year RFP is up in January 2027 (2026-27 Budget Year) ✓ Projecting a large increase for that process (>50%) ✓ Was the change worth it?
Active Employee Plan -RASHP 2 ✓ 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 ● 9.9% increase for 2026 ● Estimating a comparable increase for 2027
Next Up On The Budget Process……
Gather Data for
Long Range
Reserve Plan
Prepare Community
Tax Cap
Planning Workshop
Review in January
Feedback process with
Calculation
in January
the communications team
Thank You Questions?
Budget Website