2025-26 Tax Cap & Governor’s Budget Proposal February 11, 2025 Webster Central School District
Let’s Review the Formula
Major Points of Calculation ●
Tax Base Growth Factor ○ ○
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Let’s Take a deep dive on these ○ ○
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Payments in Lieu of Taxes Balance out unless there is a change year to year (budgeted number)
“The Cap” ○ ○ ○
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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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Payments in Lieu of Taxes ●
Agreement between County of Monroe Industrial Development Agency (COMIDA) and a qualified company ○ ○ ○
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Allows the company to make reduced tax payments over time to the local taxing jurisdictions Designed to encourage economic development and growth with these incentives Five types of programs ■ JobsPlus - 10 year period of tax abatement on a sliding scale for 10% increase in jobs ■ Enhanced JobsPlus-larger investment of at least $15 million and 100 new jobs ■ LeasePlus - projects used by colleges, universities, or medical facilities that lease from a for profit ■ Green JobsPlus - 14 year tax abatement for buildings that achieve LEED certification & 10% increase in jobs ■ Shelter Rent - low income or student housing projects that uses a formula for rents multiplied by 10%
District is notified by COMIDA of impending project Calculate the bill separate from tax bills every September How many PILOTS does Webster CSD have? ○
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Penfield ✘ ✘
Eastway Wegmans Penfield Square Associates ✗
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Bayview Landing ✗
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Apartments located behind K2 Brewing
Laureland Inc. ✗
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YMCA drive apartments
Medical complex on Empire Blvd.
DiMarco Baytowne Associates 5
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Seton Properties ✗
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Apartments
Webster Auto Mall LLC ✗
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Medical Building (U of R)
Morgan Picture Parkway LLC ✗
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Industrial building on Boulter parkway
Hard Road Realty LLC ✗
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Webster
Industrial building on Ridge Road
Philips Village Apartments ✘ Coming Soon…FairLife 6
Major Points of Calculation ● Capital Exclusions (Capital Expenses - 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 7
Average = 1.0054
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Tax Levy Limit
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2025-26 State Budget Proposal ✘
The executive budget proposes an increase in aid for districts that totals just over $1.55 billion more than 2024-25 (excluding UPK) ✗
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Foundation Aid Changes ✗
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4.5% increase Rockefeller Institute Recommendations ✗ Replace 2000 Poverty with Small Area Income & Poverty Estimates (SAIPE) ✗ Replace Free & Reduced Lunch with Economically Disadvantaged ✗ Save Harmless Maintained ✗ CPI to 3.1% ✗ Minimum Increase of 2%
Expense Based Aids ✗
Fully funds all formula aids (BOCES, Transportation, Building, etc.) 10
Highest $ Increase $7.8 Million Highest % Increase 16.3%
2% Minimum
Average $ Increase = $2,065,618
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Average % Increase =6.01%
2025-26 State Budget Proposal Other Budget Items of Note Universal School Meals ✗ $160 million to provide state subsidy for remaining 10% of students not currently covered by community eligibility programs ✗ Distraction Free Learning ✗ Beginning August 1, 2025 ✗ Prohibits all internet-enabled devices used by students ✗ Some exemptions ✗ Annual reporting requirement for districts September of 2026 ✗ STAR program changes ✗ Only one resident owners of a property needs to be 65 or older ✗ Only the income of the owners who reside on the poetry is considered ✗ Change to July 1 as the residency date for STAR income credit ✗
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2025-26 State Budget Proposal Other Budget Items of Note ✗ ✗ ✗
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No funding for prior year adjustments that are owed to districts ✗ Owed $843,372 in back aid payments No changes to Zero Emission Bus Implementation $35,000 Salary Waiver ✗ Not included ✗ Could be an extreme hardship for districts that rely on active retirees No increase for BOCES CTE Reimbursement No increase to Capital Outlay Projects ✗ Currently $100,000
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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 (54.1% and 86.5%) ✗ ✗ ✗
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BOCES Aid (63.9%) ✗ ✗
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Based on Fall projections for total expenditures, Governor’s projection is always high Aid ratio has gone down since last year due to wealth factors going up by 1%
Building Aid (73.9%) ✗ ✗ ✗ ✗
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Based on projected student counts at a snapshot in time Spring release with legislature is a little more accurate Aid ratios have gone down over last year by almost a full 2% per each aid category
Based on fall projections (October 15) when final reports for each project are due Timing of project completion for final reports (December 31, 2025 & June 30, 2026) 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
Transportation Aid (68.5%) ✗ ✗ ✗
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 2024-25 with aid ratio lower than last year by 1% 15
THANK You!
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