As we finalize the draft of our Annual Budget Report, we are once again navigating the complexities of a delayed New York State budget. As a result, we are left to estimate our state revenue to the best of our ability. The Governor’s proposed budget includes notable increases in state aid for schools, some of which are significant. Additionally, the one-house budget bills passed by both the Senate and Assembly offer a sense of optimism, as their proposals align closely with the Governor’s, particularly in areas that impact Cleveland Hill.
The proposed budget for the 2025-26 school year totals $44,057,501, reflecting an increase of $3,100,864, or 7.6%. This year-to-year rise mirrors the ongoing inflationary pressures we all feel at home, particularly with utilities and services. Additionally, the budget reflects the fact that we are currently in the process of bidding for a new transportation contract. Based on recent trends in neighboring districts, we anticipate a considerable increase in this area. We are also engaged in collective bargaining with both our Administrators and Teachers Associations. With contracts for both groups set to expire at the end of this school year, it’s crucial that we remain competitive regionally to attract and retain a high-quality faculty.
As special education needs and tuition rates continue to rise, we face ongoing challenges in managing these costs. However, by introducing new programming and support structures within the district, we are making significant strides in controlling these expenses, though they continue to grow.
In our continued efforts to manage expenditures, we will be reducing staffing at each school by one teacher. These reductions, prompted by upcoming retirements, will occur through attrition, meaning no one will lose their job. Thanks to thoughtful restructuring of our services, programming, and schedules, these adjustments—referred to as "right-sizing"—will not negatively impact students, their services, or our programs.
We remain committed to strategically managing the growth of our tax levy. For the upcoming year, our "2%" property tax cap calculation stands at 3.33%. While we are unable to provide the exact tax rate until the final state aid numbers are available, we estimate that our proposed tax levy increase will be approximately 2.3%. Since the implementation of the Tax Cap in 2012, the district has been proud to reduce the tax levy three times and remain below the cap each year. As a result, our tax levy is currently 11.07% lower than it would have been had we adhered strictly to the cap each year.
Cleveland Hill’s financial position remains strong. However, as you may have heard in recent news, the road ahead will present financial challenges for all public schools, including ours. COVID stimulus funding is no longer available, state aid is struggling to keep pace with rising expenditures and inflation, and the state is projecting substantial budget deficits in the years to come. While we are well-prepared to face these challenges, we acknowledge that tough decisions may lie ahead.
We are grateful for the ongoing support of our community, which has been a cornerstone of our success. Moving forward, we will continue to adhere to our fiscally conservative, student-first approach, focusing on prudent spending and long-term financial planning to keep the tax levy under control.
On behalf of the Board of Education, I want to express my heartfelt thanks for your continued support. A strong school-community partnership is the foundation of everything we do. We work for you, and if at any point you have concerns or are not satisfied with our efforts in any area, please do not hesitate to reach out to us.
Jon T. MacSwan
Superintendent