2025-26 Budget Frequently Asked Questions
What timeline has the budget followed?
- October: departments receive budgetary information to begin planning
- November-December: department and building budget conversations
- December-January: Aid calculations and tax levy calculations prepared, full initial budget review of all codes
- February 13: State of the Schools presentation
- February 27: Budget Update, Student Services & Transportation
- March 13: Budget Update, Technology, Facilities, Athletics, & Health Care
- March 27: Budget Update Instructional
- April 10: Budget Update
- April 23: Proposed Budget Overview
- May 8: Public Hearing on Budget
All slides and recordings of the above presentations can be found on our website. As a reminder, Horseheads Central School District live streams board meeting and posts recording for the public. Click here for more information on board meetings.
What is a tax levy?
The tax levy is local property taxes approved by the voters to provide funding to school districts in addition to state and federal funding. This revenue source assists districts with covering educational and operational costs and other needs of the district.
How is the tax levy related to the tax rate?
The tax rate is a distribution of the tax levy based on the assessed values of all properties that exist within the Horseheads district boundary. These assessments set by the municipality (not by the district) can be affected as the New York State Department of Taxation and Finance determines an equalization rate to bring all assessments up to full market value.
What is the use of reserve funds for this budget?
The Board of Education discussed at length how reserves can be used, current balances, and sustainability of such use. The board is mindful of reserve use and the ability to replenish them for future use.
The proposed budget uses reserve funds and fund balance to lower the reliance on the tax levy. This budget includes the use of:
- Appropriated fund balance: $1,000,000
- Employee Retirement System Contribution Reserve: $600,000
- Employee Accrued Liability Reserve: $200,000
- Debt Service Reserve: $1,300,000 (used to reduce the tax levy calculation per NYS law)
What does this proposed budget include?
- Remain staff and program strong
- Maintain all current educational programs in academics, arts, and athletics (based on current needs and enrollment as of today)
- Sustainability of Summer Learning Academy (previously grant funded)
- Enhancing our Multi-Tiered System of Supports to ensure that each elementary building, after consolidation, has appropriate social-emotional, academic, and behavioral supports:
- Hiring two intervention teachers
- Reallocating teaching assistants to increase supports in primary grade levels
- Addition of one elementary assistant principal to service three elementary buildings
- Rebuilds allocation of curriculum work hours
- Ensuring fourth grade play at all three elementary buildings
What is the proposed budget?
The proposed budget is $105,800,502, an increase of 3.03% over the previous year’s budget, a modest increase given rising costs of health care and utilities (e.g., energy and sewer), as well as ongoing inflationary costs and additional unfunded government mandates.
Budget increases:
- 2025-26: 3..03% (proposed)
- 2024-25: 9.37%
- 2023-24: 6.12%
- 2022-23: 3.30%
- 2021-22: 4.28%
- 2020-21: 2.78%
Why is a 60% approval vote required?
When the Governor released her initial state budget in February, the district was only allocated a 2.02% increase or $549,591 in foundation aid. This amount is not enough to sustain a district the size of Horseheads. After the finalization of the school budget, New York State finalized its own budget with the district receiving an additional $384,119. While the increase is appreciated, the total foundation aid is still not sufficient to support the district. To maintain current staffing and programs, a challenge to the tax levy of $1,291,253 is required. This leaves the district with using additional reserve funds and asking the community for additional support through the increase in the tax levy. (Recall the district has made significant reductions these last two years, reducing staff through attrition as to not impact livelihood, adjusting equipment replacement cycles, eliminating administrative positions, and decreasing various supplies, equipment, and contractual obligations.)
What is expense driven aid?
The district receives state aid on certain expense categories based on the amounts actually spent. These categories are BOCES and transportation expenses. Aid on these expenses is received in the subsequent fiscal year. To balance the 2024-25 budget and limit the tax levy challenge, the district made reductions to BOCES services and transportation expenses, which means the district is receiving less aid in 2025-26. Expenses have stabilized in these areas, therefore aid moving forward will stabilize.
Bus purchase proposition information
The bus purchase proposition is seeking approval from the voters to borrow an amount up to $1.9 million dollars. It is the intent to replace seven school buses. Due to the current economic uncertainties, the cost of buses has been conservatively estimated. The district will only borrow the amount needed to cover the purchase once final prices are known, which will prevent the payment of an excess of principal and interest. Bus bonds have a five-year term, with the cost offset by the receipt of transportation aid.
Who can vote?
All district residents are eligible to vote, provided they meet the following requirements:
- Are a U.S. citizen
- Are 18 years of age or older on the day of the vote
- Have lived in the district for at least 30 days prior to the vote
- Are not restricted from voting in general elections based on election law
OR - Are registered to vote in general elections. Unsure if you are registered to vote? Click here
For information on absentee ballots or other questions about the vote, please call (607) 739-5601, x4260 or email hcsdinfo@horseheadsdistrict.com.
When is the budget vote?
The budget vote will take place on Tuesday, May 20 from 7:00 a.m. – 9:00 p.m. in the Horseheads High School North Gym.
What happens if the budget doesn’t pass?
If this proposed budget does not pass, a revised budget may be presented for a public vote on June 17, 2025. This revised budget will eliminate the tax levy challenge. A reduction in the tax levy to the 2% limit requires $1.29 million in reductions in staffing and student programs, and 50% voter approval.
If the second vote does not pass, the district must adopt a contingent budget. There is no public vote on the contingent budget. While there are a variety of limitations within a contingent budget, the most detrimental to the district is the inability to increase the tax levy over the prior year’s calculations. For the 2025-26 school year, based on the current contingent budget calculation, the district would have to reduce the budget by $3.5 million. There would be a significant impact to students, staff, and the community. If a contingent budget is implemented, the Board of Education will set the final budget allocations according to New York State rules and would focus on maintaining mandated programs only. The reduced levy will be applied to each municipality as explained above. Restoration of staff and program would be a multi-year process following a contingent budget, as funding permits.