During the Thursday, Feb. 12 meeting, the Board of Education heard a variety of budget scenarios to address a revenue shortfall for 2026-27.
Each year, the district must develop a balanced budget where expenses must equal revenue. Currently, the district is projecting a revenue gap of $1.7 million if the district budget proposal was at the allowable tax cap. As a result, the Board heard a number of budget scenarios that would exceed the tax cap. If the district exceeds the tax cap, it requires a supermajority (60%) approval in May.
Within the past three years, the district has cut 25 positions as a result of attrition and layoffs. Each of the scenarios presented below preserves the district’s educational programming, as well as all sports, clubs and extracurricular activities for students.
The following scenarios were presented to develop a balanced budget for the 2026-27 school year:
Scenario 1
- 9% Tax Increase: $11,053,537
- $18.70/month estimated* increase per $200,000 in assessed value
- Fund Balance Allocation: $957,229
This scenario may include cuts to positions and is not a long-term sustainable model for the district.
Scenario 2
- 11% Tax Increase: $11,256,355
- $22.86/month estimated* increase per $200,000 in assessed value
- Fund Balance Allocation: $754,411
This scenario does not include cuts to positions, but is also not a long-term sustainable model for the district.
Scenario 3
- 13% Tax Increase: $11,459,172
- $27.02/month estimated* increase per $200,000 in assessed value
- Fund Balance Allocation: $551,594
This scenario does not include cuts to positions and is the most sustainable long-term model for the district.
*Any tax increase stated is an estimate only. Tax rates are finalized in August.
Understanding the Tax Cap
- New York State’s Property Tax Cap
- Property Tax Cap Q&A from NYSSBA
- New York’s Tax Cap Formula: How does it add up?
Since 2012, the district has chosen to go out below the tax cap. Each year, that decision reduced how much revenue the district was allowed to collect — not just that year, but in future years, as you can never recoup the money from the previous year. Next year’s cap is always based on the current year’s number.
Over that 14 year period, through compounding, those small annual decisions added up to more than $4.9 million in revenue the district was legally allowed to collect, but can never recover.
10 Year Illustrative Example:
District passes budget annually at $2,000 under the tax cap for 10 years
| Year | Allowed but not collected | Cumulative impact |
| 1 | $2,000 | $2,000 |
| 5 | $2,000 each year | $10,000 |
| 10 | $2,000 each year | $20,000 |
In reality, the amounts left uncollected varied each year – ranging from $458 to $260,422. The $2,000 example is meant to show how repeated decisions build over time.
Enrollment
- 2025-2026: 761 students (as of today)
- 2024-2025: 772 students
- 2023-2024: 772 students
- 2022-2023: 797 students
Upcoming Meetings
The district has a number of Board meetings and budget workshops planned this spring. All meetings will take place in the High School Library.
- Feb. 26, 6 p.m.
- March 12, 7 p.m.
- March 26, 7 p.m.
- April 16, 7 p.m.
- May 5, 7 p.m.
Community Presentations
The district has already presented at the Village of Cambridge, Town of Cambridge and Town of White Creek meetings. Additionally, the district plans to present information at the Town of Jackson meeting on March 4.
Budget Vote & BOE Election
Tuesday, May 19, 12-8 p.m. | High School Library
Frequently asked questions (FAQs) related to the 2026-27 school budget
The district is developing a frequently asked questions (FAQ) related to the 2026-27 school budget. If you have any questions related to the budget, please fill out this form.
We will continue to update the FAQ throughout the spring, leading up to the May 19 budget vote.
Q: Why can’t the district raise taxes later if it needs to?
A: The tax cap does not reset. Each year’s limit is based on the prior year’s levy. If the prior year’s levy was below the cap, the allowed increase for the following year is also lower.
Q: Isn’t staying under the cap good for taxpayers?
A: In the short term, yes. But over time, it can lead to:
- Program cuts
- Fewer services
- Larger future increases
- Reduced financial flexibility
Small savings today can create bigger problems later.
Q: Doesn’t the district have reserves for situations like this?
A: Reserves are one-time funds. They do not replace permanent revenue and cannot be relied on year after year without consequences.
Q: Can the district make up the revenue deficit in a future year’s tax cap calculation?
A: No. Once revenue is not collected, it cannot be added back into the tax cap calculation later.
Q: Is this about raising taxes as much as possible?
A: No. The budget proposal is about preserving the district’s current educational programming and maintaining stability in district finances while meeting required costs.
Q: Is the district maximizing attrition opportunities?
A: Yes, the district reviews every vacancy to decide if the role needs to be filled. The district has consolidated and absorbed a number of positions through attrition.
Q: Are there any incentives for people to retire early?
A: There are incentives built into the teachers’ contract.
Q: How much state aid will we receive? How did it compare to other years?
A: The district is slated to receive a 1% increase, which equates to $95,000. This 1% increase is slightly lower than what the district was projected to receive.
Q: In terms of federal funding, how much do we receive and how much have we lost?
A: We receive approximately $680,000 in federal title funding. We thought we may lose that funding, but we have not lost any of it to date. If we do, we would need to cut more staff. The district has begun putting salaries back in the local budget to limit staff cuts in the event the federal funding is reduced or cut altogether.
Q: What about the UPK Program?
A: The UPK Program is grant funded and we hope to work with Salem and other local schools to bring in some of their students to create additional revenue. The district can receive $10,000 per student.
Q: What are reserve funds?
A: Please view the document from NYSED outlining the different reserve funds.
Q: What is a contingent budget?
A: Under state law, school boards can submit a budget to voters a maximum of two times. If the proposed budget is defeated twice, the board must adopt a contingency budget. The school board also has the option of going directly to a contingent budget immediately after the first budget defeat. Under a contingent budget, the district may not increase spending by more than 120 percent of the Consumer Price Index or four percent, whichever is lower. The items exempt from this cap are tax certiorari settlements, debt service (mortgage payments) and costs associated with enrollment growth. Under a contingent budget, the percentage of the budget devoted to administrative costs cannot increase from what it was in the prior year’s budget or the last defeated budget, whichever is lower. Once a contingent budget is established, community residents are no longer allowed to petition boards of education to put additional items up for a separate vote.
Q: Has there been any talk of consolidation?
A: At this time, neither the Cambridge or Salem communities have engaged in a merger discussion. If there was interest, each Board of Education would need to approve and provide funding for a feasibility study to be conducted.