The Board of Education met on March 12 and March 16 to review a detailed long-range financial analysis and evaluate three updated budget scenarios for the 2026-27 school year.
The March 12 meeting featured a comprehensive presentation by Dr. Rick Timbs, President and CEO of R.G. Timbs, Inc., who provided a data-driven long-range fiscal outlook.
Long-Range Financial Realities
Dr. Timbs’ analysis highlighted several critical challenges facing the district. He noted that the district’s expenditures are expected to outpace revenues. Key factors driving this trend include:
- Foundation Aid Stagnation: The district is currently slated for only a 1% increase (~$95,000) in Foundation Aid for the 2026-27 year. Future increases from the state remain uncertain.
- Rising Operational Costs: District operational expenses are currently and projected to grow faster than revenue gains. Dr. Timbs warned that failure to act immediately will overwhelm the district’s finances and compromise its long-term stability.
- Health insurance costs are projected to rise by approximately 22.7% ($1.2 million) over the next five years.
- Required contributions to the Teachers Retirement System (TRS) and Employees Retirement System (ERS) continue to pressure the budget.
- New York’s requirement to transition to an all-electric bus fleet by 2035 was characterized by Dr. Timbs as “currently unreachable” due to the extreme costs—roughly 2.5 times the price of standard buses—and the lack of infrastructure. The district plans to submit waivers to the state to delay this transition.
- Inflationary Pressures: Standard measures like the Consumer Price Index (CPI) often fail to capture the specific rapidly escalating costs of school supplies, textbooks and other materials required to meet the needs of our students.
Aggressive Course Correction Needed
Dr. Timbs characterized the current tax levy as “unbelievably nasty low” from a financial perspective, suggesting that the current levy projections are insufficient to keep pace with modern educational mandates and rising costs. He recommended a multi-year “aggressive correction” to stabilize the district’s cash flow and maintain reserves.
Detailed Information from Dr. Timbs
Individuals are encouraged to view Dr. Timbs’ presentation from March 12. Additionally, individuals can listen to an audio recording of Dr. Timbs’ presentation. You may need to download the audio file to listen to the presentation.
Dr. Timbs’ Recommendations
The analysis recommended immediate financial triage to rightsize operations and to reevaluate all staffing needs through attrition.
The report also advised the district to prepare for a “State Fiscal Funding Cliff” and to be transparent with the community about the possible need for a supermajority vote (60%) for multiple years if significant cost reductions are not achieved.
The report concluded stressing that failure to act now will jeopardize the district’s long-term financial viability.
2026-27 Budget Proposals
Following the long-range analysis, the Board examined updated proposals for the 2026-27 budget at the March 16 workshop. The projected expense budget for 2026-27 is $28,159,436, which represents a 1.04% increase over the previous year. To meet these expenses, the district presented three revenue scenarios centered on different tax levy increases:
- Scenario #1 (10.5% Tax Levy Increase): This scenario results in a total revenue of $27,349,417, leaving an $810,019 gap. The district noted that under this plan, the potential for budget cuts still exists.
- Scenario #2 (11.5% Tax Levy Increase): Providing more sustainability, this proposal generates $27,450,826 in revenue. It leaves a smaller gap of $708,610, though cuts may still be necessary.
- Scenario #3 (12.5% Tax Levy Increase): This scenario targets $27,552,235 in total revenue. While it still leaves a $607,201 gap, it is the most sustainable option for long-range financial planning and to maintain the district’s academic programming.
In each of the scenarios, the district will need to utilize some of its reserves to close the budget gap. Additionally, if the district underspends the budget this year, the remaining funds can be used to close the gap or fund reserves for 2026-27. Each scenario listed above requires a supermajority (60%) approval.
Taxpayer Impact
The estimated monthly tax increase for a home valued at $250,000 ranges from $23.38 under Scenario #1 to $33.77 under Scenario #3.
Detailed information can be found in the March 16 presentation.
School & Community Presentations
Since January, the district has hosted seven budget presentations at Board of Education meetings and Budget Workshops. Additionally, the district has presented at town meetings in White Creek, Cambridge and Jackson, as well as the Village of Cambridge. The district has also met with New York State School Aid Planning and the Cambridge Faculty Association.
Frequently Asked Questions (FAQ)
The district is continually updating 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.
Community Feedback and Next Steps
The Board acknowledged community feedback regarding several topics, including a merger, a potential district office consolidation, staffing levels, cafeteria efficiency, the tax cap, academic programming and enrollment.
The district plans to conduct an exit survey at the May 19 vote to gather community feedback on the electric (EV) bus mandate from NYS, as well as a school district merger. The survey will be completely anonymous and available to all voters on May 19. Results of the survey will be shared with the Board of Education.
Upcoming Meetings/Budget Vote
- The budget development process will continue with a formal Budget Adoption scheduled for March 26 at 7 p.m. in the High School Library.
- Annual Budget Hearing: May 5, 7 p.m., High School Library
- Annual Budget Vote & BOE Election: May 19, 12-8 p.m., High School Gym