State aid outlook for the district takes an unexpected turn
During an informational budget workshop last week, Superintendent of Schools Dr. Donald Stevens and School Business Manager Keith Heid presented a second, more detailed glimpse into the 2026-27 school budget development process.
The most significant update from the first budget presentation, shared at the Board of Education meeting on March 10, is a change in the level of Foundation aid the district can expect to receive from the state.
State Foundation Aid is calculated using a complex formula that considers several factors, of which enrollment and student need are significant. At the time of the first presentation, Foundation Aid for Watervliet was projected to be approximately $1.1 million, as reflected in the Governor’s Executive Budget. A refresh of the data showed the district’s actual enrollment to be 33 students lower than projections. As a result, because state aid is calculated in part by enrollment and need — the district’s overall projected increase in funding would be $400,000, or approximately $700,000 less than anticipated.
“We had started budget development based on the aid numbers we received from the state in January,” Dr. Stevens said. “Since that time, we have had to pivot to develop a budget that maintains all programs and services for students and continues to be mindful of community support.”
Dr. Stevens added there is a chance that state funding of schools could increase slightly in the finalized state budget, if the Legislature’s push for additional funding for education — as proposed in both house spending plans — is successful.
As they continue to develop the 2026-27 budget, the administration anticipates presenting a spending plan with a tax levy increase of 1.5 percent, which is below the district’s threshold of 1.99 percent under the state mandated tax cap.
What is driving the budget?
Several factors driving the year-to-year budget increase include escalating operational expenses and higher employee pension contributions and health insurance costs, all of which exceed increases in revenue.
New for next year
The retirements of a longtime administrator and several veteran teachers will create opportunities for the district to create new leadership positions for oversight of data and school accountability and for a dedicated coordinator for the prekindergarten and EVOLVE programs.
In addition, the district is recommending a restorative practices specialist who will promote a safe, supportive, culturally responsive, equitable, and welcoming learning environment for grades 6-12 learners.
Next steps
Community members will have another opportunity to learn about the 2026-27 budget proposal, ask questions and share feedback during the final budget presentation that will open the Board of Education meeting on April 14. It is expected the board will adopt the proposed 2026-27 school budget at the meeting.
District residents will then vote on the school budget proposal and elect two candidates to the Board of Education on Tuesday, May 19 from 11 a.m. to 8 p.m.
Important dates
- April 14: Board of Education and Budget Adoption, 6 p.m.
- May 5: Public Budget Hearing, 6 p.m.
- May 19: School Budget Vote and Board of Education Election, 11 a.m. – 8 p.m.