On Wednesday, March 12, the Salem Board of Education held its fourth budget development workshop to discuss considerations for closing a $2 million budget gap and present a balanced 2025-26 proposal that will be voted upon by the community at the School Budget Vote on Tuesday, May 20.
Under the governor’s executive budget proposal, Salem is expected to receive a small increase in state aid, which amounts to an additional $24,079 in state revenue next year. The tax levy increase for the district in the 2025-26 school year would be 2.08%, based on the maximum allowable limit, and requiring a simple majority approval. At this limit, the district would only generate approximately $105,839 in increased revenue.
With a simple rollover budget, the district is facing a $2 million funding gap. This shortfall is primarily due to a 15% increase in insurance costs, contractual salary increases, and inflationary increases to contractual services, utilities, materials and supplies. Changes in aid related to facilities, transportation and BOCES programs are also contributing factors to revenue loss.
Historically, long-term fiscal planning to ensure revenues and reserves can keep pace with rising costs and a stagnant tax base had not been prioritized. To avoid a rising tax levy, the district relied on grant funds, minimizing the burden on local taxpayers. However, this approach has led to a compounded loss of funds, which could have generated more than $6 million in revenue over the past 10 years.
Over the past three years, several staffing, operational, and financial cuts have been made to address the expiration of American Rescue Plan funds and ensure the long-term success of the school district.
This year, the district will continue to explore the best ways to remain fiscally responsible while preserving the academic and extracurricular programs currently offered to students.
“Through streamlined processes, restructuring and other efficiencies, our goal is to preserve our programs and retain staff. Maintaining an academic environment that empowers all students to reach their full potential and become future ready is of the utmost importance, and while we will need to make some difficult decisions during this budget season, steps are being taken to minimize disruptions to students' learning,” said Julie A. Adams, Superintendent.
To improve accountability and the district's financial future, Salem has been working on a comprehensive long-term fiscal plan to maintain academic, extracurricular and educational experiences. The first presentation on the district’s fiscal health and projections for the future is scheduled for Monday, March 31, with a presentation by Dr. Rick Timbs, School Finance Consultant. The presentation will occur as part of the budget workshop at 6 p.m. in the High School Library.
Following Monday’s presentation, the board will consider various options to close the gap and align instructional support efficiently.