On Tuesday, April 8, the Salem Board of Education reviewed four possible budget scenarios to close the revenues and expenses gap in the proposed 2025-26 school budget.
The board discussed several options, including three scenarios that propose a tax levy increase that exceeds the tax levy limit, as defined by state law. Supported by a simple majority of voters for passage, this limit is a threshold. Salem choosing to levy taxes above the limit would require a supermajority (60%+1) of voters for approval.
Among School Finance Consultant Dr. Rick Timbs’ recommendations to balance the budget was to significantly decrease expenditures, and streamlining operations to help the district’s financial situation. Below are the steps Salem has already taken to minimize the current expenses:
Combining Elementary Principal and Director of Pupil Personnel Services roles
Began a gradual shift from internal speech therapy services to county
Reduction of one reading AIS position
Reduction of one teaching assistant
Reduction of six aides due to change in program needs
Elimination of Student & Family Engagement Coordinator and Reading Coach make Title I funds available to sustain full day kindergarten and one AIS reading teacher position
The four scenarios, explained below, all include the reduction of four staff positions and were prepared to thoughtfully minimize the impact on student programming.
Reorganizing teaching assignments in the English, Math, and Science departments to accommodate increased enrollment in Career and Technical Education (CTE) and alternative credit options for students.
Lower levels of Academic Intervention Services (AIS) will be provided by classroom teachers, while higher levels will be managed by reading teachers. Special Education teachers who meet the qualifications of certified reading teachers will also contribute to the reading department.
Elimination of social worker position through attrition
Speech therapy will be supported by the two remaining speech therapists, wit
h county programs available to assist as needed
Reduction of one clerical position to reflect reduction of administrative position
Scenario 1
All of the above reductions listed, AND
Proposes a tax levy increase at the allowable limit of 2.08%, requires a simple majority to pass
Budget gap would remain at $615,269, requires additional cuts to the ones listed above
Reserves will be depleted by 2029
District could face a cash flow issue in 2030
For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $55.20
Scenario 2
All of the above reductions listed, AND
District's best effort to preserve programs, staff, and set the district on a positive path for the future
Proposed tax levy of 18% requires a supermajority (60% +1) to pass
Eliminate the budget gap and maintain healthy reserves and fund balances
High tax increase. For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $471.40
Scenario 3
All of the above reductions listed, AND
Proposed tax levy of 8% requires a supermajority (60% +1) to pass
Reduce the budget gap to $313,928, maintain the fund balance, and slow the depletion of reserves
As 2029 approaches, reserves would need to be carefully managed to ensure the fund balance remains above 4% each year
For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $209.97
Scenario 4
All of the above reductions listed, AND
Proposed tax levy of 5%, requires a supermajority (60% +1) to pass
Reduce the budget gap to $466,325
Leave reserves depleted and an inadequate unassigned fund balance by 2030
The one-time 5% increase will not be sufficient to offset the loss in fund balance, requiring the district to make additional cuts if revenue or the tax cap is not challenged in future years
For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $131.54
Next Steps For Salem CSD
The next Budget Workshop will be held on Thursday, April 17th, at 6 p.m. in the Auditorium. Leading up to this, the BOE and district will review the presented options and seek input from the community. During the upcoming workshop, the Board will identify the best tax levy scenario and present a budget draft. The workshop is open to all members of the community.