2025-26 Budget Overview

On May 20, 2025, Chatham Central School District voters approved  the 2025-26 school budget 338 yes to  217 no.

The budget totaled $36,317,609 and carries a projected tax levy increase of 3.66 percent, which is at the limit set by New York State’s property tax cap. Spending is up a total of $889,058, a 2.51 percent increase from the 2024-25 budget. 

This budget cycle, the District had to overcome an approximately $1.4 million year-to-year budget gap caused largely by a significant reduction in school aid from the state, steep increases in health insurance and prescription plan premiums, a rise in special education costs, and inflation.

In order to balance the budget, the District reduced staffing by the equivalent of 12 positions to match declining student enrollment, cut two bus runs to match declining ridership, reduced contracted BOCES support staff services, reduced spending in the area of supplies and field trips, and applied $573,953 in unallocated fund balance. Staffing reductions were made through attrition (retirements/resignations) wherever possible. As it has in recent years, the District also applied $1,341,600 in allocated fund balance to further offset year-to-year cost increases and lower the tax levy to the level set by the tax cap. 

Budget highlights include no loss of programs, a continued rich assortment of opportunities for students, the addition of an Intro to Agribusiness elective at Chatham High School, support for universal pre-k, and two bus replacement purchases. The budget also includes a small capital project to improve the bus garage’s fuel storage system. 

Presentations

Budget Documents

How did the District Reduce Costs?

Chatham CSD needed to make spending reductions in order to balance the 2025-26 budget.The District used a combination of staffing and program adjustments, efficiency measures, and other cost saving initiatives to make $945,563 in budget reductions. School officials based reductions on a decline in student enrollment and program needs, which allowed the District to make cuts but still maintain its current programming/opportunities for students and meet all state mandates. The District utilized retirements/resignations to reduce staffing where possible. Spending reductions include:

Personnel (- $699,548)

2 elementary teacher positions

1 elementary teaching assistant position

1 elementary teacher aide position

1 middle school AIS teacher position

2 middle school teaching assistant positions 

1 middle school teacher aide position

1 high school social studies teacher position

1 high school special education teacher position

1 high school teaching assistant position

1 high school teacher aide position

Transportation (- $70,000)

The transportation department consolidated bus runs to match declining ridership, resulting in the elimination of two bus runs. 

Contracts (- $115,575)

BOCES data entry service reduced from three units to two units

BOCES network engineer position reduced from full time to part time (0.6)

BOCES health & safety service reduced from one day per week to as needed

BOCES curriculum coaching

Other Efficiency Measures (- $60,440) 

Supply budgets reduced by 5%

Curriculum tools not impacting student progress/not utilized were eliminated
Spending on field trips was reduced

How Does the District Use Fund Balance and Reserves?

Chatham CSD uses fund balance and reserve accounts to reduce year-to-year increases to the tax levy. Using reserves and fund balance in this manner is part of the District’s long-term fiscal plan to provide for the financial stability of the District. 

The District used $1,341,600 in allocated fund balance and an additional $573,953 in unassigned fund balance to help close the year-to-year budget gap and hold the tax levy increase at the limit set by the tax cap. 

Fund balance is a reserve similar to a savings account; when District expenses are less than expected, or revenues are higher than projected, money remaining at the end of the year is held in the fund balance. The District utilizes fund balance each year as revenue in the next year’s budget to minimize spending cuts and hold down tax increases.

District officials will use other reserve accounts as necessary to cover revenue in areas where costs commonly fluctuate, such as retirement, health insurance, unemployment insurance, workers’ compensation, and tax certiorari. 

Capital Project - Fuel Tank Repurposing

Included in the 2025-26 budget is a small capital project to connect a large existing fuel storage tank (currently used for heating oil) to the bus garage’s fuel pumps and repurpose a smaller tank (currently used for diesel) for the heating oil. Swapping these tanks would better match the volume of fuels required from each and reduce the frequency of diesel deliveries needed to supply our transportation fleet. The project would not exceed $100,000 and does not increase the 2025-26 budget because money for small annual capital projects like this one was built into the budget in previous years. Completing these upgrades as a capital project provides significant savings to local taxpayers because Chatham CSD is entitled to approximately 50 percent state aid on capital projects, meaning the District would be reimbursed for approximately half of the cost of this project.

Property Tax Cap

Contrary to popular belief, the NYS property tax cap does not cap tax increases at 2%. Instead, schools must use a state formula each year to determine how much they can increase their tax levies by without having to seek a higher percentage of voter approval for the budget. This threshold may be different each year and must be determined by the District and submitted to the state by March 1st.

For 2025, Chatham's maximum allowable tax increase is 3.66 percent.

If the year-to-year increase of the District’s tax levy is at or below the number determined by the cap, a simple majority (50% + 1) of voter approval is needed to pass the budget. If the budget proposal carries a tax levy increase above the cap, a super majority (60%) of voter approval is needed for the budget to pass. More information on the NYS Property Tax Cap is available on the NY State Education Department Website.