Early draft budget for 2026-27 school year presented at Board of Education

Dr. Demario Strickland, Superintendent of Schools, presented the Mount Vernon City School District’s early draft budget for the 2026-27 school year on February 26 and again on March 24, where he explained the school district’s sources of revenues and expected expenditures.

Click here to view the presentation.

Click here to view video of the March 24 presentation.

The overall revenue is projected to increase by $4 million to fund a $276 million budget in the next school year. To balance the budget, without adding new positions, the district is currently projecting it will need to request taxpayers for a 1.99% increase to the tax levy.

Dr. Strickland explained that the budget will be funded primarily by a projected $7.2 million in local sources, $122 million in state aid, and tax revenue totaling about $143.2 million. Throughout the presentation, he described how school budgets are developed and the variables that go into creating a fiscally sound spending plan.

“Changes in funding from Albany matter so much to Mount Vernon because of the huge stake that we receive from New York State,” he said.

State aid is projected to grow by about $1.7 million, tax revenue would increase by about $2.7 million, but local revenue is expected to decline slightly by $431,000.

Taxes will make up just over half of total revenues – 52.1% – while state aid will account for 45.2%, and local revenue will make up 2.7%.

“That balance is important as we think about tax levy decisions and affordability,” Dr. Strickland said. He also highlighted the need for transparency and ensuring that the community understands where expenses are coming from and why increases are needed. 

 “And, it is very important to lay out what we are showing as a need for increases. As you know, every year, things are getting more expensive. Eggs got more expensive, gas got more expensive. Education for our children is more expensive.”

The governor's initial state aid run called for a 2.66% increase in state aid, however, it seems likely that the Save Harmless provision will be upheld this year, resulting in a smaller increase to  the district’s state Foundation Aid. The purpose of the Save Harmless policy is to act as a safeguard for districts, and it guarantees that school districts will receive at least as much operating aid as the year prior, regardless of enrollment declines. 

The district has conservatively budgeted for only a 1% increase in Foundation Aid, because a later update from the state suggested Foundation Aid could be closer to 1% than the original 2.66%. 

“That difference equals millions of dollars,” he said. “So we planned responsibly rather than optimistically.”

Adjustments will be made to the district budget as the governor’s state budget runs get updated before its eventual review and approval by the state Assembly and Senate.

Dr. Strickland said that the district modeled tax levy increases between 0% and 2.5% to analyze projected revenue. The state-prescribed tax cap for the district is 2.5% for the next school year.

 These additional funds would help with rebuilding the district’s fund balance and covering increased costs that are likely coming with transportation and health care, in addition to settling bargaining unit contracts. 

Dr. Strickland also emphasized the need to rebuild reserves as a financial safety net for the school district.

“We use it carefully to manage unexpected costs and avoid disruption, but not as a permanent funding source. Responsible use protects long-term stability,” he said. “The budget does not call for the use of any fund balance. I will work within the constraints of the budget to help illuminate the priorities that I have identified as well as what the community has identified.”

The growth in expenses for the coming school year will be mostly driven by increases in health care and charter school tuition due to increased enrollment. Salaries, benefits and required services like special education also make up a large percentage of expenses. 

Dr. Strickland said the district will continue to refine the budget, adjusting projections to reflect staffing, contracts and programmatic needs. This continuous refinement will ensure the final adopted budget is realistic and that the district is prepared for any expenses in the upcoming school year.

He added that the district will continue to match revenues and spending, reorganize roles and positions, and leverage aid such as title and grant funding whenever possible.

“This is exercising fiscal responsibility and making sure that we just do not keep simply adding on to a rollover budget,” he said. 

Dr. Strickland highlighted the need to be fiscally prudent with utilizing taxpayer dollars. He also ensured the board and community that the district will work within its financial capacity, rather than compounding financial challenges that exist from past years.

The board is expected to vote to adopt the budget on Tuesday, April 7. On May 5, there will be a public hearing. And, on May 19 registered voters will have the opportunity to vote on the annual budget referendum.