Tax levy increase just over one percent
On May 20, voters in the Bethlehem Central School District will consider a proposed budget of $116.6 million for the 2025-26 school year, which includes a tax levy increase of 1.12%. The Board of Education adopted the proposed plans at its meeting on April 2.
The proposed tax levy increase of 1.12%, amounting to $820,000, is lower than the annual inflation rate. Additionally, the overall budget increase of 2.27% is also below the rate of inflation. The total proposed budget of $116,623,936 reflects an increase of $2,586,402 compared to last year. The budget plan incorporates a one-time use of $715,241 from the district’s fund balance to keep the tax levy increase within New York State’s required tax cap formula.
The year-to-year budget increase is mainly due to the rising costs of health care (medical and pharmaceutical) and retirement benefits along with contractual salary increases as part of collective bargaining agreements. These contractual and mandated expenses are set to increase by $1,893,736, or 6.5 percent, in 2025-26. Over the last two years, health and retirement costs in the district have increased by $4,578,239, or 17.4%. Salary costs are expected to increase by 2.8% in the new school year.
Plan maintains smaller class sizes; matches staffing to enrollment
The proposed budget continues current academic programs, services and opportunities for students and maintains the smaller class sizes that have been in place since the pandemic. Due to continuing enrollment declines, the proposed plan reduces several staff positions (7.5 FTE instructional positions; 11 full- and part-time support positions.) These are reductions of positions, not people; they affect only vacant positions or those that will be eliminated after an individual retires. These reductions through attrition will not impact students.
Overall enrollment in 2025-26 is expected to decline by 1.8%, a net decline of 67 students. The projected enrollment decline is most notable at the elementary K-5 level where it is anticipated there will be 81 fewer students, a drop of 4.6 percent over the current year. Middle school enrollment will increase by 24 students, a 2.6% increase. High school enrollment will drop by an estimated 10 students, or less than one percent. Compared to its 2006-07 peak, district enrollment has declined 21.3%. New housing developments in the town of Bethlehem are expected to lead to enrollment growth over the next several years. The district is working with town officials to assess the impact of housing growth on the schools.
A bus proposition would replace six buses
Also on the ballot will be a bus purchase proposition allowing the district to replace aging school buses. The plan is to purchase six vehicles, including three large 70-passenger diesel buses and three small 24-passenger gas-powered buses for student transportation, at a cost not to exceed $814,770. Approximately 66% of the borrowing cost for the purchase is covered by state aid, resulting in a final maximum cost to the district of roughly $277,022 for the six vehicles.
The district is not planning to add to its fleet of electric school buses in 2025-26 due to uncertainty surrounding the federal grant funding that has made EV bus purchases affordable. The district is continuing its commitment to cleaner energy transportation and is planning to invest $22,750 as part of the budget to purchase EV charge management software to maximize EV efficiency.
A capital reserve fund would allow savings for future projects
A separate proposition on the ballot will ask voters to approve the establishment of a 2025 Capital Reserve Fund of up to $30 million.
This fund allows the district to save money for future construction projects, similar to a savings account. A capital reserve fund reduces the need for borrowing while maximizing state aid for capital improvements.
Funds can only be added to the capital reserve in years with a surplus. Voter approval is also required before any capital reserve funds can be spent.
Voters will elect two board members
In addition to the budget, voters will also elect two members of the Board of Education on May 20. The slate of Board of Education candidates will be announced after the April 21 deadline for returning candidate petitions.
Vote Tuesday, May 20, 7 a.m. to 9 p.m. in Gym A at the high school
The budget vote and board election will be held at Bethlehem Central High School on Tuesday, May 20 from 7 a.m. to 9 p.m. in Gym A. To vote, you must be at least 18 years old, a U.S. citizen and a resident of the Bethlehem Central School District for at least 30 days prior to the vote.
Absentee/early ballot voting will also be available for the May 20 Annual Budget Vote and Board of Education Election.