OBSERVER Photo by Braden Carmen Business Administrator John Forbes presented an updated budget proposal at the latest Fredonia Board of Education meeting.

It took only two weeks for Business Administrator John Forbes to shave off more than half a million dollars from the initial projection of the 2026-27 Fredonia School Budget.

After initially proposing a total budget amount of $41,537,240, Forbes returned to the Board two weeks later with an updated projection of $41,024,742. The new budget increase year-to-year is 7.41% — down from the initial projected increase of 8.75%.

The new figure is still an increase of nearly $3 million, but more than $500,000 was reduced without making any staffing or equipment cuts. In the two weeks between projected budget presentations, Forbes reduced salaries by $85,998, from over $19.84 million to $19.75 million.

The biggest reduction over the past two weeks was to the budgeted costs for BOCES services. The district initially projected over $5.7 million in BOCES costs, but the latest projection shows $5.26 million in BOCES costs. The district allocated just over $4.6 million in BOCES costs in the current year’s budget.

Major factors driving the increase to the budget include a 31.8% increase to New York State Employees Retirement System (non-teachers), as well as an increase of 11.2% to group health insurance. Health insurance costs district-wide are projected to increase by $425,920 in 2026-27.

BOCES costs in Special Education are expected to rise by $325,922, while BOCES costs in Occupational Education and P-Tech are expected to increase by $297,430.

The district also anticipates an increase in debt service of $535,154 due to capital project costs. Transportation costs are expected to rise by $155,000, while contractual athletics costs are set to rise $63,200.

The latest budget projection shows $19,775,597 in salaries and $8,221,659 in benefits. Together, salaries and benefits amount to 68.24% of the overall budget. BOCES costs amount to $5,267,551 (12.84%) and contractual expenses amount to $4,884,153 (11.91%).

Following another retirement resignation in the time between the two budget presentations, Fredonia now has seven vacancies to fill in the upcoming year. The most recent projected budget accounts for all seven positions being filled with a new employee.

If all seven vacancies are filled, the district will not see significant savings in the first year, due to the retirement incentive that outgoing teachers receive. The district will see more of an impact in the following year once the higher salaries, plus the incentives, are off the books. However, the district could see much more significant savings if it were to eliminate some of the outgoing positions. Staffing needs and replacements are currently under review by the district.

The new projected budget increase is $2,830,942, which still represents the largest total dollar increase the district has asked for as far back as Forbes listed in his presentation, dating back over a decade. The previous high came in 2023-24 when the budget increased $2,721,219. In each of the last three years, the budget increased by over $1.7 million.

The tax levy increase for 2026-27 has not yet been determined. Last year, the district settled on a 1.9% tax increase after voters rejected the initial budget proposal. The district’s tax levy limit for 2026-27 is 2.44%, or in real dollars, $426,340.

The average tax levy increase from 2016-17 to 2025-26 is 2.45%, due in large part to increases of 1% in 2020-21 and 2022-23, and no increase in 2019-20 and 2021-22.

Forbes projected the 2026-27 budget to receive approximately $20,127,925 in State Aid; $19,538,088 from the tax levy; $508,729 from local sources; and $100,000 in Federal Aid. The total budget is slightly over 50% State Aid and just under 50% from the tax levy.

Forbes also anticipates an allocation of $750,000 of fund balance, just as the district did a year ago. With the district’s fund balance decreasing at a rapid pace – enough to draw the attention of the State Comptroller’s Office to define the district as “susceptible to financial stress” – Forbes hopes to decrease the amount of fund balance allocated in the final budget proposal.

The third draft of the 2026-27 budget will be presented at the next Board of Education meeting on Tuesday. The Board is evaluating whether to schedule another meeting, potentially on April 20, for further discussion before the budget is approved by the Board. The annual budget hearing will be held on May 5. Two weeks later, the public budget vote will be held on May 19.