John Forbes has cut more than $2.4 million from the first draft of the 2026-27 school budget. There is still a lot more work to be done to get under the tax cap.

At the third presentation of the proposed 2026-27 school budget, Forbes revealed the district is still more than $760,000 over the tax cap. That is even after factoring in $750,000 of applied fund balance.

The Board of Education has added another meeting, this coming Monday to allow for more time to make last-minute adjustments. The Board anticipates approving a budget at that meeting. Its hope – over the six days between the most recent presentation and the final draft — is that Forbes can find at least $761,606 worth of cuts to get down to the tax cap.

The district’s tax cap for 2026-27 is a tax levy increase of 2.44% from last year’s amount. The maximum tax levy amount the district can propose is $17,908,895.

Last year, the district’s first budget proposal to the community was rejected. It was one of fewer than 30 school budgets in the entire state that did not pass on its first attempt. That initial budget proposal carried a total tax levy increase of 2.59%, with 1.9% of that increase representing the amount the district’s increase tied to Proposition 1 of the capital project, which voters approved.

On its second attempt, the district reduced the budget further by cutting two teaching positions and summer school programming for grades K-8. Those cuts brought the budget down to a 1.9% tax increase, which voters approved by fewer than 250 votes in the largest budget vote turnout at Fredonia since 2006.

This year, even if the district does manage to cut more than $760,000 from its third draft of the budget, the tax levy increase would likely be more than 2%. The only way the district could approve a tax levy increase higher than 2.44% is if at least 60% of voters approved the budget.

On its second attempt a year ago, at an increase of less than 2% — with no increase aside from the capital project costs that were already voter-approved — the district still did not have 60% of voters approve the budget. Especially with another tax increase expected from the village of Fredonia, as well as uncertainty surrounding water costs throughout the district’s tax base, it is unlikely that 60% of voters would approve a tax levy increase higher than 2.44%.

Still, the district needs every dollar it can get to build up its rapidly decreasing fund balance, which has fallen to just 2.32% of the succeeding year’s budget. Most districts have 4% or higher, and the state suggests 4% as a target for districts. Many financial experts suggest even more than 4%.

Because of the rapid decline of fund balance, the Office of the State Comptroller characterized the district as “susceptible to financial stress” in each of the past two years. Citing the stress on the district, Laura Napoli, a Certified Public Accountant who conducted the district’s audit, told the Board of Education, “Absolutely raise to the tax cap.”

Superintendent Dr. Brad Zilliox said that he does not always recommend raising taxes to the levy limit, but this year, his tone has changed. “This year, I am there at this point,” he said.

As of June 30, the district had $887,915.98 in unassigned fund balance, $787,558.95 in assigned fund balance, and $1,623,703.01 in restricted fund balance. Combined, the district’s fund balance totals $3,299,177.94. Nearly all of the assigned fund balance is applied to the budget to lower the burden on taxpayers. Forbes stated a desire to reduce the amount of assigned fund balance in the budget, but because the district is still over $760,000 over the tax cap even with $750,000 of fund balance included, that would require even more substantial cuts.

Last year, the district was forced to make staff reductions to reduce the budget to an amount voters would approve. If the district does so again this year, the cuts could come through attrition.

The district has seven teaching positions open due to retirements — three elementary teachers, two math teachers, a music teacher, and a technology teacher. Zilliox stated that it would be especially difficult for the district to cut the mathematics, music, and technology positions, with Grade 3-8 testing and Regents exams in mind.

“We have done our best to move thoughtfully and carefully in terms of staffing for next year,” Zilliox said, noting that staffing discussions are being had throughout the days leading up to the final budget proposal to the Board on Monday. “We appreciate patience from our school community as we work our way through our budget process.”

While many districts across the county have seen reductions in population, that is not the case at Fredonia. Enrollment at Fredonia has slightly increased over the past six years. Including Pre-K students, the district’s enrollment this year is 1,455.

The district’s needs have also increased across the board since 2020-21. This year shows 26% more students as English Language Learners than in 2020-21, along with 58% more students with disabilities, and 21% more students classified as economically disadvantaged. There are currently 276 students with disabilities at Fredonia, while 648 students are deemed economically disadvantaged. There are 51 students classified as homeless, compared to five in 2020-21. Additionally, 58 students this year are in Career and Technical Education or P-TECH courses, compared to 45 students in 2020-21.

Salaries and benefits amount to over 68% of the overall budget amount in the latest draft. BOCES costs account for 12.4% and contractual expenses amount to 11.9%. The district’s debt service and transfers amount to 3.91% of the latest budget projection, with 2.3% of the budget as materials and supplies, and equipment representing less than 1% of the budget.

The district is projecting over $20 million in State Aid, amounting to roughly 50% of the overall budget. Last year, State Aid represented just over 50% of the total budget, as well.

The district’s final budget amount and tax levy will likely be finalized at the Monday meeting. The annual budget hearing will be held on Tuesday, May 5 at 6 p.m. in the High School Library. The public vote on the budget will be held on Tuesday, May 19 from 2 p.m. to 9 p.m. in the High School Cafeteria.