OBSERVER Photo by Braden Carmen Forestville Superintendent Dr. John O’Connor cited health insurance cost increases as a driving force for a tax increase in the proposed 2026-27 school budget.

FORESTVILLE — The 2026-27 Forestville school budget has not changed much since its initial presentation several months ago. On Tuesday, voters will decide on a proposed budget of $14,982,238, which carries a school tax levy increase of 2.9%.

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The total tax levy amounts to $4,242,810, which is an increase of $119,113 from the previous year’s budget. The total budget itself has increased by 5.6% from last year, an increase of $787,891, but the majority of that increase stems from inter-fund transfers. Without inter-fund transfers, the budget-to-budget increase is roughly 3.5%.

Two-thirds of the proposed 2026-27 budget represents instructional costs and benefits, while another 15% is characterized as general support, such as clerical staff and salaries of contracted employees like the Superintendent and Business Administrator.

Instructional costs, which includes teacher salaries, total $6,871,083 in 2026-27, which is an increase of 1.3%. General support costs stayed almost the same, increasing by $9,090 (0.4%) for a total of just over $2.2 million. Benefits are a much larger percentage increase, jumping 10.2% from just under $2.7 million to nearly $3 million.

Superintendent Dr. John O’Connor highlighted that the increase in benefits, which mostly pertains to health insurance costs, amounts to significantly more of an increase itself than the district is asking for in its tax levy increase to residents.

Transportation costs are up significantly, from $883,341 to $962,047, an increase of 8.9%. The district is increasing its inter-fund transfer amount by $380,500 this year, with a majority of that cost coming from a transfer to close out the ongoing Capital Project in order for the district to remain on schedule with its debt service. Of the total inter-fund transfer amount, $260,000 pertains to general funds being transferred to the Capital Project account, which will then be reimbursed through State Aid.

While the budget is increasing by more than 5%, so is the district’s expected revenue. The district projects more than $9.1 million in State Aid, an increase of more than $500,000 from last year. Between the tax levy increase and the State Aid increase, the district is projecting $678,757 in additional revenue this year to combat the budget increase of $787,891. The district is allocating just over $500,000 in appropriated funds and $434,512 in unassigned funds.

The district is in position to cover its increased expenditures because of its fund balance, which amounts to over $6 million in total including appropriated funds, unassigned funds and reserves. As of June 30, 2025, the district had nearly $4.9 million in reserves and another $637,480 in unassigned funds.

The estimated true tax rate per $1,000 of assessed value – when evaluated at 100% – is $10.93. The tax rate per $1,000 in Arkwright is estimated at $36.42; in Hanover it is estimated at $22.76; in Sheridan it is estimated at $27.32; and in Villenova it is estimated at $28.75.

The annual budget vote will take place on Tuesday, May 19, from 1-8 p.m. in the Middle/High School Lobby. In addition to the budget itself, a proposition will be listed on the ballot for the acquisition of diesel school buses and related equipment at a maximum cost of $394,955.

The budget vote will also include the election of three Board of Education seats, with Derek Case, Lindsey Ellis, and Jamie Hebner all running unopposed for re-election.