Romeo Khalili, a district staff member, told the Board of Education during the pre‑budget hearing that the district will “use [the strategic plan] whenever decisions need to be made” as the anchor for the 2026–27 budget process.

Khalili and Janine Cushman, a district staff member, presented a revenue picture that mixes modest near‑term improvements with significant medium‑term risk. Staff reported that state midyear tax receipts are roughly $700 million higher than projected, and that midyear spending is down, but cautioned that the state projects a roughly $34.2 billion deficit over the next three years.

The presentation reviewed the items the district expects to be most predictable next year: expense‑based aids such as BOCES, transportation aid and building aid, and projected property tax cap calculations. Staff said they expect the allowable tax cap growth factor to be capped at 2% (the statutory maximum), and noted the district's tax base growth has averaged about 0.3% in recent years.

On the expense side, Cushman outlined major drivers: payroll and contracts, benefits and retirement systems. She said the district's payroll includes roughly $115 million in certified salaries and about $45 million tied to Employee Retirement System (ERS) salaries. Staff reported health‑plan increases tied to RASH consortium rates — the active employee plan rise was presented at about 9.9–10% effective Jan. 1, 2026, while retiree plan increases were shown as substantially higher (presented in the briefing as a range between 35–45%, with an average cited near 40%).

Khalili and Cushman also described retirement contribution rates: ERS was presented as rising toward about 17.6% of applicable salaries, while the Teacher Retirement System (TRS) rate was forecasted in staff materials to be lower next year (presented at roughly 8.25–8.75%).

Board members asked how grant reductions would affect the general fund. District staff clarified that most grants are recorded in the special aid fund; if a federal or other grant is lost and the services must continue, cabinet will evaluate whether to absorb those costs into the general fund, replace them with other grant funding, or discontinue the activity.

A board member asked for a follow‑up that quantifies nondiscretionary versus discretionary spending. Khalili said staff will supply a breakdown showing the share of the budget tied to contracted salaries, benefits, debt service and other mandatory obligations; he noted that staff estimated a large majority of the district's current $318 million budget is nondiscretionary.

The board adopted budget parameters and the staff timeline for public presentations, legal notices and the May 19 district budget vote. The timeline calls for a superintendent's proposed budget presentation in early April and the required public hearing in early May.