Eldred school board holds budget hearing as officials propose 2.38% tax increase at cap

The Eldred Central School District held a public budget hearing on May 7, 2026, where district staff presented a proposed 2026–27 budget that would raise property taxes by 2.38% — the maximum allowed under the state tax-cap formula — and increase total budgeted spending by about 2.45%.

Caleb, a district staff member who led the presentation, said the draft relies on the governor’s aid estimates and a conservative projection for variable revenues. "Next year, we are proposing a 2.38% increase to the taxes that is at the tax cap, but not above," Caleb said. He told the board the district is expecting a modest increase in state aid and is using a conservative BOCES refund estimate of $365,000, which is the lowest refund the district has received in the last five years.

The presenter emphasized uncertainty in assessment and equalization data, noting the district didn’t have current-year assessment rolls or newly published equalization rates. "This assumes that the equalization rates stay the same and that no new properties go on," he said, and used example calculations showing different town equalization levels could change the tax effect on a $200,000 assessed home.

Board members heard that employee benefits are the single largest cost driver. The presentation said employee benefits are up about 5.45% year over year, primarily because health-insurance costs are increasing. District staff characterized the revenue mix as heavily reliant on property taxes, with state aid making up roughly 28% of total revenue and transportation aid near 26%.

The presentation also described internal fund transfers to address a past cafeteria-fund loan and noted a permitted $100,000 capital project (this year used for doors and a fiber upgrade) included in the tax-cap calculation but not increasing the cap because a $100,000 project was done last year as well.

The hearing closed with the board accepting the presentation and moving on to consent items and other business. The board voted to enter executive session on a legal matter and indicated it would not return to public business at the end of the meeting.

What happens next: the district’s proposed budget and the full statement of estimated expenditures will be available before the district vote scheduled for May 19, 2026.