Superintendent Lohrey urges vote on narrow 2026-27 Niagara Falls school budget, warns of $8 million gap

Superintendent Mr. Lohrey presented the district's tenth and final budget proposal for 2026-27 and asked voters to approve the plan in the May 19 ballot vote, saying the district has done its best to estimate revenues amid continued state budget uncertainty.

"We will not overspend our budget," Mr. Lohrey said, describing the year as the first in which district expenses clearly outpaced revenues. He told the board the district is projecting an $8,000,000 shortfall if current assumptions hold and said the unassigned fund balance sits around 3.3 percent. He also reported an estimated rollover of $78,269.

Why it matters: The superintendent framed the vote as a choice for voters between sustaining current programs and accepting more restrictive contingency cuts. If the budget fails, Mr. Lohrey said the board could either return the proposal for another public vote in June or operate under a contingency budget that would eliminate roughly $688,000 in discretionary spending, limit community use of school buildings, eliminate some student supplies and narrow bussing eligibility to the state's 1.5-mile standard.

Key points: Mr. Lohrey attributed recent budget pressure to rising diesel fuel costs, three additional out-of-district placements (some costing up to about $200,000 per student in extreme cases, with many around $60,000), higher substitute and 60-day conversion stipend costs, and other uncontrollable markets such as health insurance. He said the district has used workers' compensation savings to help absorb some of those costs this year.

On state policy and grants, Mr. Lohrey said the absence of an enacted New York State budget makes revenue assumptions provisional. He noted three items he was watching in Albany: (1) a potential change to the electric-bus compliance timeline from 2035 to 2040, (2) a liquidation-board remedy for child-victim claims if an insurer becomes insolvent, and (3) a new allowance for a superintendent or board member to sit on industrial development agency boards. He also raised concern about proposed student grant organizations (SGOs) and pending IRS guidance, saying the district will monitor rules and possibly consider establishing a district-affiliated option only after guidance is clear.

What the board can expect: Mr. Lohrey said there are no program eliminations or planned school closures, and he reiterated that the district has not increased the tax levy for the twelfth consecutive year. He described the budget as "fair to students, staff and taxpayers" while cautioning the board to continue monitoring revenue changes and reserve levels.

Next steps: The district is asking voters to approve the 2026-27 budget on May 19; the board will certify election results at a statutorily required meeting the following week and—if necessary—pursue the contingency plan or a re-vote in June.