SOUTH OTSELIC – The Otselic Valley School District will present the 2026-27 budget to voters on Thursday, May 7.

This year, the district’s proposed budget totals $13,925,074. To reach this amount, the district is asking voters to approve a 3 percent tax increase, which is in line with their tax cap levy amount.

“Our budget has increased by just over 2% this year in terms of spending. Over a three-year period, the total budget has grown by approximately 2.5%, which is significantly lower than both regional and state averages,” explained District Superintendent Brian Collier.

The district has presented the budget in sections at board meetings beginning in December. One presentation showed that just looking at the increase in common yearly expenditures such as contractual salary raises and average insurance increases compared to the increase in foundational aid and property taxes, the district is beginning with a deficit of $224,000 before any other cost increases are taken into account.

“Like most districts, we operate each year with a gap between revenues and expenses. This is largely due to minimal increases in foundation aid from New York State—1 percent this year and 2 percent last year, combined with the constraints of the tax levy limit. At the same time, cost drivers such as health insurance and contractual salary increases continue to outpace those revenue increases, even before factoring in rising energy costs,” Collier said.

In order to fill the gap, the district restructured positions, plans to raise taxes 3% and is dipping into their reserve funds. The combination will cover the deficit without impacting instruction.

“We have managed to bridge this gap by utilizing our appropriated fund balance and reserves, along with not replacing certain vacated positions, as previously mentioned. While our use of appropriated fund balance and reserves is slightly higher than last year, it has decreased significantly over a three-year period, which is important for the district’s long-term financial sustainability,” Collier explained.

Earlier this school year, a building principal resigned from their position. The district decided not to fill the position with an administrator but instead to appoint a dean of students.

Like most other districts in New York State, OV is dealing with a significant increase in insurance costs.

According to Board President Dave Cruikshank, insurance costs increased 10 percent this year. That combined with the increase in utilities made budgeting difficult this year.

“With circumstances like this, it’s going to take cooperation from everyone in order to make things work. In the end, we’ve got to offer programs for the kids. Otherwise, why are we here?” Cruikshank said.

The district listed maximizing regional resources and services as a financial goal in one of their budget presentations. They also highlighted protecting programming as opposed to cutting positions and programs, smart spending, and future focused planning that relies less on reserves as priorities.

“The full board, and particularly the finance committee, has done an outstanding job identifying priorities and shaping a budget that reflects those goals. Their primary objective has consistently been to provide students with the best possible educational opportunities while maintaining reasonable spending levels for taxpayers. I believe this budget achieves that and reflects strong collaboration among stakeholders across the community,” Collier said.

Otselic Valley residents will be able to hear more about the proposed budget at community hearings taking place on May 5 and 6 in Georgetown and Otselic, followed by the formal budget hearing on May 7.