Save the date! The vote for the 2025-2026 Budget, BOE Elections, and Capital Project vote will be held on Tuesday, May 20, 2025, from 8 a.m. to 8 p.m. in Room 418 at Salem Central School High School. A public hearing will be held on May 6, 2025 at 6 p.m. in the High School Auditorium.
On this page, you can find the answers to frequently asked questions. These will be updated as information develops. For more information, make sure to visit our webpage for the 2025-2026 School Budget and Election.
Q: What scenarios are being considered for the upcoming budget proposal?
A: To address the budget gap, the Board will consider several scenarios to be presented to voters at the May 20 budget vote. The scenarios were presented and discussed during the next public budget workshop on Tuesday, April 8th.
Below are the steps Salem has already taken to minimize the current expenses:
Combining Elementary Principal and Director of Pupil Personnel Services roles
Began a gradual shift from internal speech therapy services to county
Reduction of one reading AIS position
Reduction of one teaching assistant
Reduction of six aides due to change in program needs
Elimination of Student & Family Engagement Coordinator and Reading Coach make Title I funds available to sustain full day kindergarten and one AIS reading teacher position
A summary of the four scenarios discussed can be found below. Please consult the recap of the Budget Workshop for more information. The four scenarios, explained below, all include the reduction of four staff positions and were prepared to thoughtfully minimize the impact on student programming.
Reorganizing teaching assignments in the English, Math, and Science departments to accommodate increased enrollment in Career and Technical Education (CTE) and alternative credit options for students.
Lower levels of Academic Intervention Services (AIS) will be provided by classroom teachers, while higher levels will be managed by reading teachers. Special Education teachers who meet the qualifications of certified reading teachers will also contribute to the reading department.
Elimination of social worker position through attrition
Speech therapy will be supported by the two remaining speech therapists, wit
h county programs available to assist as needed
Reduction of one clerical position to reflect reduction of administrative position
Scenario 1
All of the above reductions listed, AND
Proposes a tax levy increase at the allowable limit of 2.08%, requires a simple majority to pass
Budget gap would remain at $615,269, requires additional cuts to the ones listed above
Reserves will be depleted by 2029
District could face a cash flow issue in 2030
For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $55.20
Scenario 2
All of the above reductions listed, AND
District's best effort to preserve programs, staff, and set the district on a positive path for the future
Proposed tax levy of 18% requires a supermajority (60% +1) to pass
Eliminate the budget gap and maintain healthy reserves and fund balances
High tax increase. For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $471.40
Scenario 3
All of the above reductions listed, AND
Proposed tax levy of 8% requires a supermajority (60% +1) to pass
Reduce the budget gap to $313,928, maintain the fund balance, and slow the depletion of reserves
As 2029 approaches, reserves would need to be carefully managed to ensure the fund balance remains above 4% each year
For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $209.97
Scenario 4
All of the above reductions listed, AND
Proposed tax levy of 5%, requires a supermajority (60% +1) to pass
Reduce the budget gap to $466,325
Leave reserves depleted and an inadequate unassigned fund balance by 2030
The one-time 5% increase will not be sufficient to offset the loss in fund balance, requiring the district to make additional cuts if revenue or the tax cap is not challenged in future years
For a property valued at $200,000 in the town of Salem, the average annual tax increase would be $131.54
Q: How can I participate in the budget process?
A: You can email your comments to BOE members using the email address provided on our Meet the Board webpage. Community members can attend the remaining Budget Workshop meeting as the board develops a proposed budget for the 2025-2026 school year:
April 17: Budget Workshop in the Auditorium at 6:00 pm
May 6: Budget Hearing in the High School Auditorium at 6:00 pm, Capital Project Hearing to be held immediately after
Remember to vote! Polls will be open on Tuesday, May 20, 2025, from 8 a.m. to 8 p.m. in Room 418 at Salem Central School High School. A public hearing will be held on May 6, 2025 at 6 p.m. in the High School Auditorium. Please enter at the Circle entrance.
Q: What caused the gap and what is being done about it?
This gap is primarily attributed to a 15% increase in insurance costs, contractual salary increases, and inflationary increases to contractual services, utilities, materials and supplies. Changes in aid related to facilities, transportation and BOCES programs are also contributing factors to revenue loss.
To discuss considerations for closing the budget gap and present a balanced 2025-26 proposal that will be voted upon by the community, Salem Board of Education is hosting a series of budget development workshops.
To avoid a rising tax levy, the district relied on grant funds, minimizing the burden on local taxpayers. However, this approach has led to a compounded loss of funds, which could have generated more than $6 million in revenue over the past 10 years.
Q: Can the Board propose a tax levy over the limit?
A: The tax levy increase for the district in the 2025-26 school year would be 2.08%, based on the maximum allowable limit, and requiring a simple majority approval. The board can propose a tax levy higher than 2.08% to sustain programs. A higher tax levy would require a supermajority of voters to pass (60 percent or more). If a district fails to obtain a supermajority for a proposal that exceeds the tax levy limit, the same rules for a budget defeat, described below, apply.
If a district’s proposed tax levy increase meets or is below its individual tax levy limit, it needs a simple majority (50 percent + 1) to pass the budget.
Q: What is the tax levy limit, or tax cap?
A: The tax levy limit is the highest allowable tax levy (before exemptions) that a school district can propose as part of its annual budget with the support of a simple majority of voters (50% + 1) required for approval. In other words, if a district proposes a tax levy increase at or below the limit, a simple majority of voters is needed for the budget to pass. Any proposed tax levy amount above this limit would require the support of a 60% supermajority of voters to be approved. The tax levy limit sets a threshold requiring districts to obtain a higher level of community support for a proposed tax levy above a certain amount.
Q: What is the difference between the tax levy and tax rate?
A: The tax levy is the total amount of money a school district raises in taxes each year from all property owners in the district.
The tax rate is the amount paid for each $1,000 of taxable assessed value of property. The rate is used to calculate each individual property tax bill. In districts that cover just one municipality, the tax rate is figured by dividing the tax levy by the total taxable assessed value of the district, then multiplying by 1,000. This gives you the tax rate, which is expressed as the amount per $1,000 of assessed property value.
In districts that encompass more than one municipality, equalization rates are factored in as well to assign a fair share of the tax levy among the municipalities and to the taxpayers within them.
Q: What happens if the budget is not approved by voters?
If a proposed budget is defeated by voters, a school district—as in the past—has the option of putting the same or a revised budget up for a revote, or adopting a contingent budget. If a proposed budget is defeated twice by voters, a district must adopt a contingent budget. Adopting a contingent budget prohibits a district from spending any money in certain areas, including community use of school facilities (unless all costs are reimbursed to the district); new equipment purchases; non-essential maintenance; capital expenditures (except in emergencies); salary increases for non-instructional, non-unionized employees; and certain field trips and student supplies. Contingency rules also cap the growth of the administrative component of the budget. These requirements existed prior to the tax levy cap and remain in effect.
More significantly, under the law, a district that adopts a contingent budget must keep its upcoming school year tax levy the same as or less than its current year tax levy—which in effect is a zero percent cap. In other words, a district that adopts a contingent budget would have to levy the same amount of taxes as in the current year—or less—without any adjustments for state pension rate increases, contractual obligations or any other costs, whether or not they are mandated.
Q: Does the tax cap legislation affect all school districts equally
The tax cap legislation affects all districts to varying degrees, but some are affected much more than others. In particular, for poor and/or rural school districts with low property wealth and declining tax bases, staying within their “tax levy limits” will severely restrict their ability to generate the revenues needed to sustain core educational programs. This discrepancy is largely rooted in what an increasing number of school leaders say is an unfair formula for distributing state aid to districts around the state. In addition, school districts with a relatively small tax levy will generate much less revenue for every 1 percent tax levy increase, compared to school districts that have larger tax levies as their base. This difference will only be exacerbated over time.
Q: Why are we doing the roof project now?
Leaks from our roofs have begun to interrupt learning and the school environment, requiring our maintenance team to get creative with solutions when the leaks pass their repairs. On the same ballot, there will be a proposition seeking approval for roof repairs as a capital project. Since the high school opened in 1938 and the primary school in 1955, the roofs have endured many decades of wear and tear. The Capital Project will address these repairs, allowing us to use state aid to cover over 80% of the project, spend reserves before they expire, and minimize the financial impact on the community.
Q: What did the independent school finance consultant conclude?
In the fall, Salem CSD began working with School Finance Consultant Dr. Rick Timbs. Timbs looked at the district’s annual budget, expenses, aids, tax levy decisions and use of reserves over several years. Below are the findings he presented:
As previous budgets were developed, the district relied on state aid, federal aid and grants to minimize the tax burden on the local community. To that end, the necessary annual tax increases were insufficient to keep pace with current inflation rates.
Since the tax cap law was implemented in 2013, the district has lost about $6 million over time by opting to keep tax levy increases at or close to 0%, rather than proposing the calculated limit increases defined by law in annually proposed budgets.
“Right-sizing” and changes to staff assignments has helped the district’s financial situation, but will need to continue in the coming years, otherwise salaries and benefits will overwhelm the district’s finances regardless of any potential revenue gains.
Failure to take action immediately and in the next three years will make it increasingly difficult to sustain the district’s finances beyond 2028.
With significant sums of federal grants going away, the district will not be able to sustain pandemic staffing levels, programs and class sizes and/or maintain fund balances at their current levels.
The attempt to override the cap last year was wise, to help with revenue generation. However, it would not have been enough even with passage. More needs to be done.
Moving forward, they recommended that the Board and district leadership take the following steps to correct the course:
Regularly balance and evaluate revenues and expenses, as the distance between anticipated revenues and expenditures has grown significantly.
Monitor the tax cap and limit the use of fund balance should the super majority of voters not approve an override.
Significantly decrease expenditures simultaneously while addressing necessary physical and structural needs of the district’s buildings.
Implement long range financial and capital project plans to help stabilize the tax cap. By implementing a long-term financial strategy, the Board can ensure the district’s financial health for years to come.