The Glen Cove City School District began its annual budgeting workshops for the 2025-26 school year last week. The new assistant superintendent for business and finance, Theresa Kahan, led the first session on Jan. 22, outlining the district’s financial priorities and explaining the budgeting process.
Kahan began by emphasizing the essential purpose of the budget. “A budget is created using estimates of the revenues and expenditures expected in the school year based on the information that we have at that time,” she said. She reminded attendees that while the budget determines the district’s tax levy, it does not establish individual property tax rates. “Your tax rate is based on the assessed value of your home, among other factors,” Kahan said.
The preliminary spending plan for 2025-26 totals just under $116 million, an increase of $2.55 million over the current budget. This year’s spending plan passed by a vote of 689-392 last May.
State aid, which accounts for a substantial portion of the district’s revenue, is projected to increase by nearly $1.44 million, to just over $29.23 million. “These are preliminary figures based on the governor’s executive budget, which is typically finalized in April,” Kahan noted, adding that changes could occur as more information be-comes available.
District Superintendent Maria Rianna said she was unhappy with the preliminary state aid numbers, and was “hoping that our advocacy through different state ed officials and legislators will help move that in the proper direction.” Her worry about state aid, Rianna explained, is that “there is no mention of creating a more accurate foundation aid formula, and so there is some concern there.” She said that more information about state aid would be presented at a future meeting.
Interest earnings are also expected to grow by over $281,000, bringing the total to $800,000, reflecting improved returns on the district’s bank balances.
Not all revenue streams are trending upward, however. Payments in lieu of taxes, which result from agreements with the city’s Industrial Development Agency, are projected to decline by nearly $300,000, to just over $3.38 million, due to the expiration of one significant agreement that shifts property back to the tax rolls. “This change will impact our overall revenue, but it’s part of the natural cycle of these agreements,” Kahan said.
PILOT agreements play a crucial role in the district’s revenue structure, replacing traditional property taxes. This year’s payments include contributions from notable properties such as Avalon – Phase I ($1.26 million), the Regency (just under $307,500), and LIPA (nearly $1.33 million).
“While PILOTs are an important source of income, they are not permanent,” Kahan said. “We must adapt to changes.”
In a strategic move, the district plans to reduce its reliance on reserves, cutting them by nearly $1.13 million, to $750,000. “We aim to build financial stability by limiting our use of reserves and focusing on sustainable revenue sources,” Kahan said.
On the expenditure side, the budget is divided into three main components, as mandated by the State Education Department: capital, administrative and program. The program component, which includes teaching, technology, transportation and employee benefits, remains the largest portion of spending.
The district is bracing for significant cost increases in key areas. Health insurance is projected to rise by 12 percent, while general insurance premiums could jump by as much as 20 percent. Pension contributions to the teachers’ and employees retirement systems are also expected to grow, by 10 and 15 percent, respectively.
“These increases reflect both inflationary pressures and our contractual obligations to employees and third-party providers,” Kahan said.
The district’s budgeting process is far from complete, with additional workshops planned to delve more deeply into specific areas. The next workshop is scheduled for Feb. 12, and will focus on the capital and administrative components, reserve balances, and updates on state aid.
“Transparency is key,” Kahan said. “These workshops are an opportunity for the public to ask questions and gain a clear understanding of how their tax dollars are being utilized.”
