Superintendent warned that a budget with no tax increase and no reserve use could require about $4 million in cuts; even a 2% tax increase would still leave roughly $2 million in cuts.
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The 2025-26 audit says a prior recommendation on apparently inactive extracurricular club accounts was still being implemented; the financial statements received an unmodified opinion.
On October 13, 2026 the board heard how it could adopt a new state option that fully exempts the home of a veteran with a permanent, total service-connected disability from school tax. The board has not voted. A resolution would be needed before March 1, 2027.
On October 8, 2026 the district held a hearing on Intellectus Preparatory Charter School's renewal request to SUNY. It asks for a new five-year term starting August 1, 2027 and to add grade 12 to its current grades 6 to 11 (528 students).
On Oct. 7, Assistant Superintendent for Business Michael Motisi said voters approved a 2026-27 tax levy increase of 2.48%. He said the district lowered it to 1.9%, a cut of $831,354, after a Babylon IDA property repaid about $800,000 in taxes it had owed.
District staff reported 7,817 students in 2024-25 and 7,631 in 2025-26, with 7,524 projected for 2026-27, a drop of about 293. On Oct. 7, 2026 they said the count was about 201 below 2024-25. The biggest drop is in grades 1 to 5.
The 2026-27 budget uses about $4.3 million of the district's fund balance (savings); last year it used none. On Oct. 7, 2026 administrators warned of cost pressures: district insurance is projected up 56% to $1.8 million, one rebid bus contract came back 30% to 40% higher, and special education and utility costs are rising.
A court ruling moves LIPA power-plant properties in Brookhaven and Smithtown off the tax rolls and into payments in lieu of taxes (PILOTs). Sachem's levy increase for 2026-27 drops from 2.0973% to 0.5625% (about $1.2 million instead of $4.5 million), but homeowner tax rates are now expected to rise more than 3%.
The 2025-26 audit was clean except for one item: unassigned savings (fund balance) were 4.33% of next year's budget, above New York's 4% limit. A year earlier the share was near 11%. The savings fell about $6.2 million in 2025-26 and the district planned to use $14.97 million in 2026-27.
On Sept. 30, the business office said the Walt Whitman Mall won a large cut in its assessed value (about $1.1 million) and four properties moved to payments in lieu of taxes. Total taxable value fell to about $40.2 million from $42.1 million. The board took up a lower school tax levy of about $131.3 million, $1.25 million less than planned in April. The estimated tax-rate increase is now about 6.4%, up from about 3% shown when the budget was adopted.
The board set the 2026-27 tax levy about $3.1 million lower, because the power utility LIPA will pay a fixed payment instead of regular school tax. The levy rises about 1.74%. Because LIPA land comes off the tax rolls, the district said homeowners' tax rate will still go up by more than 3.49%.
On September 30, 2026 the board set the 2026-27 school tax levy at $136,848,822 and the tax rate at $323.5034 per $100 of assessed value, a 4.60% rate increase. In May voters were told to expect 3.29% to 4.34%. The district said a settlement between LIPA and the Town of Brookhaven moved LIPA's property off the tax roll, which raises the rate for other taxpayers.
The 2026-27 Fund Balance and Reserve Plan, presented in September 2026, recommends $3,046,028 in new reserve funding: $2,000,000 for insurance, $559,561 for workers' compensation and $486,467 for property-tax refund claims. It reports $6,583,254 of unassigned fund balance at June 30, 2026.
On September 29, 2026 the board voted to reestablish the 2026-27 school tax levy. The district says this was needed because of the Town of Smithtown's settlement agreement with LIPA, the power utility.
A Sept. 28, 2026 board presentation says the Long Island Power Authority, the district's biggest taxpayer, will pay through a PILOT deal with Huntington instead of normal taxes. The district now figures its 2026-27 property tax levy increase at 1.75%, down from the 3.31% in the May budget vote. In 2025-26 LIPA was billed $4.6 million for the district and paid $3.7 million.
The board's finance committee reported on September 24, 2026 that the district's unassigned fund balance is estimated at 5.93%, down from 11%, and is close to the 4% state limit. The district planned operating losses because it moved $4 million (2025-26) and $3.5 million (2026-27) to the capital fund for the 2025 Legacy project. The 2026-27 budget also uses about $8.4 million of fund balance.
State leaders announced $5 million for a new STEM Hub at Cicero-North Syracuse High School on Sept. 22, 2026. The money is expected in the 2027-28 state budget. The hub is also part of the proposed $140 million building project.
At the Sep 23, 2026 work session the finance chief said benefits (health and similar costs) were running much higher than budgeted. In Nov 2025 and Apr 2026 leaders also said medical costs were rising and would keep rising for two years.
A district audit found that 19 of 40 employee samples included late arrivals or early departures without a leave deduction or pay reduction. The district planned a lateness protocol and standardized attendance tracking and reporting by January 31, 2027; the September 22 agenda listed the corrective plan for board consideration.
The audit summary shows the general fund ended June 30, 2026 with $127.7 million in total fund balance, up from $107.1 million. That includes $75.7 million set aside for capital projects, up from $58.8 million. Revenue of $188.2 million was $12.5 million above the amended budget, and spending was $9.3 million under budget. The auditors found no material weaknesses.
On September 16, 2026 the board rescinded its June 24 tax certiorari reserve resolutions and passed new ones to set up a 2025-26 reserve, return old-year money to the general fund, and move money from the retirement-system reserves. In the recording the assistant superintendent for business said the district cannot cover refund claims from tax years 2021 to 2024 from the reserve and is in a negative position on its projections. She was heard giving an estimate of about negative $7.6 million.