Hornell's $44.4M school budget goes to voters soon. What to know about spending, taxes.
The Hornell City School District's $44.4 million budget proposal that comes before voters later this month includes an 8.1% increase in spending, or about $3.6 million over last year.
On the tax side, the district's 2024-25 spending plan calls for a 2.5% increase in the local property tax levy, allowing the collection of about $191,000 more than 2023-24.
That 2.5% increase is well below Hornell's legal tax cap, which would have permitted the district to increase the levy by as much as 3.6% without requiring a 60% approval when voters go to the polls on May 21.
The overall tax levy − in other words, the amount to be collected under this budget − is $7,660,117, according to the district.
The Hornell budget hearing is at 6 p.m. Tuesday, May 7 in the high school library.
What is the expected tax rate from Hornell's 2024-25 school budget?
Projections call for a tax rate of $15.29 per $1,000 of assessed property value, up from last year's $14.90 per $1,000 of assessed value, if the budget is approved by voters this month. The proposed budget was adopted by the Hornell Board of Education in April.
That rate of $15.29 per $1,000 of assessed property value is preliminary and is expected to be lower when tax bills are mailed. Judging by last year, the figure could be significantly lower.
"While we show it higher than last year now, by the time the tax rate is set in August, we anticipate that the rate will continue to decrease," Hornell School Superintendent Jeremy Palotti said.
How does this year's rate compare to recent trends?
Hornell's school tax rate remains low by the district's historical standards. Twenty years ago − for the 2004-05 school year − the rate was $19.74 per $1,000 of assessed property value.
Ten years ago Hornell school taxpayers paid $18.62 per $1,000.
"This is healthy and positive for the community," Palotti said. "It is a product of increased assessments across the district as well as increased property wealth by way of new properties being added to the tax rolls."
What are the state aid, spending numbers in Hornell school budget?
Federal COVID relief funds have expired for New York state public schools. For Hornell, that is a loss of about $1.8 million in revenue, but it is something the district planned for.
“We knew from the inception of those dollars that there was an end of life,” Palotti said.
Under the executive budget funding projections presented to the school board, Foundation Aid to Hornell was set to be $21,441,873. However, New York state's final approved budget says Hornell will receive $20,923,229 in Foundation Aid, about $518,000 less than originally forecast.
Administrators said the 2024-25 spending plan maintains "favorable class sizes" for students and educators and covers improved programs and additional sections in some elementary school grades.
The city school district has about 1,460 students, which is higher than in recent years.
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What factors are driving increased spending?
Key expense drivers are salaries, health care and retirement benefits, which are budgeted to be up about $2.1 million.
Palotti said in March that budget planners were anticipating a 19.5% increase in health insurance costs for next year. This comes after sharp decreases in health insurance expenses during the pandemic.
The district is also planning for increased BOCES costs and to pay more for utilities next school year.
When is the Hornell school budget vote?
Voting on May 21 is noon to 9 p.m. in the high school lobby.
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This article originally appeared on The Evening Tribune: Hornell voters to decide $44.4M school budget May 21. What to know.
