Rockville Centre School District officials are warning residents to prepare for a difficult budget season, as Superintendent Matthew Gaven outlined mounting financial pressures that are expected to make the 2026-27 spending plan one of the most challenging in recent years.
Speaking at the Jan. 15 Board of Education meeting, Gaven said that the district is already facing significant obstacles as it begins the annual budget process earlier than usual.
“Normally, we are still waiting for some information this early in January, but this year we can already anticipate a difficult budget environment,” Gaven said.
Many of the pressures confronting the district, he added, were first discussed during last year’s budget cycle. When the district adopted the 2025-26 budget, expenses were already rising faster than revenues, prompting officials to take steps to reduce spending without cutting programs. Those measures included not replacing some retirees, using salary savings and grant funding, and eliminating two administrative positions.
While those actions helped preserve programs and stabilize the current budget, Gaven said they have left the district with little flexibility heading into next year.
“This year we can already anticipate several cost drivers that will make next year’s budget, the ’26-27 budget, especially challenging,” he said.
Among the major cost drivers Gaven cited are contractual obligations, rising insurance expenses and increasing special-education costs. He explained that tuition revenue from non-resident students attending district programs has declined over the past three years, while the number of high-cost special-education students living in the district has increased.
The district is also constrained by limits on how much revenue it can generate under the state’s property tax cap. Earlier this month, State Comptroller Thomas P. DiNapoli announced that property tax levy growth for school districts and 10 cities statewide — including those on Long Island — will be capped at 2 percent for the fifth consecutive year.
“School district and municipal officials must continue to find ways to deliver services efficiently,” DiNapoli said, “as they deal with higher costs and the potential impact of federal actions.”
The continued cap comes as the cost of living on Long Island has risen sharply. According to data from the U.S. Bureau of Labor Statistics using the New York metropolitan region as a benchmark, the cost of living on Long Island has increased an estimated 24 to 26 percent over the past five years.
The tax cap, first imposed in 2012, limits annual property tax levy increases to 2 percent or the rate of inflation, whichever is smaller, with limited exceptions. Although the law allows districts to override the cap with voter approval, DiNapoli’s office calculated the inflation factor at 2.63 percent for governments whose fiscal years end on June 30, 2027, meaning the 2 percent limit will apply.
“The comptroller’s office does recognize the cost of providing services and the challenges facing school districts and local governments,” Rebecca Dangoor, DiNapoli’s deputy press secretary, said, “and encourages local officials to take advantage of various training events and [Office of the New York State Comptroller] resources.”
Gaven said that the tax cap, combined with uncertainty surrounding state and federal aid, continues to squeeze district finances. At the same time, Rockville Centre’s property values have increased even as enrollment has declined — a trend that can reduce state aid eligibility.
“Altogether, we are projecting less than a 2 percent increase in total revenue, while our expenses continue to rise at a faster rate,” Gaven said. “These challenges will require that we construct a budget that is very different from years past.”
Enrollment declines are being seen across the district, particularly at the elementary level, where four of five schools are currently at their lowest enrollment in a decade. Those numbers were not made available to the Herald by press time.
The middle school and high school are also expected to see reductions in enrollment next year.
No one in attendance commented on Gaven’s message during the public comment portion of the meeting.
Gaven is expected to discuss the tax cap and budget framework at the board’s next public works session, scheduled for Thursday at 7 p.m. in the South Side High School Commons Room.
“I stress that this budget will require difficult choices, which will include staffing reductions that will impact our programs and the way we deliver them,” he said.
Despite those challenges, Gaven expressed confidence that the district can maintain its academic standards and program offerings.
Board President Kelly Barry echoed that message, and pledged transparency throughout the process.
“The board remains committed to being partners in these difficult conversations coming up,” she said following Gaven’s remarks, “and continuing to do our part to keep the community informed with what we know, as we know it, as we go through the process.”
Gaven was not available for further comment.
