With more than $30 million in projected state aid and the state’s 2 percent tax cap still in place, Glen Cove school officials are beginning to shape the 2026-27 budget amid financial uncertainty and rising costs.
At the district’s second budget workshop on Feb. 11, Theresa Kahan, assistant superintendent for business and operations, outlined early revenue projections, reserve balances and estimated expenditures for the capital and administrative components of the spending plan. The district has not yet released its total proposed budget or tax levy for 2026-27. Glen Cove is currently operating with a $118.1 million budget for the 2025-26 academic year.
State aid is estimated to increase by 4.4 percent, or just under $1 gmillion to $30 million. Foundation aid — the district’s largest source of state funding — is expected to jump by 2.6 percent, or just over $590,000, to $23.57 million.
“What you see here is a breakdown of the current estimated state aid,” Kahan said. “These amounts are preliminary, and will not be finalized until the governor releases the executive budget.”
The final state aid totals will be included in the state budget expected to be approved in April.
Kahan explained that foundation aid is distributed through a state formula that considers inflation, pupil need and regional cost differences. Other categories of state funding include excess cost aid for students with disabilities and expense-based reimbursements tied to district spending reported to the State Education Department.
Universal pre-kindergarten funding remains a variable in the district’s planning. Gov. Kathy Hochul has proposed increasing the per-pupil UPK allocation to $10,000 to expand access statewide. Glen Cove has about 85 students registered for UPK for 2026-27.
“If this initiative is included in the governor’s final budget, we would receive $850,000 to run the program, not the total allocation that they’ve shown of $1.3 million,” Kahan said.
Board of Education Trustee Maureen Jimenez asked whether the $1.3 million figure was what the district received this year. Kahan clarified that funding is based on actual enrollment.
Under the proposal, districts would not be capped at a set number of seats. “If someone wants to register and wants to be in UPK, we need to enroll them and instruct them in some way,” Kahan said. “What we get paid depends on who actually enrolls.”
Beyond state aid, the district reviewed its payments in lieu of taxes, or PILOTs, stemming from agreements with the city’s Industrial Development Agency. Kahan noted that the PILOT agreement for the Glen Cove Villa project at 135 Glen Cove Ave. will end and return to the tax rolls in 2026-27.
The discussion also included reserve balances. “A healthy reserve balance improves our fiscal stability, as well as the district’s credit rating, which allows us to borrow at lower interest rates,” Kahan explained, adding that reserves are reviewed annually by auditors to ensure adequate levels.
On the expenditure side, the capital component of the proposed budget is projected to be just over $12 million, and includes operation and maintenance of facilities, debt service and transfers to capital. Kahan said that operation and maintenance costs are increasing due to contractual obligations and higher supply expenses.
She also noted that this is the last year the district will have to pay off its 2022 bond, meaning that payments will not need to be incorporated into the upcoming budget.
The administrative component of the spending plan totals about $9.3 million, including just over $85,000 for the Board of Education, $380,000 for the superintendent’s office and $703,000 for the business office. Administrative costs also cover auditing, tax collection fees paid to the city, legal services, personnel operations, public information and insurance. Legal expenses have increased to cover superintendent suspension hearings, and insurance costs continue to rise for property, liability, cyber and flood coverage.
The district’s financial planning continues under the state’s property tax cap. In January, State Comptroller Thomas DiNapoli announced that property tax levy increases 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,” a statement on the comptroller’s website reads, “as they deal with higher costs and the potential impact of federal actions.”
The tax cap, first imposed in 2012, limits increases to 2 percent or the rate of inflation, whichever is smaller, with limited exceptions. Although districts may override the cap with voter approval, DiNapoli’s office calculated the inflation factor at 2.63 percent for governments whose fiscal years end June 30, 2027, meaning the 2 percent limit will apply.
The district’s next budget workshop is scheduled for March 4, when administrators are expected to review the program component and provide updates on state aid and the proposed 2026-27 tax levy.
