Dear Members of the School Community,

The budget process for the 2026–2027 school year has been underway since late August 2025. We have been extremely fortunate in past years, as we were one of the few districts not forced to reduce programs while navigating through turbulent financial times (i.e. tax cap era, COVID, etc.). This stability is largely due to prudent fiscal planning, strategic allocation of funds, and a collaborative approach to finding more economical solutions to existing challenges. With that in mind, it remains clear that the district relies heavily on its state aid allocation to fund programs. Without that consistent support, we would be forced to alter how certain programs are facilitated or determine whether they could continue at all.

The point of mentioning that is to show just how reliant we are on state aid increases to help fund district programs. We will do everything we can internally to produce a budget that conforms to the wants and desires of all concerned parties. The Board and Administration will take into consideration all requests from the budget input survey, budget input sessions, as well as all “budget builders,” in terms of the best way to allocate the funds afforded to us by way of the tax cap formula, state aid, and other funding sources. Then, the Superintendent will recommend a final budget for the Board to adopt and put before the voting community.

As a reminder, the tax cap law allows for an increase in the tax levy that is based on a state-prescribed formula. The outcome of this formula varies from district to district depending on the unique variables that apply. It is important to note that the tax levy limit is not automatically capped at 2%, a common misconception we have been working to clarify since the law’s inception. Additionally, a change in the tax levy does not necessarily translate to an equivalent change in an individual taxpayer’s bill.

One part of the formula does place an automatic limit on the increase in the tax levy, specifically, the lesser of the Consumer Price Index (CPI) or 2%. It is this line that gave the law its familiar nickname, the “2% cap.”

As a service-based organization, the majority of the district’s budget is dedicated to personnel costs. Approximately 80% of the operating budget is allocated to salaries and benefits for Teachers, Teacher Aides, Monitors, Nurses, Clerical and Custodial Staff, Bus Drivers, and Administrators. This is consistent with the structure of most public-school districts. The remaining 20% of the budget includes materials & supplies, equipment, external contractual obligations such as special education costs (tuition and related services), transportation, facilities expenses (fuel oil, electricity, maintenance), business costs (auditing, actuarial, and legal fees), transfers to other district funds (capital, federal, cafeteria, etc.), and debt service.

Within the New Hyde Park–Garden City Park UFSD, we maintain a decentralized budget process that empowers department heads, our “Budget Builders,” to propose their initial budgets. Fiscal responsibility remains a shared goal and a top priority throughout every stage of the process.

As the budget process moves forward and new information becomes available regarding the tax cap and state aid, the district will continue to revise projections and update the community accordingly. Should difficult decisions become necessary, it is essential that all members of the staff and community come together to collaborate, discuss, and provide thoughtful input to the Board of Education and Administration.

Please consult the school calendar, budget calendar, or district website for up-to-date information related to the 2026–2027 budget process. Updates regarding the tax cap, state aid, and other factors influencing the budget will be posted online. Don’t forget to share your thoughts at one of the two scheduled Budget Input Sessions or through the district budget survey available on the website. These opportunities ensure that all stakeholders have a voice in the development of the district’s budget for the 2026–2027 school year.

Sincerely,

Michael G. Frank

Deputy Superintendent