2026-2027 Budget | Marlboro Central School District

Where Every Dollar Goes

The proposed $70.1M budget breaks into seven spending categories. People costs (salaries + benefits) account for 68.9% of total spending.

Salaries 44.2%

Benefits 24.7%

Contracts & Supplies 8.0%

Debt Service 7.9%

BOCES 7.8%

Transportation 7.2%

44.2%

24.7%

8.0%

7.9%

7.8%

7.2%

$48.3M People cost (salaries + benefits) = 68.9% of total budget

Salaries

$31,029,102

44.2% of budget

Contractual step increases across all employee groups. MFA contract settled through 2030. No new positions added.

Benefits

$17,320,833

24.7% of budget

Health insurance (+7%), ERS (17.6%), TRS (~8.5%), Social Security (7.65%). District held health increase below regional trend of 10%+.

Contracts & Supplies

$5,592,053

8.0% of budget

Insurance, legal, auditing, maintenance contracts, instructional materials, and general supplies. Equipment deferred ($0 this year).

Debt Service

$5,530,033

7.9% of budget

Bond payments for Elementary Schools, High School, Vision 2020, and EPC Lease. Down $767,170 from 25-26 as bonds mature.

BOCES Services

$5,480,823

7.8% of budget

Shared services through BOCES including special education, career/technical education, technology, and administrative support.

Transportation

$5,046,340

7.2% of budget

Quality Bus Service 5-year contract. 42 drivers, 53 vehicles, 3,865 miles daily. Mandated under NYS Education Law Section 3635.

Transfers

$130,000

0.2% of budget

Transfer to Special Aid Fund for grant-funded program local share requirements.

Why Costs Grow

The budget increase of $3,020,709 comes from five cost pressures totaling $3.9M, partially offset by $890K in savings. The district controls very little of this: 84% of the budget is contractual or mandated by law.

COST PRESSURES

Salaries

+4.4%

+$1,336,468

Benefits

+8.2%

+$1,305,976

Transportation

+25.0%

+$1,007,736

Special Ed

+6.8%

+$752,681

BOCES & Other

+$260,829

SAVINGS FOUND

Debt Service

-$767,170

Equipment

-$123,130

+$4,663,690

Cost Pressures

-$890,300

Savings Found

+$3,020,709

Net Budget Increase (+4.5%)

Your Tax Impact

The proposed tax levy is $39,005,244, a 5.94% increase over 2025-26. This is within the NYS allowable cap and requires a simple majority vote. Marlboro has historically levied well below its allowable maximum.

$39,005,244

2026-27 Tax Levy

5.94%

Levy Increase (at cap)

+$2,188,693

Dollar Increase Over 25-26

Simple Majority

Vote Threshold (50% + 1)

Tax Levy History (2011-12 to 2026-27)

Peaked at $40.6M in 12-13. Fell to $33.1M by 22-23. 25-26 jump driven by Danskammer PILOT expiration. 26-27 = proposed.

Cap vs. Actual Levy Change (%) (2020-21 to 2026-27)

Gray = allowable cap. The district has historically levied well below the maximum. 26-27 marks the first year at the full cap.

Tax Rates Per $1,000 Assessed Value (2020-21 to 2026-27)

Newburgh's higher rate reflects a lower equalization ratio (17.3% vs ~56%). 26-27 rates are projected from current assessed values.

District Trends

Enrollment has remained stable near 1,840 students for nearly a decade. The district serves three towns across Ulster and Orange counties.

K-12 Enrollment History

Source: Marlboro CSD Annual Enrollment Reports

How We're Paying For It

The district's $70.1M budget is funded by five sources. The tax levy and State Aid provide 91.2% of recurring revenue. Fund balance and reserve draws are one-time resources that total $4,552,260 (6.5%).

Tax Levy 55.6%

State Aid 35.6%

Fund Bal 5.3%

ERS 1.2%

Other 2.3%

Assigned Fund Balance 5.3%

ERS Reserve 1.2%

PILOT + Roseton + Other 2.3%

Property Tax Levy

$39,005,244

55.6%

At the 5.94% allowable levy cap. Increase of $2,188,693 over 2025-26. Requires simple majority voter approval.

State Aid

$24,943,385

35.6%

Down $528,626 (-2.1%) from 25-26. Building Aid declining as prior bonds pay off. Based on Governor's Executive Budget; final figures pending.

Assigned Fund Balance

$3,727,835

5.3%

One-time draw. Every dollar used now is unavailable next year. Capped at 4% of budget by NYS law ($2,687,732 unrestricted available).

ERS Reserve

$824,425

1.2%

Restricted reserve for Employee Retirement System costs. Applied to offset the ERS rate increase to 17.6%.

PILOT + Roseton + Other

$1,647,123

2.3%

Largely fixed. Includes PILOTs ($233,739), Roseton CBA ($525,000), and other local revenue ($888,384). Limited growth expected.

Recurring revenue (levy + aid + local) = $65,595,752 (93.5%). One-time draws (fund balance + ERS reserve) = $4,552,260 (6.5%). The district budgets conservatively: if State Aid comes in higher than projected, the difference goes to reserves.

NYS Three-Part Budget

New York State requires school budgets to be presented in three categories so voters can compare spending across districts.

2026-27 Proposed

2025-2026 Budget

$70,148,012

2026-27 Proposed

Code	Description	2025-26 Budget	2026-27 Proposed	$ Change	% Change

Enrollment: ~1,840 students | Staff: 358

Timeline & Presentations

Budget Development Schedule

Feb 19	Budget Kickoff Presentation	✓
Feb 26	Finance Committee	✓
Mar 3	Transportation Bid Opening	✓
Mar 5	Expenditures Presentation	✓
Mar 19	Revenue Presentation	✓
Mar 25	Finance Committee	✓
Apr 9	Proposed Budget Presented to Board	✓
Apr 16	2nd Legal Notice Published
Apr 20	Trustee Petitions Due (5 PM)
Apr 21	Budget Adoption by Board
Apr 22	Property Tax Report Card Mailed
Apr 30	3rd Legal Notice Published
May 5	Budget Statement Available
May 7	Public Hearing
May 13	Budget Notice Mailed
May 14	4th Legal Notice Published
May 19	Budget Vote Day	★
Jun 16	Revote Day (if needed)
Jul 1	Start of 2026-27 Fiscal Year

Budget Presentations

All presentations are available for download. Board meetings are open to the public.

Feb 19

Budget Kickoff

Rollover projection, economic environment, preliminary outlook.

Download PDF ↗

Mar 5

Expenditures

Rollover budget, cost drivers, salary and benefits analysis, transportation bid results.

View Presentation ↗

Mar 19

Revenue

State Aid, local revenue, fund balance, and total projections.

View Presentation ↗

Apr 9

Proposed Budget to the Board

Complete budget presented to the Board of Education. $70,148,012 total.

View Presentation ↗

Apr 21

Budget Adoption

Final budget with revenue and expense details for voters.

View Presentation ↗

Transportation Services: 5-Year Contract

Voter Approval Required

New York State Education Law requires voter approval for multi-year transportation contracts. The 5-year transportation contract is included in the May 19, 2026 budget vote.

Contract Structure

Contract #1: Home-to-School Transportation (48 vehicles)
Contract #2: Field and Sports Trips
Contract #3: Summer Transportation

Timeline

March 3, 2026: Bid Results Received
March 19, 2026: Board Award Recommendation
May 19, 2026: Voter Approval
July 1, 2026: Contract Begins

Voter Contingency

If Budget Approved:

Full 5-year transportation contract awarded

If Budget Rejected:

1-year transportation contract at first-year price

Bid Results & Award Recommendation

The competitive bid process concluded on March 3, 2026. Three vendors submitted bids across all three contracts. The administration recommends the Board award the contract to Quality Bus Service at the March 19, 2026 Board meeting. Quality Bus submitted the lowest pricing across all three contracts, representing approximately $6.31 million in savings over the 5-year term compared to the next-lowest competitor.

Recommended Award

Quality Bus Service

$24,269,007.86

5-Year Total

Beacon Transportation

$30,580,872.60

5-Year Total

First Student

$30,810,653.12

5-Year Total

Contract #1: Home-to-School Transportation

Vendor	2026–2027	2027–2028	2028–2029	2029–2030	2030–2031	5-Year Total
Quality Bus ✓ Recommended	$4,139,240.13	$4,304,823.45	$4,476,956.27	$4,656,008.52	$4,842,217.89	$22,419,246.26
First Student	$5,241,781.72	$5,451,462.98	$5,669,473.86	$5,896,239.71	$6,132,108.05	$28,391,066.32
Beacon	$5,270,300.08	$5,452,148.97	$5,700,334.36	$5,928,341.87	$6,165,479.02	$28,516,604.30

Contract #2: Field & Sports Trips

Vendor	2026–2027	2027–2028	2028–2029	2029–2030	2030–2031	5-Year Total
Quality Bus ✓ Recommended	$139,014.10	$144,577.50	$150,355.55	$156,366.20	$162,627.25	$752,940.60
Beacon	$175,455.90	$182,458.83	$189,797.15	$197,341.23	$205,253.17	$950,306.30
First Student	$180,565.24	$187,791.53	$195,301.35	$203,112.70	$211,235.01	$978,005.80

Contract #3: Summer Transportation

Vendor	2026	2027	2028	2029	2030	5-Year Total
Quality Bus ✓ Recommended	$202,506.20	$210,604.80	$219,025.90	$227,786.20	$236,897.70	$1,096,821.00
Beacon	$205,668.00	$213,894.60	$222,450.60	$231,347.40	$240,601.20	$1,113,962.00
First Student	$266,156.00	$276,803.10	$287,872.10	$299,386.50	$311,363.10	$1,441,581.00

If the Budget Fails

New York State law provides a structured process if voters reject the proposed budget. The Board has three options depending on the outcome of the vote(s).

Vote 1: May 19

Same or Revised Budget

If the budget is defeated, the Board may put the same budget or a revised budget to a second vote on June 16. The Board may choose to reduce expenditures in the revised version.

A revised budget could mean program or staffing reductions.

Vote 2: June 16

Second Chance

If the first vote fails, the Board puts a second budget to voters. If it passes, the district operates under that budget. If it fails again, the Board must adopt a contingency budget.

Two failed votes trigger the contingency process below.

Contingency

0% Levy Increase

The tax levy is frozen at the prior year level ($36,816,551). The district must close a $2.2M gap on top of the existing pressures. Non-contingent expenditures (certain equipment, community use of facilities) are eliminated.

Likely result: significant program cuts and potential staffing reductions.

Budget Vote Information

Budget Vote Day

May 19, 2026

Polls Open: 6:00 AM – 9:00 PM

What's on the Ballot?

Budget Proposition: 2026-2027 School District Budget (includes 5-year transportation contracts)
Board Elections: 3 seats available (3-year terms)

Voting Location

Marlborough Town Court
Route 9W, Town Hall,
Milton, NY 12547

Who Can Vote?

U.S. citizens, 18 years or older, who have resided in the district for at least 30 days prior to the vote.

Absentee Ballots

Applications available at the District Clerk's office. Deadline: May 13, 2026

Frequently Asked Questions

Why is the budget increasing 4.5%?

The $3,020,709 increase is driven by contractual salary step increases (+$1.3M), employee benefits (+$1.3M), the new transportation contract (+$1.0M), and mandated special education costs (+$753K). The district offset these pressures by finding $890,300 in savings from declining debt service and deferred equipment purchases. 84% of the budget is contractual or mandated by law, leaving limited room for discretionary cuts.

Why is the proposed levy increase 5.94%?

The 5.94% is the maximum allowable levy increase under the NYS Tax Levy Cap for 2026-27. This requires only a simple majority vote (50% + 1). Going above 5.94% would require a 60% supermajority. The cap is calculated by NYS based on inflation, growth factor, and PILOT changes specific to each district. Every 1% of levy increase generates approximately $368,000 in revenue.

Why is voter approval needed for transportation contracts?

New York State Education Law requires voter approval for transportation contracts longer than one year. The 5-year contract provides cost stability and protection from market volatility.

When will final State Aid numbers be available?

The New York State Legislature must pass its budget by April 1, 2026. Final State Aid allocations are included in the legislative budget.

What are PILOTs?

PILOT stands for "Payment In Lieu Of Taxes." These are negotiated payments from tax-exempt properties. The district successfully renewed the Roseton Community Benefit Agreement ($525k annually), which is not new revenue but prevents the loss of existing funds.

What about health insurance and pension costs?

We limited our health insurance premium increase to 7%, beating the regional trend of >10%. The Employees' Retirement System (ERS) rate is projected at 17.6%, while the Teachers' Retirement System (TRS) rate is approximately 8.5%.

What happens if the budget vote fails?

If voters defeat the budget on May 19, the Board can put the same or a revised budget to a second vote on June 16. If voters defeat it a second time, the Board must adopt a contingency budget with a 0% tax levy increase. Under contingency, the levy stays frozen at $36,816,551, and the district must close a gap of approximately $2.2M through expenditure reductions. Certain non-contingent items (community use of facilities, some equipment) must also be eliminated.

Why did transportation costs increase 25%?

The previous transportation contract expired, and the district conducted a competitive bid process. Quality Bus Service submitted the lowest bid across all three contracts, saving $6.31M over 5 years compared to the next-lowest bidder. The 25% year-one increase reflects market conditions: driver shortages, fuel costs, and vehicle maintenance. The 5-year term locks in predictable 4% annual escalations, protecting against further market volatility.

Questions or Comments?

Budget Information

Emerson Segara
Director of Business & Finance

budget@marlboroschools.org

845.236.8000 x1403

Public Comment

Board of Education meetings include time for public comment on budget items.

Location: Marlborough Town Court
Time: 7:00 PM

Website & Resources

www.marlboroschools.org/page/budget

Visit our website for the latest updates, presentations, and documents.

2026-27 Budget

Where Every Dollar Goes

Why Costs Grow

COST PRESSURES

SAVINGS FOUND

Your Tax Impact

Tax Levy History (2011-12 to 2026-27)

Cap vs. Actual Levy Change (%) (2020-21 to 2026-27)

Tax Rates Per $1,000 Assessed Value (2020-21 to 2026-27)

District Trends

K-12 Enrollment History

How We're Paying For It

NYS Three-Part Budget

Timeline & Presentations

Budget Development Schedule

Budget Presentations

Transportation Services: 5-Year Contract

Voter Approval Required

Contract Structure

Timeline

Voter Contingency

Bid Results & Award Recommendation

Quality Bus Service

Beacon Transportation

First Student

Contract #1: Home-to-School Transportation

Contract #2: Field & Sports Trips

Contract #3: Summer Transportation

If the Budget Fails

Budget Vote Information

What's on the Ballot?

Voting Location

Who Can Vote?

Absentee Ballots

Frequently Asked Questions

Why is the budget increasing 4.5%?

Why is the proposed levy increase 5.94%?

Why is voter approval needed for transportation contracts?

When will final State Aid numbers be available?

What are PILOTs?

What about health insurance and pension costs?

What happens if the budget vote fails?

Why did transportation costs increase 25%?

Questions or Comments?

Budget Information

Public Comment

Website & Resources

Marlboro Central School District

How is the school budget funded?

Glossary of Key Terms

Administrative Budget Component

Appropriated Fund Balance

Accessed Value

Assessment Roll

Bond

Budget

Budget Calendar

Budget Cap

Capital Budget Component

Consumer Price Index

Contingent Budget

Employee Benefits

Equalization Rate

Expenditure

Fiscal Year

Fund Balance

Roll Over Budget

Preliminary Budget

Program Budget Component

Property Tax levy Limit ( Tax Cap )

Proposed Budget

Reserve Funds ( Restricted Fund Balance )

Revenues

Salaries

STAR

State Department of Education

State Aid

Supplies

Support Services

Tax Base

Tax Certiorari

Tax Levy

Tax Rate

Three-Part Budget