Budget & Finance

The Business Office at Herkimer CSD is responsible for oversight and management of district finances that are needed to support the educational mission.

2026-27 Budget

Herkimer Central School District residents voted 352-71 on Tuesday, May 19, 2026, to approve the district’s $37,008,382 budget for the 2026-27 school year.

Click here to read full budget, proposition and Board of Education election results.

2026–27 budget maintains programs and staff despite rising costs

Facing rising operational expenses, the Herkimer Central School District put forward a 2026-27 budget designed to safeguard essential programs and staff while minimizing the burden on local taxpayers.

The $37,008,382 budget for the 2026-27 school year represents a 4.99% increase over the current spending plan. This year, we are seeing a larger than normal increase at BOCES due to the increased cost of BOCES services and the timing of their capital project payments. The district is also faced with rising health insurance costs with nationwide trends at 8.5%.

The budget includes a tax levy increase of 1.98%. This figure is below the state-calculated tax levy limit for Herkimer of 6.35%. The district has a history of fiscal restraint, remaining under the levy limit for 15 of the 16 years since the limit’s introduction in 2012-13.

2026-27 budget at-a-glance

• Carries a 1.98% tax levy increase, which is under the calculated levy limit. The district has been under the levy limit for 15 of 16 years.
• Total budget: $37,008,382
• Is a 4.99 % increase from the 2025-26 budget.

2026-27 proposed budget highlights

Programs:

• Maintain all existing programs and staff.
• Provide essential student support services by contracting for dedicated speech services.
• Increase elective offerings and continue College Now classes for high school students.
• Continue replacement cycles for textbooks, curricular resources and aging classroom equipment.

Safety:

• Upgrade aging cameras and maintain safety patrol officers (SPOs) to enhance safety and security in both buildings.

Technology:

• Fully fund phase three of a five-year replacement plan for instructional technology.

Where the money comes from…

The district’s plan for how it will obtain every dollar in the budget:

Revenues:

State Aid:

• 2025-26 budgeted: $24,866,016
• 2026-27 proposed: $25,891,902
• $ Change ’25-’26 to ’26-’27: $1,025,886

Property Taxes:

• 2025-26 budgeted: $9,784,680
• 2026-27 proposed: $9,978,417
• $ Change ’25-’26 to ’26-’27: $193,737

Other Revenue:

• 2025-26 budgeted: $600,000
• 2026-27 proposed: $738,063
• $ Change ’25-’26 to ’26-’27: $138,063

Fund Balance:

• 2025-26 budgeted: $0
• 2026-27 proposed: $400,000
• $ Change ’25-’26 to ’26-’27: $400,000

Total Revenues:

• 2025-26 budgeted: $35,250,696
• 2026-27 proposed: $37,008,382
• $ Change ’25-’26 to ’26-’27: $1,757,686

Revenues % of total:

• Program: 72.30%
• Capital: 16.02%
• Administrative: 11.68%

REVENUES SUMMARY: District revenue primarily comes from two sources: New York State Aid for Education and local school taxes. The district state aid picture has been steady in recent years due to the district’s stable enrollment and high needs demographic.

Where the money is spent…

The district’s plan for how money will be spent within the proposed budget:

Expenditures:

Program:

• 2025-26 budgeted: $25,051,372
• 2026-27 proposed: $26,755,940
• $ Change ’25-’26 to ’26-’27: $1,704,568

Capital:

• 2025-26 budgeted: $6,161,265
• 2026-27 proposed: $5,929,320
• $ Change ’25-’26 to ’26-’27: -$231,945

Administrative:

• 2025-26 budgeted: $4,038,059
• 2026-27 proposed: $4,323,122
• $ Change ’25-’26 to ’26-’27: $285,063

Total Expenditures:

• 2025-26 budgeted: $35,250,696
• 2026-27 proposed: $37,008,382
• $ Change ’25-’26 to ’26-’27: $1,757,686

Expenditures % of total:

• State aid: 69.96%
• Property taxes: 26.96%
• Other revenue: 1.99%
• Fund balance: 1.08%
• Total revenues: 100%

EXPENDITURES SUMMARY: The program and capital portions of the budget make up the majority of the district’s spending. The program budget includes expenses directly related to the teaching and support of our students. The capital budget includes expenses necessary to operate and maintain our school buildings and grounds.

Expenditures breakdown:

Payroll:

• 2025-26 approved budget: $10,459,329
• 2026-26 proposed budget: $10,473,432
• $ change: $14,103
• % change: 0.13%
• % of total: 28.30%

Benefits:

• 2025-26 approved budget: $6,974,332
• 2026-26 proposed budget: $7,133,400
• $ change: $159,068
• % change: 2.28%
• % of total: 19.28%

BOCES:

• 2025-26 approved budget: $8,742,230
• 2026-26 proposed budget: $10,396,665
• $ change: $1,654,435
• % change: 18.92%
• % of total: 28.09%

Contractual:

• 2025-26 approved budget: $4,008,285
• 2026-26 proposed budget: $4,221,698
• $ change: $213,413
• % change: 5.32%
• % of total: 11.41%

Debt service:

• 2025-26 approved budget: $3,632,420
• 2026-26 proposed budget: $3,517,687
• $ change: -$114,733
• % change: -3.16%
• % of total: 9.51%

Equipment:

• 2025-26 approved budget: $631,000
• 2026-26 proposed budget: $581,000
• $ change: -$50,000
• % change: -7.92%
• % of total: 1.57%

Supplies:

• 2025-26 approved budget: $468,100
• 2026-26 proposed budget: $474,500
• $ change: $6,400
• % change: 1.37%
• % of total: 1.28%

Transfer to capital:

• 2025-26 approved budget: $250,000
• 2026-26 proposed budget: $125,000
• $ change: -$125,000
• % change: -50.00%
• % of total: 0.34%

Textbooks:

• 2025-26 approved budget: $85,000
• 2026-26 proposed budget: $85,000
• $ change: $0
• % change: 0.00%
• % of total: 0.23%

TOTAL:

• 2025-26 approved budget: $35,250,696
• 2026-26 proposed budget: $37,008,382
• $ change: $1,757,686
• % change: 4.99%
• % of total: 100%

2026-2027 Capital Outlay Project

Included in the budget is a capital outlay project not to exceed $100,000. A capital outlay project is designed to complete minor renovations and to purchase associated furnishings and equipment at the district’s school buildings. The district has completed its smaller projects through capital outlay for the past 10 years.

Projects funded in this manner receive reimbursement from the state the following budget year, unlike traditional capital projects, which are reimbursed over time.

Proposition: establishment of a new capital reserve fund

During the school budget vote, residents also voted to authorize the creation of a new capital reserve fund. This fund will allow the district to set aside up to $5 million over a 10-year period.

Capital reserve funds, once they are approved by voters, are essential for the ongoing maintenance of the district’s buildings and grounds.

The district has successfully utilized these types of reserves for its most recent projects.

For example, in January 2024, voters approved the use of $5 million from capital reserves (established in 2017 and 2022) to help finance Capital Project 2024. These funds provided necessary cash flow for the initial phases of the project. This helped reduce the district’s overall borrowing costs.

The district is now establishing a new 2026 capital reserve to help fund future capital improvements. The Board of Education will determine the annual funding for this reserve, which will come from unallocated fund balances and other available reserves.

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2025-26 Budget

Herkimer Central School District residents voted 223-61 on May 20, 2025, to approve the district’s $35,250,696 budget for the 2025-26 school year.

View the 2025-26 budget newsletter.

For more on previous, current and proposed budgets, visit the Budget Information page.

Understanding budgets