South Colonie is anticipated to receive continued Foundation Aid growth under the current state aid formula.

Future aid levels remain subject to state budget decisions and statutory changes.

Potential changes in federal administration may impact federal grant funding for the 2026–27 school year.

Early projections indicate a possible $400,000 reduction in federal aid.

The allowable tax levy growth factor remains capped at 2%, despite the Consumer Price Index (CPI) for 2025 currently at 2.7%.

This limits the district’s ability to offset rising costs through local revenue.

The 2026–27 school year represents the second year of the phased-in tax impact related to the Next Generation Capital Project.

An additional approximately 1% levy impact is anticipated as part of the approved phase-in.

Overall inflation is 2.7% (2025 CPI vs. November 2024), affecting goods, services, and construction costs.

Premium increases for 2026–27:

• Highmark: +16%

• CDPHP: +14%

• Prescription coverage: +0–5%

Salary increases are projected 3–5%, based on current contracts.

All labor contracts are current and in effect.

Early planning is underway for anticipated retirements.

Teacher Retirement System (TRS) contributions are increasing.

Employee Retirement System (ERS) contributions are also increasing.