Governor Kathy Hochul has unveiled the proposed FY 2026 Executive Budget, which includes key education initiatives and adjustments to funding based on poverty metrics. South Colonie anticipates a slight increase in foundation aid, which will provide additional resources to support educational programs and services while offsetting rising expenses like inflation.

In addition to changes in the aid formula, the executive budget includes a new cell phone policy to improve focus and reduce distractions in classrooms. It also proposes universal school meals to ensure all students have access to healthy food.

South Colonie has already begun planning for the 2025-26 school year, with the first draft of the budget expected to be presented by district leaders on Tuesday, March 11, at Saddlewood Elementary. The anticipated increase in foundation aid will help offset rising costs, including health insurance premiums, salary adjustments and pension contributions outlined in contractual agreements. Final figures will not be available until the state budget is finalized in April.

Other factors influencing revenue include potential changes in the federal administration that could impact grants and funding. The tax impact will also be a consideration, with the allowable levy growth factor capped at 2%, despite the 2024 Consumer Price Index (CPI) being 2.9%. The 2025-26 fiscal year will also mark the start of the phased-in tax impact for the Next Generation Project, allowing the district to levy an additional 1%. These factors will play a key role in shaping the district's financial planning.

“Our key priorities focus on providing academic and equitable opportunities, ensuring the sustainability of our programs, and enhancing pathways for students,” said Jacqlene McAllister, Assistant Superintendent for Management Services and Strategic Planning. “We are also committed to improving facilities for the next generation of Colonie, while being fiscally responsible and mindful of the long-term needs of our community.”

Between now and April, state legislators will work on refining the proposed budget before the Governor releases the finalized version. School districts across New York State are also preparing for their annual budget votes and school board elections, scheduled for the third Tuesday in May.

Stay tuned for updates as South Colonie continues to incorporate these changes and prepare for the upcoming school year.