The Marlboro School Board and administration continue discussions on the 2025-26 budget, with Superintendent Michael Rydell emphasizing that final numbers will remain uncertain until the state passes its budget, expected around April 1.

Rydell presented a pie chart outlining the district’s key revenue sources. The tax levy accounts for 60% of revenues, while 36% comes from state aid. Payments in lieu of taxes (PILOTs) and other sources, such as property rentals, grants, and interest-bearing accounts, each contribute 2%.

Danskammer Power Plant provides 87% of the district’s current PILOT revenue, but its agreement ex-pires this year. The district is negotiating a new agreement with Danskammer and the Industrial Devel-opment Agency (IDA).

“That PILOT, valued at $1,380,028, significantly impacts our revenue outlook,” Rydell said. “We are working to secure a favorable agreement for the district.”

Other PILOT agreements include NEXAMP Solar Energy (0.5%), Brooklyn Bottling (6.0%), and Marlboro Distributor (6.4%). The Roseton Generating Station’s $525,000 annual PILOT is also ending, bringing the total loss from both plants to $1.9 million annually.

Rydell reviewed federal grants supporting district programs, including Title I Part A ($266,623) for ac-ademic achievement, Title IIA ($46,986) for teacher and principal training, Title IIIA ($7,036) for Eng-lish Language Learner support, Title IV ($36,769) for student enrichment, IDEA 611 ($586,078) for special education, and IDEA 619 ($16,061) for preschool education, totaling $922,784.

Director of Business and Finance Emerson Segara outlined trends in state aid from 2019-20 through 2023-24, noting that funding has plateaued. Foundation Aid increased from $7.7 million in 2019-20 to $17 million in 2023-24, while total state aid rose from $16.1 million to $26.1 million. However, the state has classified Marlboro as “Hold Harmless,” meaning Foundation Aid will remain unchanged.

State funding reductions for 2025-26 include a $40,971 drop in transportation aid ($2.75 million total), a $397,936 reduction in building aid ($2.54 million), a $266,074 cut in BOCES aid ($1.68 million), a $110,321 decrease in public excess cost aid ($351,830), and a $129,382 reduction in private excess cost aid ($498,682). These reductions result in a $944,871 overall revenue loss from state aid.

Segara also reviewed the district’s tax levy history. After three years of zero or negative increases, the school board approved a 1.99% increase last year. A tax levy limit slide showed the district could in-crease the levy by up to 9% based on community tax growth.

“This figure is based on past tax refunds and state calculations of community wealth,” Segara said. “However, the district is not considering a 9.1% increase for next year.”

Rydell stressed that the tax levy limit is often misunderstood as a 2% cap but varies based on state for-mulas. He also noted that revenue projections remain fluid as state aid figures are not yet final, with an estimated $2.85 million in potential revenue loss still in question.

Board President Frank Milazzo clarified that the $2.85 million is a “gap” rather than a void, as the expi-ration of PILOT agreements impacts the tax levy. If no new PILOT is negotiated, the power plant’s property will return to the tax roll at its assessed value.

“The headline is not that the Marlboro School District is in a $2.8 million hole,” Milazzo said.

Segara said negotiations with Danskammer remain uncertain. “We plan for the worst-case scenario and hope for a better outcome,” he said.