Forestville Central Schools knew a tax increase was coming for district residents. Superintendent John O’Connor was very open about the possibility when talking about the budget last year at this time.

In the proposal for 2025-26, the increase is 2.3%. What’s more concerning is what O’Connor talked about later in the meeting.

The district noted that as of June 30, the District maintained a total fund balance of $5,877,913. Of that total, 14% was unassigned fund balance, totaling $828,376. With the allocation of funds to account for increased costs and decreased State Aid, the District’s unassigned fund balance will decrease to approximately 6%, much closer to the State recommended amount of 4%.

The District’s expenses are still expected to increase, especially when it comes to salaries and benefits. As those costs rise, the District knows it cannot just rely on its fund balance each year to make up for the increase, as it has in the two previous years.

“This is not a sustainable model over time,” O’Connor said.

This is one more indication — for both governments and schools — that surpluses may not be the norm moving forward. That being said, efficiencies — like those being sought in the nation’s capital — may need to be looked at sooner than later.