East Ramapo School District maintains tax levy at 0% despite $16M state aid increase

The East Ramapo Central School District (ERCSD) held a preliminary budget meeting on April 7, 2025, at Chestnut Ridge Middle School, focusing on the district's financial planning for the upcoming school year. A key topic of discussion was the calculation of the maximum allowable tax levy, which is governed by New York State's property tax cap law. This law limits annual tax increases, and for the 2025-2026 school year, the district could have raised its tax levy by approximately 3.15%, equating to an increase of about $5 million. However, the district plans to maintain a flat tax levy with no increase, primarily due to significant increases in state aid received over the past three years.

The meeting highlighted that ERCSD's tax rates are currently the lowest in Rockland County, a notable achievement given the historical context of property taxes in the area. Over the past 25 years, the district's tax burden has decreased significantly compared to other districts, particularly North Rockland, which has the highest rates. This reduction in taxes is attributed to the district's strategic financial management and the recent influx of state funding.

State aid has become a crucial component of the district's revenue budget, now accounting for the largest share of funding. For the 2025-2026 school year, ERCSD is set to receive an increase of approximately $16 million in state aid, with the majority coming from foundation aid. This shift in funding sources has allowed the district to balance its budget without raising taxes, a move that is likely to be well-received by local taxpayers.

The meeting also touched on the importance of balancing the revenue and expenditure budgets, emphasizing that both must align to ensure financial stability. As the district prepares for the upcoming school year, the focus will remain on effectively utilizing the increased state aid while maintaining a commitment to providing quality education for its diverse student population, which includes a significant number of English language learners.

In conclusion, the ERCSD's preliminary budget meeting underscored the district's proactive approach to financial management, leveraging state aid to keep tax rates low while addressing the educational needs of its growing student body. The next steps will involve finalizing the budget and ensuring that the district continues to meet the challenges posed by an evolving educational landscape.