Carmel Schools Pass Historic Tax Reduction

By Holly Crocco

The Carmel School Board on April 21 unanimously approved the first tax cut in the history of the district.

The $152.8 million budget for 2026-27 reflects a 3.7 percent spending increase but a 0.1 percent tax rate reduction, thanks to the use of $3.9 million from reserves. That coverts to a 1/10^th of 1 percent tax levy reduction.

“For too long, the so-called experts said it could not be done – that the only solution was to keep raising taxes,” said School Board Vice President John Curzio II, who also sits on the budget and finance committee. “We started this budget process by recommending a 0 percent tax levy increase because we know all too well the financial burden that so many in our community are facing under the crushing weight of school taxes.”

By the end of that discussion, he said the committee was looking at a potential tax cut. Once it was confirmed that the district’s state aid wouldn’t be negatively affected by reducing the levy, the decision was obvious.

“The Carmel Central School District has the unenviable position of being one of the highest taxed school districts in the state, and New York is one of the highest taxed states in the country,” said Curzio.

From the 1998-99 school year to the 2007-08 school year, the tax levy “skyrocketed” by 93 percent, according to Curzio. From 2002-03 to 2006-07 alone, the levy increased “an unfathomable 42.5 percent.”

“The mistakes made in 2002, 2003, 2004, et cetera, have a direct and lasting effect on the school taxes our community is being crushed under today,” he said. “The mistakes of the past do not stay in the past… There has been great progress throughout the current decade to slow, stop, and reverse the runaway train filled with a cargo of our taxpayers’ money.”

In 2021, voters rejected two budget proposals, meaning the district had to go to a contingency budget. In 2022, the tax increase was 0.97 percent, followed by 1.8 percent in 2023. In 2024, for first time, there was a 0 percent tax levy increase.

In 2025, taxes increased 0.74 percent.

“This is the first time in the history of the Carmel Central School District when we have used the surplus before us to return money to the taxpayer,” said Trustee James Wise. “This is the first tax cut. This may be a small tax cut in this year, but it’s a reminder that we can never again hear that it is impossible for a school district to cut taxes.”

Upon voting on the budget, the entire board applauded the administration’s process and transparency.

“The back and forth before the board and administration was very productive,” said Trustee Frank Grasso. “We have made a great deal of progress in moving forward with our recordkeeping and planning with this budget.”

The primary source of revenue is still property taxes, to the tune of $102 million. State aid comes in at about $42.5 million.

The district will appropriate $3.9 million from six restricted reserve accounts to balance the budget, leaving each reserve fund with millions left in their respective coffers.

When it comes to expenses, $39 million will go toward salaries for instructional employees, as well as supplies and equipment. This includes the expansion of arts and music programs, new extracurricular activities, funding for field trips, and more.

In addition, the universal pre-kindergarten program is now fully funded by the state, and offered to all eligible children at no cost to taxpayers.

About $21.8 million will go toward special education, and $1.9 million for the English Language Learners program, with guidance services, psychological services, social worker services, and pupil personnel services all funded.

About $1.5 million will go toward interscholastic athletics and co-curricular activities.

In the transportation budget, $6.6 million will go toward drivers, aides, gas, parts, radio leasing, small bus purchases, insurance, and dispatchers/clerical staff; while $1 million will fund employees at the bus garage, as well as a lift and concrete pad, rubbish removal and tools, as well as oil and propane.

About $8.3 million is allocated for facilities operation and administration, including custodial and maintenance salaries, business administration staffing, school resource officers/school patrol officers, human resources, legal services, insurance, building repairs, service contracts, and other costs.

Employee benefits come in hefty, with $26.4 million allocated for health benefits, $5.7 million for the Teacher Retirement System, $5.7 million for Social Security and Medicare, $2.5 million for the Employee Retirement System, $1.5 million for the Union Welfare Fund, and $269,000 for Worker’s Compensation.

About $3.2 million will go toward debt service/construction bonds.

Broken down, this means that 47 percent of the budget goes toward instruction and student support, 28 percent to employee benefits, 10 percent to transportation and operations, and 12 percent to administration and “other” costs.

A community forum is scheduled Saturday, May 9 at 9 a.m., at Carmel High School, with the vote taking place May 19 from 6 a.m. to 9 p.m., at the high school.