Shanda DuClon, Pine Valley Superintendent, stated the district’s budget proposal is “responsibly utilizing fund balance” to avoid a tax levy increase to residents. Submitted photo

SOUTH DAYTON — The 2026-27 Pine Valley school budget proposal shows no tax increase to district residents. Never has a zero increase drawn more criticism.

The reason for the objection is less about this year, but more about how things got to this point.

Joe Kortz, a member of the South Dayton Village Board and a district parent, has been outspoken against the district’s budget process. He has spoken at board meetings and even petitioned the state Commissioner of Education regarding the district’s fund balance, which has grown far beyond what the state allows.

“I think what has happened is that the people have lost faith in the political system out here. They don’t really attend any of the board meetings or get involved, so nobody really knows what’s going on. That gives the administration the opportunity to really do whatever they want. It’s gotten pretty out of control,” Kortz said.

Dating back more than a decade, Pine Valley has been building up its unassigned fund balance. The state limit for unassigned fund balance is 4% of the succeeding year’s budget. However, many schools exceed that figure, and many financial experts suggest schools keep even more than 4%. There is very little recourse to doing so.

Pine Valley, however, has built its unassigned fund balance to roughly 30% of the succeeding year’s budget — higher than surrounding districts. Prior to this proposed budget, the district had just shy of $6 million in unassigned fund balance. It also has significant amounts in several reserve funds for various purposes.

The district is making an effort in this year’s budget to use that money responsibly. The proposed 2026-27 budget of $21,145,237 includes no tax increase for district residents, thanks in large part to utilizing the district’s fund balance. The district is applying $1.8 million of unassigned fund balance to the budget, rather than raising taxes.

Over the past decade, Pine Valley has consistently levied taxes below the amount permitted under New York State’s tax cap formula. The district’s average annual tax levy increase over the last 10 years has been 0.94%, despite being allowed to levy an average increase of 3.13% over that timeframe.

“This year’s budget is an example of responsible and thoughtful financial stewardship,” said Nicole McCracken, Pine Valley school business official.

However, while the district could have asked for more from its residents over the past decade, it also could have asked for much less.

In an audit period spanning from July 1, 2015 to Jan. 22, 2019, the Office of the State Comptroller determined that the district overestimated appropriations by nearly $3.2 million. On June 30, 2018, the district’s unassigned fund balance totaled $2.4 million – more than $1.8 million above the 4% limit.

According to the state comptroller, “Despite the District generating operating surpluses totaling almost $2.2 million during the 2015-16 through 2017-18 fiscal years, the Board raised real property taxes by $50,000 during that same period.”

In the years since, the unassigned fund balance has only grown. Even if the proposed budget passes, Kortz estimates the unassigned fund balance at roughly 18%. The current proposal would bring the unassigned fund balance from just shy of $6 million down to around $4 million.

“They are overestimating their budget by a huge amount, and they are hanging onto that extra money, when they are supposed to use that money for a specific purpose,” Kortz said. Citing an economically challenged community, Kortz added, “These people don’t have a lot of money to give, and the school is sitting on $5.9 million of extra money that they taxed these people for.”

The district believes the amount of unassigned fund balance will decrease significantly over the next few years, with the surplus potentially being exhausted by 2028 through allocation to future budgets and further funding the district’s reserves.

“It’s important we continue to operate efficiently and prioritize the investments that matter to our community,” McCracken said.

The district states it is not increasing taxes while still managing to preserve student opportunities, invest in staff development, maintain district facilities, and responsibly manage district finances. The district is using its fund balance to offset increases in many areas, from inflation to insurance rates statewide, in order to avoid increasing the tax levy.

“This budget reflects our commitment to operating within our means while continuing to move the district forward,” said Shanda DuClon, Pine Valley Superintendent. “We are responsibly utilizing fund balance to protect programs, invest in opportunities for students and staff, and stabilize taxes for our community, especially at a time where everyone is feeling their dollar isn’t going as far as it used to.”

The proposed budget supports the school community through field trips for students, including the eighth-grade Washington, D.C. trip; Universal Pre-Kindergarten (UPK) and summer programming; a full-time School Resource Officer; school supplies for elementary students; and community access to the pool and fitness center. In terms of capital improvements, the budget includes a capital outlay project, equipment replacements and the purchase of three buses — two large diesel buses and one small bus.

But what if it does not pass?

Perhaps the biggest source of contention from Kortz is the district’s response to a potential failed budget.

If voters reject the proposed budget, New York State law allows the district to either propose a revised budget or adopt a contingency budget that follows state guidelines. Contingency budgets are often seen as a last resort, as spending flexibility is significantly hampered by eliminating all non-essential expenses.

At a budget workshop on April 28, the Board of Education discussed the options in the event of a failed budget. The Board determined that because the district is already proposing no tax increase, any revisions would not be significant enough to warrant a re-vote. Instead, the district plans to go directly to a contingency budget if the proposed budget fails.

Doing so would remove new equipment and buses from the budget, along with eliminating district-funded school supplies; community use of district facilities, including the pool and fitness center at no cost; and student opportunities such as field trips.

Kortz said the decision to go straight to a contingency budget is a way of leveraging voters to approve the current proposal.

“The district is trying to portray this choice where either you have to vote for this budget — that doesn’t comply with the (unassigned balance limit) law — or we’re going to take away field trips, school supplies, safety with the School Resource Officer, and limit transportation,” Kortz said. “They are creating this image that you have to vote for this budget whether you like it or not, and it’s just dishonest and wrong.”

As a Village Board member in South Dayton, Kortz serves a community directly impacted by the school budget. He has heard concerns from residents about the school, including low scores in reading proficiency, field trips and dances funded by students through fundraisers, and teachers and families being asked to purchase school supplies. He stated, “If we have all this money, why are we asking for tissues from the community that’s already paid for it?”

Kortz wants to see the school budget proposal rejected by voters, but not because of the tax increase, because there isn’t one. He favors an even higher total budget amount, instead with more line items added to support the needs of students and teachers with the money the district already has.

“There is another option. We do support teaching, we do support students. We want the teachers to have what they need and we want students to learn, but we don’t need to hang onto extra money,” Kortz said. “If you’re going to hang onto extra money, put it into the budget under a line item for field trips or more school supplies for the students — anything that is productive for the students and the teachers.”

On Tuesday, May 19, voters will be presented with a proposition that states, “Shall the budget for the year 2026-2027, as approved by the Board of Education, be adopted, and the required funds therefore be raised by a tax on the taxable property of the school

district?”

It will be up to the voters to decide whether no tax increase means no objection.

The 2026-27 school budget vote will be from noon to 8:30 p.m. in the Jr./Sr. High School New Gym Lobby. Voters may obtain an absentee ballot application from the district office. Ballot applications must be received by the district at least seven days before the election if the ballot is to be mailed to the voter, or at least one day before the election if the ballot is to be personally picked up during district office hours, 8 a.m to 4 p.m.

Absentee ballots must be returned no later than 5 p.m. on election day to be counted. Voters will also elect three members to the Pine Valley Board of Education during the annual vote.