South Country school district, facing $6M shortfall, considers nearly 14% tax levy increase

The South Country school district is considering piercing its cap and raising its tax levy by 13.76% to make up a nearly $6 million shortfall in the 2026-27 budget.

The nearly 14% levy increase was one of three options presented Wednesday night to the school board, as the district prepares for the likelihood that it will not obtain state approval to borrow the millions of dollars it says it needs to balance the budget. Officials had hoped the approval would be included in the state budget, which has not been finalized.

John Belmonte, the district's acting assistant superintendent for finance and management services, on Wednesday also outlined two additional options: Make deeper reductions to keep the tax levy increase equal to the district's cap of 5.52%, or override the cap with a lower increase of 9.57% and cut $3 million, instead of nearly $6 million.

Board members did not make a decision Wednesday. They are expected to adopt a budget proposal at a meeting April 22, ahead of the public budget vote on May 19.

As he detailed the costs of the 13.76% levy increase, Belmonte noted the audience’s response during the meeting at Bellport Middle School.

“I see people shaking their heads,” he said. “But it’s an option. It's all up for discussion.”

The district has sought state approval to borrow up to $15 million. Belmonte said the district must close an $8.7 million deficit for 2025-26 and a budget gap of $5.9 million for 2026-27.

In a report released last week, the state comptroller's office projected the district's deficit would be $10.5 million when the current fiscal year ends in June.

Officials said if they do not receive state approval, the district will have to resort to short-term borrowing for the current school year. That money can be paid off by 2027-28, meaning kicking the can down the road, Belmonte said.

Belmonte in his presentation noted the state “in all likelihood” will not authorize any borrowing to finance the district's deficit for the 2026-27 school year and “possibly none” for 2025-26.

He said that in a meeting last Friday, "Our legislators indicated that their discussions up in Albany have not been positive." He did not name the legislators involved.

State Sen. Dean Murray (R-East Patchogue) said Thursday he cannot comment on South Country’s request as the state budget is yet to be approved. “Anything that the state does in regard to the South Country school district situation will most likely be done within the budget process,” he said.

Assemb. Joe DeStefano (R-Medford) earlier this week said he had no comment through his chief of staff.

$151M budget proposal

The latest draft of the 2026-27 budget totals nearly $151 million, with the district having already cut more than $8 million in spending, according to Belmonte’s presentation. That includes $6 million in savings by cutting 55.5 positions.

If the board chooses to raise the tax levy by 13.76%, the additional cost for the average taxpayer is estimated to be $1,185 per year, according to Belmonte.

If the levy increase stays equal to the cap, the estimated additional cost for the average taxpayer would be $341 per year. The third option, to raise the levy by 9.57%, would mean $755 more per year for the average homeowner, according to the presentation.

If board members choose to override the tax levy cap, it would make South Country the sixth district on Long Island to announce plans to do so. Busting the tax limit historically has been difficult, as at least 60% of voters must approve the budget proposal.

Three districts last year sought to exceed their limit. Two failed.

'This is basically a calamity'

If the school board opts to cut an additional $6 million from the budget, Belmonte listed jobs and programs that would be reduced or eliminated: transportation, certain sports programs, AP courses and world languages, among others. The positions to be eliminated include administrative directors, literacy coordinators and math interventionists, he said.

“This is basically a calamity,” Superintendent Antonio Santana said. “But we have to sort of reframe it as an opportunity to rise up and try to resolve it.”

School officials have faced heavy criticism over the state comptroller's report, which detailed years of fiscal mismanagement. The report found the district used one-time funds to cover recurring costs and significantly underbudgeted expenses in the past two fiscal years.

One parent on Wednesday called the report “a damning account of incompetence” and questioned how the public can be certain that the issues highlighted would not happen again.

Santana said the district has incorporated suggestions from the comptroller's office and noted the change of leadership in its business office. The district's former assistant superintendent for finance and management services resigned in October, with Belmonte taking over. 

Santana said the district has implemented stronger internal controls and fiscal oversight.

“We made changes across the board,” he said.

Parent Thaddeus O'Neil told schools officials that the district budget is meant to be used to educate students, but now — with the cuts being proposed — it will be the teachers and children left to shoulder the consequences.

“Our teachers, and by extension our children, are not means to an end,” he said. "They are not expendable line items to balance your budget. The budget exists for them.”