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Capital project spotlight: Financing the project

Capital project spotlight: Financing the project

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If the proposed $37.8 million capital project is approved by voters on May 21, New York state building aid would pay for approximately 81.3% of the project and the remaining 18.7% would come from the district (also called the “local share”).

The district currently has $500,000 in its capital reserve fund, which B-P would apply to the local share during the first year of project payments, 2026-27. The remaining portion of the local share of the capital project would be divided among district property owners. The district’s financial advisors estimate that the owner of a property with a full-market value of $100,000 could see an increase of no more than $33 on their September 2026 tax bill. Residents who receive basic or enhanced STAR exemptions or credits would see smaller maximum tax increases in 2026. There would be no additional tax increases related to the project.

About State building aid

Most of the items included in the capital project represent one-time expenditures that would be next to impossible to pay for out of the district’s annual operating budget, which residents vote on each May. State lawmakers recognize this and have long offered financial incentives in the form of state building aid for school districts to take care of their facilities through capital projects.

State building aid is only available on work completed as part of a capital project. It is not available for facilities work completed as part of a school district’s annual operating budget.

The capital project proposal and B-P's operating budget for the 2024-25 school year are completely separate. If the capital project is approved, the maximum estimated tax increase related to the proposed capital project would not be reflected in school tax bills until September 2026.

The state money Broadalbin-Perth will access to help pay for the proposed capital project — nearly $31 million — cannot be used for any other purpose. If residents do not approve the proposed capital project on May 21, issues related to safety and infrastructure would remain and have the potential to disrupt students’ educational environment. Broadalbin-Perth would still have to address these issues on a case-by-case basis, and all costs for that work would have to be paid from the district’s operating budget in the same year the expenses were incurred, without any state aid reimbursement. If work has to be done on an emergency basis, it would likely be more costly and could potentially disrupt the learning process.

  • 2024 capital project
  • community
  • elementary
  • high school