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The Liverpool Central School District is confronting a major financial crisis, with a $17 million budget shortfall threatening up to 85 staff positions—about six percent of its workforce. Superintendent Richard Chapman said layoffs are likely, and employees will be notified about their job status by early April. The school board expects to finalize the district's budget on Monday (April 6) and present it to voters in May.
According to reporting from syracuse.com, the district currently employs 1,390 staff but has seen enrollment drop from 7,178 students in the 2015-16 school year to 6,653 this year. Despite fewer students, staffing has increased over the same period by about 175 employees. Chapman explained that the district’s budget for the upcoming school year is projected at just under $223 million, with about $98 million dedicated to payroll.
To help reduce the deficit, some teachers and staff have been offered a retirement incentive, with a decision deadline set for Friday (March 27). If all eligible employees accept, the district could save $5 million, but this may not be enough to prevent additional layoffs. Chapman said, “It’s basically any unit you could think of, we are probably looking to have some sort of reductions,” as reported by syracuse.com. However, he also assured that no program cuts are planned.
The district’s financial challenges stem from declining student enrollment, increasing staffing, rising salaries, and higher health insurance costs. The budget deficit initially stood at $20 million but was trimmed through retirements and unfilled positions. Still, reserves used to plug gaps may not be enough for long-term stability, according to WSYR-TV.
Property taxes and state aid are the district’s primary revenue sources, with the tax levy increase capped at 3.3 percent—about 60 cents per $1,000 of assessed property value. Voters will have the final say on the budget during a vote scheduled for Tuesday (May 19). If rejected, the district may resubmit the proposal, offer a reduced budget, or operate under a contingency plan.
The outcome of the pending retirements and the upcoming vote will determine the final number of layoffs and the financial direction of the Liverpool Central School District.