The Hudson School Board has begun shaping the FY2028 budget, agreeing this week to set a maximum increase of 3.5% as administrators continue developing early estimates for next year’s spending plan. The decision came after a detailed presentation from Business Administrator Jenny Graves, who outlined the major contractual cost drivers expected to impact the district in the upcoming fiscal year.
The discussion marked the board’s first formal step toward building the FY28 budget, a process that will unfold over several months and involve principals, department heads, the Budget Committee, and ultimately voters.
Graves told the board that the district is still in the “very early” stages of budget development, but said it was important to provide members with a preliminary snapshot of the largest contractual obligations. Her memo to the board described the presentation as a “first look” at General Fund drivers, comparing projected FY28 costs to FY27 to estimate the percentage increase.
“This estimate will adjust over the next several weeks as the Finance and Human Resources Departments work on the final touches of the largest benefit drivers; salaries and benefits,” Graves said. She noted that principals and directors are also drafting their individual budgets, which will further refine the numbers.
Graves emphasized that the figures presented should not be interpreted as a preliminary proposed budget or default budget. Instead, they serve as a starting point for discussion and guidance.
The early estimates show $1,583,561 in contractual increases for FY28 – a 2.27% rise over the current FY27 budget. The largest components include:
- $541,073 in salary increases tied to collective bargaining agreements
- $237,017 in contractual benefits
- $321,590 for special education transportation services
- $483,881 in additional contractual obligations
Graves noted that the estimate does not include the Hudson Federation of Teachers (HFT) collective bargaining agreement, which will be negotiated during this budget cycle. If an agreement is reached, it would appear as a separate warrant article with additional costs not reflected in the current estimate.
She also pointed out that the memo does not include other appropriations such as the Special Revenue (Grants) Fund, Food Service Fund, or Revolving Account Funds, all of which contribute to the district’s total appropriation.
Board members spent time discussing what level of guidance to provide administrators. Some initially suggested a 4% cap, arguing that a higher ceiling would give the district flexibility as the budget evolves and allow room for adjustments before cuts are considered. Others felt that a lower number would better reflect the board’s commitment to fiscal restraint.
After deliberation, the board reached consensus on a 3.5% maximum increase over the FY27 budget. This guidance will shape the next draft of the proposed FY28 budget, which will return to the board for review before being forwarded to the Budget Committee.
The board is expected to continue reviewing updated estimates throughout the fall as more information becomes available. Graves said the district will soon finalize salary and benefit calculations – typically the largest portion of the budget – and incorporate department-level requests.
A second draft of the FY28 budget timeline was also scheduled for review during the meeting, outlining key dates for presentations, public hearings, and committee review.
With the 3.5% cap now in place, administrators will begin refining the budget to align with the board’s expectations while balancing contractual obligations, student needs, and long-term planning.