Syracuse schools warn budget fixes may only delay deeper fiscal crisis

Syracuse City School District leaders said a $24.5 million budget gap is being covered with one-time money, a fix that may keep classrooms steady for now but could leave families facing sharper cuts later. At a hearing Thursday in Syracuse Common Council chambers, officials warned that if spending and revenue do not change, the district’s fund balance could be exhausted in about five years.

Chief Financial Officer Michael Puntschenko said the district is leaning on fund balance and other revenue sources to hold together a proposed $639.5 million spending plan. He pointed to health care, transportation and utilities as major pressure points, with health care costs expected to rise 8% next year and 12% the year after that. The district is also facing more expensive special education needs as more children enter the system in pre-K, kindergarten and first grade already requiring services.

The district’s 2026-27 budget materials show the plan is balanced through the use of $24.5 million in fund balance, including $2.0 million committed for STEAM High School and $1.0 million for the Delaware Montessori phase-in. The same budget presentation says Syracuse is assuming flat federal revenue, no change in the tax rate or tax levy, and no change in sales tax collections. It also says the district expects a $16.2 million increase in state aid over the current year, including $12.9 million in Foundation Aid, $1.5 million in transportation aid and $1.8 million in other aid.

Those numbers matter because the district says about 86% of its revenue comes from state aid and about 9% comes from the city of Syracuse, one of the lowest municipal shares in the state. Marty Nave pressed that point at the hearing, saying, “These kids come here, and we don’t get a cent back.” The question for city leaders is not just how to close this year’s gap, but whether the funding system matches the student load Syracuse is carrying.

District leaders said the budget includes a net increase of 31 staff positions, and the district plans to create seven new special education teacher jobs. At the same time, multiple Syracuse schools remain in receivership because of low ELA and math scores, putting added pressure on Superintendent Pamela Odom’s push for individualized academic and behavioral plans instead of a one-size-fits-all approach.

The district is still relying on ARPA-funded mental health supports and literacy and math interventions as federal relief money winds down. That keeps programs alive for now, but the warning from City Hall was clear: without stronger, more stable revenue, Syracuse schools are buying time, not solving the problem.