Homer Schools Faces $5 Million Deficit Next Year – Layoffs Planned

The Homer Central School District is facing a severe financial crisis that will lead to layoffs for the 2026-2027 school year, according to a candid assessment released by Superintendent Jeffrey Evener. In a letter to the community, Evener revealed that the district is currently grappling with a $2 million structural deficit, a figure projected to balloon to over $5 million by the next fiscal year.

The crisis is the result of a “perfect storm” of rising mandatory obligations and stagnant revenue. While costs for health insurance and utilities are expected to spike by more than $1 million, New York State Foundation Aid is only projected to increase by 1%, or roughly $200,000. Evener noted that the district’s financial “safety nets” have been effectively exhausted to cover previous gaps; the Unassigned Fund Balance has plummeted from $1.77 million in 2020 to just $150,000 today.

Historical tax strategies also played a role in the current instability. Over the last decade, previous Boards of Education approved 0% tax levy increases five times. While intended to provide relief to local taxpayers, Evener explained that this created a revenue stream that failed to keep pace with the rising costs of public education. Additionally, the district received approximately $2 million less in state aid than budgeted for the 2024-2025 school year, creating a compounding negative effect.

Because salaries and benefits comprise over 70% of the district’s total budget, the administration has determined that operational cuts and spending freezes are no longer sufficient to close the gap. Consequently, the district will reduce staffing levels at the end of the current school year. Evener described the decision as a “painful necessity” driven by the need for long-term financial survival, promising that all impacted individuals will be notified personally as soon as final decisions are reached.

Looking ahead, the district is seeking emergency fiscal relief from state assembly and senate members. Evener emphasized that restoring the district’s financial health will be a multi-year process, and the administration remains committed to transparency as they approach the public budget vote in May.