North Canaan budget approved, tax rate remains flat

NORTH CANAAN – Voters approved North Canaan’s proposed $14.6 million combined municipal and education budgets at a town meeting on May 18.

The approval led the Board of Finance to set the mill rate at 24.75 for the 2026-2027 fiscal year, unchanged from the current year.

The $14.6 million spending plan includes a $3,351,583 municipal budget, up 3.25% from the current fiscal year, largely due to rising employee medical insurance costs. The municipal budget was approved by voters 52-5.

The education budget totals $11,238,600, a 7.92% increase over the current fiscal year. Of that total, $5,098,488 is allocated for North Canaan Elementary School, a 6.73% increase also due, in part, to rising insurance costs.

The elementary school budget was approved by town voters 50-6.

The remaining $6,140,112 in the education budget represents North Canaan’s share of the Region One budget, which covers Housatonic Valley Regional High School tuition and districtwide shared services. Voters across the six-town district, including North Canaan, approved that budget earlier this month.

North Canaan’s Region One assessment rose by about $503,679, or 8.94%, compared with last year’s increase of just over 1%. The town’s assessment is based on 106 students from North Canaan attending HVRHS in the coming school year.

Town officials said state grants helped offset some of the rising costs when setting the mill rate.