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The Erie 1 Board of Cooperative Educational Services is moving from its longtime offices on the Maryvale School District campus, leaving a big hole in the school district's budget for 2005-06.

During a meeting of the School Board on Monday night, officials discussed revenue projections for the proposed budget, including a $467,000 drop in rental income from BOCES, which leases the former ninth- and 10th-grade building at the school complex on Maryvale Drive. The BOCES offices, which have been at Maryvale for 15 years, will move to a new building at its headquarters in West Seneca.

Superintendent Gary Brader said that if a new tenant is not found by August, it could negatively impact the tax rate.

"It's good news for BOCES, but not such good news for us," Brader said.

Brader added that district officials are talking with other prospective tenants, but nothing has been "firmed up" as yet.

Officials also said the district would use roughly $650,000 of its fund balance to help cushion the tax impact in 2005-06.

The district also is losing roughly $73,000 from an in-lieu-of-taxes agreement with the owners of Hospitality. Officials said that some or all of the payment could be made up in property taxes, depending upon the assessment, since the property will return to the tax rolls.

The board is expected to adopt a budget April 25.