January 29, 2010
by Richard Laster
Compliments to the School Board and the Administration for their early focus in developing a Budget forecast for the school year 2010-2011; and, also for taking a peek at the following year, which would be 2011-2012.
The obvious advantage of taking an early look at these budgets is that it permits a dialogue to see what changes or adjustments need to be made to bring future tax levies under control.
As suspected, the numbers are alarming. On the assumption that current programs will be maintained, which incidentally is a good starting point for this kind of study, it is estimated that a budget increase over this two-year span in excess of $12 million is currently projected. Additionally, a rough estimate of future revenues, mostly State Aid, is now projected at $1 million less for the two years. This would result in a tax increase of $13.3 million. Importantly, this burden would have to be shouldered entirely by the Chappaqua taxpayers. On the average, this amounts to a tax increase of approximately $2,000 a year per taxable unit. (According to the town assessor, there are 6,000 taxable units in New Castle, both condominiums and private residences.) It is obvious that work needs to be done to bring this number under control.
At the January 12, 2010 School Board Meeting, the Board discussed two broad areas of focus that have an impact on the Budget:
1. The matter of reserves; and
2. The matter of operating standards for the 2010-2011 budget.
Kudos to the School Board for opening up the subject matter of Reserves, including a chart giving the Reserve position as of June 30, 2009, which was in excess of $15 million. I recognize the importance of having a fund balance that will cover unexpected events. The Board instructed the administration to allocate $3.4 million of that Reserve to offset the expected increases for the 2010-2011 school year. As we proceed to the finish line on the budget preparation, it is important to keep in mind that more money could be allocated for the coming school year, if it is needed, to avoid a tax increase.
The list of operating standards for 2009-2010 that were proposed by the Administration and, seemingly, accepted by the Board, needs some discussion. It comes under the heading of “pain vs. gain.” For several items on the list, such as “Maintain existing structures at the middle school level to the greatest extent possible,” it would be helpful to the community if a discussion could take place using some real data. What are the benefits that we enjoy from the configuration as it is now, and what do those benefits cost us as compared to another configuration?
The same kind of analysis applies to the next two items in the list, namely, “Maximize efficiencies in scheduling personnel where possible and change schedules where appropriate.” and “Offer close to the same breadth and depth of course offerings and extra-curricular activities at Greeley.”
Given the dire projections of a “maintain current programs scheme,” decisions will have to be made that will affect current programs to bring our budget in line. Even if reserves can help us to tamp down an increase this year, we may not be able to use—or even possess—such reserves every year, and we still need to stem rising costs.
I want to emphasize again, that I am impressed by the process that is being followed by the Board and trust that the comments that I have made are viewed as a constructive part in this important dialogue.
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