The Schalmont Board of Education and administrators began crafting a proposal in the fall of 2007. To estimate operational costs for 2008-09, they looked at the current costs to operate the district, local and national trends in the costs of applicable supplies and services, feedback from community members on educational priorities, and non-instructional factors such as employee contract negotiations.

Community volunteers served on the Budget Advisory Committee and helped move the budget from the draft stage to a final proposal. Members included: Mary Carolus, Paul Chevalier, Kerry Frank, Dominic Gallo, Amelia Hallam, Arlene Lindell, Debbie Lynch, Paul Notar, Dave Piotrowski, and John Saccocio. Community input also was solicited and received at board meetings and budget forums.

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What increases are included in this budget?

The proposed 2008-2009 school budget of $41,550,000 represents a 3.63 percent spending increase over the 2007-08 school budget. The proposed budget reflects the school board’s commitment to maintaining and expanding existing programs while being mindful of the financial constraints facing the Schalmont community.

The district will continue several cost-saving measures and cut some positions due to declining enrollment, but most expense areas are expected to increase next year. The areas most significantly contributing to the spending increase include teacher salaries (regular school), health insurance (active and retired employees) and transportation (diesel fuel).

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What does the district do to limit spending and contain costs?

By law, school districts are required to competitively purchase goods and services. As a routine part of its purchasing practices, the district uses a competitive bidding process, and wherever possible, makes purchases through cooperative arrangements with BOCES or New York State. The district also is a member of the Schenectady County Schools Buying Consortium, which provides savings in areas such as supplies, heating fuel and energy.

For 2008-09, the district also will cut some instructional positions at the middle and high schools (due to declining enrollment), combine some non-instructional positions and not add new educational programs.

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How are efforts to raise educational standards impacting the budget?

State and federal mandates, such as No Child Left Behind, are aimed at making students more competitive by raising educational standards. District costs associated with meeting mandates – for things like administering and grading tests and providing struggling students with individualized/small group support – are often not covered by the state or federal government. Schalmont must turn to local taxpayers to fund any mandated initiatives not covered by state aid.

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Why is the budget increasing more than the rate of inflation?

It is not accurate to compare a school district spending increase to the core rate of inflation because the latter is based on the Consumer Price Index (CPI). CPI only represents goods and services purchased by consumers (e.g., food, housing, clothes, vehicles, prescriptions, TVs, software). School districts purchase some things included in the CPI, such as food and fuel, but must also cover faculty and staff salaries, health insurance, pensions, and the costs associated with meeting unfunded mandates – all of which are rising by more than the rate of inflation. Also, while CPI measures expenses over the previous 12 months, school budgets are an attempt to predict expenses over the next 12 months.

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How will this budget affect school taxes?

The proposed 2008-09 school budget includes a school tax levy (i.e., total amount of money the district collects from local taxpayers) of $27,963,074, which is a 2.99 percent increase over last year. This is the lowest percentage increase in several years, reflecting district officials’ efforts to continue to lower the increase in the school tax levy.

The 2008-09 school tax rate (i.e., amount of tax residents pay per $1,000 of home value) for residential property owners (homestead) will be less than the school tax rate for all other property owners (non-homestead), but rates will not be set until August 2008.

Taxpayers may be able to reduce their school taxes through exemptions. The school board has approved all possible school tax exemptions, and exemption applications are available in your town assessor’s office. Visit http://www.orps.state.ny.us/home/tpe_index.cfm for more information.

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How do STAR exemptions reduce school taxes?

All New Yorkers who own a home can significantly reduce their school property taxes through a School Tax Relief (STAR) exemption. There are two standard STAR exemptions: Basic STAR for owner-occupied, primary residences regardless of owners’ ages and incomes; and Enhanced STAR for primary residences of owners aged 65 and older with yearly household incomes below the state standard. The Middle Class STAR program, introduced in 2007, will continue to provide a further benefit to taxpayers, on a sliding income scale, through a rebate check. Homeowners can apply for a STAR tax break through their town assessor’s office. Visit http://www.orps.state.ny.us/star/ for more details.

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Are taxpayers’ STAR savings factored into the budget?

No. The STAR program is tax relief for homeowners paid for by New York State through state taxes. It is NOT a new source of funding for schools or a consideration in developing the annual school budget.

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How did the Rotterdam property reassessments affect school taxes?

Property reassessments are designed to bring properties up to full market value. Last year, the Town of Rotterdam completed a reassessment of all properties within the town for the first time in more than 50 years.

The reassessment did not change the total amount of money that the school district collected from local taxpayers (i.e., school tax levy), but it did change how the school tax levy was distributed. While some residents saw an increase in their taxes, others saw a decrease. The reassessment did not raise any additional funds for the school district.

Click here to view the Reassessment Fact Sheet jointly created by the Schalmont and Mohonasen school districts.

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How will the Homestead Tax Option affect taxes?

In March 2007, the Schalmont Board of Education enacted the Homestead Tax Option for all five towns in the district. It allowed for the creation of a dual tax rate for homeowners (residential property owners) and non-residential property owners, with property designations determined by each town’s assessor.

The 2008-09 school tax rate for residential property owners (homestead) will be less than the school tax rate for all other property owners (non-homestead), but the rates will not be set until August 2008.

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How will state aid affect school taxes in Schalmont?

Schalmont looks to all other available revenue sources – state and federal aid, interest earnings, facility rental fees, etc. – before it turns to local taxpayers to help pay for education. Revenues in the proposed budget include $11,834,426 in New York State and federal school aid.

A portion of state aid labeled “Foundation Aid” is determined based on a formula that takes into account factors such as the number of total students, disadvantaged students, special education students, and Limited English Proficiency students in a district.

The recently approved state budget included Foundation Aid increases for all school districts, ranging from a low of 3 percent to a high of 15 percent. Though Schalmont fell on the low end with a 3 percent increase, the district was still able to continue a five-year pattern of lowering the percentage increase in the school tax levy by implementing cost-saving measures and making cuts where appropriate.

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What happens if the school budget proposal is voted down?

Under state law, if the school budget proposal is defeated, the school board can put the same budget up for a revote, put a revised budget up for vote or go directly to a contingency budget. If the board decides to put the proposed budget up for a revote or to put a revised budget up for a vote and either one is voted down, the board must adopt a contingency budget.

The proposed 2008-09 school budget was built as close to contingency as possible without affecting existing programs. It is a 3.63 percent increase in spending over the 2007-08 school budget.

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What is a contingency budget?

State law mandates that under a contingency budget a school district may not increase spending in most expenditure areas by more than 120 percent of the Consumer Price Index or 4 percent, whichever is less. For 2008-09, the spending cap for most expenditure areas is 3.36 percent.

Certain expenditures are exempt from this spending cap, for example tax certiorari settlements and debt service.

If forced to adopt a contingency budget, Schalmont will need to cut $231,321 from the proposed 2008-09 school budget. Reductions would be made at the discretion of the board from various non-mandated programs and transportation. Some examples of non-mandated programs include: equipment purchases; community use of school facilities, unless a facilities use fee is charged; kindergarten; library services; art, music and physical education programs; summer school; elective courses; and interscholastic/intramural sports.

The 2008-09 School Budget Notice in the budget newsletter shows that a 2008-09 contingency budget would be an overall 3.06 percent spending increase from the 2007-08 budget.

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