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Jan.
27, 2012—Declining enrollment and increasing costs are among the
many challenges set to affect budget development for
the 2012-13 school year.
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Missed the first community
budget forum on Jan. 17?
No problem!
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Like many school districts throughout the state, Schalmont is
struggling to find a balance between higher expectations and
diminishing revenues, which are compounded by the new and
complex property tax levy cap.
In addition to facing unfunded state mandates and evolving
education standards, the district is dealing with the
devastation of a flood, which will have an impact on the
district’s tax base.
Draft budget proposal
According to Superintendent Dr. Valerie Kelsey, to
rollover all existing programs and services next year and live
within the property tax levy cap, budget reductions will be
necessary for 2012-13.
Based on current projections, Schalmont is facing a
$300,000-$600,000 budget gap next school year due, in part, to
increasing costs associated with running a school district and
the fourth consecutive year of flat or decreased state aid.
While Gov. Andrew M. Cuomo’s executive budget proposal calls for
a 4.1 percent increase in school aid, Schalmont’s estimated
increase is approximately $132,000 or 1.2 percent.
At the same time, expenses continue to rise for state-mandated
employer contributions as well as inflationary costs for health
insurance, general operations and mandated services.
Property tax levy “cap”
As a result of legislation signed into law by the
governor last June, New York schools and municipalities now have
a property tax levy “cap.”
The law creates a threshold—calculated by a complex eight-step
formula—that dictates what level of voter support is needed for
a school budget to pass. A budget with a tax levy increase at or
below the threshold requires a simple majority vote for approval
(50 percent +1) and a budget with a tax levy increase above the
threshold requires a super majority vote for approval (60
percent).
Because of the formula used to calculate this threshold, every
district will have a different cap. Not all of the information
needed to calculate the threshold is currently available.
However, Schalmont officials are projecting the district’s
maximum allowable tax levy increase requiring a simple majority
vote will be 2.51 percent.
More budget reductions likely
Community priorities, gathered systematically over
the past year from budget vote exit surveys, roundtable
discussions surrounding the school closures, and online and
in-person communications, will be considered as reductions are
made for the 2012-13 school year.
Additionally, feedback from the Budget Advisory Committee, made
up of community members who help move the budget from draft
stage to a final proposal, are also instrumental to the budget
development process.
Over the past few years, the district has initiated a variety of
cost-saving initiatives and reduced staffing by 13 percent to
address declining enrollment and a variety of fiscal challenges,
particularly decreases in state funding.
Since 2010-11, district officials have made nearly $3.5 million
in budget reductions, which were achieved through a combination
of school closures and personnel reductions affecting 41
full-time equivalent teaching, support staff and administrative
positions. The equipment budget was also reduced by 25 percent
last year and centralized bus stops were created for middle
school and high school students.
“We have been making difficult decisions as school leaders and
as a community,” said Kelsey. “It has not been easy to close two
neighborhood schools that were very much loved.”
In the midst of these challenges, the district’s mission has not
changed.
“We are committed to providing a positive learning environment
for all of our students while encouraging each youngster to be
successful,” said Kelsey. “We do that through enrichment
experiences, character development, social and emotional support
and a wide range of extracurricular activities.”
That being said, the school board is also mindful of the
economic challenges facing the community and remains committed
to keeping expenses in line with requirements set forth by the
tax levy cap.
Cost-saving measures
In light of the economic climate, the governor has
recommended districts explore opportunities for shared services,
mergers, consolidations and annexations.
The Schalmont school board has met with neighboring districts to
explore additional ways to achieve cost savings through shared
services.
“We will continue talking about the feasibility of a study to
look at shared services and perhaps even to the extent beyond
that,” said Kelsey.
Community feedback sought
As the budget development process continues, community members
are encouraged to get involved.
“As we go through this process over the next couple of months, I
ask that everyone participate—whether it’s a phone call,
attending a meeting or sending an e-mail—to help us continue
providing the quality programs that have made our students so
successful,” said Kelsey.
The Budget Advisory Committee will be reviewing the
superintendent’s draft budget proposal on Feb. 29,
March 13 and March 19. On
March 26, Kelsey will present the 2012-13
budget proposal, which the school board is expected to adopt on
April 16. All
meetings are open to the public.
The annual budget vote and board elections will be held on
Tuesday, May 15, from 6 a.m. to 9 p.m.
in the Schalmont High School new gym foyer.
View the complete
budget calendar online.
Stay tuned to the district website for updates and information
as it becomes available.
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