2011-12 proposed budget Questions & Answers
Posted 5/13/11
With voting less than one week away, here are a few answers to questions you may have about the proposed 2011-12 budget:
BUDGET QUESTIONS & ANSWERS
How was the budget proposal developed?
Each year the Board of Education and administrators begin looking at factors such as the current cost to operate the district, likely increases or decreases in that cost, and trends in state and federal aid. They also considered educational standards, the success of current school programs, and public feedback from the Citizen’s Advisory Committee and previous exit polls.
A draft budget proposal was developed at the end of January. The next four months included many revisions that reflected educational priorities and changes in state aid. The final proposal was adopted by the Board of Education in April.
What is the proposed budget and how does it compare to this year’s budget?
The proposed budget is $52,693,000, which represents a 3.95 percent spending increase over the current year’s budget.
What was eliminated in the proposed budget?
A total of $1.5 million in reductions were made for next year. One full-time teaching position was eliminated and 10 teaching assistants. Other budget reductions included:
• Reduction of supplies, travel and conferences
• Modification of transportation routes/bus stops
• Changes in health insurance plans
• Concessions in Teaching Assistant contracts
• Administrative concessions in salary increases
• Reorganization of team transportation within the sports program to
maximize efficiencies.
If $1.5 million in budget reductions were made, why is overall spending up?
In order to present a balanced budget, school districts must match expenses with projected revenues. Public schools get revenue from two sources: New York State Aid and the Tax Levy. Gloversville lost $2.9 million in state aid for next year. At the same time, expenses in many contractual and/or mandated (required by state law) areas are increasing for next year. This includes employee salaries and benefits, energy and gas costs, and certain required services for special education students.
In order to bring spending in line with reduced revenue, reductions were made. Additionally, the district decided to use almost $1 million of the district reserves to offset the gap. Rather than cut into programs even further, district officials decided to propose the budget with the 3.9 percent increase.
How can we cut 10 teaching assistants?
Gloversville received Reading First money from the government in 2002. The purpose of this funding was to provide support in applying scientifically based reading research—and the proven instructional and assessment tools consistent with this research—to ensure that all children learn to read well by the end of third grade. The district hired teaching assistants to help with this initiative. The Reading First money expired in 2008 and the funding is no longer available to retain the staff. Though every cut hurts, this was an area that the district felt has enough stamina to sustain the practices that have already been put in place.
Can we reduce staff and programs yet still prepare students for 21st century jobs?
Though this is not easy in today’s economy, schools must continue to improve learning. Technology and globalization are ever changing the job market and making the need for a good education more critical than ever. For example, last summer the Board of Regents decided to raise the passing scores on state English and math exams in grades 3-8 because research showed that the old scores did not indicate success by the time students reached high school.
Gloversville is involved in many new initiatives to ensure our students will have the skills they need to succeed. By partnering with Model Schools, teachers will now have access to shared staff development opportunities in technology at a much lower cost than Gloversville could afford on its own. Gloversville has also begun curriculum mapping in order to streamline it’s curriculum at all grade levels.
The high school is undergoing a school-wide improvement plan as a result of the District Report Card findings and the middle school is involved in a pilot program that uses handheld learning devices in the classroom.
The district will also continue to pursue grants to help fund programs to better prepare students for today’s careers.
How will the proposed budget impact taxes?
The proposed budget relies on a 3.9 percent tax levy increase over the current year. Each year specific tax rate increases vary from town to town due to equalization rates that the New York State Office of Real Property Services announces in August.
Equalization rates are intended to spread the tax levy across the towns as fairly as possible. The school district plays no role in determining what portion of the tax burden is placed on any one town or any one property owner. The assessor in each town calculates individual assessments that determine how much is paid by each property owner.
Based on the current assessments for a home valued at $100,000, the following estimated tax increases are expected for each town in the district:
Gloversville City
$58.99
Town of Johnstown $80.81
Town of Bleecker $58.99
Town of Caroga $131.09
Town of Mayfield $84.27
What happens if the budget is defeated? How would a contingent budget impact school programs?
If the proposed budget is defeated at the polls on May 17, state law gives the school board three options. Board members may decide to put the same budget up for vote a second time; put a revised budget up for vote; or go directly to a contingent budget. If the voters defeat the budget a second time, the board must adopt a contingent budget.
The maximum increase allowed by law for a contingent budget is tied to the Consumer Price Index (CPI). This year the contingent budget cap is 1.92 percent. Other rules for contingent budgets are as follows:
1. A contingent budget cannot include money for furniture, equipment or new capital projects. The purchase of buses, currently included in the budget proposal, would need to be removed from the budget and put before voters on a separate proposition.
2. The administrative proportion of a contingent budget cannot be larger than it was the previous year.
3. Under a contingent budget, the district would also need to raise fees or charge for public use of school buildings and grounds.
What are the district’s multi-year strategies for supporting the budget?
Gloversville administrators and Board of Education members are committed to a multi-year planning process. This means that they are continually looking at the sustainability of district revenues.
While the board is applying some of the current fund balance to compensate for the loss of state aid in 2011-12, everyone agrees that the use of fund balance to cover annually increasing costs is not a sustainable strategy.
Discussions about 2012-13 have already begun, including ways to build the fund balance by: reducing costs wherever possible, seeking grants to offset some budgeted costs, finding further health insurance savings, continuing to pursue energy conservation, and seeking more concessions and give-backs from bargaining units.
Why are bus purchases included in the budget proposal this year and not a separate proposition?
With a fleet of 22 buses to maintain, the district’s long-standing policy has been to replace the oldest buses each year. This is done for savings in maintenance and repair costs, as well to ensure the safety of our students. The district plans to purchase 5 buses and 2 transport vans in the amount of $458,500. Due to pre-planning, the district will be able to purchase these vehicles outright instead of borrowing money. Ninety percent of the cost is offset by state aid and the rest will come from the trade-in value of the retired buses. The district will also be able to purchase new left-over models from last year, saving the district thousands of dollars.
What else will the voters decide on May 17?
Voters will be choosing three candidates to serve on
the Gloversville Board of Education. Read the candidate
profiles here, as well as
answers to questions that were
posed by the Central Council PTA.
