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Context for
Developing the 2011-12 Budget
New York State’s economic problems
continue, and Burnt Hills-Ballston Lake taxpayers
are feeling the impact. The ongoing recession and
uncertainty regarding the State’s 2011 budget will
make developing the upcoming school budget
especially difficult.
Below are some factors that will
impact development of the BH-BL budget.
(To understand the impact of the
following factors, 1% of the BH-BL property tax levy
is roughly $333,000; hence every $333,000 in
additional expense — or lost revenue — that is not
ultimately balanced by new revenue or reductions
elsewhere in the budget results in roughly a 1% tax
levy increase.)
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1. |
Since the district
has cut more than 40
full-time-equivalent staff positions
and also reduced most programs and
services over the past two years,
further reductions will be difficult
to make without serious impacts on
our students. |
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2. |
BH-BL is fortunate
that our residents by and large
support high quality school
programs. On the other hand, after
two years of this unprecedented bad
economy, many district families are
stretched financially. |
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3. |
Unlike many
Suburban Council school districts,
BH-BL has very little commercial
development, and our tax base is 85
- 90% residential. |
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4. |
New York State is
facing a budget deficit of $9
billion or more, and the $900,000 in
federal stimulus dollars that the
state is using to help pay the
current year’s operating aid to
BH-BL ends this year. State aid to
BH-BL will likely decline in 2011,
and the value of STAR tax exemptions
may decline again as well. |
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5. |
We can expect no
increase in non-tax revenues such as
interest on investments. Medicaid
reimbursements are expected to
decline still further in 2011-12 due
to state and federal regulatory
changes. |
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6. |
Recent stock
market improvements have not yet
made up for significant prior year
losses in the value of state pension
funds. Hence, required employer
pension contributions are expected
to remain high for the next several
years. One factor reducing the
district’s pension costs somewhat
will be the number of staff
positions that have been cut over
the past two years. |
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7. |
Two more factors
in developing this budget are
negotiations to create a successor
contract with the BH-BL Teachers
Association and new Race to the Top
regulations currently being created
by the State Education Department. |
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8. |
BH-BL has been
able to lock in competitive rates
for electricity and natural gas by
participating in multi-year,
multi-district consortium contracts. |
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9. |
Governor Cuomo was
elected with the understanding that
he would work to create a 2% “cap”
or limit on school tax increases.
Will the state Senate and Assembly
support this? If so, when would it
take effect? With the potential for
a legal limit on tax increases plus
the possibility of continued
multi-year decreases in state aid,
the district needs to look for new
ways to address a downward trend in
revenue. |
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Budget Objectives
In developing the 2011-12 budget, the Board of
Education will:
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1. |
Work to balance
the community’s desire for both low
taxes and excellent school programs
by critically evaluating current
practices, proposed expenditures,
and revenue sources other than
taxes. |
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2. |
Ensure that BH-BL
graduates have the skills, knowledge
and attitudes outlined in the
district’s 21st Century Framework
for Learning — including high
literacy and numeracy skills — so
that they can compete in a demanding
and technologically sophisticated
global marketplace. |
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3. |
Support the
development of new strategies to
compensate for the loss of state aid
and still deliver a comprehensive
education program at a lower cost. |
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4. |
Engage the
community to share their
perspectives and values on school
programs they wish to support with
their tax dollars. |
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5. |
Lobby state
legislators to approach the tax cap
issue with legislative actions that
will acknowledge and reduce some of
the mandates outside of school
districts’ control that currently
drive up costs in the areas of
instruction, personnel, and
construction. |
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