Piercing Tax Cap Possible
At the Springs School District’s first budget workshop for the 2016-17 academic year on Monday, figures showed that expenses could outpace revenue by more than $860,000.
John J. Finello, the superintendent, presented a preliminary budget of approximately $28.39 million, representing an increase of $1,025,294 or 3.7 percent over this year’s budget. Such a budget would preserve all current programs, resources, technology initiatives, and staffing, account for significant increases in enrollment and health care for employees, and add two sports teams for which there is said to be great demand. “We want to hold on to what we have,” Mr. Finello said.
Facing a near-zero increase in the amount that can be raised by taxes under New York State’s tax cap law, the administration laid out three optional starting points. One was an increase at the exact level of the tax cap, which would mean making cuts of $860,000. The other options were increasing the tax levy by 3.72 percent over the current year or compromising with an amount somewhere in between. Both of the latter options would mean asking the community to approve an over-the-cap budget, which would require 60 percent voter approval. Springs has not attempted to pierce the cap since it was instituted by the state in the 2012-13 school year.
The cap on increases in the tax levy is .12 percent this year, although certain factors may allow Springs to increase the amount by up to .21 percent. This would mean a total increase of only $50,180. The budget that would result would include $247,324 in employee benefits, $333,000 in added tuition to East Hampton High School and out-of-district placements, and $41,500 for a new bus. Complicating things is an expected decrease of about $12,000 in state aid. The district might dip into its reserve funds, however, for $100,000 for capital repairs.
“With the very low caps over the years, it is very, very difficult, and with the increased enrollment, it is very difficult to sustain and preserve programs, especially with a cap increase of $50,000 over the current school year,” Carl Fraser, the district’s interim business administrator, said. “We are really squeezed.”
The administration looked to the school board for direction, but did not receive one. Liz Mendelman, school board president, Tim Frazier, vice president, and Barbara Dayton, a school board member, asked for a list of items to help the board evaluate potential reductions. “I’d like to see us go into the budget detail and have some options to see which way we can go to get down further,” Ms. Mendelman said.
Mr. Finello said the presentation was “the first run out for the budget.” He added, “We expect there will be changes along the way over the next month, month and a half.” Springs has another budget workshop scheduled for March 14 at 7 p.m.