Sag Harbor began examining its 2022-23 budget on Monday, starting off by cracking open its largest nut — salaries and benefits for employees — with the school business administrator, Jennifer Buscemi, noting that “all numbers are subject to change based on additional information received after this date.”
While those two areas make up 79 percent of the current year’s $44.87 million budget, rising benefit costs and salaries are expected to make up 81 percent of a projected $45.99 million budget for next year. Spending on health insurance, retirement contributions, workers’ compensation, disability insurance, and other benefits could rise by about 4.79 percent, or $532,386, up to $11.65 million.
Spending on salaries for teachers and other employees is expected to increase by 5.07 percent, or $1.23 million, up to $25.58 million. That includes contractual raises, more spending on school sports and after-school clubs, overtime and substitute teachers, and other costs.
Over all, with inflation at around 4.7 percent nationally, New York State has set the cap on tax-levy increases at 2 percent. Additional factors, most notably the increase in real estate development within school district borders, can have the effect of boosting the tax cap above that limit. Sag Harbor is projecting its maximum tax-levy increase at 2.75 percent but is aiming for 2.5 percent — consistent with the way it has stayed a few percentage points below the cap nearly every year since it was implemented in 2012.
Even so, the projected budget-to-budget increase could be as much as $1.22 million, up to $45.99 million.
“Preparing this budget is definitely more of a challenge,” Ms. Buscemi said.
Sag Harbor’s next two budget workshops will be on Feb. 7 and March 7. The school board must formally adopt the budget proposal on April 11, and the budget vote will be on May 17.