District's Projected State Aid
Loss Reduced
Final state budget negotiations have reduced the Huntington School District's state aid loss in the next fiscal year to $1.2 million. While the figure is still a whopping cut by any measure, it's a $544,476 improvement over what Governor Andrew Cuomo had originally proposed.
During their deliberations, state legislators added more than $200 million to the state aid pie across the state. Huntington will see its aid reduced from $12,125,052 to a projected $10,918,014, a loss of $1,207,038 according to an analysis prepared by David H. Grackin, the district's assistant superintendent for finance and management services.
The new aid brings next year's estimated tax rate increase down to 2.91 percent. Trustees are considering a 2011/12 spending plan that would reduce year-to-year expenditures by $54,238, despite large increases in costs for employee health insurance and the two state pension systems the district must contribute to.
District executives said they had to trim about $7.8 million to bring the budget down to a level that would meet the tax increase target set by Huntington School Board members. More than 100 positions were eliminated in the draft budget, including 47 teaching posts.
The new state budget contains several other small adjustments. "There were some minor changes in hardware and technology aid, software, library materials and textbook aid and excess cost aid," Mr. Grackin said.
The district will see its aid for universal pre-kindergarten reduced by $85,595 to $335,605. "This occurred because our current year enrollment numbers have declined to 137 from a projected allocation of 156 students," Mr. Grackin said. These state funds are recorded in the special aid fund of the budget, not the general fund.
Trustees are considering a draft budget of $108,732,301. In addition to state aid, it would be funded by $1,866,100 in miscellaneous revenues, $1,915,000 in fund balance reserves and $94,033,187 in property taxes. The tax rate would go from $200.83 per hundred dollars of assessed valuation to an estimated $206.67.
The district is losing several million dollars in state and federal funds as a result of the state fiscal crisis and the end of federal stimulus aid. Complicating matters is a projected drop of $300,000 in assessed valuation, which would result in a more than $600,000 drop in property taxes for those property owners. A shrinking tax base causes upward pressure on tax rates. Assessed valuation has been declining for several years.
"The additional state aid will certainly be a help in what is a very difficult year," Superintendent John J. Finello said.