Draft Budget Gets Final Touches
Release of a draft budget is just days away in the Huntington School District as officials tie up the remaining loose ends before presenting the document to trustees and making it available to the public.
The district is facing the projected loss of nearly $3.2 million in state and federal aid while simultaneously struggling with $4.7 million in budget increases from a handful of items. "Virtually every district in the state is working to address similar fiscal pressures," Superintendent John J. Finello said.
Trustees will discuss the draft budget at their next meeting on Monday, March 28 at 7:30 p.m. in the Jack Abrams School auditorium. Copies of the budget will be made available to the public and posted on the district website at www.hufsd.edu.
In two public presentations this month, Mr. Finello said significant budget increases in the 2011/12 school year include:
- Employee health insurance: $1,800,000
- Salary step/longevity adjustments for employees: $1,245,000
- Teachers Retirement System: $810,000
- Employees Retirement System: $650,000
- BOCES: $207,000
Mr. Finello said the TRS rate is increasing by 29 percent. It is set by the state and applies to the salaries earned by professional certificated employees such as teachers and administrators. The ERS rate is soaring by 40 percent. It, too, is set by the state and applies to so-called non-professional employees such as teacher aides, custodians, food service and clerical workers, etc.
While costs are increasing, Governor Andrew Cuomo is proposing to cut Huntington's state aid by $1,751,514. The district will also be losing more than $1.4 million in federal funds tied to American Recovery and Reinvestment Act of 2009, the formal name given to President Barack Obama's stimulus program.
The federal monies lost include funds from Title I ($127,418), Title VIB ($569,995), Pre-school ($38,010) and Education Jobs fund ($682,071), which covered the salaries of many employees.
The district also projects its total assessed property value to drop by $300,000, which translates to a loss of more than $600,000 in property taxes. Assessed value has been trending lower for several years as more property owners win tax grievances, according to Assistant Superintendent David H. Grackin.
Huntington School Board members initially told district executives to develop a budget that limited the tax rate increase to two percent in anticipation of enactment of a state law capping property tax hikes to that amount. However, the cap has not yet been approved and when it is officials expect it to apply to the 2012/13 school year.
After discussing the massive cuts required to the educational program in 2011/12 to meet the two percent cap, trustees changed course and asked administrators to develop a budget that holds the tax rate increase to 3.5 percent.
District executives have calculated that a 3.5 percent tax increase budget will require a reduction of 58.5 non-instructional positions and 47.4 instructional positions. There will be spending cuts across the board, reaching into every school building and nearly every program, including athletics, music, art, extra-curricular clubs, etc.
"There is no way to avert pain and address the huge loss of funds and sharply higher costs in a handful of areas," Mr. Finello said. The district has been cutting costs for several years and officials say that the reductions are now starting to really hurt.
The district is hoping to get some relief from the large cut to its state aid. State senators appear poised to increase overall aid to public school districts by $280 million above the amount proposed by Governor Cuomo. The Assembly has indicated it wants to spend $200 million more.
"Hopefully, some of our lost aid will be restored in final state budget negotiations," Mr. Finello said. "It will help but we are still going to be taking a hit that will be felt by everyone."