At Tuesday night’s board of education meeting, Superintendent Mark McNeill presented a power point slide to the board of where the district stands. All numbers are estimates because it’s so early in the school year. The power point is also attached to this Patch article.
This year they projected they’ll need to close a $3.5 million budget gap to get under the 2 percent tax levy cap.
To sum up, with the projected course of the Nanuet schools under the tax levy cap:
- Programs and class sizes will be maintained
- There may be a grade reconfiguration of K-5
- Possible reduction in transportation costs by changing building schedules
- Additional cuts
- Reserves will be used to reduce the levy
- Actions will be required
- Decrease number of teachers
- Increase class sizes
- Eliminate programs
- Reserves will be depleted to reduce the levy
- Significant further reduction in staff and elimination of programs
- No reserves
Nanuet Patch will be going into detail on each of these topics in a series of articles in the following days. In a previous article, McNeill reviewed the last two budget years.
“This is going to be year two of the tax levy limit. We need to look at how we can preserve instruction programs and class sizes,” said McNeill.
School administrators have been brainstorming different ideas and strategies on how to tackle the $3.5 million budget gap. The following have been proposed:
- Reconfiguration of K-5
- Reduce Transportation
- Additional cuts
- Apply reserves to reduce the levy
By the NumbersActual 2012-13 Projected 2013-14 Levy with Cap $53,752,594 $54,827,646 Revenue $6,926,384 Budget w/ Cap $61,754,030
Actual 2012-13 Projected 2013-14 2012-13 Budget $62,516,903
Fixed Costs Increase$2,788,670
2012-13 Budget +
Budget Gap Due to
Tax Levy Limit$3,551,543
“$53,752,594—That’s the levy that we raised from the year prior to that by .64 percent. You can see that projected for next year, the levy ($54,827,646) is going to go up to … 2 percent higher (than $53,752,594).”
The 2013-14 levy number may change after the levy limit formula is run. Revenue includes state aid and other sources, like tuition from out-of-district students who attend in-district programs
“We’re estimating that … $61,754,030 ... is how much money we’re going to collect. This levy limit is capping our budget.”
“There are fixed costs that we have no control over.” McNeill roughly broke down the fixed costs as well:
- “The TRS, teachers retirement system, I just found out tonight … that the cost from 12-13 to 13-14 is going to go up 30 percent.”
- “The employee retirement system is going up 21.9 percent.”
- Health insurance increases
- Special education tuition increases.
“For years, all the other lines in the budget were pretty much held constant,” said McNeill, giving the example that the Nanuet Schools have not increased supplies for six or seven years.
Unfortunately, the Shops of Nanuet (previously the Nanuet Mall) will not contribute to the growth factor, which is one of the factors of the levy limit
Check back with Nanuet Patch tomorrow for more on the meeting’s discussions on reserves, reconfiguration and possible future changes in staff, programs and class sizes.