District Contact Information

Daniel T. Connor
Superintendent

227 Main Street
Goshen, NY 10924
(845) 615-6720

Central School District

District news

Changes for contingency budgets under tax levy cap law

What happens if the budget is not approved by voters?

April 26, 2012 - This year, there are changes concerning contingency budgets under the state’s property tax levy cap legislation.

Past contingency budget guidelines
In previous years, school boards could submit a budget to voters a maximum of two times. If the proposed budget was defeated, the Board of Education had three options: present the same budget for a vote; submit a revised budget for a vote; or adopt a contingency budget. If the budget was defeated twice, the board had to adopt a contingency budget, by law.

The contingency budget placed a cap on new spending – the district couldn’t increase spending by more than 120 percent of the average change in Consumer Price Index (CPI) or four percent, whichever was lower. Last year, for instance, the contingency budget cap was 1.92 percent.

Changes in contingency for the 2012-13 budget
There are changes for this year’s budget, under the tax levy cap law. If a district’s budget is not approved by voters, it still has the same options as in previous years: to adopt a contingency budget or go for another vote with the same or a revised budget. If the budget is not approved a second time, the district MUST adopt a contingency budget.

However, under the new law, a district that adopts a contingency budget cannot increase its tax levy from that of the prior year by any amount – a ZERO percent increase.

For Goshen, a contingent budget would result in approximately $898,287 in additional cuts from the proposed budget, which by law would include approximately $171,050 in equipment.

In addition, the district would be subject to various limits and controls on how the money within the contingent budget is spent, and the district would have to charge fees for public use of school buildings and
grounds.

“Obtaining our community’s support for our budget proposal is more critical than ever, given the law’s new contingent budget restrictions,” said Superintendent Daniel Connor. “If a district fails to gain voter approval and must adopt a contingent budget, then the levy increase is truly capped, since under a contingent budget, there can be NO increase in the tax levy.”