Daniel T. Connor
Superintendent

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

District news

Preliminary budget picture for 2012-13

March 23, 2012 - A preliminary view of next year’s budget shows that at this point in time, in order to balance the 2012-13 budget, the Goshen Central School District will need to close a $1.1 million budget gap.

This year’s budget challenges include projected increases in contractual salaries and retirement costs as well as health insurance premiums, the loss of Education Jobs Fund monies, and essentially flat state aid – coupled with the constraints of the new tax levy cap law.

Challenges of rising costs, flat state aid
Although the state has not adopted its budget for 2012-13, based on the Governor’s proposal, the district is slated to receive an increase of about $214,000 in state aid for next year. However, federal funding under the American Recovery and Reinvestment Act of 2009, known as the Education Jobs Fund (EJF), will end on June 30, 2012. The district’s loss in EJF monies – or $634,341 – was not included in the projected state aid figure, and losing these funds turns what appears to be an approximate $214,000 gain in state aid into an approximate $420,000 loss in aid over the current year.

Contractual salary obligations, coupled with the loss of EJF monies, caused a larger than normal jump in the salary amounts listed in the general fund. Goshen has five self-contained funds within a school district: general, capital, trust and agency, cafeteria and special aid. (The public will vote on the district’s general fund during the budget vote on May 15). In 2011-12, 7.2 positions were funded by EJF as part of the special aid fund. Because the EJF funds are being discontinued, these positions will be transferred to the general fund.

In addition, rising costs for retirement contributions and health insurance are driving up the budget; however, the district has little control over these costs – the first being dictated by the state and the second by the costs of health care as an industry.

The impact of the tax “cap”
The district’s tax levy limit is calculated using an eight-step formula provided by the state. However, there are certain exemptions to the tax levy limit, including some pension costs and local capital expenditures. These items are added to the tax levy limit in order to arrive at the maximum allowable levy.

As a result, a district may propose a budget with a tax levy that is higher than its tax levy limit and still be within its “cap.” Goshen’s maximum allowable levy, after adding $1,007,236 in applicable exemptions, is $41,581,628 or a 2.2 percent increase over the current year’s tax levy. This is the highest allowable tax levy that Goshen can propose in its budget while only needing the approval of a simple majority of voters (more than 50 percent).

It is important to note that although the tax levy cap law has constantly been touted as a “2% tax cap,” it does NOT in fact restrict any proposed tax levy increase to two percent. It also does not limit your tax rate or your tax bill increase to two percent for next year. Learn more about the tax levy cap

Working to fill the “gap”
Under the tax levy cap legislation, school districts are permitted to propose a tax levy that is higher than its maximum allowable levy; however, a super majority of at least 60 percent of voters must approve the budget in order for it to pass.

To date, the district has no plans to propose a budget above its tax levy limit and therefore must work to fill its $1.1 million budget gap to balance the budget.

As of the Board of Education meeting on March 19, district officials are considering the following in order to fill the gap:

• A reduction of approximately 5.6 FTE teaching positions and 1.0 FTE aide position

• A limited reduction in supplies, equipment and contractual agreements to outside vendors within the Buildings & Grounds Department

• A limited reduction in BOCES programs, including the GO Program, Restart and Intensive Day Treatment (IDT)

• A limited reduction in coaching salaries, supplies and contractual agreements within the Athletics Department

• The transfer of two special education teacher positions from the general fund to the special aid fund

• A limited reduction for tuition and one-on-one nursing within the Special Education Department

• Eliminating the 5 p.m. bus run and leaving a retiring monitor’s position unfilled

Another possible reduction lays in the hands of the Governor, who had originally proposed that school districts pick up part of the county’s preschool special education costs. It is unknown as to whether this will come to fruition until the state’s budget is adopted for next year, but could become a reduction.