Daniel T. Connor
Superintendent

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

Spending plan maintains programs, stays within maximum allowable levy

Residents to vote on proposed budget on Tuesday, May 15

April 26, 2012 - On Tuesday, May 15, Goshen Central School District residents will vote on a $61,613,356 proposed budget for 2012-13. This budget, which represents a spending increase of 2.39 percent, will result in a tax levy increase of 2.21 percent – an increase that meets the district’s legal limit under the new tax levy cap legislation.

Voters will also vote to authorize the purchase of four new school buses and elect four members to the Board of Education. Learn more about propositions

Challenges include loss in federal aid, rising costs and constraints of new tax levy cap law
In order to balance the budget for next school year, Goshen had to close a budget gap of $712,134 – the result of rising costs for contractual salaries, retirement and health insurance premiums, the loss of federal Education Jobs Fund monies, and the constraints of the new tax levy cap law.

The New York state budget gives Goshen an estimated increase of $603,669 in state aid for next school year – a total of approximately $11.3 million. However, even with the increase, state aid levels are only slightly higher than what the district received in 2005-06.

In addition, the district will lose federal funding under the American Recovery and Reinvestment Act of 2009, known as the Education Jobs Fund (EJF). The funding will end on June 30, and the district’s loss of EJF – $634,341 – turns what appears to be an approximate $603,669 gain in aid into an approximate $30,672 loss in aid over the current year.

Rising costs for retirement contributions, health insurance and benefits are driving up the budget, with an increase of approximately $944,397. 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.

In the wake of these challenges, the district built the proposed budget so vital student programs and employee positions were preserved as much as possible – while meeting its maximum allowable levy of 2.21 percent. When placed in front of voters on May 15, a simple majority of voters, or 50 percent plus one, will be needed in order for the budget to pass.

“The tax levy cap legislation raised the stakes this year by setting new thresholds for voter approval, but our approach to budget development remained the same,” said Superintendent Daniel Connor. “As in past years, it was our intention to craft a budget that meets taxpayers’ expectations while continuing to provide essential programs and services critical to our students’ success.”

Budget Q&A: Find answers to your questions about the proposed budget

Under the tax “cap,” aren’t taxes limited to 2 percent?
Although New York’s tax levy cap law has been referred to as a “2 percent cap” on taxes, the law does NOT restrict any proposed tax levy increase to 2 percent. It also does not limit your tax rate or your tax bill increase to 2 percent for next year.
Instead, the legislation requires school districts to calculate their individual tax levy limit by using an eight-step formula. The figure “2 percent” (or the rate of inflation, if less) is just one of eight variables that factor into a district’s calculation of its individual tax levy limit.

Certain exemptions, including some pension costs and local capital expenditures, are then added to the tax levy limit in order to arrive at the maximum allowable levy.

This determines the level of voter support necessary for budget approval. If a district meets or is below its legal limit, then it needs the approval of a simple majority of voters (more than 50 percent). If it exceeds its legal limit, a super majority of voters (60 percent) is needed. Learn more about the tax levy cap

What is Goshen’s maximum allowable levy?
Goshen’s maximum allowable levy, after adding approximately $1,007,236 in applicable exclusions to its tax levy limit, is $41,581,628 – an increase of 2.21 percent. The proposed budget has a tax levy increase of 2.21 percent; therefore, a simple majority will be needed to pass the budget. However, the district’s decision not to exceed its tax levy limit meant that a gap of $712,134 had to be closed to balance the budget.

Are there any changes in programs or staff for next year?
The 2012-13 budget proposal is essentially a rollover budget, with no additional programs or personnel for next year. However, there are no program and staff cuts either – only reductions to certain areas and vacated positions that won’t be filled. In order to close the gap, the proposed budget includes the following reductions:

• 1 FTE teacher (unfilled resignation)

• 1 FTE aide (unfilled leave of absence)

• 1 FTE bus monitor (unfilled retirement)

• Supplies, equipment and contractual agreements to outside vendors within the Buildings & Grounds Department

• Supplies and contractual agreements within the Athletics Department
  BOCES programs, including four spots in the GO Program, three spots in the Restart Program and two spots in the Intensive Day Treatment (IDT) Program
  Special Education Department services, including one student tuition and one 1:1 nursing (these spots will be vacated by the current students)

Also, two special education teacher positions would be transferred from the general fund to the special aid fund.

Is the district using reserve funds to help balance the budget?
The district uses its undesignated fund balance every year to help offset the tax levy. Since the 2010-11 school year, in the wake of severe aid cuts, the Board of Education has applied $980,434 from the undesignated fund balance to limit the tax levy increase each year. It will apply the same amount of $980,434 for the 2012-13 school year.

If the budget passes, how will my property taxes be affected?
The 2012-13 proposed budget has a tax levy increase of 2.21 percent. However, this does not mean that everyone’s property taxes will increase by 2.21 percent.
The impact on property taxes will be different for each resident, depending on a number of factors. Property assessments, equalization rates and the STAR program all affect your tax bill – and none of these are determined by the school district. For more information, contact your local tax assessor.

What happens if the budget is defeated?
If the budget is voted down, the Board may put the same or a revised budget up for a revote or adopt a contingent budget. If it is defeated twice, it must, by law, go to contingency. It is important to note that under the new tax levy cap law, if a district must adopt a contingent budget, it can’t increase its tax levy by any amount – i.e., a ZERO percent increase. This would require an additional $898,287 in reductions for next year. Learn more about contingent budgets

Learn more about
the  proposed budget

View the Budget Information page

Learn more about the
Tax Levy Cap legislation

View the Tax Levy Cap information page

Get an application
for absentee ballot

Can't vote in person?
Apply for an absentee ballots

Don’t forget to vote!

When is the vote?

Tuesday, May 15
6 a.m. to 9 p.m.

Where do I vote?

Board of Education Room
Main Street Building
227 Main Street, Goshen

What will I vote on?

Residents will vote on the following:

Proposition I: The proposed operating budget for 2012-13

Proposition II: The purchase of four new school buses

Elect members to the Board of Education

Who may vote?

To vote, you must be:

A resident of the school district for at least 30 days prior to the vote;

18 years of age or older;

A citizen of the United States;

Registered with either the school district or the county Board of Elections.