Schools
Board of Ed Presents Rollover Budget
First stage of budget process puts property tax levy at 3.82 percent.
The 2012-13 rollover budget and implications of the property tax levy were presented at the Nov. 17 Sayville School District Board of Education meeting.
John Belmonte, assistant superintendent of business, stressed that it is the very early stages of the budget process and there are many unknowns, especially as it relates to the 2 percent property tax cap. Based on key expenditure assumptions the rollover budget is $85.3 million, up $3.5 million over the 2011-2012 budget at a 4.3 percent spending increase. Based on key revenue expenditure assumptions, the property tax levy would be 3.82 percent.
Some of the key expenditure assumptions included: a 2.9 percent increase in salaries (this is a zero percent rate increase but includes step increases in accordance with contracts); a 4.1 percent rise in fringe benefits; debt service up 9.22 percent; contractual expenses increasing 3.5 percent and transportation up 4.25 percent. To fund phase 2 of the Garfield Avenue project, there will be a $500,000 transfer from the funds balance.
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On the revenue side, the district is not anticipating any additional state aid above the $385,000 given this year. The district plans on using $4.1 million from its reserves (funds balance). Superintendent Walter Schartner noted that using the $4 million from fund balance is not something that is sustainable year over year.
When it comes to the property tax levy, Belmonte explained that the tax levy is set by local governments, not accessed value. The law allows local school districts to override the annual tax levy, however, an override must be approved by at least 60 percent of budget voters. If the budget fails twice, the contingency budget may not include a levy higher than the prior year (zero percent).
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The current property tax levy is $54.8 million. Based on calculations, the adjusted tax levy cap would be $56.1 million (2.37 percent). The tax levy for 2012-13 budget would be $56.9 million, an excess amount of $797,271. That excess amount would need to be reduced from the budget or additional revenues would need to be received in order to meet the requirements of the tax cap legislation, Belmonte said. Alternatively, if no adjustments were made, the budget would need 60 percent to pass.
