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4 percent or bust?
Consumer Price Index creates a double bind
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Harborfields school board trustees on Thursday put out feelers for what residents want the district to continue funding and how much they're willing to pay for it, as they begin preparing their 2010-11 budget in anticipation of severe state aid cuts.
The community forum at Oldfield Middle School began with a brief video from the New York State School Boards Association's website, http://bethechangeforkids.org, which addresses the imminent shortfall of funding to state schools when the $2 billion federal stimulus expires in 2011.
Superintendent Frank Carasiti discussed various budget scenarios and their corresponding tax rate increases, noting that state aid to Harborfields could decline by $909,000 in 2010-11 and by $1.5 million in 2011-12.
"I know at the end of this process, very few of you will be happy," Carasiti warned.
Merely maintaining the 2009-10 budget without adding new programs and services would yield a tax hike of between 4 and 5 percent, Carasiti explained. With the current taxes at $201.17 per $100 assessed value, a 4 percent increase would add another $8.05 to that rate, bringing it to $209.22 per $100 next year. If that rate were to pass, a resident with property assessed at $4,000 could expect to pay $8,368.67 in school property taxes.
Should the Board of Education's budget proposal go up for public vote twice and fail this spring, however, the district would have to adopt a contingency budget, which this year allows for absolutely no increase, according to state law.
A contingency budget is formulated as 100 percent of the CPI or 4 percent, whichever is less. Since the current CPI is zero, next year's contingency budget must be the same as the current spending plan of $69.78 million. In spite of the CPI, which is an average, the costs of keeping up certain mandates, services and contractual obligations has gone up for school districts. "We will have to take this district apart to the point where it will break hearts, ours included," Carasiti said.
Most residents who spoke up Thursday night agreed that if cuts have to made, they should be done equitably and taken from all areas of the curriculum — whether it's academics, music, arts or athletic programming.
Due to the economic downturn, several residents opined that the community would not support any tax rate increase, while Charles Taber of Huntington said he thinks an 8 percent rate hike would pass.
With the right outreach, the community would support any tax hike, Kathleen Gaye of Greenlawn opined.
To keep the tax rate in check, Jim Romanelli of Huntington suggested dipping into the district's reserves for a year or two while we ride out the financial storm.
Kim Cagnazzi of Huntington was the first of several residents to suggest sponsorship of sports programs. The district is looking into that matter and its legality, board President Donald Mastroianni answered.
Kerry Braden of Huntington, who lives near the middle school, said she was alarmed to see near empty buses pass her home each day and asked the board to reconsider cuts to their transportation budget.
Noting that the buildings are always too hot, Lyn Moodie of Huntington said the district should turn down the heat and conserve energy, to which Mastroianni replied that they are conducting an energy audit to make the whole district more energy efficient.
Declaring that she would pay anything for her children's education, Lisa Kropp of Centerport offered to raise funds for sports, music, and educational programs.
Retired 10 years, Ernest Fazio of Centerport said the money he thought he had isn't there and life is a struggle.
Fazio asked if the board could reduce its very costly pension payments. While they support pension reform for new hires, Trustee Gary Schoer said no changes can be made to anyone who is already in the system.
Reiterating the notion of cutting across the board, Marguerite Kassinger of Greenlawn noted that reduced funding to a program still preserves the program.
She presented the conundrum the board faces in establishing the tax rate.
"The value of our houses is based on programs in the school district," she said. "If we eliminate programs, we're going to reduce the value of those assets and our property, just as surely we're going to reduce the value of our houses if our taxes become too excessive."
Mike Visich of Huntington questioned teachers' raises, which add up to about 6 percent every year. With the teachers' contract expiring in June, several residents asked if they participate in the negotiation process but were informed that they cannot, according to state law.
Before the board makes any cuts, they should take advantage of the community which is more than willing to share their suggestions, Lee Tunick of Centerport urged them.
Maraya Albertson of Greenlawn asked for another community forum where residents can give input directly to department heads.
The superintendent will present his draft budget proposal at a forum Saturday, March 6 at 10 am in Oldfield Middle School.
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