By Tessa Raebeck
In the first review of the entire proposed budget for the 2015-16 school year, Sag Harbor School District officials unveiled over $37.4 million in spending, the bulk of which will go to employee benefits and salaries.
While some numbers have yet to be disclosed, School Business Administrator Jennifer Buscemi made projections for several budget lines, including state aid and taxable assessed values for properties in the Towns of Southampton and East Hampton, based on last year’s figures.
Ms. Buscemi projected $1.7 million in state aid, although “this number is subject to change” as Governor Andrew Cuomo has still not released the final state aid numbers to districts, she said. That number represents an increase of 3.85 percent, or $63,027, from the 2014-15 budget.
The budget’s largest proposed increase is in instruction, in part due to a new in-house special education program “that’s going to allow a lot of our students coming in to stay in the district and receive services in the district,” Ms. Buscemi said. But those increases are expected to be offset savings in things like transportation and tuition fees. Total Instruction, which accounts for 57 percent of all expenses, is projected to increase by 3.14 percent, or $641,128 from this year’s budget, for a projected total of $21.06 million.
While instruction costs, which includes appropriations for all regular instruction at both the Sag Harbor Elementary School and Pierson Middle/High School, as well as expenditures for special education programs, extracurricular activities and athletics, is increasing, employee benefits are expected to decrease.
“We did receive an increase to our health insurance lines,” Ms. Buscemi said, “but [with the] decrease in our pension costs, we were able to show a decline for next year…that’s probably the first time in many, many years where you see a decline in employee benefits.”
Employee benefits, which represent almost a quarter of the entire budget, are expected to decline by 1.56 percent.
Salaries and benefits, largely contractual costs, together make up nearly 80 percent of the total budget.
Tuition revenues are expected to decrease by $147,000, because children who have been coming to the district from the Springs School District will now be going to East Hampton after a new agreement was made between those districts. Sag Harbor collected $550,000 in out-of-district tuition and transportation costs in 2014-15, and expects that revenue to decrease to $430,000 next year.
Ms. Buscemi again proposed that the district purchase a new bus. It would ease transportation scheduling and ultimately show cost savings, she said. Contracting out one bus run costs about $50,000 for the year, Ms. Buscemi said, “So it makes sense for us to go out and purchase a new bus” because the cost of $102,000 could be made up in just two years.
“We’re just under the cap right now at 2.65” percent, Ms. Buscemi said of the state-mandated tax cap on how much the property tax levy can increase year to year, “but in order to close our budget gap, we did need to use some of our reserve funds.”
As projected, the tax levy limit for Sag Harbor is above $34.1 million, or 2.68 percent. The percentage is not the same as the increase to an individual property owner’s tax rate. The tax levy is determined by the budget minus revenues and other funding sources, such as state aid. The tax rate, on the other hand, “is based not only on the levy, but also on the assessed value of your home,” Ms. Buscemi explained.
For the first time since the 2010-11 school year, the taxable assessed values for both the Town of Southampton and the Town of East Hampton increased from the prior year. Although the school district’s voters approved a budget last year that allowed for a tax levy increase of 1.48 percent, the tax rate per $1,000 of assessed value actually decreased by 0.56 to 0.63 percent, depending on home value and town, because of the growth in taxable assessed value.
“Just because the tax levy is increasing, that doesn’t necessarily mean that your tax rate is going to increase,” added Ms. Buscemi. “If the current year’s assessed value goes up these increases are going to decline and vice versa.”
The 2015-16 projected tax levy is about $34.1 million, which represents a tax levy increase of 2.65 percent and a projected tax rate increase of 2.5 percent.
That projected tax rate increase of 2.5 percent would translate to an increase of $130.26 for a home in Southampton valued at $1 million and $130.40 for a home of the same value in East Hampton, based on the 2014-15 assessed values.
A second review of the entire budget will be held on Tuesday, April 14, at 6:45 p.m. in the library of Pierson Middle/High School, located at 201 Jermain Street in Sag Harbor. The school board plans to adopt the 2015-16 budget on April 22 and hold a public hearing on May 5. The annual budget vote and school board elections are on May 19.