By Tessa Raebeck
With many school districts scrambling for funding to maintain programs and staff, Sag Harbor School District administrators are striving to find ways to save money down the line in their proposed 2015-16 budget.
The second draft of the budget, which will not pierce Governor Andrew Cuomo’s 2-percent tax cap, was presented at the final of many budget workshops on Tuesday, April 14. The total proposed 2015-16 budget is $37.5 million, an increase of 1.85 percent over the current school year’s budget.
The second draft of the budget is higher than the first by about $118,000. It includes newly received information on state aid figures and the cost of BOCES, which provides school districts with shared educational services such as test grading and vocational-technical programs.
Although it is widely known as the “2-percent tax cap,” the property tax levy limit is actually calculated individually for each of the state’s school districts based on a number of factors. This year’s tax levy limit for Sag Harbor is 2.5335 percent and the second budget draft’s projected tax levy increase is 2.4864 percent, or $826,082.
Sag Harbor will receive nearly $67,000 more in state aid than originally projected, representing an increase of 7.94 percent, or almost $130,000, over the current year. Due to this increase in state aid, other additional revenue, and the decision to postpone a project included in the first budget draft (the resurfacing of the tennis court and play area behind the Sag Harbor Elementary School), the tax levy will be $55,000 lower than the first draft, despite the budget itself being higher.
“We’re maintaining and growing our programs here and our opportunities for students while keeping under the tax cap—and there are almost no districts on Long Island that can claim that—so you’re doing a great job, thank you,” Chris Tice, vice president of the board of education, told the administrative team.
The projected tax levy is $34,050,000 for 2015-16, with the monthly impact on the local taxpayer being anywhere from $4.97 to $10.15, according to School Business Administrator Jennifer Buscemi. Those figures are based on the current assessed values for the towns of East Hampton and Southampton, which both send students to Sag Harbor schools.
“If assessed values go up in the towns of East Hampton and Southampton, like they did this year, your tax rate is actually going to go down, it’s not going to go up,” Ms. Buscemi told the three people in the crowd Tuesday, adding she hopes no taxpayer will see a $10 monthly increase in the end.
Due to aging infrastructure and potential cost savings, Ms. Buscemi also hopes to include a proposition in the annual budget vote in May that would permit the district to establish a reserve fund for future repairs.
The proposition would allow the school district to take the surplus funds from the current year’s budget, 2014-15, and put the money in a repair reserve account to be used for future infrastructure needs. The fund would have no impact on tax rates. In order for the district to use money from the fund, it would have to hold a public hearing. If an emergency repair needed to be done before a hearing could be held, the district would have to replace the money used in the next year, with interest.
One project the repair reserve would potentially be used for is repairing the boilers at the Sag Harbor Elementary School, which posed several problems this winter. The cost of a full replacement of the boilers is estimated to be over $500,000, but a repair would cost about $100,000 and allow the boilers to hold out for another five years, Ms. Buscemi said.
“If we do decide to go the repair route, we would be able to use some of that repair reserve to make those repairs and that would have no impact on taxes,” she added.
Ms. Buscemi said the district has made over $1 million worth of “efficiency” actions since July 1, 2012, which can be included in an efficiency plan that may garner additional savings for taxpayers in the form of rebate checks. A more detailed plan will be presented before the board adopts the budget and property tax report card on Wednesday, April 22.
A budget hearing will be held on Tuesday, May 5, and the annual budget vote and school board elections are on Tuesday, May 19. All budget presentations and drafts are available under “Budget Info” on the district’s website.