BULLETIN TEMPLATE (Apr 10, 2018)

Today, Sean Leister, Port Jeff School District's Ass't. Sup't. for Business, provided a concise overview of the Proposed 2018-19 School Budget. He broke the review down into 2 parts: the general terms and figures for a budget that will preserve the status quo; and the possible changes in the budget based on a pending LIPA Power Plant Tax Settlement. Sean handed out a thick packet of pages with information and proceeded to explain the Tax Cap Formula made available in January-with key components (final State Aid package) still pending. The estimated tax cap levy for the district is 2.27%. He explained the terms "tax levy" and "tax rate" ( the latter is the proportionate amount that home owners pay of the total tax levy.) He discussed the Rollover Budget- the cost of continuing programs as they are now, pointing out facts and figures provided on packet pages. He referred us to 2018-19 budget assumptions including expected increases in the costs of Medical Insurance (12% increase), utilities, transportation, Retirement System investments, BOCES Services, etc. Sean also spoke about the district's capital reserve which will help fund needed roof repairs, to be accomplished over a period of years and involving around $1 million on the first phase. (He pointed out that the district has $18 million in reserve to help offset problems, but that this money must be used cautiously.) Under the proposed budget, the staffing (243 employees currently) will not experience eliminations. There would be the addition of 2 paraprofessionals (aides) and 2 security guards (retired law enforcement professionals). Sean pointed out the sources of additional revenue taken in by the district that help keep our taxes relatively low: tuition-paying special ed students coming from other districts; the Spring Street building rented out to BOCES; and our 2 LIPA power plants. He pointed out on pages of charts and lists the details of all expenditures and especially where the expected increases will be required. He pointed out that 75% of the proposed budget is for salaries. The total budget is expected to be be $45 million. There will be 2 parts of the proposed budget put up for a vote by district residents- the general budget and the capital reserve use. Sean next explained the 2018-19 Contingency Budget proposal, should the 1st budget vote fail. The biggest problem for the budget planners continues to be the possibility of a Power Plant Tax Settlement. So far, no deal has been concluded. If no deal is reached by 6/30/18, an expected reduction in LIPA tax payments will not affect this proposed budget. Regarding a verbal discussion with the Town Tax Assessor, conditional state aid for either Town/Village/School/LIPA are being negotiated, and a full settlement is still being negotiated. The Village is in the process of planning its own negotiations with LIPA. There are many unverified details about the expected changes in the power plant assessment, including the amount and duration of tax reductions and when tax reductions will actually begin. In the absence of final settlement details, the district will vote a tax levy based on planned student offerings. If a settlement is reached before 6/30, the district is prepared to make $130,000 in reductions to help mitigate a possible year-one drop in assessed value of the main power plant. (This amount is based on the probable reduction in costs for music instruments, equipment, textbooks, sports teams, extra-curricular clubs, elimination of some field trips, Board organizational dues, and printed publications such as calendars and newsletters.)