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WPCNR SCHOOL DAYS. By John F. Bailey. March 19, 2007: In the public hearing on the City School District Budget last night, the school district acknowledged that even were the school budget voted down May 16, the contingency budget enacted would be slightly more than the district is proposing ($173.9M). Councilman Glen Hockley responding to anguish over the school district dwindling tax receipts, suggested that the city would consider giving the school district a share of the city sales tax receipts in exchange for input on how the school budget is spent.

Public Hearing on the Budget: About 15 citizens attended. Photos, WPCNR News
The gathering of approximately 20 persons, (including councilmen Glen Hockley and Dennis Power, and council nominee candidates, Robert Stackpole and Don Hughes), asked questions on salary and benefits, but did not raise the question of what cuts, if any the district had made in administration personnel.
Superintendent of Schools Timothy Connors began the meeting saying the Board continues to review the budget for last minute cuts (there have been none since last week), but also pointed that the White Plains budget increase (4.82%) is the lowest in the area.

Chart showing White Plains coming in at lowest budget increase in Southern Westchester. Column on right is the commensurate tax rate increase.
Fred Seiler Assistant Superintendent for Business, put up a chart showing White Plains to be the lowest budget increase among districts in Southern Westchester. When asked for identities of other districts, Seiler said the districts gave the information under condition of anonymity. A citizen pointed out that though White Plains had the lowest budget to budget increase, it had by far the largest tax rate increase (8.34%), and the other districts had tax increase rates at or below their budget rate increases. Asked why that was, Seiler said it was because assessment rolls in those other districts were rising while the White Plains roll was declining ($6.3 Million this year).
Why City Condos and PILOTS aren’t working.
Robert Stackpole raised the issue of the value of city PILOTS and how low condominium projects are assessed compared to individual homes. Stackpole gave the City Center project, The Lofts condominiums, as an example of this, saying that the total property taxes paid by the owners of Lofts condominiums was only $35,000 total for twenty or so units. After the meeting, he cited one example to WPCNR of a person he knew who bought a $750,000 Lofts condominium and whose property tax was only $2,500. (The owner of a $750,000 home, in contrast pays about $10,000 in property taxes.) Bill Pollack, school board member, explained that real property law prohibited condominium project owners from being taxed on the full real estate value of the individual condominium units, in addition to the “revenue” from their building.

Mr. Seiler (shown above), supported Stackpole’s interpretation, and agreed that due to the real property law, the assessment of a condominium building is not figured the same way as the value of a rental building, though the building may be owned by an individual, the individual units are purchased and are taxed differently, and not figured into the assessment value of the building.
Seiler’s point appeared to this reporter to be that the owner of a condominium building pays out far less in property taxes than a rental or an individual homeowner does, and the school district and city do not make up the difference from the individual condominium unit buyers.
PILOTs do not keep pace with Assessment Plunge.
Seiler said the school District lost $6.3 million off the assessment roll this year, and that PILOTS, despite the city’s public statements that PILOTS paid to the city offset the loss in city taxes caused by the drop in assessments, that the PILOT increase to the School District, ($1.6 Million) “never will offset that loss,” ($10.8 Million in tax revenues). ($291.8 Million times the $37 increase in the tax rate).
Seiler said he needed to get from the city a breakdown of how many commercial property owners and homeowners paid at lower and higher rates, respectively. Stackpole volunteered to the CitizeNetReporter walking out to the parking lot, that if the present trends continue, the school district would be looking at a tax rate of $700 per thousand dollars of assessed valuation, instead of the present $480.80 per thousand in this year’s proposed budget.
City Needs to Share, Resident Says. Hockley Offers Sales Tax Aid
The discussion of PILOTS lead to the most acrimonious exchange of the evening. A resident, Nina Kimenker was the most vocal critic, saying that the Board of Education had done “a good job” of controlling costs, but that the problem lay with the city for not sharing sales tax receipts with the district.
Councilman Glen Hockley (defending the city), said the sales tax and city property taxes “all come out of the same pocket.” Kimenker shot back that “when the city can help it does not. You must share taxes.”
Hockley, in a statement that shocked the audience, made the proposal that he felt the city would be willing to share sales tax with the School District if the city could have “a say” in how the district budget was spent. Mr. Connors headed this conversation off at the pass, saying, “let’s stick to the school budget.”
Earlier, Councilman Hockley said the decline in assessments is partly due to the equalization rate, and suggested the school district higher a grant writer to acquire funding to contribute to running operations. Superintendent Connors pointed out that grants in general on the federal and state levels are for specific new programs, and cannot be used to fund operating budgets. Nevertheless, Hockley suggested hiring the grant writer on a contingency fee basis. Connors said the district has acquired grants for many of its new academic programs.
Salary Curiosity
It was asked if salary negotiations were figured into the budget, and if they were, what would happen if the settlement called for higher amount than the district had planned for. Connors said the Board would have to make changes or cuts elsewhere to accommodate the settlement. Asked if he felt a settlement with the teachers would be settled before the budget vote (in May), Connors said he was not optimistic. No one raised the question of what the district was working on to make the settlement (for the next three years). Connors said last week the district was attempting to negotiate on the teachers paying more of their health benefits.
Another resident criticized the district for spending more per student that a much larger district, New Rochelle. Connors explained this was because New Rochelle had larger class sizes, “our tax base is less,” and our major issue is “loss of revenue.”
At Contingency Levels Now.
The question was asked how much would the budget be cut if it was defeated. Seiler noted that it could rise only by the rate of inflation plus new debt service which would be about 5%, slightly more than the proposed budget increase of 4.82%, plus a 2.3% increase in the tax rate, meaning the tax rate increase would stay the same at 8.34% and no savings to the taxpayer would result from defeating the budget.
Asked if the district was mandated by a contingency budget to cut specific activities such as music, sports or extra curricular activities, Seiler said they were not, that what they would cut was at the discretion of the School District.
The CitizeNetReporter asked Mr. Seiler after the hearing had ended how many personnel had been cut. Seiler said none, saying three new persons had been added and three positions dropped. Connors said this was not right and that he would see I got the actual personnel cuts from Assistant Superintendent for Human Resources, Lenora Boehlert Tuesday.
The beginning of the hearing was taken up with Mr. Seiler pointing out that the district had cut utilities costs by 27%, eliminating $1.1 Million by eliminating overbudgeting for fuel costs which had occurred in the past. He said the debt service had increased 30% ( $1.8 Million) due to the first round of payment on the Capitol Project bonds and salaries 2.6% ($2.4 Million, a total of 95.4 Million of the $173.9 Million budget), and benefits had increased 8.8% ($3 Million, a total of $37.1 Million of the total budget).
The Superintendent held out the possibility of more last minute cuts before the Board votes on adopting the budget March 26.
It should be noted that in the 1990s, the city gave $2 Million in sales tax to the school district, but no strings were attached.














