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WPCNR SCHOOL DAYS. By John F. Bailey. March 12, 2008 UPDATED 11:35 A.M. EDT: As predicted by WPCNR for the last two years, the average school and city tax bill for the median priced home will top $10,000 in 2008-09. The School District unveiled a slightly lower school budget to the Annual Budget Committee Wednesday evening, having lowered it $600,000 to $184.2 Million (from the previous $184.9 Million introduced Monday evening).
The budget is now up 5.84% year to year, double the inflation rate, and the tax increase amounts to 7.26%. The new tax rate as predicted by WPCNR, last week ($511/$1,000) is $509 per $1,000 of assessed valuation.
This puts the school budget for 2009-2010 on target to exceed $200 Million, given anticipated 3% or more inflation, and $208 Million by 2010-2011.
For those with calculators not handy, this means if you own a $700,000 home in White Plains, with assessed value at 14,775 (that includes the STAR Rebate), you would pay $7,521 in taxes in 2008-2009. This year that home paid $7,012 in school taxes, meaning the median priced home in the city on market for $700,000 would pay an additional $509 in taxes.
When you add the city tax increase of perhaps $200 (assuming a 7% city tax increase), the owner of a $700,000 home will pay about $10,321 in taxes to the city and the school district – before the county takes their cut. This is the first time ever the average tax bill exacted by city and schools on the median priced home has topped the $10,000 level.
The Final Cut to date:
Jacqueline Mackin of the School District Business Office explained to WPCNR that between Monday’s public hearing on the original budget, an additional $572,739 in cuts were found by cutting Supplies expenses $104,270 ( 5% across the board); cutting textbook costs $68,469( 12%), and chopping $250,000 by eliminating Transfers to Capital, and an additional $150,500 previously planned for Consulting Services, adding up to $572,739. (approximate).
This number replaces the cuts expected in state aid ($539,464).
The year to year budget increase in expenses is now 5.84%, giving a budget of $184,237,624. Previously the budget was $184,828,900, an overall cut of $591,271.
However a factor that may work in favor of the budget-sensitive school district is the resignation this week of Governor Eliot Spitzer due to his indiscretions. Conceivably cuts in state aid might be restored, though how the state will fund that considering its own plummeting revenue remains to be seen. The Governor (who will be running the state for four and a half more days, miscalculated actual revenues in submitting his first budget). Albany observers are talking seriously about restoring education cuts.
The School District has not cut employees significantly in this budget.
It has four less certified teachers and administrators as of February, 2008 (702 this year compared to 706 in 2006-2007)).
It employs 5 less clerical staff this year (113 now compared to 118 in 2006-2007).
It has 5 less teaching assistants district-wide (238 in 2007-2008 compared to 243 last year)
It has not cut Facilities & Operations personnel at all, retaining a compliment of 90. The total number of full and part-time employees in the district is 1,253 (according to Superintendent Timothy Connors last week),
Despite the White Plains faculty retiring each year, one third of them (220 of 657) are at the highest step level of the White Plains teachers graduated pay scale. Of the 1,253 employees, 895 are directly involved in teaching, and 358 are administrative, clerical and maintenance oriented.
The District maintains that if they cut staff class sizes will go up, and has steadfastly maintained this is what the district parents want.
The Swing Factors
$99,915,261 of the $184.2 Million budget is devoted to salaries, which are going up 4.14%, adding $4 Million to the budget. The Fringe Benefits are going up an additional $1.8 Million or 4.92%, accounting for $6 Million of the budget increase, with additional debt service (for certioraris and the capital project) accounting for an additional $3 Million. That debt service will continue to go up as the balance of the capital project is funded by future bonds and future certioraris take their toll and must be accounted for in the budget.
The school district managed to cut $6 Million out of the original budget of $190.5 Million by postponing certiorari payments of an expected $3 Million by essentially ignoring them, expecting to bond at a future date. As WPCNR noted last week,
The balance of the approximately $3 Million in savings (in addition to offloading certiorari payments into bonds) consisted of retirements and administrative and personnel departures resulting in $1,000,000 in savings in Salaries; $866,000 saved on Fringe Benefits because of only a 12% increase in health costs, less than expected; $230,500 in Tuition costs; $134,000 in Equipment; $50,000 in repairs; $163,000 reduction in Utilities; $300,000 in Debt Service and $121,474 in miscellaneous cuts.
Next Year’s budget: $200 Million.
The 2009-2010 School Budget will peak if the school district continues the pattern of 9% expense increases adding 3% inflation , will hit $200 Million and hit $208 Million by 2010-11.
