THE WORLD READS WHITE PLAINS CITIZENETREPORTER — 8,324,077 VISITS IN ONE YEAR

 

WPCNR SCHOOL DAYS. By John F. Bailey. January 15, 2009: In an unprecedented promise, Fred Seiler, Assistant Superintendent for Business, told an audience of 100 persons at tonight’s Community Forum on the budget that the district was not going to do a roll over budget plus increases for 2009-2010. He promised the district would be looking to keep the budget at this year’s number: $184.4 Million. This would necessitate a  $9.2 Million cut in spending, based on Seiler’s estimate of a 5% increase to continue at the present spending level.

Outgoing Superintendent of Schools, Timothy Connors, addressing over 100 residents at the Community Forum on the school budget Thursday night. Mr. Connors successor has been chosen, but the Board of Education did not reveal the identity of the new Superintendent or that they had accepted last night.

WPCNR has also learned from a member of the Board of Education that a new Superintendent of Schools to shepherd the district after June 30 has been chosen by consensus by the Board and that person will be announced to the media Friday according to Michele Schoenfeld, Clerk to the Board of Education.

The candidate has accepted and the money has been preliminarily agreed upon. No one WPCNR talked with would reveal the identity of the new superintendent choice. Persons familiar with the choice said all 4 of 5 of the finalists had excellent financial backgrounds and were outstanding candidates.

Superintendent of Schools Timothy Connors said he had not had a role in reviewing the candidates, but expected to work with the new hire after they join the district. Next in the process will come site visits by the Board to the new superintendent’s district, and vice versa. WPCNR was told  by our Board source that the money had been “worked out.”

Assistant Superintendent for Business, Fred Seiler announced the  budget policy goal in his opening remarks, briefing slightly over 100 citizens at the first Community Forum on the budget at White Plains High School. Seiler confirmed WPCNR projections on the budget saying if the budget was rolled over it would increase 5%, or $193.6 Million. WPCNR had predicted at the district average 6.4% rise over the last 11 year, $196.3 Million.

Seiler detailed cut after cut in anticipated district revenue loss, painting a gloomy picture of lost state aid amounting to $4 Million-plus , and additional debt service of $1.7 Million. The  projected shortfall has prompted the district to set a no-increase goal for this year. 

Though Seiler did not mention what a roll—over figure would be. His estimate of “about 5%” of $184.4 Million would work out to $9.2 Million and that would total $193.6 Million.  Average increase in the school budget the last 11 years has been 6.4%, as WPCNR has noted in past articles.  

Donna McLaughlin said that the anticipated increase in the White Plains Teachers contract had been “figured in,” despite the contract negotiations being in mediation at this time.

The Pressures

Seiler said that the anticipated aid cuts including  the new debt service related to the capital project to be put out for financing shortly would create a 9.3Million shortfall, (if, mind you the governor’s education cuts for 2009-10 is not changed).

Seiler told WPCNR, two legislator he talked to said they did not expect those cuts to be changed.

Seiler added that assessments and equalization rates had not been set and it was too early to tell that impact.

However, the preliminary assessment roll figure did come out January 1 is in and it is $288.4 Million, resulting in a shortfall in the levy, if it holds at that level.  In order to keep the budget where it is, the budget has to be cut an additional $1.7 Million down to $182.7 Million to avoid a $7 increase in the tax rate.

Certioraris Forever

Seiler also predicted school liability for $8 to $10 Million in certiorari refunds in 2009-2010 and going forward “annually,” giving no indication when the certiorari drain will stop.  This certiorari debt payment was apparently not figured into the cuts, or did not appear to be, but may be. How that debt would be paid was not addressed last night.

It is worthwhile for school board members and the newly chosen Superintendent of Schools to note, that the new 2008 White Plains  equalization rate of 2.75, last year’s was 2.74. This is the magic number that drives certiorari filings. It portends a wave of repeat certioraris in the years ahead from big name successful cert filers of the past.  If that comes to pass, it could  mean dire problems for the city and the school district and ultimately the tax payers, unless of course the state, or someone legislates a freeze on certiorari filings.  

Seiler has reported previously that the $8 Million in certs for 2009-2010 will go out for financing with the capital project bond since interest rates are at their lowest point in years.

STAR Mayhem Revealed

Additonally, Seiler said the Governor’s 2009-2010 budget included a further 10%  STAR reduction for each homeowner. The Department of Real Property Services reports that the reduction included in the Governor’s budget actually is more than that for BASIC (under 65 Homeowners) and ENHANCED STAR homeowners (over 65), it is 18%. This will cost each  White Plains BASIC taxpayer $300, and each ENHANCED Star Recipient, $596 in taxes from the start. Seiler mentioned also that the STAR Rebate up to $1,000 has been eliminated in the Governor’s new budget.

Things may not be as dire as painted last night, if the state legislators throw out the Governor’s cuts and President-Elect Barack Obama shoots massive billions in aid to New York State as a green tourniquet for New York as a financial disaster area, wiping out the state $15 Billion deficit in one swoop.

Seiler said the Governor has proposed a decrease in state aid to the district of $2 Million (taking away last year’s increase in state aid 75% of which  was actually paid for by White Plains taxpayers thanks to the legislature stealth STAR Exemption cut of 10%. WPCNR reported this last April. In fact WPCNR told the School District about this cut at the time.

Give us Your Ideas for Cuts

With this as a gloomy background the 100 residents of White Plains arriving on the snowy night were then given a chance to weight in with suggestions for cuts.  Theresa Niss gave the group their marching orders  and each table was asked to give the district their ideas on how the budget would be cut.

The Superintendent said the district wanted the attendees ideas on how to cut the budget and what areas should be cut. Two 20-minute lightning-round discussions were held at each table to discuss the following issues:

The First 20-minute Lightning Round Questions the respondents were asked were:

1.       What are the programs and/or services the school district should cut or eliminate?

2.       What are some other ideas that would generate cost savings within the school district?

3.       With less revenue, what can the district do without?

The Second 20-minute Lightning Round Questions respondents were asked to comment on were:

1.       What areas of personnel (staffing) can be reduced or eliminated?

2.       In what areas can class size be increased?

3.       How could we generate additional revenue?

 

 

After each session, Superintendent of Schools circulated among the tables reminiscent of Jerry Springer asking a spokesperson from each of the tables to give one suggestion. The suggestions were written up on large easels at each table. They will be tabulated and e-mailed to participants.

 

Suggestions were written on easels at each table. They were collected and will be e-mailed to participants prior to the next Community Forum on February 25.

 

Wrapping up the evening, it was said that the Board and administrators would be looking at the suggestions and using it to craft a budget, apparently no larger than $184.4 Million. The new budget would be presented February 25 again at the high school with the district decisions for public comment.

The primary announced suggestions were cutting benefits, cutting personnel, cutting administration, a long-range budget cutting plan, expanding class sizes, cutting transportaion. But this is not an all-inclusive list.

 

WPCNR SCHOOL DAYS. By John F. Bailey. January 14, 2009: The following conditions have been determined by computations based upon WPCNR review of the White Plains School District 2008-2009 School Budget Summary, and are based upon WPCNR reporting and knowledge of factors affecting the school budget 2009-2010. Not all factors may come true, in light of the state legislature controversy over the Governor’s budget cuts and the possibilities of massive government aid to ease the New York State Budget Crunch.

In the absence of any budget figures provided by the School District prior to the Community Forum that takes place Thursday evening, WPCNR offers this Situation Sheet to update those not following school budget history with an overview of factors that may or may not determine the 2009-10 budget

 

 

 

 

STATE OF THE SCHOOL DISTRICT

SITUATION SHEET

Prepared by The White Plains CitizeNetReporter

1.       Last Year’s Budget: $184.4 Million.

2.       Budget has risen an average 6.4  % a Year Over the last 11 years. This occurs automatically in part due to the compounding effect of the school budget expenses such as automatic step increases, and general inflation.

3.       Inflation rate (White Plains adjusted) over  the last 11 years has averaged 3% a Year.

4.       2008-2009 Budget, if increased at the 6.4% Average  (last year the budget increased 5.95%)

Would hit 196.3 Million, assuming District Revenues (property tax, school aid, other revenues remain the same.)

 

5. Over those 11 years School Property Taxes increased at an average rate of 7.83% a year, in the current tax year (2008-2009) they increased 5.98%

 

6.       In 2009-2010 if the 6.4% average raise holds,  the budget will be about $196.3 Mllion if there are no cuts in the budget and spending remains at the same levels, and no school aid  (or other revenues) decline. If spending increases, and it is likely it may for several reasons, the budget could move higher.

 

7.       Assessments as  of 1^st of January are down to $288.4 Million from $291.8 Million of 2008-2009 according  to the City Assessor.

 

 

Should the assessment figure remain at the $288.4 (rounded off here from $288,371,173)  Million figure, the decline to $288.4 Million  creates a  current $1.7 Million revenue shortfall (projected) in district revenues which in and of itself increases the tax rate from $503 to $510 per $1,000 of assessed valuation.

 

If property owner challenges due by January 21, lower assessments more, the shortfall will necessitate further increases in the tax rate.

 

8.       Relation of Assessments to Tax Rate.

 

For those unfamiliar with the formula of how Assessments drive the tax rate: Here is a simple explanation

 

This budget year 2008-2009 assessments were at $291.8 Million for the School District

In the new Budget Year 2009-2010, the Assessor as of Jan 1 pegs them at $288.4

 

This year’s Tax Rate was $503.01

 

How was it figured? Here’s how:

 

$1,000 goes into $291.8 Million, 291.8 Times. 291.8 times $503.01 equals $146.8 Million – this year’s 2008-2009 tax levy.

 

Since preliminary assessments are down 3.4 Million (from $291.8) this means that at this year’s tax rate you only generate $145.1 Million in levy, leaving a shortfall of $1.7 Million in revenue. By adding $7 to the tax rate the district makes up that shortfall. ($510 x 288.4 produces $147 Million dollars.

 

So the tax rate needs to go to $510/$1,000 to just raise the LEVY you Raised for this year $147 Million.

 

The upshot of this is that, as you can see means that  for every additional increases the district is forced to lay on over the $184.4 Million to do what they want “for the kids,” is all well and good, but  you have to increase the tax rate or receive aid or “relief” to cover it.

FACTORS TO CONSIDER

 

9.       The school district and the teachers are in mediation proceedings on the school teachers contract. Teachers desire to make up 17% rise in benefits costs to teachers that wiped out their 3% raise based on their last one year contract. District has at this point according to the teachers union refused to make an offer since last June.

 

10.   If  the mediator recommends a 3% raise in line with the area 2.7% inflation rate then salaries will go up more than the $83.8 Million they were paid this year, and any increase will be retroactive covering the last 6-1/2 months. If the mediator suggests a 4%  or 5% raise then the budget is impacted  even more, when added to the 2% automatic step increase in effect annually for teachers in the first 20 years they are employed.

 

Currently there are 651 full-time teachers employed by the district.  Half of those teachers do not receive step increases for longevity , since they have been employed in the district more than 20 years. Their salaries are determined by whatever salary settlement is reached. This will be a major stumbling block to a frugal settlement, in view of the benefits costs that rose 17% over the life of the contract that expired last June.

 

11.   The teaching assistants are members of the CSEA. That union contract expires in June, creating another looming settlement for the district to negotiate in the spring.  

 

12.   A 4% increase in salaries adds 3.36 Million to the budget in teacher salaries (at $84 Million ) plus the 1.7 Million in automatic 2% increase…so a settled Teachers contract at 6% (2% in annual longevity raise and 3 to 4% in salary will push the budget to $201 Million.

 

13.   If the mediator settlement comes down to 2.5% in salaries the district is better off of course. But it remains to be seen whether the step increase remains the same. A 2.5 and a 2% step raise would still raise salaries for half the teachers to 4-1/2% overall. Depending on whether the mediator recommends 3%, 3-1/2%, 4%, 4.5% or 5% in salary raises,  the salary budget increase could range $5 Million and up.  There is the possibility the mediator could recommend no raise and steps only.

 

14.   Benefits:  

     

      WPCNR has learned is that the recommended increase as part of the statewide health benefits plan  the district participates in will hit 4%.  That means another $1.6 Million on the $40 Million in benefits paid last year and that pushes the budget to $202.6  Million. You may begin to see how these various factors if all come into play will pushing the budget up past the $200 Million level.

 

15.   On the Adminstration Side, the present budget has $10.5 Million in administrative Salaries.

      Last year in June the district awarded 42 Full-time Coordinators/Directors/Principals/ and Assistant Administrators an average 7.5% in raises (totaling $444,000 plus in salary increases). The average increase in dollars was $10,500 plus.

 

The district employees 1 Teacher for every 13 students, and one Administrator for every 13 full-time teachers.

 

16.   School Aid: The state has threatened to trim school aid.

 

 Last year White Plains received a 14% increase in school aid. If there is a cut from that…this is more revenue the district has to make up.

 

17.   The major contribution to the budget are salaries and benefits. ($140 Million).

 

18.   Tax Impact.

     

      Just doing rough numbers, if the district spends at the same rate,

If we hold at $196 to 197 Million to make up assessments and pay for the current spending

 

We go from $503 to $546 per/$1,000.  ($7 for reduced assessment, $39 for increased budget)

 

$2.5 M to $5M and up  in salaries (teachers)  $8.67 (Minimum)            $555/M

 

$1.6 in Health benefits — $6M                             $561/M

 

$4M in Administration and Debt Service Increase

AID Cuts……………………………………………    $14 —$575/$1,000

 

Median Home Assessed at $15,145 — $8,700 in School Taxes UP $1,082 from this year.

 

19. Major Budget Lines    not considered as going up:  Transportation, Utilities, “Other,” BOCES

 

20.   There have been no cuts in spending as of this date by the school district. No attrition of employees. The District continues to replace persons leaving the district. Programs are being approved

 

 

21.   School District Monday  night was told the district is going to bond for the $16 Million in infrastructure improvements as part of the bond and Bond $8 Million for certioraris.

 

The rationale was bonds are offering very low interest rates now and contractors are eagber for work so project will save district money. 

 

22.   The State is considering decreasing the STAR Exemptions both BASIC and ENHANCED STAR by 18% this is going to cost the taxpayer another $300 and $600 each in school taxes

 

23.   Coming up the Community Forum on Thursday evening. 

 

 No budget numbers so far announced. School District says they want input on how to structure the budget, and what is “important” to the people of White Plains.  As late as last night the District adised the CNA they would not present a Premliminary Budget Thursday evening.

 

Presently there has been no effort by the district to cut expenses this year.