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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.

 

 

 

 

 

WPCNR NEIGHBORHOOD NEWS. January 14, 2009: The Co-Presidents of the White Plains Council of Neighborhood Associations , Candyce Corcoran and Louis Bruno,  have sent a letter to the White Plains Board of Education and Superintendent of Schools Timothy Connors expressing the concern of 30 residents attending the monthly meeting of the CNA last night.  The meeting was held with the topic being the school budget and the movement to rethink County Government.

Candyce Corcoran, of Soundview Neighborhood Association, Louis Bruno of Bryant Gardens,  Co-Presidents at the Council of Neighborhood Associations Tuesday evening.

 

After hearing a report on present school budget trends over the last 11 years,  requested by the CNA and presented by John Bailey, The CitizeNetReporter, based on school district reports of the 2008-2009 budget, and noting  the possible effects of economic conditions and factors that might impact the budget, citizens sharply criticised the lack of information going into the School District-sponsored Community Forum, the first of a two-part District-sponsored community meetings on the budget.  The two-meeting Forum replaces the previous community budget process that employed an Annual Budget Committee, that met three to four times and always had a preliminary budget to work with to ask questions about.

The CNA letter today expresses the following concerns raised  by about 30 participants at the meeting: 

The letter expresses the concern of those in attendance of the district failure to provide a proposed budget and its potential impacts on district taxpayers before the Community Forum on the budget.

It criticises the Board of Education for allowing labor negotiations into a state-provided mediation procedure, relinquishing local leverage and exposing the taxpayers to the recommendations of “outsiders.”

The letter charges  that residents attending the Tuesday meeting have reservations that the Community Forum to be held tomorrow at White Plains High School is design by intent of the School District to “co-opt” consent. Here is the CNA letter:

Dear Mr. Connors and White Plains School Board

The White Plains Council of Neighborhood Associations (WPCNA) meeting last night (1/13/2009) was lively and informative, with over 30 concerned residents showing up to discuss the school budget and the community-wide forums.

The sense of the meeting was of a pressing need for dramatic change.

Everyone was mindful of

• the unprecedented economic conditions affecting the global economy,
  
  
• particularly of the impact on residents trying to get by on fixed incomes, and
  
• the importance of education to our future.

There was widespread disappointment that the labor negotiations have gone to mediation, essentially passing control of the largest part of the budget to outside agents. The hope was expressed that the benefit packages for new hires will be substantially reduced this year.

There was general consensus that the need for quality education and the state of the economy dictate

1. a zero-based budget, i.e. not one layered on last year’s, but a fresh budget derived from needs and goals;
   
2. increased class size and decreased overtime, with the model of Scarsdale being mentioned, which is known for high quality and low costs;
   
3. asking teachers and administrators to do more with less, particularly fewer aides and assistants;
   
   
4. attention to details in paring support costs to a minimum, with suggestions made about cutting back on transportation, conserving energy to reduce utility costs, and minimizing maintenance expenses.

There was general skepticism about the new community-wide forums supplanting the citizen budget committees, with the new mechanism being viewed as co-opting dissent rather than empowering change. 

In particular, it was felt that a draft budget should have been made available ahead of the forum.

Many felt that the budget process in the past was expensive and unproductive.  We hope this summary of last night’s WPCNA forum is helpful to you and the School Board both in understanding the prevailing sentiment and in producing an effective budget.

Regards,

Candyce Corcoran and Louis Bruno
Co-Presidents of WPCNA