WPCNR SCHOOLDAYS. By John F. Bailey. February 12. 2004: The Annual Budget Committee was presented with the state of School District financial affairs Wednesday evening at Education House. Superintendent of Schools Timothy Connors and Assistant Superintendent for Business, Terrance Schruers did not sugarcoat the realities of the school budget for 2004-2005.
They pegged the tab coming in at $145,540,666 Million, an 8.1%, $10.8 Million increase over the 2003-2004 budget, of $134,632,632.00, creating a tax rate increase of 8.1 to 9%, at this time.
THE ARCHITECTS, Superintendent of Schools, Timothy Connors, left, and Terrance Schruers, Assistant Superintendent for Business (with budget looming on screen), discussed the preliminary 2004-2005 School Budget. (They stressed the word “preliminary”). The pair noted that 50% of the 8.1% increase was do to fixed salary increases, and includes contingency coverage for settling the White Plains Teachers contract, expiring in June of this year. $85,981,697 of the $145,540,666 “rough cut” budget is for salaries. They indicated that the budget increase was not fixed, and held out hope for State leniency in pension fund “makeup” contributions. Photo by WPCNR News.
State Loses Shirt in Stock Market Casino. We Pay.
The other major driver of the increase is a $4.2 Million rise in Fringe Benefits. A total of $1.9 Million, (almost half of the total fringe benefit hike) is the State Comptroller’s Office need to replenish the Teachers and Employees Retirement funds depleted by the Comptroller’s Office managing pension funds into severe losses in the stock market between 2000 and 2003.
Connors and Schruers said in last week’s ABC Committee meeting, that there was the possibility the state legislature would ease that burden, indicating hope that this piece of the budget might gain some relief in the weeks ahead.
The other half of the Fringe Benefit increase is a 9.9% hike in Health Insurance costs amounting to 1,901,643.
All Day K Questioned. Staunchly Defended.
The other component making up the balance of the budget increase is the District decision to install All Day Kindergarten in all the elementary schools which will cost $1.2 Million for renovation of classrooms in 5 elementary schools and adding 9 Kindergarten teachers and 9 Kindergarten teaching aids . Connors said that portions of this cost may be made up for by state aid, and could lower.
This All Day K decision has created concern and sharp criticism from members of the budget committee, the majority of whom do not have young children (and have not had them for many years), as to whether this was the time for the District to go All Day K across the board.
Class Size Carefully Evaluated
Several members of the Committee were concerned about growing class size in the Middle School, indicating that was where more teachers should be added, not All-Day K. The School District added 7 teachers to the Middle School three years ago (in the 2001-2002 budget) in a concentrated effort to raise Middle School performance on the State Assessment tests.
Superintendent of Schools Connors noted that he goes over class sizes very carefully and expands class sizes based on careful allocation of personnel, and ability of classes to be managed. He disputed allegations that class sizes in the middle school had burgeoned, and said he would be glad to go over class schedules of students whose parents claimed their childrens’ classes were too large, and explain the thinking behind those student-teacher allocations.
Board Says All Day K Best Thing We Could Do for School Performance
Board of Education President Donna McLaughlin and Bill Pollack staunchly defended the All Day K decision because of the demonstrated value of All Day Kindergarten nationwide, and comments by national expert, Dr. Sharon Kagan. (See previous WPCNR article). Kagan is the district consultant who advised the Board of Education that the best place to invest new dollars is in the beginning years of a student’s career, and educated the Board on the proven benefits of an All Day Kindergarten program, based on findings nationally.
An impassioned Donna McLaughlin said “We have been talking about All-Day Kindergarten for years. It is the best way to address the Achievement Gap. Our parents want it, and the question is when do you do that.”
Salary Increases Built In.
Connors coolly handled comments asking for tougher negotiations with the teachers union for salary and benefits givebacks, pointing out that the District has to replace some 25 teachers in the district in 2004-05 and has to offer competitive salaries. “We know what we have to do to be able to do that. No one will ever be satisfied until all teachers limit their increases, pay for all their benefits and work until 6 o’clock.”
PILOTS will pay off more $$$ in 2005-2006.
City Assessments Info for 2004 Not Out Yet.
Connors and Schruers said PILOT payments are starting to come in to the District revenue pipeline, even though the City Center Project has not yet begun to contribute to district revenues on its PILOT (Payment in Lieu of Taxes) agreements. Schruers said that keystone of the White Plains Renaissance would be in the revenue stream for next year’s budget.
Meanwhile Schruers said, $4.9 Million in new city project PILOT payments are contributing to the 2004-05 budget.
Several ABC Committee members suggested the city might be approached to give some aid to the School District in the form of sharing sales tax receipts. Connors had no reaction to that suggestion.
Schruers said that the City Tax Accessor has not given him figures yet for Total Assessments, however he said he expected that figure to be down, contributing to the 5% increase in the projected Tax Levy increase of 5%.
Tax Certioraris and Equalization Rate
Creates Need for a Contingency Fund.
$3 Million Bond Suggested to handle Certiorari Surprises.
As they alluded to last week, Connors and Schruers expressed concern for the district projected liability for settlement of tax certiorari claims by commercial properties claiming they are accessed too highly. This liability is projected to be approximately $8 Million. Schruers has proposed bonding for approximately $3 Million to give the district a cushion to handle major refunds.
Schruers noted that the $2.2 Million certiorari refund to AT & T last year on their two Hamilton Avenue properties, depleted the certiorari contingency fund to approximately $200,000. The District has a $3 Million bond in place to borrow against to pay certioraris currently, but propose to float a new bond of $3 Million to replenish against future commercial certiorari losses of the magnitude of the AT & T giveback.
The Tax Impact.
To put this projected budget increase into perspective. Look at your School Tax bill. If you own a $500,000 to $600,000 home, you pay school taxes in White Plains of approximately $4,870, meaning the projected tax rate of 10% translates into roughly a $487 School Tax increase, or $1.33 more you pay per day in 2004-2005. It should be noted that is $1.33 more in school taxes a day.
