More About the Tax Cap

See what the New York State School Boards Association has to say about the tax cap:

http://www.nyssba.org/clientuploads/nyssba_pdf/NYSSBA-Tax-Cap-Q&A.pdf

The New Meaning of the Contingency Cap

March 20, 2012--Pre-Budget Hearing


Forget almost everything you once understood--or thought you understood--about contingency caps. The new New York State law about contingency caps for school budget votes that are twice declined by the voters means one simple thing: school districts cannot collect more in the tax levy than they did the previous year. This means a zero percent tax levy increase (which does not necessarily translate to a zero tax rate increase, a calculation dependent upon assessments and equalization rates). Regardless of necessary increases in spending due to salaries, benefits, fuel costs, interest rates, or the price of pencils, the tax levy cannot increase under a contingency cap. 


Is this a serious concern at Haldane? Absolutely. For the past few years Haldane's Board of Education has presented spending plans for voter approval which contain, according to Superintendent Mark Villanti, incremental reductions to staff and adjustments to benefits in order to cut costs and balance the budgets. This budget, which the school board is likely to adopt at the next Business Meeting on April 10, includes reducing the staff by one full time teacher and one part time driver, refinancing the debt on the high school building, realizing savings in breakage from teacher retirements, reducing some benefits costs, and utilizing some reserve funds and fund balance to meet reductions sought by the school board for a lowest-possible budget increase. (See Dr. Villanti's 3/20/12 presentation here) Budget-to-budget, the spending plan has become leaner, and the "low hanging fruit" has been picked clean. Future cuts will, of necessity, be painful.


Consider this: the budget-to-budget increase over 2010–11 is $297,463. A contingency cap will mean a budget cut of $415,629. To give readers an idea of what this number means for Haldane, the athletics portion of the budget (see Budget Proposal #3, and then go to page 13) which does not include the salary of the Athletics Director is $303,898. Cutting this entire portion of the budget would still require additional spending cuts elsewhere. (NOTE: The District has no plans to eliminate athletics, this is simply to illustrate the potentially devastating impact of a contingency budget.) 


Dr. Villanti has characterized this budget year as a two-headed dragon because the new mandate for a tax cap combined with the formula which was revised a few years ago for calculating state aid (the Gap Elimination) creates considerable economic pressure on the school to balance its budget. The tax cap effectively discourages the district from seeking an above-cap tax levy to pay for rising costs, and at the same time the district bears the burden of reduced state aid. To navigate the budget process in the years to come, without some concessions for state aid or other forms of revenue enhancement, will likely become increasingly difficult if the school hopes to maintain excellent programs. 


Other business at the 3/20/12 meeting included two special presentations, from Seamus Carroll, Chairman of the Fine Arts Committee, and HS Principal Brian Alm provided an update on the iPad Pilot program. Mr. Carroll offered a succinct, clearly defined abstract of a larger project proposal for refurbishment of the Haldane Auditorium, which included a timeline for each phase of the project. The Board voted to approve matching a Haldane School Foundation donation to fund Phase 1, the Projection Room conversion to a Control Room with new sound and lighting controls. This work should begin over the summer as it will involve some asbestos abatement in the demolition portion of Phase 1.


Mr. Alm's presentation on the iPad Pilot program focused on the enhanced learning opportunities a digital device can provide for students. "It's about digital collaboration," he said, offering examples of how students can use the iPads to practice and improve 21st century skills. Mr. Alm recommended that Haldane should look at the iPad initiative for another year and then possibly go forward to phase in the devices for one entire grade level to use.


The next school board meeting is scheduled for April 10, 2012 at 7:00 pm in the Mabel Merritt Building Fireplace Room (or Board Meeting Room). The Board will formally adopt the budget which will be presented to voters at this meeting. The Board will also hear and decide on tenure recommendations at this meeting. Please note the following changes to the district schedule due to snow make-up give-back days and State Education Department changes in test scoring dates:

1. May 25, 2012--give-back day NO SCHOOL
2. April 9, 2012--give-back day NO SCHOOL
3. April 27, 2012--scoring day change SCHOOL IN SESSION

Another schedule change:
Earth Day Family Night Rescheduled from April 27 to May 4, 2012. This year's theme is Student Advocacy for the Environment.

March 20 Haldane Pre-Budget Hearing

Voters will have an opportunity to hear and comment on Haldane's Budget (or Spending Plan) on Tuesday, March 20, 2012 at 7:00pm in the Board Meeting Room. A recently-revised draft version of the budget is available on the Haldane School website. Public input is sought now, and especially in Tuesday's public meeting, before this budget is adopted by the Board and presented for voter approval. 

Changes and challenges to the budget process this year: 

Superintendent Mark Villanti has illustrated the mounting pressures to school funding, including the Tax Cap and state aid reductions through the Gap Elimination Adjustment. For Haldane, this adjustment accounts for a $500K cut in state aid each year over the past few years. Thus far, Haldane has been able to weather these cuts because of Federal ARRA money and by using savings from its own reserve funds. However, the ARRA money has run out, and district savings will as well. 

Dr. Villanti has suggested that the public may consider writing to New York State representatives in Albany to request reform to the Gap Elimination. Without some reform in Albany, school budgets face pressures which will continue to seriously undermine public school funding next year and for the foreseeable future, and risk decimating New York State public education.

Some definitions:

Annual Budget (or, more accurately, the Annual Spending Plan): the total amount of revenue the School Board determines will be needed to pay all of the district's bills for the entire year. The Spending Plan is what voters decide to approve on Budget/Trustee Vote Day, May 15. The Board of Education must try to craft a budget so that there are adequate funds to see the district through the entire school year. If a district overspends its budget, and if the money runs out before the end of the school year then bills will go unpaid (unless the district borrows additional money to pay for them). At the same time, a district is not allowed to hold more than 4% of the budget in its fund balance left over from the prior school year. The difficulty in budgeting is to balance having enough money—but not too much—in the district checking account, simultaneously bearing in mind the financial burden on taxpayers.

Revenue: income from property taxes, government aid, tuitions, and grants.

Tax Levy: the number of dollars collected through taxation. In the case of a school district's Tax Levy, this includes the portion of the dollars collected from property tax which are specifically allocated for the school district. In Philipstown the school tax bill is separate from the Town tax bill. A property owner's total property tax bill will include both municipal (i.e., town, village, fire department, etc) and school taxes. Haldane's Tax Levy for the 2011–12 fiscal year was $16,996,875. 

Tax Cap: a calculation defined by New York State which limits the Tax Levy Revenue to a maximum dollar amount. Budgets (or Spending Plans) whose Tax Levy Revenue falls under this Cap would need only simple majority approval by voters. A School Board may present a budget which is over the Cap, but a super majority of voters (60%) would be needed to pass an over-Cap budget. This year for Haldane, the Tax Cap is calculated at $17,586,003. It should be noted that this is not a "2% Cap," which is a misnomer. This Tax Cap for Haldane as calculated following New York State rules is actually 3.16% over the 2011-12 levy. However, the Haldane Board of Education is seeking to whittle the spending further to a levy of $17,462,504, which is below the Tax Cap.  

Tax Rate: a calculation defined by assessments and equalization rates which are set by the county New York State Office of Real Property Services. Voters often ask, 'How much are my taxes going to increase with this budget?' This is a difficult question to answer with precision. The tax rate is defined in August, after the budget (or spending plan) vote and therefore cannot be determined—only estimated—during budget season. With the anticipated cuts requested  by the Board, the projected tax rate for the 2012–13 budget year will be approximately 1.95%. Haldane makes every attempt to make a conservative estimate, and last year's tax rate was actually lower than what was estimated at budget time.

Absentee ballot applications and Haldane Board Trustee candidate petitions now available

• Petitions for nominating candidates for the office of Member of the Board of Education, Applications for absentee ballots for election of a Board Member and the Budget may be applied for at the office of the District Clerk. Such application must be received by the District Clerk at least seven days before the election if the ballot is to be mailed to the voter, or the day before the election if the ballot is to be delivered personally to the voter. 
• Petitions for nominating candidates for the office of Member of the Board of Education must be filed with the Clerk of the District no later than April 16, 2012 between the hours of 9:00am and 5:00pm. 

Special Budget Meeting 3/13/12 at 6:30 pm

The Haldane Central School District Board of Education will meet on Tuesday, March 13, 2012 at 6:30 PM in the Board Room of the Merritt Building in order to continue their conversations related to the 2012-2013 School Budget. 

Also, nominating petitions are now available in the District Office and on the Haldane website for those interested in pursuing a candidacy for one of the available Board of Education Trustee seats. 

Testimony to the Joint Legislative Fiscal Committees on the 2012-2013 Executive Budget

Haldane's monthly Board of Education business meeting will be held Tuesday, March 6 at 7:00 pm in the Board meeting room. A draft agenda, a proposal for the 9D fields project and other meeting documents are now posted on the Haldane School website home page.  

We are now well into budget season and school districts and taxpayers are attempting to understand the intricacies of the tax cap and trying to find the money to pay for its programs. Following is testimony of the New York State School Boards Association to the Joint Legislative Fiscal Committees on the 2012-2013 Executive Budget. David Little, Director of Government Relations for the New York State School Boards Association, offers his analysis of Governor Cuomo's education budget and how school districts are coping, and he offers some advice for ways the state can help school districts survive as times get tougher. 

Three Program Presentations Plus Cap vs. Gap

On Tuesday, February 28, the Haldane Board of Education had a full agenda, which included three presentations about academic programs and one presentation about the budget cap and gap. To see the draft agenda, go to http://www.haldaneschool.org/www/haldaneschool/site/hosting/BOE/Agendas/11.12/2.28.12/Draft_Agenda_and_Reports_02.28.12.web.pdf

The three program presentations were encouraging, but the budget presentation provoked apprehension. Let us look at the good news first.

Superintendent Villanti offered an update to the foreign language program, citing a push from the 2008 strategic plan to reevaluate the program. At that time, Haldane was looking at low enrollment numbers in some French sections, and the District was considering its options and questioning the feasibility of keeping French as a second language option offering. Public support for a second foreign language was strong enough for the School Board to decide to wait and see if enrollments in French would might change, and the result is that the numbers of students taking French are up. Furthermore, offering French as a second language option has proven attractive to Garrison students who come to Haldane for high school having begun Spanish studies and hoping to learn French as their second foreign language. French 1 is offered at the High School for all students who wish to learn French, and is taught by the new foreign language teacher, dual-certified Mr. John Schepisi. In 2008, there was no French 1 class, and moving to include this section in the series has allowed the program to thrive. To see Dr. Villanti’s slide show presentation, visit: http://www.haldaneschool.org/www/haldaneschool/site/hosting/BOE/Agendas/11.12/2.28.12/Foreign_Language_02.28.12.pdf

High School Physics teacher, Dr. Bob Mack presented a proposal for a Science Research Program class. The class is an elective, designed for highly motivated students who wish to learn how to perform scientific research. Dr. Mack has received training to teach the class, and he hopes to teach the program beginning next year. View Dr. Mack’s course outline here: http://www.haldaneschool.org/www/haldaneschool/site/hosting/BOE/Agendas/11.12/2.28.12/Science Research Presentation.022812.pdf

Finally, ES/MS Principal Brent Harrington gave a presentation about math acceleration in the Middle School. Mr. Harrington described a plan, including redesigning the math curriculum, rethinking some of the teaching practices and techniques, and redefining the math learning goals in the middle school to focus on Algebra readiness. The research that bears out the importance of learning Algebra is overwhelming. (See the National Mathematics Panel Final Report at http://www2.ed.gov/about/bdscomm/list/mathpanel/report/final-report.pdf). Turning the question of acceleration upside down, raising the bar in expectations for learning, and eliminating the current practice of accelerating only a limited population of students who meet the previously prescribed requirements, Mr. Harrington’s vision for the future of ES and MS math instruction will strive to achieve Algebra readiness for all students. See Mr. Harrington’s slide show presentation here: http://www.haldaneschool.org/www/haldaneschool/site/hosting/BOE/Agendas/11.12/2.28.12/Acceleration_2.28.2012.pdf

Now to the not-so-good news: Dr. Villanti gave a sobering presentation on the budget, including an explanation of the tax cap and what he sees as the far more worrying aspect of public school funding, the gap elimination cut, which for Haldane amounts to over $500k reduction in state aid. Dr. Villanti has expressed deep concern for the future of public school funding as long as both the tax cap and especially the gap are part of the annual budget calculation. The tax cap means that the district can collect a maximum levy, or number of dollars, from its taxpayers, and the gap represents a cut in state aid. The cost of running a public school is always increasing, due to rising insurance, fuel, compensation and other costs. If available funding does not rise, and if state aid is decreasing, how will the district meet its financial obligations? For the present, Haldane will use some of its reserves and fund balance, in effect, its savings accounts. These savings will not last indefinitely, however, and public schools will all likely face a financial crisis in the coming years.

The Board is scheduled to meet Tuesday, March 6 at 7:00 pm in the Board meeting room. Look for the draft agenda on the Haldane School website: http://www.haldaneschool.org.

Three Open School Board Seats: Will You Run?

From New York State School Boards Association:

Your local school board makes the decisions that determine how your community’s children are educated and how your tax dollars are spent. Voting for school board members is a simple but powerful way to support student success and strengthen your community.

THE POWER TO PURSUE EXCELLENCE

The decisions made by the school board affect virtually every important aspect of local schools, from boundaries to bus schedules, curriculum to clubs, funding to field trips.

• The school board hires the superintendent, the “chief education officer” responsible for managing district staff and operations.
• The school board sets the priorities and adopts the budget that determine how millions in federal, state and local tax dollars are spent.
• The school board sets goals for student achievement and evaluates progress toward those goals.
• The school board decides how school boundaries are drawn and whether schools are constructed or closed.
• The school board sets the policies that determine which courses and programs are offered and what texts, tools and technology are purchased.
• The school board, as the community’s elected representatives and fiscal stewards, ensures the district education program is in compliance with New York State laws and regulations.

Voting in school board elections means your voice is represented in those choices.

YOU HAVE EVERYTHING TO GAIN — OR LOSE

Everyone — not just parents — has a stake in the success of public schools. When schools are strong and students succeed, everyone benefits.

• Good schools are good business – they attract employers, strengthen the local economy and enhance property values.
• Good schools ensure our students will be prepared to keep our nation competitive in a global economy.
• Good schools keep the American Dream alive with an opportunity for every child to receive a world-class education.
• Good schools keep the quality of life in a community high by producing citizens who pay taxes and obey the law.
• Good schools teach students from all backgrounds how to live and participate in our democracy.

Voting in a school board election is an investment in the future of kids, of our community and of the nation.

THE RIGHT PERSON MAKES A DIFFERENCE

What qualities, skills, and experience should you look for in a school board candidate? Here are some questions to consider.

• What are the candidate’s vision and goals for high academic achievement for all students?
• Does the candidate inspire parents and other stakeholders to have confidence in the local public schools?
• Does the candidate understand that the school board’s role is about the big picture – setting the direction for the district, and providing oversight and accountability – rather than day-today management?
• Does the candidate focus on one issue or discuss a broad range of school district concerns?
• Does the candidate’s approach make it likely that he or she will be able to work effectively with the rest of the board to get things done?
• Will the candidate enhance the mix of skills and backgrounds on the board and help represent the diversity of the community?
• Does the candidate have the commitment to do what is right for all children, even in the face of opposition?

Every child enrolled in your school district is a reason for you to vote in school board elections. The overall quality of your local schools, both now and in the future, rests with decisions made by the board of education. You want the best and the brightest of your fellow citizens in charge.

FOR MORE INFORMATION

Local school board members in New York State are elected, except for those in New York City and Yonkers who are appointed. The method of election may vary from district to district. Check with your superintendent of schools or your district clerk to learn about the voting procedure in your district. (For Haldane voters, contact District Clerk Kathy Marino at kmarino@haldane.lhric.org)

With limited exceptions, school board members serve three-, four- or five-year terms. Terms are staggered so all board positions are never open at the same time. By state law, school board and budget elections, in all districts except Albany and the Big 5, must be held on the third Tuesday in May.

For more information and resources on school boards, school board candidates and excellent public education, visit the Center for Public Education’s website at www.centerforpubliceducation.org/allinfavor or the National School Boards Association’s website atwww.nsba.org.

New York State
School Boards Association
24 Century Hill Drive, Suite 200
Latham, NY 12110-2125
(518) 783-0200 • (800) 342-3360
www.nyssba.org • mailto:info@nyssba.org