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.