Preliminary 2011-2012 School Budget Floats 5.7 Percent Tax Hike

Facing Gov. Andrew Cuomo's proposed $2.9 million cut in state aid to Riverhead Central School District, Superintendent Nancy Carney on Tuesday laid out a prelininary 2011-2012 school budget that at $111.7 million would boost local school tax bills by 5.7 percent.

That figures in the loss in state aid ("one of the highest percentage-wise in the state," Carney said) and an increase in pension costs, minus reserve funds which will help prop up the school's finances. 

"This is a first draft," she told the school board and the public at Tuesday's meeting. "We are very aware we are going to have to reduce costs more as we go forward."

After last year's $108.2 million budget, the $111.7 million projected budget for 2011-2012 cuts costs on debt services and transfers more than 16 percent. Meanwhile, costs for transportation are expected to rise 2.9 percent, instructional programs are expected to go up 2.1 percent, and general support 1.44 percent. Employee benefits are slated to jump 13 percent. 

Between proposed cut in state aid next year – a 16 percent drop compared to the current year – on top of a 3.29 percent increase in the general fund budget, the tax levy on residents would stand to rise nearly 8 percent.

While Carney said money from the fund balance will help shoulder the burden, about $3.5 million in unassigned, undesignated reserves can't simply cover the $2.9 million in aid the school district may lose. The school district used about $3 million to offset last year's tax levy, and must match that to stay level.

"If we assigned about $3 million to our tax levy last year, we need to assign that same amount this year just to stay where we’re at," Carney said. "So we need that $3 million, plus you need that money in your fund balance for any things that could go wrong throughout the year, and you need to build toward the following year."

In addition to a decrease in school aid, a tax cap which has been proposed in Albany (2 percent or the rise in consumer price index, whichever is lesser) would only add to the perfect storm Carney and administrators are preparing for.

Barbara Barosa, representing the Riverhead Central Faculty Association, said that such an equation simply is "not going to work."

"Any service that we cut is going to impact some student, some child, or some family in the community," she said. 

In her presentation, Carney listed several program changes - all with question marks next to them. Among the question marks: 

• Larger class sizes
• Reduction in course offerings
• Reduction in co-curricular activities
• Reduction in sport teams at high school and middle school
• Further reductions in staff

Carney said as she continues to present her budget to the board and public at future board meetings, she will be providing detailed cost analyses justifying where cuts are being made. 

Correction: An earlier version of this article stated that the tax levy increase would be 7.88 percent. That number did not take into account reserves which will decrease the levy.