Despite the challenges of developing a budget for the 2009-10 school year in a climate of fiscal crisis and uncertainty, the Rhinebeck Central School District’s administrators, staff and Board of Education members have been hard at work on this task for the past several months. The topic has been an agenda item and topic of conversation at each public Board of Education meeting since January 13th, as well as at a special Budget Workshop on Saturday morning, March 14th.

Initial budget draft projected 6.81% spending increase; Board said, “Unacceptable”:

The administrative team initially presented the Board with a “fixed cost” budget draft that included expenditures resulting in a 6.81% spending increase. This “fixed cost” budget included all current and anticipated expenditures mandated by law, regulation or contract. It also included increases for required special education services and contractual salary obligations, mitigated somewhat by increases to employee contributions for health insurance benefits and lower debt service payments.

Expenditure reductions were realized by eliminating two teaching positions due to an anticipated decrease in student enrollment, one from this year’s fifth grade and one, along with a teacher aide position, from next year’s kindergarten grade. Other significant cost savings were derived from: a) a decrease in the anticipated health insurance rate hike of 7% to an increase of only 2%; b) State Teacher Retirement System contribution rates decreasing from 7% to 6.2%; c) the elimination of one home-to-school bus; and d) savings from several employee retirements.

The Board also has been working to estimate the impact of the potential spending plan on the tax levy. The District anticipated a significant revenue shortfall, due to a projected loss of $533,000 in State Aid and $160,000 in interest income. Thus, as a starting point, a “fixed cost” budget of 6.81% would have resulted in an estimated tax levy increase of 11.06%. The Board of Education acknowledged that such a tax levy increase was unacceptable.

District cuts $889,983 in costs, while NY State restores $338,061 in aid:

In addition to the cuts made to the original “fixed cost” draft budget, the Board asked district administrators to develop a series of potential reductions for their consideration in further modifying the District’s spending plan for 2009-10. As a result, the building principals, directors, and district administrators developed, revised and updated three groupings, or “tiers,” of potential budget reductions. These potential cuts totaled $266,439 in Tier 1, an additional $202,859 in Tier 2, and an additional $223,219 in Tier 3, with an escalating impact on the District’s programs with each ascending tier.

Fortunately, $338,061 in State Aid to our school district was restored as a result of recent budget decisions in Albany that utilized Federal stimulus monies. This has helped the District avoid the need for more significant staffing and program reductions this year. In conjunction with this State budget restoration, the Board of Education also has been reviewing approaches to tap the District’s fund balance to help moderate the tax impact of the spending plan it will adopt on April 21st.

Modified budget grows spending 3.43%; tax levy impact estimated at below 5%:

At their meeting on April 14th, the Board reviewed a modified budget proposal that would increase spending by 3.43%. This budget draft included $48,000 for the proposed MTA payroll tax currently being debated by the New York State Legislature. It removed $150,985 in Title I and Special Education IDEA expenditures from the general fund budget to be funded by an increase in Federal grant monies. It also reduced the budget by an additional $266,439, representing all of the first tier of potential cuts requested by the Board several months ago.(Copy and paste the following link into your browser to view the list of Tier 1 cuts by program: http://www.rhinebeckcsd.org/photos/alerts/Tier%201%Cuts%204-14-09.pdf). The Board also agreed to apply additional fund balance to further reduce the estimated tax levy increase to under 5%.

We’d like to hear your thoughts and input:

The Board is scheduled to make its final budget decisions at a special meeting on Tuesday, 4/21 at 7:30 pm, after a budget hearing at 7:00 pm that evening. The public vote on the District’s 2009-10 budget is scheduled for Tuesday, 5/19, from noon until 9:00 pm.

Please contact your Board members (contact information is listed below) with your thoughts on the factors, considerations and scenarios being discussed as they attempt to finalize and adopt a budget and tax levy in these difficult fiscal conditions that maintains the integrity of the District’s programs and support systems. Your input is encouraged, welcomed and appreciated.

Elissa Cascio, President, 1 Libera Court, Rhinebeck, NY 12572 E-mail: ecascio@hvc.rr.com Telephone: 845-876-1578

Paul Slayton, Vice-President, 4 Libera Court, Rhinebeck, NY 12572 E-mail: plsayton@hvc.rr.com Telephone: 845-876-6609

Deirdre Burns, Trustee, 32 Chestnut Street, Rhinebeck, NY 12572 Email: dburns12@frontiernet.net Telephone: 845-876-0376

Mark Fleischhauer, Trustee, 146 Rhinecliff Road, Rhinebeck, NY 12572 E-mail: mfleischhauer@citlink.net Telephone: 845-876-5311

Karen Hatter, Trustee, 168 East Market Street, Rhinebeck, NY 12572 E-mail: kmhatter@aol.com Telephone: 845-876-7833

Laurie Rich, Trustee, 238 Zipfeldburg Road, Rhinebeck, NY 12572 E-mail: lrich@frontiernet.net Telephone: 845-876-6330

Dean Vallas, Trustee, 37 Wynkoop Lane, Rhinebeck, NY 12572 E-mail: vallasd@gmail.com Telephone: 845-876-7569

Joseph L. Phelan, Superintendent, PO Box 351, Rhinebeck, NY 12572 E-mail: jphelan@rhinebeckcsd.org Telephone: 845-871-5520

Thomas Burnell, School Business Official, PO Box 351, Rhinebeck, NY 12572 E-mail: tburnell@rhinebeckcsd.org Telephone: 845-871-5520