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2009-10 School Budget Vote TODAY, May 19th from 2 to 9 pm in the BMS Cafeteria Board adopts lowest budget increase in 17 years as difficult economic times challenge school districts - 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 discussion at each public Board of Education meeting since January 13th, as well as at a special Budget Workshop on Saturday morning, March 14th. As a result, at its April 21st Special meeting, the Board of Education voted to present a proposed 2009-10 budget of $27,191,095 to the voters for their consideration and approval. The proposed budget represents an expenditure increase of 3.43%, more than 2.5% below the 2008-09 budget increase approved by the voters in May 2008 and the lowest budget-to-budget percentage increase in 17 years. Initial budget draft projection of 6.81% spending increase “unacceptable” to Board - 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-than-anticipated 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 felt strongly that such a tax levy increase was unacceptable. District cuts $889,983 in costs; 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 its 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 reviewed approaches to tap the District’s fund balance to help moderate the tax impact of the spending plan it adopted on April 21st. Modified budget grows spending 3.43%; tax levy impact estimated at 4.75% - At their meeting on April 21st, the Board adopted 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, 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, and reduced the budget by an additional $266,439, representing all of the first tier of potential cuts requested by the Board several months ago. The Board also agreed to apply additional fund balance to further reduce the estimated tax levy increase to 4.75%. Proposed budget lower than State contingency spending limit - It is worth noting that the proposed budget is already lower than next year’s State contingency spending limit of 4%. In the interest of maintaining local community control over budget expenditures and broad-based community use of school facilities, as well as saving the cost of a second vote, the Board has indicated that if the proposed spending plan does not receive voter approval on May 19th, it intends to adopt a contingent budget, as allowed by law. State law requires a contingent budget that eliminates spending on equipment and student supplies, for a total reduction of an additional $89,588. Under contingency, Education law also requires school districts to charge a fee for use of school facilities by any individuals or groups seeking to do so. This contingent budget would result in a spending increase of 3.09% and an estimated tax levy increase of 4.34% We encourage all qualified voters to exercise their right and responsibility to participate in the school budget vote and Board of Education member election to be held in the Bulkeley Middle School cafeteria from 2:00 to 9:00 p.m. on Tuesday, May 19th. Please feel free to contact your School Board members or administrators with any questions you might have. Thank you for your interest in, and your ongoing support of, the Rhinebeck schools. Sincerely, Elissa Cascio, President 876-1578 ecascio@hvc.rr.com Paul Slayton, Vice President 876-6609 pslayton@hvc.rr.com Trustees - Deirdre Burns 876-0376 dburns12@frontiernet.net Mark Fleischhauer 876-5311 mfleischhauer@citlink.net Karen Hatter 876-7833 kmhatter@aol.com Laurie Rich 876-6330 lrich@frontiernet.net Dean Vallas 876-7569 vallasd@gmail.com
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