Education

School board: District faces rising costs from state programs, health insurance next year

Not many schools have to spend money on both bussing and ferriage. Business Leader Sam Schneider reported that the total cost of the Island students’ two forms of transportation is staying about the same in the 2011-2012 budget.
TED HILLS PHOTO | Not many schools have to spend money on both bussing and ferriage. Business Leader Sam Schneider reported that the total cost of the Island students’ two forms of transportation is staying about the same in the 2011-2012 budget.

The Shelter Island School District will have to cope with increased costs in the 2011-2012 school year from state-mandated programs and the school’s health insurance provider, along with other programs, according to Business Leader Sam Schneider’s presentation at the School Board’s February 1 budget workshop. Though those rates are increasing, teachers’ base salaries for next year will remain the same until a new teacher’s contract is negotiated.

PENSION, INSURANCE INCREASES

The school is projected to contribute an additional $190,607 to the Teacher Retirement System (TRS) and Employee Retirement System (ERS) over what was budgeted for this year. The TRS system includes teachers and licensed administrators and the ERS includes all other school employees.

The district will pay 15.9 percent of an employee’s gross salary into the Employee Retirement System (ERS) rather than the 11.4 percent that was required this year. This constitutes a total increase of about $70,000 over what was budgeted in 2010-2011. Projections for Teacher Retirement System (TRS) contributions are up too, from 8.62 percent to 11.5 percent, about $120,000.

School Board President Rebecca Mundy described the increases as a “victim of the economy.” The school’s contribution rates are tied to the performance of New York State Comptroller Thomas DiNapoli’s investment of those funds. “When their returns are good, they don’t ask for much for contributions, but when their returns are bad the contribution rate goes up,” explained Mr. Schneider.

He noted, “During the dot com era, when Wall Street was flying high, the contribution rate [for the ERS] was one tenth of one percent.” At the same time, the TRS contribution rate was around one half of one percent.

The school’s medical insurance provider, East End Health Plan, has indicated that there will be increases in medical insurance that will require the school to budget for about a $170,000 increase, Mr. Schneider said.

The rising costs for the district paint a dismal picture for the school’s 2011-2012 budget in light of recent proposed cuts in state aid (see sidebar story).

TEACHER SALARIES

The teachers’ current contract expires on June 30, 2011. Teachers will not see any change next year in their base salaries from the current levels unless a new contract is negotiated that gives them a change. Negotiations have not yet begun for the teachers’ contract.

The negotiations for custodial and school related personnel contracts are currently at an impasse — a mediation session is scheduled for March 9.

According to the presentation, for teachers, “step increases” will continue, but base salaries will not change from 2010-2011 levels.

The proposed figure in the budget for teacher and administrative salaries is $3,704,264, though the administrative portion of that budget ($278,000) will likely change when a new superintendent is hired for the 2011-2012 year this spring. The proposed amount is about $120,000 less than was budgeted for this year.

An approximately $109,000 reduction in the administration line included the removal of a full time position, Mr. Schneider said. The district eliminated the assistant superintendent position after Donna Guiffre resigned last year.

The board also reviewed the total transportation cost of about $482,000, which includes a proposed $401,590 to bus students and $80,200 to ferry students. The total cost is about the same as was budgeted for this year.

The cost of athletics has increased, too, from this year’s budget of about $159,000 to about $172,000. The increase comes largely from an increase in the cost of game officials and membership in various coaches’ organizations that make students eligible for awards.

No members of the public not employed by the school were present at the workshop, though some folks are likely watching from home — the workshops are being broadcast on Channel 22. Check the “Channel 22” tab of the town website to view broadcast times.

To view the Powerpoint slides that were presented during the workshops, click on the business tab on the school website and look for the “Budget Workshop” files at the bottom of the page.

The board encourages those with questions to contact  interim Superintendent Robert Parry  at 749-0302, extension 408, or by email at [email protected]; or Mr. Schneider at 749-0302, extension 537, or by email at [email protected].

This was just the first of a series of budget workshops during which the board will put together the 2011-2012 school budget — there are another three workshops scheduled. The next is set for February 28, when the board will discuss special and occupational education, health services, charter and special schools, teaching instruction and psychological services, among other topics.