School District needs cuts or income to meet tax cap

The Board of Education (BOE) is nearing its goal of creating a budget that won’t go above the state-imposed 2% rise on spending.

At Monday night’s budget workshop Superintendent Brian Doelger, Ed.D., announced in his review of the draft budget, and talks with board members, he had come within $37,587 of meeting that goal.

As it currently stands the draft budget is at $12.4 million, representing a 2.14% change from the current school year spending plan of $12.15 million.

A few weeks earlier, the BOE was looking at the need to slash $70,000 from the draft budget to meet its goal. Now Mr. Doelger thinks he has a road map for what to cut and where more money might come to the district.

He and the BOE still have to contend with some increases in spending that hadn’t been solidified until now, such as an increase of $4,867 for busing students. That resulted from transporting some students to private and parochial schools off-Island, the superintendent said. Because of the COVID pandemic, the board opted to use larger buses for the safety of students, which raised the cost.

A second increase of $7,128 results from the cost of retiree health insurance rates. The change is in line with contractual mandated expenses, Mr. Doelger said.

On a positive note, appropriations for off-Island special educational placements for students will cost $26,275 less than anticipated, due to an anticipated decrease in the number of students who will need such services.

Another reduction of $18,333 for a teacher aide results from changes in anticipated assignments, the superintendent said.

Looking ahead, Mr. Doelger and Board members will be scouring the budget line by line for places where money could be saved. The superintendent will also be closely watching actions of the New York State Legislature for increases in aid.

In past years, the legislature has traditionally added money to the budget request drafted by Gov. Andrew Cuomo.

Because of costs associated with the COVID pandemic, additional money was in doubt until this week, but with the latest federal aid coming to the state, it appears to be more likely, Mr. Doelger said.

In response to questions about the school district’s compliance with changes ordered by the New York State Comptroller’s Report, Mr. Doelger had responded partially last week.

But he has now provided more details.

A major concern in the report issued last spring was an unassigned fund balance that was supposed to be capped at 4% of the adopted budget. Such funds could be used to reduce taxes; fund one-time expenditures; pay off reserves; or pay off debt.

In August 2020, the BOE transferred unassigned funds in excess of the cap to specific assigned funds that would help provide for activities in the district. Money was transferred into a repair reserve fund and that money will provide funds needed for the district’s new septic system. The cost of that project, set to begin this summer, will be the topic of a future public discussion.

“We will be able to modernize our building’s waste management system without impacting the tax rate,” Mr. Doelger said.

In the 2018-19 school year, the BOE created a Teachers Retirement Reserve, funding it with $89,928. At the same time, the district has created three other reserve funds, including moving $35,000 from the unassigned fund balance to an Employee Benefit Accrued Liability as required by the Comptroller’s Report, Mr. Doelger said.

Another requirement was to create annual budgets with “reasonable estimates for appropriations.” There have been several changes in district business managers, but now Mr. Doelger said he takes responsibility for budgets and implemented tight controls drafting the current year’s budget. Expenses that were not incurred because the COVID pandemic canceled some programs was something that could not have been foreseen.

Some money had to be directed to providing more iPads for students to use when classes were held virtually. The district purchased the equipment at the start of the pandemic when it was thought that more distant learning would be necessary.

But because of changes made in the building — high quality HEPA filters in every room, hand washing stations and increases in building maintenance, Shelter Island has had fewer virtual learning days than any Long Island school district. Money intended for canceled programs of necessity had to be redirected to these efforts.

Similar budgeting efforts are underway in creating the 2021-22 school year spending plan to tighten estimates of money needed to reinstate programs and activities. Mr. Doelger said he believes voters on May 18 will pass the new budget due for adoption by the BOE by April 12.

A requirement to annually report to the BOE a complete record of the status of reserve funds is ongoing, the superintendent said. Working with an external auditor, that information is being provided and made the subject of discussions of each reserve fund with the Board’s Audit Committee.