Shelter Island School Board seeks further budget cuts, more revenues

Having already filed a pledge with New York State not to go above the 2% mandated tax cap with its 2023-24 budget, the Shelter Island Board of Education got a look at proposed spending cuts.

“I think we’re in really good shape,” said Superintendent Brian Doelger, Ed.D., at the March 1 budget session. He outlined recommended cuts totaling $75,180. If those proposed cuts are sustained, another $48,078 must be found through a combination of additional cuts, potential revenue increases, or transfer of more money from reserves.

With the deadline to inform the state of any possibility of piercing the tax cap now passed, it’s certain the district will take steps necessary to account for that $48,078.

The proposed cuts are:

• A $35,000 savings for a half-time staff member to be hired when full-time band teacher Keith Brace retires at the end of the current school year.

• An anticipated $25,000 savings by minimizing any increase to special education costs. That recommendation came to the Board with the reminder that special education spending is based on individual education plans developed for each special education student and those plans are mandated.

A change in a current special education student’s needs or a new special education student transferring into the district can result in an increase in spending.

• A $15,180 cut from a freeze or minimization of increases in the existing budget from savings in overtime, cafeteria transfers and utilities spending.

As for increased revenues, the proposal for state educational aid is currently expected to be $694,128, which is $10,508 more than received for the current school year. Traditionally, the state Legislature increases the governor’s request so there is potential for more money to reach the district.

There is anticipation to use $60,000 in fund reserves, but that, too, could be increased if needed. The state allows districts to create specific reserve funds, which Shelter Island has done for projects such as upgrading its aged septic system.

Many districts have such assigned reserve funds to purchase school buses. By putting money into that specific reserve fund each year, when a bus is needed, the district doesn’t have to have a spike in spending to pay the full cost in a single year.

But aside from such specific reserve funds, the state puts a 4% cap on a district padding its budget above planned spending needs, with that money to be used for unanticipated shortfalls in revenues or increases in spending.

In the 2018-19 school year, the district was ordered to reduce what was then a $770,556 unreserved fund.

The district has steadily reduced that number to $650,000.

For large districts, the allowed 4% unassigned fund balance can be substantial. For small districts like Shelter Island, a 4% appropriated fund balance can be crippling with a single major unanticipated expense.

The alternative for a district without a sufficient appropriated fund balance is to return to taxpayers after a budget has been approved, for permission to raise more money than previously approved.

At the March 13 budget session, the Board of Education will be examining a line-by-line budget proposal in search of other adjustments that could reduce spending further. The line-by-line look will also include any changes in anticipated revenues that could account for fewer cuts needed to balance next year’s budget.

There is still time for the public to have a voice in the final budget proposal at that meeting. The Board of Education votes to adopt a budget proposal on April 5.

A budget hearing is set for May 8 to explain the proposal, but that comes too late to change the plan.

On May 16, voters get the final word at the polls when they cast ballots at the school between noon and 9 p.m.