Budgeting Insights From A Former Briarcliff BOE Trustee

As a former school board member, I thought it was important to provide some additional insight into Mr. Rubich’s recent letter.

 People should be aware that variable expenses may go down with increasing enrollment, but fixed expense categories may very well go up, such as energy costs, facility upkeep, athletics, and pension. In spite of this, the proposed budget is actually lower than the one voters approved for this current school year.

Explanation of Mr. Rubich’s “facts”:
 
#1 – previous spending of the reserves

• Money put in the tax certiorari reserve is calculated by our tax certiorari attorney and is based upon a formula that takes into consideration what tax certs are expected to settle. This reserve was reviewed within the past month and found to be adequately funded.

• Each reserve is governed by a set of laws and the way money can leave them differs among reserves. The law provides this opportunity so school districts can set aside money for expenses that we know we will have. If we use this money to decrease our tax levy now, we will still have these bills to pay later, and have no money set aside to pay them.

 • Reserve numbers differ from year to year depending upon the needs of the district for that year. (For instance, once our field remediation in completed, we will no longer need to reserve money for that expense.) It is unrealistic to think you can compare any year to any other without understanding what each reserve is meant for.

 #2 – The “cushions”

• Sales revenue – The current budget includes the sale of our school buses, a one-time revenue source. Additionally, a board cannot budget based upon hearsay or a feeling that the economy is going to recover. They have to calculate based upon facts.

• Social Security Expense – This line item must account for not only current employees, but potential future employees as well. It is not a fixed number and a straight formula.

 • BOCES/Contractual/Plant Operations/Supplies – This line has increased because technology purchases have been moved to BOCES to take advantage of state aid. For example copiers, Installment Purchase Agreements (IPA’s) for computers, smart boards, etc.; this part of the budget also accounts for many one time expenses that differ year to year. For next year these items include the need to purchase door locks, the increase in our cleaning contract, the pipe under the HS driveway, asbestos reports, asphalt, duct cleaning and more.

 • A tax compliant budget would require the reductions in programs and staffing – This is not a scare tactic, merely an explanation. The only other place to pull money from would be reserves. To take money out of reserves would require voter approval. This money is “reserved” for actual expenses that we know about in advance. Taking money out of reserves to pay for recurring budget items is irresponsible. The expenses this money was set aside for are real and will have to be paid. If we bond for them (which would also be based on voter approval), it will be like saddling the community with another mortgage to pay for the next 15 years. This debt service will then have to be factored into the budget each year, which will not only increases annual expenses in the long term and but will effect where we are spending our money and will ultimately decrease what we have to put into the actual educational program.

 • Unassigned Fund Balance – This maximum of 4% that NY State allows the district to budget, is only meant for emergency items or for safety and security. This money cannot be used for normal contingent expenses such as spending to hire a new teacher, adding a bus route when new families move into the district or newly enrolled special education children who require services.

 • Prudent Budgeting - Is there potentially a little cushion in the budget to cover these regular contingent expenses that the district needs to cover every year? I hope so! The district cannot spend more than approved by the community in a budget vote. Prudent budgeting involves anticipation of our annual needs. We need to support our educational experts who we have hired to gather the facts and make these judgments.

 Please support our budget by voting YES! And re-elect Jon Satran and Sal Maglietta to the School Board! We need collaborative team players. We need Trustees who will make difficult choices and consider our long-term needs.

 Stacy Agona
 Former Trustee Briarcliff BOE