The Board of Education met last Tuesday night to discuss issues concerning next year’s school budget. President Karen Sloan turned the meeting over to Assistant Superintendent of Business Mary Callahan to explain the financial issues facing the school district. Callahan stated that contributions to the Teachers Retirement System (TRS) and the Local Employees Retirement System (ERS) are expected to be lower this year. However, healthcare costs have risen in an equal amount and offset any benefit from the decrease in pension contributions.
An unknown for the moment is the status of state aid and whether additional aid will be classified as foundation aid or reduction of the Gap Elimination Adjustment (GEA). Since 2009, the state has deducted a portion of each school district’s aid allocation, the GEA, to cover shortfalls in its budget. Although some of these monies have been restored, Callahan estimates that Port Washington schools have lost an aggregate of $6 million in aid since the GEA came into effect. Foundation aid, which replaced operating aid in 2011, is based on, among other things, student need and a community’s wealth ratio. As Port Washington is a high-wealth community, it currently received the maximum amount under the formula and will not be eligible for additional aid if those funds are classified as foundation aid rather than GEA restoration. Complicating matters further is a tax levy limit of 0.66 percent, the lowest since the formula was developed. Ninety-one percent of the district’s revenues are from property taxes and 5.2 percent from state aid verses the average school district in New York, which receives 48 percent of its revenues from property taxes and 39 percent from federal and state aid. The district has also been deemed “susceptible” to fiscal stress by OSC this year. Callahan attributes the reduction in fund balance previously used to support the educational values of the district and the inability to replenish these funds as the
primary reason for the designation. Dr. Kathleen Mooney, superintendent of schools, concluded with a review
of staffing proposals to support growing enrollment, which continues to trend upward.
After the presentation, the board discussed all options on the table, including possibly overriding the tax cap. Trustee Baer, chair of the budget committee, said the district has slowly reached a tipping point, noting the district cannot function without additional money being plugged in whether through state aid or the tax base. President Sloan agreed, emphasizing the importance of the community forum so the board can present all options and get the necessary feedback from all stakeholders for its budget deliberations.
The community budget forum will be held on Feb. 23 at 8 p.m., immediately following the regular meeting of the BOE. All residents are welcome and encouraged to attend.
