How was this budget developed?
The release of Gov. Andrew Cuomo’s proposed state budget in February brought sobering news: The district might lose $1,252,347 in state education aid. This, coupled with increases in expenses relating to employee benefits, left a potential $558,755 gap in foundation aid to fill in the 2011-2012 budget.
So, the district began to plan for a
“worst-case financial scenario,” weighing revenue options and working in
concert with the Board of Education — and with input from the Budget
Advisory Committee and two community budget forums — to identify
potential cuts while making the least-negative impact on district
educational programs.
In April, the Legislature adopted a state budget that reinstating
$139,098 in aid to BKW, reducing the number of cuts the district would
have to make to fill the budget gap.
On April 11, the Board of Education unanimously adopted the proposed 2011-2012 budget.
The proposed budget calls for a 6.5% spending increase. On what budget items is the district increasing spending?
Spending increased for debt payment, employer contributions to the state employee retirement system, and health coverage for employees.
What am I voting on?
= A $20,917,977 budget for the 2011-2012 school year, which carries a 3.51 percent tax levy increase
= Two seats on the BKW Board of Education
= Bus proposition for the purchase of up to three buses, at a cost not to exceed $230,000.
What is the importance of a school district’s fund balance?
School districts see great value in maintaining adequate financial reserves in case of emergencies that could otherwise close a school building or restrict the district’s daily operations.
With schools entering this year’s budget development process faced with numerous challenges, Gov. Cuomo has repeatedly suggested that school districts use fund balances to cover potential losses in state aid.
School districts can use their fund balances to make up for lost revenue or offset the local tax levy. School districts that have maintained a fund balance at or near the state maximum of 4 percent of their total budgets have been able to use that money to save jobs and programs and to avoid a large spike in their tax levies.
BKW plans to use $1 million from its fund balance and an additional $200,000 in excess Employee Benefit Accrued Liability Reserve to offset the tax levy.
The proposed budget calls for using $1 million of the district’s fund balance as revenue. Will that completely deplete the district’s reserves?
No. The district will be left with a fund balance estimated at about 4 percent of the proposed budget, or $836,719.
For more Budget Q&A, see our Community Forum Q&A and Q&A: Taxes and Contingent Budget
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