Despite the $3.8 million gap between expected total revenues of $75,668,343 and the proposed $79,470,000 school budget, voters will see a tax cap-compliant budget for the 2014/2015 school year, according to Board of Education president Laura Slack.
By Sarah Varney
Despite the $3.8 million gap between expected total revenues of $75,668,343 and the proposed $79,470,000 school budget, voters will see a tax cap-compliant budget for the 2014/2015 school year, according to Board of Education president Laura Slack.
“But that doesn’t mean a tax cap override vote might not be an option for 2015/2016,” Slack added. In 2012, Board Vice President Ray Schmitt stated that the District would not seek an override vote for five years, a promise that many Rye citizens remember.
“Fiscal circumstances have changed since then,” remarked Slack. “Several years ago, we certainly did not expect state mandates and enrollment growth to so far exceed the inflation rate as it affects the tax cap.” At the March 25 Board meeting, an override vote in the future was discussed only as an “alternative.”
The possibility of a “tax override” vote raises alarm bells for many Rye residents, particularly longtime citizens who don’t have children in the public schools. However, the combination of tax cap constraints coupled with rising enrollments may make an override vote necessary a year from next May, according to several other School Board members who commented on the possibility at the meeting.
The contribution from property taxes is projected to be $69,989,093, based on a 1.64 percent tax levy increase. Non-tax revenue is $5,679,250.
Current enrollment for the seven schools is 3,210; projected enrollment for the 2014/2015 school year is 3,377 students.
In addition to more students, the District is facing the “issue” of new space. The new science wing, slated for completion in August, will add four new classrooms necessitating four new high school teachers, notes Dr. Frank Alvarez, Superintendent of Schools. These and other costs add up to a $1.5 million increase in school-related costs.
The gap between what is expected from property tax levies and the budget is currently $3,842,507. But more aggressive budget cuts are also necessary to close that gap argues Bob Zahm, a school parent and former board member. “If they were serious about making cuts, they could. Right now, they [the board] seem to be just accepting what the district has put before them,” said Zahm.
Martin Gerson, a longtime Rye resident who just put his house on the market, agrees that the city is constrained by the tax cap, but wonders about the effects of increasing class sizes to skim money from the budget. “I’m not sure on the class size issue. Adding four more kids, especially at the elementary school level, might not be a big deal,” he said.
But fellow longtime resident Jack Zahringer isn’t bothered by the possibility of an override vote in the future. “I’m not against it. I have a grandchild graduating [from Rye High School] this year,” he said.
At the same time, there is a limit on the money that people have available for taxes, he allowed. “We have to be careful. There is a bottom to the bucket and we can’t do everything that parents want,” he added.
A proposed utility tax would also defray the gap, but the approximately $900,000 it could generate for the 2014/2015 school year may not be a realistic solution. “A utility tax is on the table, but it won’t be enough going forward,” said Board member Chris Repetto.
But even with the utility tax and budget cuts, an override vote is likely. “I think they’re going to have to go to an override,” acknowledges Zahm.
There won’t be an override attempt this year because the District doesn’t have its ducks in a row for a vote. “The School District is going to have to ask the community to override the tax cap this year or next,” said Board member Karen Belanger. “Personally, I believe we should wait till next year for an override vote. For this year, we can find an additional revenue source in a utility tax. We can also ensure that taxpayers who may be able to benefit from the Governor’s so-called “tax freeze” proposal can get their check in November.”
The tax freeze item in the New York State budget for 2014/2015 calls for a budget provision that would use state monies to rebate homeowners two percent of their property tax bills before the election in November. Only tax-cap compliant communities and schools districts will be eligible for rebates.
