Port Jefferson School Board Adopts $37.3 Million Budget

On Tuesday night the board of education adopted a $37.3 million budget representing a zero increase in the dollar amount from last year’s budget.

The new budget means an 8.93 percent increase in the tax rate for homeowners in Port Jefferson. According to Mark Flower, assistant superintendent for business, the increase will result in a rate of $131.55 per $100 of assessed value. For a home with a market value of $632,000, the annual increase translates to about $543 for the year.

Even thought the dollar amount remains the same, coming up with a budget with no increase from last year still meant finding savings and making cuts of $2.7 million to offset mandated increases in contracted pay, benefits, transportation and special education costs.

According to a presentation by the budget advisory committee, salary increases represented a jump of a little over 3 percent year over year translating to a rise of $569,511. Benefit obligations increased by almost 11.5 percent or $1,005,918. Other increases came from transportation at about 31.5 percent increase or $569,511 and special education costs rose 39.75 percent or $561,669. (See chart below.)

To rollover the same exact budget without cuts would have meant a budget of $40,070,731 or a 7.27 percent increase over last year’s budget. To achieve a flat budget the board had to decide where to cut the extra money.

“The savings was achieved by adopting the approximately $2.2 million in non-instructional cuts identified through the work of the budget advisory committee and an additional $500,000 in non-instructional and administrative personnel cuts,” said board of education vice president Mark Doyle.

The non-instructional cuts come from a list 23 items of everything from library supplies to chaperones. (See chart below for full itemization of non-instructional cuts.)

Superintendent Max Riley said that by cutting the $2.2 million in non-instructional items, no teacher layoffs would be generated.

“Nevertheless, it is a budget that is the same as this year and therefore will not completely cover–even with the $2.2 million reduction–all of the increased costs of carrying this program forward into next year,” he said. “I do expect some teacher, and other employee group, layoffs–albeit fewer than were planned under other budget scenarios the board has discussed.”

Riley said that his staff is analyzing the adopted budget to advise the board of education on the number of reductions that will be needed.

This year’s budget is built on no appropriated funds or money from reserves, unlike last year’s budget that had $1.75 million appropriated fund balance and $550,000 from reserves. Keeping the approximately $2.3 million in reserves is one reason why the tax rate increased by 8.93 percent this year even thought the budget is essentially flat.

“As part of the budget adoption the board has decided not to apply any appropriated fund balance or use any reserves as revenue at this time in the 2011/12 budget,” said Flower. “The plan is to use these funds in the future to help buffer the potential impact from LIPA.”

Before adopting this budget, some of the other scenarios considered by the board had included between 5 and 7.5 percent reduction in the budget over last year. A major step in reducing the budget in those proposals included the cutting of the school day down by one class period in the high school and the middle school.

Ultimately the board decided that eliminating one instructional period in the day was too large a cut at this time although Doyle did said that the board is considering the uncertainty that comes into play with the looming LIPA tax certiorari action. He said that they decided that they didn’t want to make large cuts to school programs just yet.

“The board, however, has asked the administration to make further proposals for modest cuts in the instructional program which would further reduce spending,” Doyle said.

Before the May budget hearing, the board seeks to identify a specific set of program changes that may be affected by cuts.

“In addition, the board will continue its work on creating additional scenarios to deal with a range of possible impacts from LIPA,” said Doyle. “These scenarios would likely start by implementing many of the larger instructional cuts that were set aside for now.”

A budget hearing where copies of the adopted budget will be available will be held at Earl L. Vandermeulen High School on May 10, 2011 at 7 p.m. The budget vote will be at the high school on Tuesday, May 17, 2011 between 6 a.m. and 9 p.m.

Courtesy of Port Jefferson School Board Budget Advisory Committtee