March 25, 2015
Cortland plans 2.26% hike in school tax levy
Property owners paying school taxes within the Cortland Enlarged City School District are likely to see a2.26 percent tax levy increase after the Board of Education’s first look Tuesday at the district’s proposed budget.
The 2015-16 fiscal year budget stands at $50.7 million.
The tax levy increase means residents will have to pay about $375,000 more next year in taxes. The tax levy is the total amount of local property taxes collected to help fund the budget.
At the meeting, Interim Director of Business Services Margaret Boice briefly outlined the district’s anticipated expenditures and revenues as it struggles to close a $2.7 million shortfall and awaits the passage of a state budget.
Boice said as it stands, residents could see a tax levy increase of2.26 percent, or an increase ofabout 41 cents per $1,000 of assessed property value across the district.
“The tax levy (percentage increase) ... is the lowest it’s been in the four years of your calculation,” Boice said, addressing the board. “The 2.26 percent increase would result in a $375,000 increase in your levy.”
Preliminary figures also indicate the district would spend around $50.7 million in the upcoming school year and the district anticipates generating $43.6 million in revenues resulting in an anticipated budget gap of about $7.2 million.
But the district has $4.5 million in its reserves it plans to use to help offset the difference between revenue and spending.
By considering its options, Boice said the district could find another$1.9 million to balance the budget,reducing the overall gap to $796,458.
“We’ve been looking at many, many different areas of expense and revenue” to fill the $1.9 million gap, Boice said.
She said the district is considering savings in salary costs through attrition, or not filling a job when someone resigns or retires. Boice said the district may also not fill some staff requests.
Boice also noted the district is waiting on the state to pass its budget this year because that will determine how much state aid the district receives.
The district received $24.3 million in state aid for the 2014-15 school year.
The district had anticipated receiving $24.8 million in state aid for 2015-16. But Boice said as of Tuesday, there is no indication of how much state aid the district will receive, let alone if it will be enough to close its budget gap.
“One week before the end of the state fiscal year, (we) still don’t know what our state aid revenue will be for the 2015-16 school year while we’re trying to put a budget together,” Boice said. “We’re anxiously awaiting word on the state budget in hopes that that gap will be mitigated.”
This is also the seventh year of the gap elimination adjustment — a state takeback of financial assistance to schools, which districts across the state have to deal with. The Cortland school district has lost a total of morethan $8 million to date, Boice said.
Another meeting will be held onApril 14 and the board will have to finalize a budget by April 20, its last meeting day that month before a special meeting to pass a budget is needed.
“We’ve got a lot of work to do in a short amount of time,” Boice said. “We have to adopt a budget and put it to the voters. We do have another meeting coming up. Hopefully, we’ll have a budget by then so we’ll be able to talk a little more sensibly about where we’re at.”
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