Budget Planning Begins with Reported Revenue Reductions
As the month of March begins, the school district budget planning process is well underway. The two sides of the budget picture –appropriations and revenue—are being carefully analyzed throughout the process. The appropriations or expense side of the budget is the side where we do most of our work. The revenue side is not within our control. In fact, credible information about revenues from the state is typically given to us late in the budget development process or even after voters have adopted a budget.
The projected revenue picture consumes the story of our budget planning for the 2008-2009 school year. Residents have already heard about the FAIR Plan sales tax revenue reductions that we are facing. We’ve reduced our current-year budget by almost $1,000,000 to balance our budget after the County’s mid-year reduction in sales tax revenue. For the 2008-2009 school year, the sales tax revenue reduction is almost double, amounting to $1,924,000.
Coming on the heels of that news is the Governor’s budget proposal. In it, the Governor fails to keep his promise of predictable aid for schools. Last year, at this time, the governor’s plan indicated Pittsford would receive $1,828,000 increase in state aid during the 2008-2009 year. His current aid package for the Pittsford Central School District results in significantly less Foundation Aid (or operating aid) than was promised last year. The Governor’s proposed budget also changes the formula for BOCES aid resulting in a decrease of almost 50%, or $942,000, for Pittsford. It should be noted that some local districts will actually see increases in BOCES aid. In fact, Pittsford stands alone as the only local district to show an overall reduction of $141,000 in all State aid, excluding building aid.
Therefore, in Pittsford, we are now forced to examine cuts in expenses to try to offset the loss in revenue and to mitigate the impact of known increases (such as fuel and heating costs, contractual agreements, health care, and the like) in expenditures on the tax levy. As a result of this revenue picture, the Board of Education charged the administration with identifying two different budget scenarios: one that reduces the budget to the expense level allowable by the state as a “contingency” budget and another that reduces expenditures to a level below contingency. In preparing these scenarios, the District Planning Team (DPT), in its role as budget advisory committee to the Superintendent, has been consulted. On February 28, DPT members reviewed various potential cuts to a number of cost centers. Their feedback will be considered in drafting a list of potential reductions for consideration by the Board of Education at a Budget Work Session.
On April 21, the Board of Education will adopt a proposed budget to place before the voters in May. That budget will undoubtedly include reductions to our current program. As adoption date approaches, we will be advocating for restoration of BOCES aid, for the Governor to keep his promise for a record increase in aid for Pittsford, and for restoration of sales tax revenue from Monroe County. No other local district has been hit as hard as Pittsford has with potential revenue reductions.
Residents are encouraged to attend budget planning sessions (a schedule can be found on the District website), take time to read the materials mailed to your home, and vote on May 20, 2008. -XXX-
