School Tax Levy Up Slightly
The Hoosick Falls School Board held a budget workshop on Friday evening May 15 to discuss whether or not to make adjustments to the budget it constructed a month ago because of the expected effects of the pandemic. Superintendent Pat Dailey said there have been no emergency cuts yet, so State aid figures remain as they were when the budget was formulated last month. But Governor Cuomo has made clear that if the Federal government does not provide substantial financial aid to the states to help them with the devastating effects of the pandemic on their budgets, there will have to be drastic cuts to education funding. Recent State projections show a shortfall of 13 billion dollars in revenue this year and also increased costs related to the pandemic. Dailey said Cuomo has held off from announcing school budget cuts because he is hoping the Feds will help. But if that help is not forthcoming, Cuomo has been warning that school aid is likely to be cut 20% or more.
Although there is enormous uncertainty about what the next year or two or three will bring for the District’s finances, Business Administrator Emily Sanders bravely presented a projection of the District’s financial picture over the next three years. She began by saying she expects a $600,000 surplus by the end of this year, which will help offset any mid-year cuts that the State may implement. But to the extent that cuts exceed this surplus, the Board would have to choose between cutting expenses or using reserves or some combination of the two. She said the District can probably get through one bad year using reserves, cutting supplies budgets, and shrinking staff by attrition (not replacing those who retire or leave the District’s employ for whatever reason), but if State aid is reduced over a period of multiple years as it was in the 2008 crisis, the Board will get to a point where it will have to choose between substantial tax levy increases or substantial staff layoffs.
Given the strong possibility of a multi-year financial squeeze, the Board opted to amend its budget to include a tax levy increase of 0.98% rather than the 0% that was contemplated in the budget assembled a month ago. Dailey said that is only half of the allowable tax levy increase under the tax cap, and “less than 1%,” and he hopes voters will understand that it is a necessary step to prepare for a difficult period in the District’s finances.
The Board did not make any spending cuts at this meeting, but did throw out some ideas for the things that might be cut if necessary – the School Resource Officer, the CDC vocational training program, sports, extracurricular activities. Dailey mentioned that some big school districts in the Capital District have already announced significant staff layoffs. While nothing like that is in the picture for Hoosick Falls at this time, Dailey said he wants to consult the Teachers Association leadership to get its input on how it would like the Board to handle it if a financial crisis does come to this District.
The Board will adopt next year’s budget at its meeting on Thursday May 21 at 5:30 pm, which will be live-streamed over the internet. Check the school website for information on how to watch it. Dailey said the budget newsletter will go out on May 27 with all of the specifics about the budget. The budget vote is to be Tuesday June 9.