Superintendent Presents Tax & Budget Overview

Huntington School District executives are already at work developing a budget to fund operations during the 2014/15 school year. Officials are tracking potential increases in costs and planning for the possible reinstatement of the full-day kindergarten program.

Superintendent James W. Polansky presented a preliminary overview of next year’s budget during a public meeting of the Huntington School Board last Monday night. Should trustees decide to restore full-day kindergarten, the district might have to reduce other spending by nearly $1.5 million.

Restoring full-day kindergarten and continuing other programs currently in place would require a spending increase of $3.65 million or 3.18 percent. However, to meet the state’s tax cap, Mr. Polansky said officials currently estimate spending can increase by just $2,200,798 or 1.92 percent, requiring a $1,449,202 “adjustment” to discretionary costs.

“Our most significant challenge is that it appears the tax levy limit will be below two percent for 2014/15, as the limit threshold is set at the lower of two percent plus allowable exclusions or the rate of inflation plus exclusions,” Mr. Polansky said. “As of now, the average consumer price index growth for 2013 has the potential to settle in at less than 1.6 percent.” (CPI is a measure of inflation.)

The restoration of a full-day kindergarten program carries a price tag of $980,000. Mr. Polansky said the district is also tentatively budgeting for an eight percent increase in premiums assessed by the state health plan provided to district employees, which will drive up costs by about $900,000. The district expects costs for its contractual salary obligations to increase by $600,000.

Districts all across the state are grappling with continued increases in the mandatory contribution rate assessed by the New York State Teachers Retirement. Huntington’s TRS tab is expected to climb by another $750,000 in the next fiscal year.

A budget that meets the state’s tax levy cap would result in a tax rate increase of 2.40 percent based upon the current estimate. The district expects assessed valuation to decline by another $300,000, which equates to a loss of more than $650,000 in property taxes. Current budget planning assumes state aid will remain flat.

Revenues from state aid, fund balance, use of dedicated reserve funds and fees for building use by outside groups are projected to grow by $500,000. “Should we receive additional state aid over last year’s figure, it would have a positive impact,” Mr. Polansky said.

Trustees will be given a draft budget developed by district executives in late February. A series of four public budget meetings dissecting the draft plan will be held on March 3, 10, 24 and 31. The budget will be adopted by trustees on April 7. A public hearing on the adopted budget will be held on May 12. Residents will vote on the budget on May 20 at Huntington High School from 6 a.m. to 9 p.m.