Scarsdale Administration Provides Preliminary Estimate for 2014-15 School Budget

Assistant Schools Superintendent Linda Purvis provided the community with an early look at the numbers for the 2014-15 Scarsdale School Budget at the BOE meeting on Monday night November 18. In an effort to assess community opinion early in the process and avoid a repeat of the 2013 budget showdown, the current Board asked the administration to give their best estimate of what could be in store for the spring.

Purvis explained that the adjusted tax cap for the coming year will be 2.66% and according to current estimates, a rollover budget for 2014-15 would be 2.2% above this year's budget, exceed that cap by $900,000, and mean a 3.1% tax increase over 2013-14. A rollover budget would maintain the current educational program and current class sizes.

Assumptions that were used for the projection are as follows:

• 65 additional students will attend Scarsdale Schools
• 9 staff members will be added to accommodate the increase in enrollment while Class sizes will be maintained at 22 students for grades K-3 and 24 students for grades 4 and 5.
• Payments for the retirement and pension system will go up by 7.5%
• Health care costs are projected to rise 3%. This year teachers are contributing to their health care premiums

Unknown expenses include:

• Special education costs
• Fuel costs
• Increases in labor contracts with the exception of Scarsdale Teachers.

On the revenue size, Purvis assumed a 0% increase in state aid which has steadily decreased over the past 5 years, a 0% increase in sales tax and said it was too early to know what the surplus might be from this year's budget though there is already a $1.2 million surplus in salaries due to early retirements.

The district is now holding $1.6 mm in a health reserve fund that Purvis would like to dismantle over the next four years. If so, some of that reserve will be used to buffer health care costs. However, the Board could choose to use all $1.6 mm for the coming year's budget.

The presentation elicited considerable conversation from both the Board members and the audience.

Board Member Lew Leone asked what affect the 100 or so faculty and employee children who attend the schools tuition-free had on thestaffing projection. Joan Weber and Michael McGill answered that these children would not impact staffing or cause elementary school classes to break into additional sections.

Board Member Mary Beth Gose noted that at this time in the budget process in previous years, Purvis' projections had shown that expenses would be far higher than they were in the final budgets that were ultimately proposed. She asked Purvis how conservative she was being and Purvis said, "we are trying to be very realistic with the information that we have."

Board President Suzanne Seiden said, "We all want to minimize tax growth as some are on fixed incomes. Yet it is also important to preserve our program and safeguard the primary aspect of the Scarsdale community – education. We are wrestling with these forces and intend to do our best. Some of this data is certain and some will change over the next few months. This is a snapshot taken at a particular moment."

In the public comments session, most encouraged the Board to focus on the needs of the district rather than the desire to come in under the tax cap.

PT Council President Pam Rubin said, "Use fiscal prudence by focusing on the right budget for our community rather than an arbitrary number set by the state .... Get it right irrespective of the tax cap as you did in the past."

Jeff Spiegel read a Declaration of Fiscal Independence that was crafted by the Coalition for Scarsdale Schools and signed by 231 members of the community, urging the Board to maintain excellence in the schools and local control. Read the entire statement here.

Art Rublin, President of the Coalition for Scarsdale Schools read a statement that called for the Board to offer the community clear explanations of:

• The importance of small class sizes and favorable faculty to student ratios
• The importance of having at least one curriculum specialist in science and one in math to cover the five elementary schools.
• The importance of teachers in charge and assistant to provide educational support, to promote collaboration and synergies.
• The importance of the center for innovation
• The role of the fund balance and reserves in budgeting decisions.

Former Quaker Ridge PTA President Lisa Eisenstein said she grew up in Staten Island when New York went bankrupt and had 66 students in her science class. Though she voted against the first budget last May she supports the Board's intention to propose a rollover budget. She said, "we must figure out what we need before we get what we want."

Former School Board President and Village Trustee Richard Toder called on the board to "make the hard calls and rely on the good judgment of the community. " He said, "If I have to choose between a judgment made in Albany or this Board there's no contest. Decide what's best for the community. Scarsdale is all about quality of education. Less is not necessarily better when it comes to education."

Bob Berg, who led the campaign to defeat the first proposed 2013-14 school budget in May 2013 spoke in favor of a budget that comes in under the cap. He said, "This year we should keep things simple. Last year the community did not want a budget above the cap. I propose that the Board propose a budget that stays within the cap. He then added, "The health insurance reserve is illegal. The State Controller has said so. The District needs to eliminate this now – not over 4 years. Take this money into income and we will be $700,000 below the cap – and it s a no brainer."

Note: We received the following information from Linda Purvis on this point.  After the NYS auditor expressed concerns about the health care reserve fund due to a change in the interpretation of the law concerning insurance reserves in June 2013 the District agreed to dismantle the health insurance fund over a five year period. The health insurance fund was not found to be "illegal."

Heather Gilchrist Smiley recalled what happened to education in California when Proposition 13 was passed when she was 8 years old. She said her "sought after school district was chipped away bit by bit." According to Gilchrist, California's educational system had been a leader in the nation and is now at the very bottom of the rankings.

Harriet Sobol said, "Do you think the governor should tell us how much we should spend on our kids? Addressing the Board members she said, "You've got to look into yourselves and build a budget that we believe in. The community will support you if they believe in you."

Debbie Rappaport, a 30 year resident of Scarsdale said she raised four children here and now her daughter has returned to Scarsdale with her children who "deserve the same wonderful education their parents and grandparents received." She said, "I don't enjoy paying higher taxes," but said it was up to the empty nesters to pay taxes so that children can attend our schools."

Eric Staffin said it was a "delicate balance between fiscal prudence and educational excellence, " and said, "Resources are needed to keep Scarsdale at the forefront.
Investing in the future is something sophisticated taxpayers understand."

Mary Beth Evans said, "Preserving program and leadership in education is important. Please clarify what kind of leadership you mean and what a rollover budget will mean."

Referring to the survey results for the Superintendent Search, Pam Fuehrer said, "The community expressed a mandate when we said we wanted a visionary leader...someone who moves forward with imagination and wisdom. We are doing less with less. I want the creativity to continue."

Speaking on behalf of the League of Women Voters, President Susie Rush read the following, "The League has supported the approach that was used by the Board of Education and the Administration to prepare the school budgets in the last two years -- to develop those school budgets with the primary focus on maintaining an excellent school system, while also recognizing the current economic pressures on residents. The League last year commended the Board and the Administration for proposing a budget which focused on educational goals and fiscal prudence and not on a state mandated tax limit."