Scarsdale School Board Proposes $146 mm Budget for 2013-14

Community interest was keen on Monday night March 4 when the Scarsdale School Board presented their proposed 2013-14 budget. Led by School Board President Liz Guggenheimer, each member of the board took the mike to explain a section of the proposed $146 million budget which will mean a 4.78% tax levy increase for Scarsdale residents and a 4.88% tax levy increase for those in the Mamaroneck strip. Since the proposed budget increase exceeds the state mandated tax cap, Guggenheimer explained that the budget will need to pass with at least 60% in favor when the community goes to the polls on Tuesday May 21. Since last year's budget passed with a 79% approval from the community, it appeared that the Board felt comfortable proposing a budget that exceeds the cap.

The district continues to be challenged by big increases in state mandated payments to the teacher and employee retirement plans as a result of diminished investment returns for the state-manage systems. In fact, this year, payments to the system will rise by $3,499,185, accounting for 79.4% of the total budget growth. Most striking is the payment to the Teacher's Retirement System which was 11.84% of salaries in 2011-12 and will increase to 16.25% of salaries in 2013-14, a 37.2% increase.

Despite the weight of these state mandated statements, the administration and board appear resolved to continue to deliver a world class education to Scarsdale students and even enhance the program. Based on prior budget votes, they believe they have a mandate from the community.

Therefore, the proposed budget maintains small class sizes of 22 students in grades kindergarten through third grade and 24 students for grades four and five. The Board studied budget savings if elementary school class sizes were allowed to increase by one student but ultimately decided that the community values small class sizes over the $1 million in savings.

In response to a call for more security, new locks will be installed on all classroom doors that will allow the doors to be locked from inside the rooms. The office at the Greenacres School will be relocated near the school's entrance and entrance-monitoring staff will be added at the high school. The original proposed budget from the administration included greeters at all elementary schools and the middle school, but this item was eliminated when the board asked School Superintendent Dr. Michael McGill to cut $2 million in expenses from the budget.

Personnel and staffing, which account for 80% of the budget will remain just about even with 2012-13 levels. There are some staff shifts to accommodate decreased enrollment in the elementary schools and middle school, with an estimated increase of 89 students in the high school. Overall, it is projected that enrollment will go up by 42 students for a total of 4,795 students in the district.

The proposed budget recommends cutting one librarian each from the middle school and the high school, while increasing the technology staff by two positions for a network administrator and a technician. The technology staffers will manage $1.1 million in new computers and equipment, the increased used of broadband and new mandates for online state testing. In addition a new communications officer will be hired for the Public Information office at a salary of $90,000 plus benefits. This new hire will manage the district website, increase the district's social media presence and enhance communications between the school and the community.

The budget also includes funds for the much discussed Wellness Center that will be constructed underneath the high school gymnasium. In her presentation, Board member Jill Spieler stressed that this project would not add to taxpayer's burden as the funds will come from $325,000 in the current year's budget for the project as well as $300,000 that was allocated for renovation of the auto shop and $432,000 from a repair reserve fund that was set up years ago and will be depleted.

One of the biggest changes to the budget was the use of undesignated reserve funds that have traditionally been used to cushion the community against steep tax increases. Last year the Board decided that the district was holding too much in reserve and moved to reduce the fund balance. The 2012-13 budget included $6,313,598 in reserves, while the projected 2013-14 budget includes only $4,200,000, a decrease of $2,113,598. Furthermore, the Board plans to reduce the entire fund balance from a projected $15,775,090 in June 2013 to $13,213,090 in June 2014.

The reduction in use of the fund balance is partially responsible for the relatively high proposed tax increase for the coming year. Tax increases have averaged 3.43% for Scarsdale residents since 2008-9 and will be 4.78% for Scarsdale residents in 2013-14. The undesignated fund balance is projected to fall to $5,074,094 by June, 2013, which is 3.5% of the budget, well below the 4% maximum allowable by New York State law. A continued decrease in reserve funds will reduce the Board's flexibility to fund new initiatives and manage tax increases in coming years. With lower fund balances, the Board could eventually have to trim the educational program to meet expenses.

There were relatively few comments from the public at the meeting's end. Bob Berg of Tisdale Road said, "the proposed increase of 4.8% is too high. The budget could be reduced without affecting the program by cutting two items. The $1,050,000 Wellness Center is not necessary and it is disingenuous to claim that no new funds will need to be raised to build it. Money is fungible and those funds could be used to decrease the tax burden." He also claimed that, "most students will never use it."  Berg denounced the need for a new communications officer with a salary of $90,000 plus $25,0000 in benefits. Calling the position a "Chief Marketing Officer," he said, "Why do we need to improve our social media presence? Why not enlist high school students or community volunteers? He said that if these two items were eliminated, "We could reduce the tax rate by a full 1%."

Susan Groner of Kent Road thanked the Board for their work and questioned the use of the repair reserve to fund the Wellness Center. She asked, "what could come up in the future?" and questioned if the decision would deprive the district of needed funds for building maintenance down the road.

Guggenheimer promised to provide more information at future meetings on the Wellness Center and urged the community to attend the March 18 board meeting, the April 8 budget forum and to vote on Tuesday May 21 from 7 am to 9 pm at the Scarsdale Middle School gym. Those who came out to watch the presentation were rewarded with warm chocolate chip cookies baked by School Board Vice President Suzanne Seiden, while those who hoped to watch the meeting on television at home were not so fortunate.  A glitch in the school's cable feed prevented Optimum customers from seeing the meeting live - however it is being re-broadcast on Channel 77 this week.