Funding for Special Ed, Debt Service and the Teen Center Reviewed at Budget Study Session

During the third budget study session on February 10 the Scarsdale School Board and administration reviewed funding for special education, employee benefits, debt service and the Scarsdale Teen Center.

Special Education:

Retired Special Education Director Michael Mendelson who has returned to the district for the balance of the year, reviewed the $11mm special education budget. Mendelson said that this funding was necessary to supply the required services to students with special needs. He projected that the 2014-15 Special Education budget would be flat with this year and did not anticipate any significant changes in enrollment or staffing that would require an increase in the budget. He also noted that there was a $500,000 savings in salaries in the special education budget between the 2013-14 adopted budget and the estimated 2013-14 actual budget. This saving was due to retirements as the retiring staffers earned more than their replacements. Mendelson anticipated a few more retirements for next year and said there would be more savings in that budget line. In order to continue to receive grant funds from the state for special education, the budget needs to be either even with or greater than the previous year's budget.

The Board discussed the proposal to eliminate a position for a full-time physical therapist and retain a contractor (s) to provide this service to the district. The anticipated savings would be approximately $40,000 and there seemed to be general agreement to eliminate this position.

Teen Center:

Board Member Leila Shames Maude said that the Teen Center was running at a significant deficit and asked how much they had in reserve. Bill Natbony said the Center was going through their reserves quickly and at the current rate, could only survive another year and a half. He said the Center was underutilized and that the Center's Board was struggling with some significant challenges. "I know they are making a concerted effort to bolster the use," he said ... "However, recognizing the constraints we have in other areas .... I recommend that we leave funding at the current level. Board members Lewis and Gose supported maintaining funding at $65,000.

Undistributed Expenses:

Purvis explained that as a result of financial turmoil in 2008, investment returns for the state run employee's retirement fund (ERS) and the teacher's retirement funds (TRS) have been depressed. The state uses five years of data on returns to determine district contributions. For 2014-15, it is estimated that the district's contribution to ERS will be 20.1% of salary, or 3.8% less than last year. In 2013-14 the district's contribution to TRS was 16.25% of salary and in 2014-15 it will be 17.53% of salary. There is a projected savings of $130,000 over the original projection and the budget includes a planned surplus of $1.85 million in this budget line.

Health Insurance Budget:

The proposed budget includes a projected increase in health insurance of 5.8% for 2014-15 to $15,473,000. However since the health care reserve has been eliminated, this could pose a risk to the district. Dr. McGill and Linda Purvis suggested that the $130,000 savings from the TRS and ERS budget be added to the healthcare budget to hedge against a short fall as the district no longer has a reserve. Board member Jonathan Lewis asked whether it would be better to use the $130,000 to purchase more stop loss insurance or to add the $130,000 the budget. The Board asked the administration to make a recommendation on this.

Debt Service:

Total debt service for 2014-15 is projected to go up to $9,726,411, which is $139,216 higher than the 2013-14 estimated expenditure of $9,577,843. If the district does not pass a new bond referendum this year, the debt service budget for 2015-16 will be reduced by $1.7 million. If the district refinances a portion of the debt, Martin projected a savings of $65,000.

Public Comments:

BK Munguia spoke as a representive of the Board of the Scarsdale Teen Center, of which she is currently the President. She said, "I do note that in 1999 public funding for the teen center was $175,000 split between the Village and the School Board. For the past three years the school has approved less than that. ($65,000). The Center's mission has not changed, but due to inflation, the costs to provide services has gone up. Even if the operating costs remain flat if there is no increase in funding, the center will close it's doors at the end of the 2014-15 school year." She continued, "We too are a positive force responding to a need that has not changed. We already offer a community space for other community endeavors. We are asking for the school board to continue their support at a level that recognizes the rising C.P.I."

Teen Center Director Ellen Tiven Moore also spoke and said, "Older students use the space to organize their own events.... We look for ways to collaborate to offer unique programming.... The Center is used by a variety of community groups to host events.... Over 2,000 people attended the Halloween Haunted House. We continue to connect with the youth of the community. For example, police broke up an out of control party and suggested that the kids move to the Teen Center – and they listened and came to the Teen Center where they had a safe party."