Budget

Frequently Asked Questions

GENERAL BUDGET QUESTIONS

When is the 2012-13 budget vote?

The public vote on the 2012-13 school budget and Board of Education is Tuesday, May 15, 2012 from 1 to 9 p.m. in the Elementary School Gym.

Who can vote?

To vote, you must be at least 18 years old or older on election day, a U.S. citizen, and a resident of the Duanesburg Central School District for at least 30 days prior to the vote. You do not need to be registered to vote.

What happens if the budget is defeated?

Under New York State law, if the school budget is defeated, the Board of Education can either put the budget up for another vote, put a modified budget proposal before voters, or move directly to a contingency budget. Should the Board decide to present the budget, revised or not, for another vote and it is defeated a second time, the Board must adopt a contingency budget. By law, increased spending in a contingency budget is capped at the lesser of 120 percent of the Consumer Price Index (CPI) for the prior calendar year or 4 percent, whichever is less.

What is a fund balance?

A fund balance is created when a district is able to generate a surplus either by receiving more revenue than expected and/or by spending less than the amount budgeted. The term "fund balance" is used to represent the amount of the surplus, which by law cannot exceed 4 percent of the following year's budget.

How will the STAR program affect my school taxes?

All New Yorkers who own their own home can significantly reduce their school taxes through a School Tax Relief (STAR) exemption, regardless of age or income. Homeowners must apply through their town assessor’s office to be eligible for this tax break. Two different types of exemptions are available: basic STAR and an enhanced exemption for senior citizens. Exemption amounts for 2012-13 vary by municipality and will not be set by the New York State Office of Real Property Tax Services until early April 2011.

With all the state lottery games and new casinos in NY, does any of that revenue go to education? Wasn’t the lottery designed to support education?

Yes, state lottery and casino revenue was designed to support education and it does. Lottery revenue goes into the state coffers along with other state fees and state taxes. It is a major component of the revenue that is then distributed to public schools as “state aid.”

Can we require staff to pay a higher percent of the cost of their pensions? How does the state pension system work, and how can we get control of pension costs?

Decisions about the pensions of NY public employees are made entirely by the state legislature, the state comptroller, and a state governing board. So, no, school districts, towns, counties, and state agencies cannot require their staff to pay a higher percentage of their pension costs.

The state’s pension system is divided into two different programs: the Teachers Retirement System (TRS, which covers teachers and administrators) and the Employee Retirement System (ERS, which covers most other public school, county, municipal and state employees). The ERS is managed by the state comptroller, who announces annual required contribution rates. The TRS is managed by an independent governing board that sets annual contribution rates. There are employEE contribution rates and employER contribution rates for both systems.

Under state law, both pension systems are required to be “fully funded,” which means that (unlike many states) they must collect and carry reserves that would meet all current and future liabilities for current staff on payroll. Required employer contribution rates are computed using a five-year average based on performance of the stock market. Sometimes employer contribution rates can fall dramatically, but right now the stock market crash of 2008 and the continuing poor performance of the market are still driving employer contribution rates higher. For instance, over the past 25 years, the mandatory TRS employer contribution rate has been as high as 18.8% (in 1986-87) and as low as 0.36% (in 2001-02 and 2002-03). For 2011-12 it is projected to be 8.6%. School districts have no voice nor choice in setting these state rates.

If a new candidate runs for the board and wins a majority of the votes, who determines what position he or she will have on the board?

The Board of Education members vote to elect Board President and Vice President at the Reorganization Meeting in July. The positions of Board President and Vice President are not determined by the voters.

The candidates with the most votes will become board members. Two three-year terms will expire at the end of June 2011.

Is it true that our state aid was cut because our reserves are so high?

No, that is not true. Our state aid was cut the same way that every other New York State school districts' aid is cut-- with formulas unrelated to reserves.

Is it true that generally accepted government auditing standards permit us to use the entire Unrestricted Fund Balance to offset the $800,000 deficit?

The Board could use all of the district's reserves to offset the $800,000 deficit, but remember that once the reserves are gone they are not there to offset future tax increases or unforeseen expenses. Also, next year is expected to be worse than this year for budget cuts.

Have you ever thought of cutting [custodial] overtime out completely to cut costs?

If all over time possibilities were eliminated, the district would have to contract out for such services as snow removal and other grounds maintenance that can't occur during the normal work day. It is less costly to rely on our own staff than it is to contract out for services. Additionally, throughout the year the district hosts a number of evening and weekend events. At the end of these activities, the district needs someone to clean up and perform a building check to ensure the facilities are safely secured. Also, it is good practice to have the ability to call upon staff in the event of any unforeseen emergencies (i.e., flooding, fire alarm going off, etc.). Furthermore, overtime has been reduced in the budget over the years.

Some districts shut their schools down completely on the weekends, why doesn't Duanesburg do that to save energy and money?

Historically, the board wanted the community to use the buildings. However, we are currently looking into the possibility of charging a building use fee to cover the costs. Additionally, our athletic teams use the buildings on the weekends and evenings, as do the adult education and community programs.

Have you thought of cutting the music and drama performances to only one night and one day to save money?

This has not been considered, but it will be added to our future budget discussions.

Has the district recently thought about selling its school buses, closing the bus garage, and contracting out bus runs to an outside bus company? Would or could this save money?

The district recently applied for a grant to look at central office consolidation possibilities with Schenectady County and the schools of Schalmont, Mohonasen, Scotia-Glenville, Niskayuna, Schenectady and BH-BL.