Budget Questions & Answers

Why does the school budget always seem to go up more than inflation?
The rate of inflation is not a fair measure for schools, since the Consumer Price Index is based on the rising cost of food, clothing, cars and housing—not on the rising costs associated with school budgets such as special education tuition, health insurance, liability insurance, retirement fund contributions and other contractual obligations.

For example, mandated special education services are increasing by 15 percent alone in the proposed budget.

Why is the percent increase for the total budget different than the increase in the tax rate?
The increase in the total budget only looks at expenses. Tax rate is a function not only of expenses but revenues and property assessment growth as well. If expenses rise, but revenues remain constant or decrease, the tax rate increase will be higher than the budget increase. Conversely, if revenues or property assessments rise, the tax rate increase may be lower than the budget increase.
 
What happens if the budget is voted down?
Under state law, if a school budget is defeated, the Board of Education can propose the same budget for a revote, propose a revised budget 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.

What is a contingency budget?
State law mandates that under a contingency budget, a school district may not increase spending by more than 120 percent of the Consumer Price Index or 4 percent, whichever is less. For the 2008-09 budget, this would limit the spending increase to 3.36 percent over the current year’s budget. Items exempt from this cap are debt service, costs associated with enrollment growth (salaries, supplies, equipment etc.).

Under a contingency budget, Duanesburg’s Board of Education would be required to make $191,872 in additional cuts from the proposed budget.

How do STAR exemptions reduce star taxes?
All New Yorkers who own a home can significantly reduce their school property taxes through a School Tax Relief (STAR) exemption. There are two standard STAR exemptions: Basic STAR for owner-occupied, primary residences regardless of an owners age or income; and Enhanced STAR for primary residences of owner’s aged 65 and older with yearly household incomes below the state standard. The Middle Class STAR program, introduced in 2007, will continue to provide a further benefit to taxpayers on a sliding scale through a rebate check. Homeowners can apply for a STAR tax break through their town assessor’s office. Visit http://www.orps.state.ny.us/star for more information.

Are taxpayers star savings factored into the budget?
No. The STAR program is tax relief for homeowners paid for by New York State though state taxes. It is not a new source of funding for schools or a consideration in developing the annual school budget.

Why is the district opting out of the New Visions program?
As the number of students attending programs outside of the school district continues to rise, so does the financial commitment.

Historically, the district has been able to financially support the enrollment of 33 students in BOCES Career & Technical School and New Visions programs—totaling $330,000, with 72 percent of the expenses reimbursed by state aid in the year following the expenditure.

However, during the 2007-08 school year, 48 students enrolled, increasing costs by $120,000. For 2008-09, 58 students indicated interest, which would have raised costs $250,000 above their previous levels.

The Board of Education determined that funding the program was not feasible at this level. By law, a district cannot cap the number of students who apply to BOCES programs. It can, however, opt out of a particular program.

The district is committed to enhancing its in-house programs with hands-on courses geared towards future professions. Three elective courses, similar to New Visions offerings in health, law and journalism, are currently being developed for the 2008-09 school year.

Students may continue to enroll in CTE because, at this time, the district is not equipped to offer cosmetology, automotive or other trade courses offered by BOCES. However, students will be enrolled in the Schoharie program, if available, rather than Albany to save on transportation costs.

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This page is maintained by Audrey Hendricks, communications specialist, according to the Web publishing guidelines of Duanesburg Central Schools, 133 School Drive, Duanesburg, NY 12053. Maintained in cooperation with the Capital Region BOCES Communications Service. The district is not responsible for facts or opinions contained on any linked site. Copyright © 2004-08. All rights reserved.