NHP-GCP Board of Ed Trying To Remain Financially Prudent with Budget

Members of the Board of Education expressed their frustrations at the state Monday night during the budget work session as the group listened to the substantial increases in areas beyond their control.

"It is the mismanagement at the state that is causing your budget to go up in that category," said Assistant Superintendent for Business Michael Frank of the benefits section of the budget.

Frank explained to the board members that because the state's investments for the Teacher's Retirement System did not do well during the financial downturn, the state is turning to school districts for more funding to make up for lost retirement funds.

“Unlike the rest of us where we have to cut back and we have to start over again and we have to cut corners, the state doesn’t have to do that," Frank said.

He added that the district can't bargain this amount of money down and that payments toward the retirement system can't even be delayed because that money is withheld from the district's state aid.

“Salaries and benefits alone are causing the budget-to-budget increase to go up 5.37 percent," Frank explained, adding that,"salaries are causing [a] 1.91 percent [increase].”

The budget in its current form, which isn’t finished yet, is going up $1,174,332, Frank said. More than $1,125,000 is allocated to benefits, he noted. The district saved to offset much of the increases in Employee Retirement System contributions though.

“That’s the reserve that you guys were so diligent about allowing us to create funding for a four-year period," Frank explained. "It’s within your legal right to do, you’ve done it and you’re reaping the reward right now while some of the districts can’t come up with the funding to fund that increase.”

But there is at least one way the district was fiscally prudent and played by the rules that now seems to have turned against them.

Governor Andrew Cuomo is allowing districts to use the excess reserves they have in their employee benefit accrued liabilities reserve to offset reductions in state aid, Frank said. This reserve funds things such as retiring teachers' unused sick days and was supposed to equal the amount of the liability, although some districts saved more than that. Frank noted that districts weren't supposed to do that and "got a slap on the wrist" for doing so.

“Now the Governor decided that for all those districts that did this, we’re going to let them use this amount to offset any reduction in state aid," Frank said. "Well that’s very nice. What are you doing for the rest of us who followed the rules?”

There has only been one program cut so far to the budget, Superintendent said. This was to a program called CAUMSETTE Brookville, which is a BOCES program. Since the district has much of the same equipment needed for this program, including netting and climbing walls, the $13,700 program was cut from the budget.

“We decided that we would still be able to fulfill that experience in our classes without that added expense," Katulak said.

More than $300,000 worth of cuts have been made to the budget so far including not filling the spot of a retiring teacher, Frank noted.

The next school board meeting is on March 14 at 8 p.m. at the .