The Rockville Centre Board of Education began its budgeting process for 2013-14 by outlining some of the large items that will drive up spending for the coming year.
Three of the biggest increases the district faces as it prepares a budget are health insurance, salaries and contributions to the Teacher’s Retirement System, which add up to a $3 million increase over the current year’s expenses. There are also boosts in the Employee Retirement System, Social Security and transportation, which total an additional $570,000. Those increases alone are more than the maximum allowable tax levy increase under the state’s 2-year-old tax cap.
“Every year it’s a challenge,” said Superintendent Dr. William Johnson. “And I think this year presents us with a slightly new challenge, in that it’s the second year of the tax cap. I believe we are up to the challenge. And at the end of the day, I believe we are still going to maintain our quality educational program in this school district, and I am absolutely confident that the community will agree, and be able to work with the numbers we present and pass the budget in May.”
Robert Bartels, the district’s assistant superintendent of business, discussed the potential hike in spending under the state’s tax cap, which restricts the amount that school districts can raise their tax levies. The district is limited to an increase of just over $3 million for the 2013-14 school year.
Under the cap, maximum allowable tax levy increases are established by a formula devised by the state. If a district wants to exceed its limit, its budget must be approved by a supermajority of at least 60 percent of voters. The Rockville Centre district’s allowable tax levy for 2013-14 is just over $87.2 million.
Another possible large expense is tax certiorari claims. Since Nassau County repealed the county guarantee, school districts are now responsible for refunding money to homeowners who file successful tax grievances and are awarded refunds. Bartels estimated that those payments could cost the district as much as $1 million a year.
But Johnson doesn’t think those payments will materialize. Rockville Centre has joined a multi-district lawsuit against the county, hoping to have the guarantee reinstated, and Johnson said he is confident that the districts will win.
“So while I think we have to put it on our radar,” he said of the potential tax certiorari expense, “I don’t think we really have anything to worry about. I’m not going to be recommending to the board that we put aside any money this year to tax certiorari reserves. I’m still hopeful that the money we are expending on defending ourselves in court is, in fact, going to enable to us to dodge this bullet.”
Under state law, if the district’s budget is voted down by residents in May, the Board of Education may offer either the same spending plan or a revised version for a second vote. If it is rejected a second time, the district is allowed no increase in the tax levy, which means no increase in spending and, most likely, steep cuts.
The Board of Education will hold its first budget meeting on Feb. 26, at 7:30 p.m., in Room 112 of South Side High School.