Mineola Schools Intend 2012-13 Budget to Stay Under Tax Cap

The gave the public its first glimpse of the 2012-13 school budget at their December 19 meeting at the , one they intend to keep under the state’s new .

“A lot of my colleagues are asking a question right now: are they going to go out with more than 2 percent cap, and they’re struggling with that in their communities, if they’re going to ask for more,” Superintendent Dr. Michael Nagler said. “I made the bold presumption that we weren’t going to ask for more, that we should stay within the 2 percent.”

In his presentation, assistant superintendent of finance Jack Waters “based on trends that we see as of today.”

The , with a tax levy of $74.8 million. All other revenue for the district, including state aid of $5.3 million and , totaled $7.3 million. The appropriated fund balance is $2.1 million.

With the 2 percent cap in place for the 2012-13 school year, which for an approximate levy of $75 million, the allowable increase would only be $1.5 million.

“It’s a levy cap,” Dr. Nagler said. “the levy, what we collect from the community can not exceed 2 percent.”

Waters said that for purposes of his presentation that night, all other estimated revenue for 2012-13 would remain flat at $7.3 million.

“There is talk that the governor is going to increase our state aid for next year, we’ll see about that,” he said, adding that other forms of revenue may help or determine that some revenues may not be as high next year. “There’s still a lot of work to be done on that revenue side.”

On the expense side the district is projecting increases of $2,270,000, which adds up to an excess of $770,000 over the 2 percent cap

Salaries are projected to increase 1.5 percent or by $700,000 with annual step increases, pension costs will rise $500,000 for teachers and $200,000 for employees, while health care will go up $400,000 with other insurances totaling $100,000 in hikes.

New York State had said that health care costs would rise 19 percent during calendar 2012, but health care premiums would only rise by 3 percent in actuality.

“How they went from 19.5 to three, I’m not going to ask them, I’m just glad they did it,” Waters said as he is projecting a 5 percent average increase for calendar 2012. “Remember in 2012-13, the 2012 calendar year is only half of the year.”

Other costs include the special education line which will have a $300,000 hike after loss of ARRA funds and $70,000 for bus replacement.

“We didn’t do it this year and we really need to go back for the next year and look to get a couple of new vehicles,” Waters said.

The district will get to the $1.5 million number by first deducting the 2011-12 transfer of $500,000 to capital for the library “so we get relief from the 2012-13 budget that’s not rolling it over, it will be gone,” Water said, leaving $270,000 left to excess.

Potential offsets for the amount include the continuing salary negotiations with all units

and the unknown status of state aid for the 2012-13 school year.

“There’s been talk of 4 percent,” Waters said of an increase in state aid. “ had promised that initially, 4 percent, it seems he’s backing off that slightly so we’re going to see what we may get.”

An increase of 4 percent of state aid would be “slightly over” $200,000 according to Waters.

“Until you know for sure, you’re not going to (include it), that’s fair,” trustee William Hornberger said.

Dr. Nagler stated that “until we settle negotiations, we’re predicting we’re going to settle for STEP.”

The cap includes salary, pensions and health so “all three of those cannot exceed 2 percent,” Dr. Nagler said. “We’ve never had negotiations like that.” The district is not anticipating any mandate relief this year.

The district also did not yet have numbers for retirements or excesses as a result of closing the Willis Avenue School in September.

“If there are retirements, Dr. Nagler... has to look at can the retirees be replaced, if they can be replaced, will there be a break in between the retiring salary and will we have to hire somebody to replace them or do we have to replace them at all and we get a bigger break on the retirement,” Waters said.

“It’s really not that bad; we have to make up about $270,000 and we haven’t factored any excessing yet in closing this building,” Dr. Nagler said. “We still have every single program we have now, so everything that’s currently in there, we plan to keep in there. The big if here is salaries. We’re going to deliver a 2 percent levy cap without losing program for next year.”

The cap includes a provision that school districts may go above the 2 percent limit only if a supermajority, or 60 percent, of voters approve.