Mineola Schools Unveil First Draft of 2011-12 Budget

The Mineola School District intends to put before voters a budget levy increase of no more than 2.5 percent with no reductions in programs.

I’m very confident that no other district will say that,” Superintendent Dr. Michael Nagler said during a presentation last Wednesday night in the cafeteria during the regular meeting of the Board of Education.

“We went into the premise with the goal of our budget was to deliver for the fourth consecutive year a levy at or near 2.5 percent, paying particular attention to the programs we offer.”

The first draft of the 2011-12 budget totals approximately $82.2 million, a 2.6 percent increase in expenditures over last year. The tax levy is projected to be $75.7 million for 2011-12, an increase of $2.7 million from 2010-11, or a levy-to-levy increase of 3.6 percent.

Salaries in the 2011-12 budget reflect a $300,000 decrease from $48.7 million to $48.4 million, despite benefits rising by $2.4 million, including $500,000 in employees’ retirement contributions, $1 million in teachers retirement contributions and $500,000 in health care premiums.

“In the current budget we do have a slight surplus in the total health line so where we don’t have to go up as much in the budget year-to-year as we might have according to what health benefits are actually going up,” Supt. of Finance and Operations Jack Waters said.

The salaries of seven retired teachers comprise the $300,000 amount. The district is still determining if those teachers need to be replaced because of the . One administrative position has also been eliminated.

In terms of revenue, Mineola is projecting a $600,000 decrease in state aid due to the ending of Federal ARRA funding, dropping the overall total from $5.4 million to $4.8 million.

“There’s still work to be done on it,” Waters said. “Our goal is to get to at least 2.5 percent, we’re confident we can do that.”

No staff excessing other than retirees are calculated in the draft, nor is potential from . All current programs are included as are $500,000 in facilities upgrades.

With the passage of the New York State Senate of a 2.5 percent cap on tax levies, Mineola would have to cut another $770,647 in order to arrive at such a limit. A 2.5 percent levy increase would total $74,890,613 for the budget levy at maximum. “That... can be achieved two different ways,” Waters said. “Either reduce expenses or you bring in more revenue, i.e. the Cross Street lease.”

The $2 million for the  were not reflected in the budget draft, but will be included for the vote, bringing the budget-to-budget increase for 2011-12 to 5.1 percent.

“It won’t affect the tax levy,” Dr. Nagler said, because the district will be . “The purpose of the project is the ensure the growth plan into the future, it’s going to save money,” Nagler said. “By spending this $2 million now and making bigger to accommodate all the children in a pre-K-2 model, you’re ensuring you don’t have to change it going forward.”

Mineola does not have large reserve funds because they paid down a bond, saving an estimated $5 million. According to Waters, there would only be about $1 million in surplus for the current year, as each budget is designed to spend approximately 99 percent of revenue received.

If the budget fails, the district would take out that $2 million and put the amount into the capital reserve. Last year Mineola held a vote on the capital reserve which was approved by voters. Money in the capital reserve can only be used for reconfiguration projects. “The only reason we’re putting it in the budget is to try and save a vote and speed up the process,” Dr. Nagler said.

According to New York State Law, a district cannot fund a capital reserve and spend it in the same year. “If we fund the capital reserve now at the end of this year – June – you can vote in July to spend the money,” Nagler said. “By putting it in the budget, you’re still voting on it, and you only have to vote once.” School years begin each July 1 and end on June 30.

The district also has the option of holding a revote in July or August, but if that poll fails as well, they would be forced onto contingency and close Hampton and use Willis.

“There’s nothing that failing this budget would change about the reconfiguration model,” Nagler said, adding that Willis would require five classrooms be made on the second floor, an oven be added and 20 parking spaces at maximum be removed in order to make an outdoor space.

“If you pick up our child at this building now and the parking’s a problem, it’s going to be a problem later,” the superintendent said.

If the district choses to close one school as had been suggested by Trustees John McGrath and Irene Parrino in a public letter, Dr. Nagler said that the children will fit, bu there would only be a difference of two teachers, one being a nurse, therefore not reaping as large a savings. The district would also have to add back seven retirees and $700,000. The budget-to-budget would be 3.4 percent and the tax levy would be 4.4 percent.

The contingency budget increase would be 1.92 percent, but it is unclear about how this would affect programs. “It really matters on how we maximize the nine available excesses we have,” Nagler said, “and when we finalize this Cross lease how we factor in that revenue.” Dr. Nagler stated that plans for excessing should be completed by the end of this week.

The superintendent said he would put out a budget-to-budget increase “around two” percent. “If it fails, we take out equipment, there’s no reason to vote again. It would not be my recommendation to go for a vote in June.”