Cuts, Layoffs, and Budget Misery for Pine Bush Schools

January 15, 2010

At the Pine Bush School District Board of Education meeting on January 12, School Superintendent Phil Steinberg, obviously unhappy, but also with an air of resignation, laid out the very difficult financial future of the district.

After pulling a pretty hefty rabbit out of a very small hat last year, with the aid of federal stimulus money — which kept the 2009-10 budget increase to 0.99 percent and the tax increase to 2.49 percent — Steinberg and his staff are facing very hard choices this year.

This year, the district’s expenses were $100.92 million, and it was covered by $51.74 million in state aid and $45.86 million from property taxes.

For 2010-2011, there is only $49,490,014 in state aid projected. Even after raiding the fund balance and pulling in all "other" income, the district needs $51,958,265 from the tax warrant. That’s a projected increase of $6.09 million in property tax, or 13.28 percent.

Moreover, that number comes from a projected decrease in state aid of just $1.5 million. More alarming figures run as high as a cut of $3.5 million in state aid. Asked about other projections of cuts, Steinberg responded, "I don’t have a crystal ball, can’t see the future. We’ll know better after the Governor lays out his budget on January 19."

Moreover, Steinberg noted that this bleak set of figures did not include any increases in contracts. Speaking of ways to avoid a 13 percent tax increase, he turned to mixtures of taxes, cuts, and layoffs. "Just to cover the loss of revenue, tax would have to rise 4.91 percent while we also cut $4 million. That would mean layoffs."

Anyone wondering why there would be a projected increase in costs of $3.84 million for 2010-2011, when the economy is the way it is and the state is broke and slashing aid t o schools, the answer is simple — these are contract costs. The legally binding contracts with the district’s employees mandate certain increases in salary, no matter what the economic situation.

Steinberg also noted that raiding the district’s fund balance — money needed for a day when boilers have to be replaced in a hurry on a chilly morning in January — is not something the district can keep on doing for many more years.

"Eventually the cupboard will be bare, and then what do we do in an emergency?"

Finally, looming over all of this, in 2011-12, will be the cut off of the Federal Stimulus money. As Deborha Brush, Assistant Superintendent for Administrative Services, explained to a questioner during the public participation section of the board meeting, "In 2009-2010, the state took away $3 million in aid, and then the federal government ‘backfilled’ that money through the stimulus program, so we got it back."

Phil Steinberg said that the stimulus program ends "in a cliff. The money just stops."

But that’s next year’s problem. This year’s will be tough enough.

The district is holding four community budget forums, beginning Monday, February 8, at 6 p.m. in the Pakanasink Elementary School cafeteria.

The others will be: Wednesday, February 10, at Circleville Middle School Auditorium at 6 p.m.; Monday, March 1, at Pine Bush Elementary School Cafeteria at 6 p.m.; and Wednesday, March 10 2010, at Crispell Middle School Cafeteria, 7:30 p.m.

Board President John Anthony said that "we hope the community will come out to these meetings and bring their creative ideas for ways to get through this difficult budget year."