Financial Challenges Facing Lake Shore School District
January 7, 2010
Falling interest rates and decreasing state aid will likely reduce the Lake Shore Central School District’s revenue in the upcoming budget year.
Daniel Pacos, business administrator, presented preliminary 2010-11 budget numbers to the Board of Education during a work s ession Tuesday (Jan. 5) night.
Pacos projected a drop from $350,000 to $150,000 in the district’s interest and earnings.
“We’re not earning nearly what we used to on our deposits,” asid Pacos, who added that declining interest rates caused the amount to drop steadily from a few years ago when the district received $600,000.
In addition, he estimated that state aid figures will decrease from $30,236,440 to $28,246,956.
State aid may change over the next few months and Pacos plans to update the board periodically. The district will, however, receive a $1,374,517 federal fiscal stabilization grant, which it did not have last year.
Pacos projected an $806,117, or 2.28 percent, decrease in total revenue.
Some board members voiced their frustration with the state’s unfunded mandates, expenses the state forces school districts to pay without aid.
“Most of local school districts problems are not local,” said Board Member Richard Vogan. “They come from the state.”
Board Vice President Carmen Garozzo agreed that the state should lessen the mandates.
“I think it’s time,” he said. “We’ve been ponying up for so long.”
Board members also questioned whether they should continue paying for membership to the Erie County Association of School Boards and the New York State School Boards Association.
“For ten grand, what are we getting?” asked Board Member Dennis Feldmann.
In another matter, Superintendent Jeffrey Rabey showed the board enrollment estimates for the next four year s. Describing the data as “incomplete,” he emphasized that officials will keep working on the numbers. He expects the enrollment to continue its decline over the next four years. If the district makes no changes, he anticipates smaller class sizes and more vacant classrooms.