District to apply aid to fund balance, not tax levy

By RODNEY MINOR, The Leader-Herald
GLOVERSVILLE — The $200,000 in aid secured by state Sen. Hugh T. Farley, R-Niskayuna, will go to the Gloversville Enlarged School District’s fund balance, and not toward reducing the tax-levy increase in the proposed 2008-09 budget, school officials said.

After some discussion, the majority of the district’s Board of Education agreed at its meeting Monday the best thing to do may not be the most popular option.

Board President Katherine Hillock said the majority of the school board apparently felt the money should be saved and put in the fund balance so the school district could decide how to use it in the future.

“We need to spend the money wisely,” Hillock said. “And we need more time to decide how to do that.”

A $50.6 million proposed budget for the 2008-09 school year was put forward by the school board last month. It contains a 6.9 percent tax-levy increase, along with staffing and program cuts.

School officials said those cuts were directly related to receiving $118,000 less than expected in state aid and being put under a state program that includes requirements on where certain aid can be spent.

To make up for part of the shortfall and the state program, Farley secured $200,000 in aid for the school district earlier this month. The money was part of approximately $500,000 in aid secured by Farley for schools in his Senate district. The Greater Johnstown School District used $50,000 secured by Farley to reduce its

tax-levy increase.

Gloversville school board members went a different route.

District voters in Gloversville have rejected initial budget proposals the last two years. The first 2006-07 budget proposal contained a 6.9 percent tax-levy increase. A later proposal passed when the tax-levy increase was reduced to 3.5 percent.

Last year, the 2007-08 budget proposal contained about a 2 percent tax-levy increase, but also was voted down. Voters later approved a $46.8 million proposal which contained no tax-levy increase.

Board member Gino Calandra said the board’s decision last year to go to a budget with no increase led to the cuts and tax-levy increase in this year’s budget proposal. The school district already has taken $500,000 out of money it planned to put in its fund balance this year to even out the budget proposal. If the fund balance is not maintained, it could put the district in a huge hole, Calandra said.

The fund balance is the school district’s savings, he said, meant for use on a rainy day.

School officials have said the proposed fund balance will be 2 percent to 3 percent of the total budget.

Superintendent Robert DeLilli said the state recommends school districts keep their fund balance at approximately 4 percent of the total budget.

For this school year, the district may finish with a fund balance of about $600,000, he said. That would put the fund balance at just over 1 percent of the budget, according to DeLilli.

“If there is an influx of special education students, we must pay for services by borrowing money if we cannot take it out of fund balance,” he said. “Which means you end up paying interest you should not have to.”

While a few of the school board members spoke in favor of using part of the $200,000 to reduce the proposed tax-levy increase, only Stanley DeVoe seemed to be in favor of using the entire amount.

DeVoe said many people have no more money to put toward paying school taxes. The school district will not be able to go back to the well, he said, because they will discover the well has gone dry.

Board member Harry Wiggins said a secure fund balance would help reduce future tax levies. The future of the school district would be best served by putting the money into the district’s depleted fund balance, he said.

Before too many people are critical of the money not being used to reduce the tax levy, Wiggins suggested, “walk a mile in my shoes.”

“We are making progress [in the school district], but it will come over a long period of time,” he said.

Only one board member, Frank Carangelo, voted against the budget proposal when it was adopted by the school board.

Carangelo said the amount of the budget is too high, and using the aid money to cut the tax levy would not do anything about that.

The school district needs a strong fund balance, Carangelo said, and he will continue to fight the battle for a smaller budget next year.

Farley spokesman Dave Smingler said the $200,000 in “bullet” aid is like other aid and can be used at the school board’s discretion.

Farley’s preference is using the money to hold down taxes when possible, Smingler said, but that is up to the school district.

For school district residents who want to share their opinion or get more information on the budget proposal, a public hearing will start at 7 p.m. today in the middle school auditorium.

Business Manager Steve Schloicka said he will show a PowerPoint presentation on the budget and answer questions.

The budget vote will be May 20 from noon to 9 p.m.

A separate proposition also is on the ballot to buy two new school buses.

Voters also will decide between four candidates for three school board seats.



Rodney Minor covers Gloversville. He can be reached at gloversville@leaderherald.com.