District budget season starts with $3M deficit; cost-reducing strategies and deliberations to follow

Budget season for the Northport-East Northport school district is in full swing and this year, the “evolutionary process” is being conducted by Superintendent Dr. Dave Moyer and Assistant Superintendent of Business Robert Howard, who presented a starting point that is expected to change before the budget vote on May 21. Last week’s BOE meeting focused primarily on the non-instructional district budget, but provided for residents a breakdown of year-over-year increases and expectations for a tax levy increase. 

“We want to emphasize that we are very early in the process, and there’s going to be a lot of movement and changes as we move along,” Howard said as he introduced each department head to explain their budgets. 

Draft one of the 2024-25 preliminary district budget comes in at $189,934,741 – a nearly $7 million increase from last year’s budget and a proposed tax levy increase of $3,852,309 (or 1.99%). The tax levy increase is expected to decrease during the budget process, as cost-saving opportunities are deliberated. “The administration will be identifying strategies and developing options for the board to consider that will reduce the deficit with the corresponding impact on the overall levy,” Moyer told the Journal last week. 

A large increase in employee health benefits across all district faculty and staff is what’s “driving this budget,” according to Howard. Health insurance premiums are expected to increase by over 14% for family coverage and 22% for medicare family coverage. 

District salaries are also increasing by 2% due to contractual settlements. This year, there’s a total of 30 retirements, which is projected to save the district approximately $1.7M and will suppress salary expenses, Howard explained.  

A third and final Early Retirement Incentive Plan, or ERIP, was offered to qualified (age and service eligible) teachers this year – according to the United Teachers of Northport 2021-2022 contract and ERIP, the district “shall provide each retiring employee with health insurance coverage (individual or family as applicable) for the duration of the employee’s retirement,” paying 75% of the premium cost for the coverage. 

The number of seats that will be filled after these retirements has yet to be determined, but information on this is expected at the next BOE meeting. 

The February 15 Board of Education meeting focused on the non-instructional budget, which includes building and grounds, security, transportation, and other categories including legal services, human resources, debt service and interfund transfers. 

The buildings and grounds department operates and maintains over 1 million square feet of building space and nearly 200 acres of property. The proposed budget includes a new backhoe for the department, which will replace an undersized machine that’s “aging out,” has required $20K in repairs and isn’t fully operational. A backhoe was requested last year, but withdrawn from the budget before public deliberations; it is being requested again this year and was called an “item of consideration” by Howard. The $50K cost of new in-classroom HEPA filters, which was previously funded with a Covid-related grant that is expiring this year, is also included in the budget. The continued use of HEPA filters, now that they need to be funded by the district itself, was briefly discussed. 

In addition to these items, the buildings and grounds department is planning for a number of in-house projects, including parking lot maintenance, bathroom renovations, intercom upgrades and replacements, and additional hydration stations. 

For the security department, the proposed budget includes a 2% contractual increase for salaries and the purchase of digital radios at approximately $5K. The department also plans to complete the district-wide blue strobe light integration into lockdown systems at the Brosnan building and in large assembly areas within the high school, purchase additional cameras to cover blind spots and new playground equipment at district elementary schools, and fund ongoing training and staff development, including emergency response and active shooter trainings. 

The transportation department budget increase is due in large part to the district’s contract service renewal with Huntington Coach, which is expected to increase by over $270K (or 3%). There is also a proposal to purchase two new large gasoline buses, which is required every year in order to reduce the age of the fleet. The district currently has three buses that are over 20 years old. 

Other proposed non-instructional expenses include an approximate $150K increase in property and casualty insurance (a 15% increase over last year) and the hiring of a community engagement consultant, which will cost approximately $100K. The proposed budget maintains the existing level of $3.9M for general fund appropriations, which will fund several capital projects, including a Family and Consumer Science classroom renovation and septic system replacements at East Northport Middle School, interior electronic door access and door hardening infrastructure, and the replacement of the original gym bleachers in the Brosnan building, which became necessary after the gym floor was damaged from a water leak. It also includes using $1M from capital reserves for roof replacements district-wide and HVAC renovations and placements. Funding capital reserves will require a separate proposition on the ballot, allowing the funds to be used for these specific projects. 

Using the first draft of budgeted expenses, after a 1.99% tax levy increase and expected revenue from sources such as state aid and increased interest earnings, the district is currently at a $3,044,004 deficit. While the district expects to lose over $200K in state aid next year, the state budget will not be approved until April and that figure may change.

Before the next BOE meeting on March 14, which will break down the instructional budget, the district’s Financial Planning Committee is scheduled to meet on March 7 to discuss options and strategies for closing the deficit. Moyer told the Journal last week, “As the budget deliberation process continues, it is important that both the board and community have a thorough understanding of our financial picture, and the opportunities and challenges that lie ahead.”

To watch the February 15 BOE meeting, click here. Other helpful links include the non-instructional budget presentation and full budget book.