This year, as with all years past, the focus of the budget is on providing students with a high-quality education and a vast array of extracurricular opportunities while being mindful of long-term fiscal stability for our community.
The 2021-22 budget has been thoughtfully designed to not only maintain but enhance opportunities for students while realizing efficiencies and cost savings due to a district reorganization. In addition, the budget includes contingency funds that will be used in one of two ways: the first priority is to ensure that there are contingency funds in case the district needs to respond to the pandemic during the 2021-22 school year; the second priority is to provide funding for needed capital work such as roof replacement or HVAC upgrades as detailed by the district architect.
I would like to emphasize some key points related to the revenue portion of the budget and provide further clarifying information.
During the 2020-21 school year, the district proposed a 0% tax levy to provide financial relief to our community during both a global pandemic and to offset the impact of the LIPA settlement. During the budget process, the district responded to the needs of the community and also noted that continued zero tax levy increases are unsustainable.
This year, the district has proposed a 0.75% levy increase which is not only below the tax cap for the 10th consecutive year but is also below the district’s average levy limit of 1.42% over that same ten-year time period. This low levy is due in part to the application of $986,237 in unanticipated state aid, which was applied directly to reducing the levy to 0.75%. It has been reported that the district received an additional $2.2 million in state aid but it is important to note that only $986,237 can be applied as direct revenue. Once Universal Pre- K funds ($634,327) – which is a grant for a specific purpose and not a discretionary revenue – are excluded as revenue and the difference between what the district recorded as state aid in 2020-21 ($15,929,423) and what was initially reported this year ($15,307,857) is factored in, the actual amount that can be applied as additional revenue is $986,237. Every dollar of that increase was used to lower the levy.
Other revenue sources include the application of the entire $2 million of the LIPA payment as well as $2.3 million in assigned fund balance. All of this information can be obtained on the district website at northport.k12.ny.us/district/budget_information.
The district continues to be strategic in its use of fund balance and reserves in order to fund future capital projects and to offset expenditure spikes and thereby reducing the impact on the taxpayers. This budget, as well as future planning, is constructed to limit spikes in the levy increase and carefully manage the use of fund balance and reserves in a strategic manner. The prudent use of reserves and fund balance will become increasingly important as the LIPA “shift” continues as well as if any other unplanned circumstances arise. As an example last year, the district allocated $4.7 million to pay for the roof repair and replacement at Ocean Avenue Elementary. This type of situation is a prime example of the importance of having reserves and fund balance to cover a significant expense so that a sharp tax levy increase or a substantial cut to programs is not needed.
As a result, it is important to note that the district had a surplus last year of $478,255, not $5 million as has been reported. This information can be found on the audited financial statements dated June 30, 2020 on the district website. We continue to work with our attorneys to resolve the Ocean Avenue roof issue with the district’s insurance company, however this matter is still pending.
The American Rescue Plan funding includes spending requirements for new expenses the district must undertake that are not currently in the budget. The primary purpose of these funds is to supplement school funding in order to bridge learning gaps and not supplant existing programs in the budget. The district awaits further guidance to determine how to utilize those funds over the next few years.
Overall, this budget provides long term financial stability and factors in the implications of declining enrollment, the LIPA settlement, the pandemic and capital improvements to our buildings while continuing to deliver the high-quality educational program that our community expects:
Supports a K-12 instructional program that continues to meet the district’s mission to “Educate, inspire and empower all students to pursue their aspirations and contribute as responsible members of society.”
Elementary opportunities resulting from the school reorganization that include: World Language Exploration in grade 5; additional STEM opportunities in grades K-5; expanded Integrated Co-Teaching model in grades K-5
Preserves the district’s exceptional art, music and athletic programs.
Maintains low class sizes within district administrative guidelines.
Preserves staffing and programming to support the social-emotional needs of students.
Supports the district’s professional development initiatives for staff.
Provides an expanded summer learning program.
Includes funds for new playground equipment at both middle schools.
Funds additional technology needs, including replacement of Chromebooks and classroom smartboards.
The budget vote will be held Tuesday, May 18th from 6 a.m. to 9 p.m. at Fifth Avenue Elementary, Dickinson Avenue Elementary and the William J. Brosnan building. Residents must vote at their designated polling location, be 18 years of age or older, a registered voter and have lived in the district for a minimum of 30 days.
For more information regarding the budget, please visit the district website at northport.k12.ny.us/district/budget_information
Thank you and Go Tigers!
Robert Banzer, Superintendent of Schools
