General Questions
As part of the routine, the budget process begins with both estimated projections of revenue (exclusive of tax levy, fund balance, and reserves) and expenditures for the upcoming fiscal year. The current projected budget deficit, as of April 11, 2024, is $2.36 Million. This includes usage of tax levy increase, reserves, and fund balance.
- Feb. 15: Technology and Facilities preliminary budget presentation
- Feb. 29: Student Services, Special Education, and Athletics preliminary budget presentation
- March 14: Technology and Facilities preliminary budget presentation
- April 2 - 4: Supervisors notified impacted staff and union/unit leadership
- April 4: Special Board budget meeting to discuss closing deficit
- April 11: Special Board budget meeting to discuss closing deficit
- April 17: Special Board budget meeting to discuss closing deficit
- April 18: Board budget adoption meeting
- May 9: Public hearing on the proposed 2024-2025 budget
- May 21: Public budget vote
This year, the district is facing steeper challenges specifically in the areas of:
- Unprecedented increase in health insurance expenses. This is a result of rising healthcare costs due to the inflationary pressures in the healthcare field. In the 2024-25 budget, the district will see an increase in the health insurance line of roughly $3.7 million.
- Inflationary increase in contracted services
- Increase of more than 60% in minimum wage
- Governor’s budget proposal reflected a decrease in State foundation aid, due to modifications in the lawful foundation aid formula
Taxes received from the community help to support the district programming and the district is thankful for that support. This year, the challenges with healthcare expenses is outpacing traditional revenue sources.
Budget reductions have been considered by the board over the last eight weeks. The district started with identify operating expenses of all schools and district departments, BOCES services, and use of grants that had minimal impact on students and staff. The board supported and accepted these recommendations and urged the team to continue to identify similar reductions. With all this work, the district is still facing a $2.36 million dollar deficit. Given this deficit, further reductions would need to come from staff and program. The board was presented with staff and program recommendations by the administrative team to consider.
The debt service category is made up of annual principal and interest payments due on the debt we borrow for the capital construction projects. These principal and interest payments are supported through the receipt of state-funded building aid and local funds received through the tax levy as explained to and voted on by the community.
The proposed budget includes using reserve funds and fund balance. The use is listed below:
- Fund Balance: $1,000,000
- Employees' Local Retirement System (ERS): $500,000
- Employee Benefit Accrual Liability Reserve (EBALR): $200,000
The voter-approved capital project is separate from the annual operating budget. The district has borrowed funds for cash-flow purposes for capital construction work. It is still obligated to pay this debt if the project was to cease. This would also result in a decrease in supporting state aid because the project was not completed as submitted. Furthermore, the district has entered into agreements with a variety of contractors to complete the project. Stopping the project could result in a breach of contract, leading to potential litigation.
The plan has been for the central office to move from Hibbard Road upon the consolidation to three elementary schools. The sale of the property does not require voter approval, unless a petition requesting a vote is presented to the board, signed by at least 10% of the voters in the district. The board is obligated to obtain the best sale price and it is highly recommended to engage a real estate broker and obtain a certified appraisal.
Once sold, proceeds may:- go into a tax reduction reserve to be used within 10 years, thereby reducing levy, and/or,
- be accounted for in the general fund as a one-time, nonrecurring influx of funds, and/or,
- be placed in any allowable reserve for future budget support.
The tax levy is a funding source for the school district provided by the community based on the prescribed calculation by law. This calculation results in a specific percentage change when compared to the prior year levy limit. The tax rate is calculated using several components, including the calculated levy, the assessment values developed by the municipalities’ assessors, and equalization rates calculated by New York State Taxation and Finance. Using the calculation for the tax rate, the tax levy is apportioned amongst the taxpayers in the community.
Programmatic and Personnel Impacts
The district is considered changing the drop-out age to the state level requirement.
The district is also considering changing the health credit to the state requirement of 0.5 credits from 1. Therefore, changing the graduation credit attainment to the state requirement of 22 credits from 23. The district will still offer full general programmatic, Special Education, extracurricular, and athletic opportunities for all students.
The proposed budget reductions to close the deficit were presented to the board at the April 4 Board of Education meeting and include the following levels: The first level includes the following, which would reduce the budget deficit to $1,900,000:
- Athletic Program (28 positions), Clubs (7 positions), and Partial Intramurals
- Grant Movement: UPK and Title IIA
- Additional Building and Department Budgets
- Additional Curriculum Work
- BOCES: Arts in Ed., Exploratory Learning, ABL
- Transportation: Trainings and Job Fair
- Miscellaneous: Zoom licenses, ISC Stipends, Conferences, and NYSSBA Membership
- Central Office Administrator and Support Staff (2)
- Building Administrator
- Consolidation of ENL
- Programmatic drop-out age adjustment
- Transportation: Lead Trainer, Assistant Student Behavior Monitor, and bus monitors* (2)
- Licensed Practical Nurse (3)
- Teaching Assistants Elementary and Secondary* (12) Middle School 12:1:1 consolidation
- High School Staff*: Math, Science, Social Studies, English, and Health
- School Resource Officers (2)
- Athletic Program Consolidation, Club and Intramurals Reductions
- Response to Intervention Teachers* (3)
- Teaching Assistants Elementary (4) and Secondary (2)
- Elementary Staffing: Library (1) and Art (1)
- School Social Workers (1) and Social Work Assistant (2)
* Indicates positions being reduced based on current open-positions or attrition
The collective bargaining agreement with the Horseheads Teacher Association states a maximum class size limit of:
- 23 students per classroom: Kindergarten – grade 3
- 25 students per classroom: grades 4-12
The district is required to provide all mandated services for students who receive special education services or supports. They will not be impacted by the proposed reductions.
Yes, the district bills Medicaid for related services areas that we have appropriate licensure for.
- Vacancies: Positions that are currently open within the district during the 2023-24 fiscal year. These positions will not be filled in the 2024-25 fiscal year.
- Attrition: Positions that will not be filled after a staff member separates from the district (e.g., retirement, resignation).
- Reduction: Specific positions that will be eliminated. The person whose job is in jeopardy is based on seniority according to collective bargaining agreements, not necessarily the person holding the position.
The healthcare plans the district offers employees has been self-funded and is part of the multi-year contractual employment agreements with district unions. The superintendent and the board shall honor the letter and spirit of all contracts until fulfillment or modification by mutual agreement in accordance with policy 0320.1-E. Healthcare is a mandatory item of negotiation and any such change would need to be part of a negotiated process with each unit. The district has and will continue to work with a healthcare consult to explore cost savings in this area.
Similar to healthcare, salary is a mandatory item of negotiation. Therefore, any such change would need to be part of a negotiated process with each unit. The superintendent and the board shall honor the letter and spirit of all contracts until fulfillment or modification by mutual agreement in accordance with policy 0320.1-E.
Budget Vote Information
All district residents are eligible to vote, provided they meet the following requirements:
- Are a U.S. citizen
- Are 18 years of age or older on the day of the vote
- Have lived in the district for at least 30 days prior to the vote
- Are not restricted from voting in general elections based on election law
- • Are registered to vote in general elections. Unsure if you are registered to vote? Click here
The budget vote will take place on Tuesday, May 21 from 7:00 a.m. – 9:00 p.m. in the Horseheads High School South Gym.
If the budget does not pass, a revised budget may be presented for a public vote on June 18. If the second vote does not pass, the district must automatically convert to a contingent budget.
While there are a variety of limitations within a contingency budget, the most detrimental to the district is the inability to increase the tax levy over the prior year’s calculations. For the 2024-25 school year, this would result in a decrease in funds to the district of $4.8 million, based on the levy calculation to-date. There would be a significant impact to students, staff, and the community, as the deficit increases by an additional $4.8 million. If a contingency budget is implemented, the Board of Education will set the final budget allocations according to the state and would focus on mandated programs only. There would be no tax impact to the voter, nor additional tax revenue for the district. Restoration of staff and program would be a multi-year process following a contingent budget.