The April 7, 2016 meeting of the Commack UFSD BOE provided a review of the proposed 2016-17 budget. Among items of interest was an estimate of actual spending for the 2015-16 year of $176.4 M, a Y-Y reduction of $1.7M. If accurate, this would represent the first time in at least the last 5 years that actual Y-Y spending decreased. It is noted, however, that this implies an $8.7M overestimation of spending in the approved 2015-16 budget - and, assuming actual revenues meet the stated projections, an operating deficit of about $200K. It remains to be seen whether the reduction in actual spending will actually materialize.
You may recall that, in 2014-15 (the last year for which external audit report exists), there was an operating deficit of $2.1M. Contrary to Mr. Hartman’s remarks during BOE meetings that this was paid from “reserves”, the audit shows that over $2.0M was paid from the unassigned Fund Balance (FB) rather than from the appropriated FB. The BOE owes the community an explanation for this unusual action. The consequence was an increase in the district financial stress level. This would not have been the case if the deficit had been paid from the appropriated funds. The motive is unknown though it seems like an attack on the NYS Comptroller’s audit recommendations. But, it is not too late to correct that action. In particular, $2M can be transferred from the appropriated FB to the unassigned FB, returning the financial stress level to its previous more favorable value, and bringing the unassigned FB closer to the 4% allowable by NYS law. This would reduce appropriated FB for the 2016-17 budget by $2M (from $8.9M to $6.9M) which would result in a decrease of the proposed 2016-17 budget to $185.5 M - well above expected actual spending in 2016-17. It would also demonstrate some effort to carry out the recommendations of the NYS Comptroller – which is sadly lacking in the present proposed budget. In fact, the BOE should explain how the proposed budget follows any of the NYS Comptroller’s recommendations.
The April 7, 2016 presentation also makes the point that the budget can not be changed after it is “adopted” (by the BOE at the April 21 meeting). It doesn’t mention that, immediately after approval by the voters, the budget is increased by encumbrances (in the order of $300,000) and is subject to change by the BOE throughout the school year.
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Enrollment is in a deep dive. In 2016-17, the 2015 graduating class (643 pupils) will be replaced by a kindergarten class of 353 pupils (fewer than projected by WBOCES) - an overall drop about 300 pupils. This results in about 20% decrease from peak enrollment So there is an excess capacity of at least 20% in the schools.
The BOE must deal with the realities, and commence to decrease the burdensome and unjustifiable tax levy. With budgets that overestimate actual spending by $5M -$8M, it is clear that a budget that asks for an increase of 0.38% (about $500K) is either a joke or/and an insult to the community. There obviously should be zero increase in the tax levy for 2016-17. Get real; do the oversight job for which you were elected!
