BC News

Superintendent sees difficult budget decisions -- and a big role ahead for the community
Release Date: Nov. 21, 2008

A mid-year state aid cut may not be imminent, but a recent proposal to take away $1.8 million in anticipated aid to the district may offer a preview of difficult budget cycles to come, Superintendent Michael Tebbano told the Board and the community on Nov. 19.

Dr. Tebbano’s presentation was in response to a proposal to cut state aid to all school districts mid-year that Governor David Paterson advanced ahead of a special state Legislature “budget cutting” session on Nov. 18. As it turned out, the legislator did not come to agreement on that plan, or any other, on that day.

Still, Dr. Tebbano proceeded with a presentation on the Governor’s proposal at the Board meeting a day later.

“It is unclear exactly what will take place at the state level,” he said. “What remains clear is that the state has a serious financial situation on its hands. I understand that state leaders have a responsibility to act, but at the same time, this has the potential to dramatically affect the district in terms of state aid — whether it is in the middle of this year or in future budgets.”

“It is important that the community understand the magnitude of what was proposed, and what could be in store in the months and years ahead,” Dr. Tebbano added.

Under the Governor’s proposal, Bethlehem Central would have lost $1,764,730 in state aid in the middle of this school year — money that it has been counting on to provide programs and services for all students, meet its contractual obligations and pay the bills necessary to operate.

In the presentation, the superintendent noted that when state aid is cut in the middle of the year, a district basically has three choices: find savings in the existing budget, including cutting programs and services; use any available fund balance to offset the lost aid; or a combination of the two. It’s worth noting that if state aid does not keep pace, or is even scaled back, as part of a normal budget cycle, the district’s options do not change all that much.

“Every penny we don’t get in aid can only be made up for in one of two ways — by eliminating costs in the form of programs and services, or through property taxes,” Dr. Tebbano said. “Our pledge to the community is to maintain a high quality academic program and to hold the line on taxes. This won’t change, but we quite obviously depend on the state’s investment in education to do it.”

As state leaders signaled the potential for a mid-year aid cut earlier this fall, Bethlehem Central proactively instituted a non-essential spending freeze to hold down costs wherever possible.

In his presentation on Nov. 19, Dr. Tebbano put the $1.8 million into context by showing the cost of some select areas of the program. For example, the district spends about $750,000 on athletics, $325,000 on technology equipment, and $150,000 on afterschool programs; 10 teaching positions account for about $625,000 in the budget — roughly a third of the cut that had been proposed. The district spends about $150,000 for field trips and $50,000 on enrichment funding, two areas that have already been affected by the non-essential freeze.

“Let me be clear that these in no way should be taken as areas we are proposing to cut or even the most likely targets,” Dr. Tebbano said. “The community just needs some context about how crucial the role the state’s investment in education is for Bethlehem’s students and taxpayers.”

Dr. Tebbano also addressed the idea of using a district’s fund balance to offset any changes to state aid, likening it to a personal savings account. You don’t build up a savings account hoping to use it all in one shot when that rainy day shows up, he said; you build it and maintain it so you have stability over the years.

Given the likelihood of difficult decisions and the ever-present need for budget priorities that are carefully thought out, Dr. Tebbano asked the community become engaged in this year’s budget process. The district is planning a series of four budget forums beginning in January, and will soon solicit input on what topics people would like to learn more about.

“The need to invest in education that prepares all students for success in the 21st Century could not be greater. The need to prepare young people to be leaders in a workforce that reinvents and reinvigorates our nation’s community could not be more evident,” Dr. Tebbano said. “I hope these budget forums provide an opportunity for the community to come together to identify priorities and provide the district valuable feedback.”

 

 

 

 

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