School districts restrain spending in tough economic times |
FOR RELEASE: April 30, 2009
CONTACT: David Albert
(518) 783-3716 or (518) 320-2221 cell
By making some very difficult – yet prudent – budget decisions, school districts across New York have held the average property tax levy increase to 1.89 percent for 2009-10, according to the latest state property tax report card.
The report, which is compiled by the New York State Education Department (SED), also shows average school spending will only increase 2.3 percent under the proposed 2009-10 budgets.
“Putting together a school budget under these difficult economic circumstances has been more difficult than any of us could imagine,” said Timothy G. Kremer, executive director of the New York State School Boards Association. “Having to lay off dedicated and talented employees hurts. Eliminating programs that our children enjoy and benefit from is upsetting.”
“Thankfully, the federal stimulus package helped save countless jobs. It could have been far worse,” noted Kremer. However, with New York State still facing a serious multi-year budget deficit, school districts remain concerned about what happens when the stimulus funding expires in two years. With no increase in state operating aid this year, coupled with an anticipated freeze in aid again next year and rising expenses, district officials took an especially careful look at their budgets.
While the average tax levy increase was held in check, the average district spending increase also experienced a sharp drop this year, according to the SED data. The average proposed spending increase for 2009-10 is 2.35 percent. This is compared with 5.29 percent this year, 5.97 percent in 2007, 5.96 percent in 2006, and 6.16 percent in 2005.
Additionally, the vast majority (84 percent) of school district budget proposals call for spending increases under 4 percent, which is the maximum spending increase allowed under a contingency budget.
“School boards understand the effect the economy has had on the state and their neighbors,” added Kremer. “The fiscal crisis has led board members to become even more diligent when making spending decisions.”
The average tax levy increase proposal of 1.89 percent is a decrease from this year’s average increase of 3.37 percent. In fact, for the past five years, the proposed average tax levy has consistently gone down: from 6.89 percent in 2005 to 5.91 percent in 2006, to 3.91 percent in 2007, to 3.37 percent in 2008, to 1.89 percent this year.
This year’s school budget votes and school board elections will be held on May 19.
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