In the Ballston Spa Central School District, a massive influx of tax money means the state’s property tax cap is calling the district to dial back taxes.
Ballston Spa would need to trim $1 million from its 2012-13 budget to bring its taxes down to the level of the tax cap. The budget proposal at the moment stands at $76.4 million, a 4.8 percent increase from this year’s. The rise is due in no small part to rising retirement contributions and health care costs.
Though it’s a larger budget, the rollover program would drop the tax levy by 0.4 percent.
A big the reason for the situation is the Ballston Spa receivedan $8.5 million payment in lieu of taxes (PILOT) payment from GlobalFoundries. A payment of the same will be given to the district next year as well, according to Stuart Williams, coordinator of community relations for the district.
Beyond next year, future payments are less certain.
“(We) can’t estimate anything going out because the tax rate will change,” said Williams.
“This is the top year for revenue from GlobalFoundries. … It will be going down from here, every year,” said Superintendent Joseph Dragone.
That $8.5 million helps to offset decreases in state aid and increases in expenses, but also affects the formula used for calculating the district’s tax levy limit under the state property tax cap.
The district’s tax levy limit is -2.87 percent. Most other districts fall in between 2 and 3percent, though in Harford and Hudson Falls the limits are 11.6 and 7.1 percent, respectively. Stillwater, which also receives GlobalFoundries taxes, is in a similar position with a tax levy limit of -4.5 percent.
If the district wishes to pass a budget that does not lower taxes by at least 2.87 percent, then at least 60 percent of voters must approve of it on May 15.
Potential cuts to get under the tax cap would involve closing the pool, (a savings of $167,000), cutting seven teaching positions at the elementary level, (an estimated savings of $500,000) and moving the theater program to a club model for a savings of $135,000. Dragone said he does not agree with any of the proposed cuts.
“The key is in balancing resources. We’ve dedicated the last several years to get to this point. … Every year it’s an increasingly difficult process. We reduced 50 positions over the last three years. We’re fortunate at this point,” said Dragone.
Payments from GlobalFoundries won’t last, so to prepare for financial challenges in the future, the district is examining blended learning models and credit recovery to brace for the change.
“The amount will be less in the following years. … Overall, the budget will go up,” said Williams.
The district is witnessing an increase in enrollment that is expected to grow over the next five years, but that will not impact the proposed budget. This is in part because the district will rebalance math, English, science and social studies sections in the middle school and make an administrative realignment to support new evaluation requirements and common core implementation.
There will be a Board of Education meeting regarding the budget on Wednesday, April 18. Unless otherwise noted, meetings are scheduled for 7p.m. in the High School Library at 220 Ballston Avenue.
Other school board budget meetings are as follows:
May 1, 6:30 p.m., Malta Community Center: Budget Presentation
May 2, 6:30 p.m., HS Library: Public Hearing
May 7, 6 p.m., Milton Community Center: Budget Presentation
May 8, 6:30 p.m., Malta Ave. Library: Malta Ave. PTA
May 9. 6 p.m., Ballston Town Hall: Budget Presentation
