As budget season gets underway, North Colonie Central School District is concerned about the future of its fund balance.
The state has yet to release its budget, leaving much of North Colonie’s budget plans in flux. With uncertainty surrounding the fate of the Gap Elimination Adjustment (GEA) and the amount state aid to be released, Superintendent Joseph Corr said the district’s main concern with planning the budget continues to be student education and development.
The district could only give an estimate as to what the budget will look like next school year. Without the state budget from Gov. Andrew Cuomo’s Office, the district is unsure of what it will receive in state aid to help its 2015-2016 budget along.
However, one primary concern is the effect of depleted revenue sources on the district’s fund balance.
“I think the challenge that we are faced with this year and today in this budget climate is, how do we continue to sustain ourselves? Not just fiscally, but probably, more importantly…how are we able to sustain a quality education program in the light of what I consider to be the most challenging budget year that we’ve been presented thus far,” said Corr.
In the 2013-14 school year, the district used $1 million from its fund balance, and is projected to use another $3 million in the current year. The budget projected about another $2 million for the 2015-16 year.
“We have to end the use of fund balance over time and avoid depleting resources,” said Corr. “You can’t burn the furniture. Once you get to the point of burning furniture, you realize you are using your reserves. You’re living off your savings on a basic operating level, and that cannot be sustained and that is not acceptable.”
Much of the issue comes from lacking resources to gain revenue, according to Corr. There also continues to be uncertainty over state funding is uncertainty over how much districts will get from the Smart School Technology Bond. Residents statewide voted last year to help fund technology upgrades. All the districts know, Corr said, is that the bond passed.
The tax cap also limits resources, forcing districts to find other ways to grow revenues. Corr said he expects the district to stay well within the limit.
New unfunded mandates will also be implemented this year. The state is mandating new changes to English as a Second Language and English as a New Language programs, which would have a 66.6 percent increase to staffing. Corr said area districts were unable to completely meet these new demands, but that North Colonie would meet them incrementally.
“We will be making a good faith effort,” he said, adding the mandates will begin to be met in higher grade levels before working its way down.
The district will also be transitioning from half- to full-day kindergarten. North Colonie has seen declining enrollment over the last few years, but with new housing developments in the area, that might change. Corr said comparative studies are being done to project possible enrollment numbers.
However, not all is bad. Due to good market performance, rates to retirement systems have decreased. As staff members retire the district will reevaluated the need of the vacated position.
“We have not, fortunately, been compelled to layoff anybody who has a full-time job,” Corr said, unlike many neighboring districts that has seen hundreds of layoffs.
During the budget planning process, Corr said that the most important thing to remember was providing an education to students.
“Having a good education is not a luxury to be enjoyed by some, but it’s something that we all need. It’s a necessity,” said Corr. “Our challenge is to present to our students learning experiences that stick with them … that will serve them well in a variety of contexts in a world that will be constantly changing, constantly challenging.”
