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May 3, 2010 - On Tuesday, May 18, Goshen Central School District residents will vote on a proposed $59,695,901 budget for 2010-11. This budget represents the lowest spending increase in more than 20 years – at 0.07 percent – during a year when the district faces a 12.6 percent loss of state aid.

Governor’s proposal, rising costs result in revenue-expenditure gap
Despite the low spending increase, the proposed budget would increase the tax levy by 4.38 percent. This is due largely to Gov. Paterson’s proposal to cut $1.43 million in state aid to Goshen for next year, in an effort to compensate for New York State’s growing deficit. Annually, state aid accounts for approximately 30 percent of the district’s revenue.

In addition, continued rising operating costs such as contractual salary obligations, retirement payments and BOCES programs, coupled with state aid and other revenue reductions, have resulted in a $2.3 million revenue-to-expenditure gap that must be filled.

In order to address the revenue-to-expenditure gap, it was necessary for the district to make reductions to its staff and programs for next year. However, the proposed budget maintains two major programs that were originally considered for reduction: full-day kindergarten and modified sports at the middle school.

“After listening and reviewing the community’s feedback from our Community Budget Forums in March, the Board of Education decided against reducing full-day kindergarten to a half-day program and eliminating modified sports,” said Superintendent Daniel T. Connor. “The community’s input was an integral part of the budget decision process, and our residents’ ideas and concerns were incorporated when possible.”

But although these programs will be available for students next year, there are still a number of reductions that the district made in an attempt to balance the budget.

“Reductions of this magnitude are not ideal, but the district believes that they were necessary in order to place a budget before voters that is responsive to their call for tax restraint,” said Connor. “State aid is no longer keeping pace with the rising costs of running a school district, so we were forced to make some difficult decisions.”

What are the proposed reductions for next year?
Four positions will be left vacant through retirement and will not be replaced next year. Additional cuts to faculty and staff were necessary to further reduce the budget, with many positions being reallocated throughout the district. Positions that are being eliminated include:

• Two administrators
• Two librarians
• Kindergarten teacher at SAS
• Two second grade teachers at SAS
• Part-time special education teacher at SAS
• Art teacher at GHS
• English teacher at GHS
• Math teacher at GHS
• Academic Intervention Services teacher at GIS
• Part-time music teacher at GIS
• Two reading teachers at CJH
• Health teacher at CJH
• Two bus drivers (bus routes will be consolidated)

In addition, a full-time music teacher at the middle school will be reduced to part-time. Other reductions will be made in programs and supplies.

Programs and service eliminations include:

• 5 p.m. after-school bus run
• Two special education tuitions, two Restart program slots, 10 C-Tech program slots
• Sixth and seventh grade Mandarin Chinese

Program and service reductions include:

• 10 percent reduction in co-curricular activities
• New teacher Mentoring Program
• In-service trainings and conferences for faculty
• Buildings and Grounds supplies, equipment, contractual and summer work

What about fund balance?
Many families set aside money in case of emergency or other unforseen costs. Families also put money aside in order to save for the future, such as their children’s college education or for retirement.

School districts are no different. Like other districts, Goshen sets aside money for emergencies and for future obligations. Goshen has an undesignated fund balance of approximately $2.38 million – the maximum of four percent of its budget as allowed under New York State law.

Gov. Paterson has repeatedly suggested that school districts use their fund balance to cover his proposed reductions in state aid. Doing so carries a risk, because it could place the district in a precarious financial position in the event of future financial challenges.

In 2011-12, the federal stimulus aid given to schools under the American Recovery and Reinvestment Act (ARRA) will expire. The loss of these funds may cause the state aid picture to be even worse next year.

Given the current economic situation, but keeping in mind the possible financial hardships in the years to come, the Board of Education members decided to use a conservative approach while applying more of the district’s fund balance to next year’s budget.

Typically, the district has used approximately $800,434 of its fund balance to balance the budget each year. This year, the Board of Education members decided that an additional $180,000 of the fund balance should be applied to the 2010-11 budget, for a total of $980,434, in order to hold down the tax levy increase.

“Essentially, we’ve used a combination of solutions to help balance the 2010-11 budget,” said Connor. “It is never an ideal situation to cut programs or lose talented and dedicated faculty and staff. Unfortunately, there is no easy answer.”

The district's special budget newsletter will be mailed to residents in the next several days. Please review the publication for more details about the upcoming budget vote on Tuesday, May 18.