Residents get updates at second budget meeting
2009-10 budget picture slowly improving

Fonda-Fultonville residents received encouraging news at the district's second community budget forum on Wednesday, March 18—news that the district's proposed 2009-10 budget is looking better than originally anticipated.

Superintendent Dr. James Hoffman's tone was hopeful, but cautious, as he shared the latest budget information. He reported that a combination of reduced spending in the current school year and cuts to next year's proposed budget have improved the school's financial picture. The latest figures project next year's spending will increase 1.6 percent over the current year—resulting in an estimated school tax increase of less than 4.0 percent. The figure, he noted, does not include any of the promised federal stimulus funds.

"We have heard all sorts of rumors regarding the federal stimulus package," he said. "We won't know anything until the state adopts its budget around April 1st. If the legislature reinstates the governor's cuts, I can foresee a school tax increase under 3.0 percent."

Despite the brighter outlook, he warned that the federal aid does not mean budget concerns are past. Current estimates suggest that next year's health care and retirement costs will greatly exceed the cost of living index. These and other rising costs could place the district in an equally difficult position for 2010-11 and beyond. He believes that the district has cut as deeply as it can and that any further cuts will come at the expense of educational programs—and that places even greater pressure to use the stimulus funds wisely.

Overall, he is pleased with the progress to date.

"It had been suggested that everyone should share the pain," he said. "This budget does that. It's like the difference between hitting your thumb and cutting your thumb off. Everyone hurt a little, but no one suffers too much."

Acting on recommendations

Just five weeks earlier, residents had gathered for a community roundtable budget session in which over 30 people working in groups of five to eight helped draft a list of ideas to reduce the budget. At the time, the district anticipated having to raise $450,000 in taxes—an estimated tax increase of 7.5 percent.

At the March meeting, Dr. Hoffman thanked everyone for their input. He acknowledged that  the recommendations were thoughtful and that some had been acted upon. Others he explained were impractical or were legally off limits. Below are some of the key suggestions and his responses:

• Reduce supplies—Dr. Hoffman praised administrators and teachers for saving over $75,000 this year by eliminating nonessential spending. "This was not cutting out the extras," he said later, "Teachers sacrificed purchasing worthwhile classroom materials. It is less than ideal, but everybody has stepped up to help."

• Eliminate the late bus—The late bus only costs the district $1500 after aid reimbursement. Any savings is overshadowed by the fact that this would penalize a a large group of students who benefit from the various afterschool programs.

• Adopt a four-day school week—New York state law currently prohibits this practice.

• Stop sending students off campus—Whenever economically practical, we attempt to keep all students in-house. This year, the district hired a special education teacher and established a class to keep students here. When the numbers are small or the needs are very specific, however, students must be sent to outside programs.

• Do a better job filling buses on transportation runs—The district is purchasing a small van to transport kids from small runs at a projected savings of $40,000 per year. Many students drive to school or ride with their parents. We are currently developing a survey to identify students who use alternate transportation to better configure bus runs.

• Reduce band trips to competitions—Band trips were reduced from four to one this year.

• Make certain that tuition for out-of-district students covers the cost of educating them—Tuition reflects the actual costs of educating students and does not add to the local tax burden.

• Solicit bids for school supplies—We will begin this practice to save money, but we recognize that this will limit selection.

• Reduce study halls—Removing students from study halls would require moving them into other classrooms. This would require additional teachers, negating any savings.

• Maintain small class sizes—Most class sizes will remain the same. Exceptions include one elementary grade (grade to be determined), high school social studies, and upper level high school Spanish. This increases will be modest and will not severely impact the learning environment.

• The sports budget is too costly and benefits too few kids—It is a misconception that interscholastic sports benefit a small group of students. The total sports budget is roughly $250,000 (including equipment and uniforms, coaches, officials and transportation). Over 60 percent of high school and eligible middle school students play at least one sport each year.

• Find ways to cut sports costs—The district has already reduced the number of contests and coaches, limited the distances teams will travel, and is considering raising admission fees for sporting events.

• Seek the support of area businesses—This might raise revenues, but would also create issues with advertising. Who should be allowed to "advertise" on school grounds and where would they advertise?

• Institute user fees for athletics—User fees are illegal under New York education law.

• Look for savings in health insurance—The district is self-insured at considerable saving over commercially offered health plans. Despite this, health insurance costs are rising faster than the rate of inflation. We are currently exploring ways to reduce expenses without hurting our employees. The specifics of the program and employee contributions are already determined by the employee contracts. Any changes would come during contract negotiations.

• Have staff pitch-in—Many staff members have already volunteered to duties beyond those required by their contracts.

• Freeze salaries—Dr. Hoffman and District Treasurer Carey Shultz have already volunteered to freeze their salaries. Dr. Hoffman also volunteered to raise his health insurance contribution from 12 to 15 percent. Other employees are paid under existing contracts.

• Reduce non-school building use—Our school serves as the community center. Eliminating non-school building use will punish everyone. The district is exploring charging groups a facility-use-fee if the activity requires additional staff (supervision or custodial) or other expenses such as utilities.

• Monitor heating and cooling functions—This is an ongoing process. With nearly five acres of buildings, some areas get warmer or cooler than is ideal. Our maintenance staff is constantly working to maintain a reasonable environment.

• Stop busing students who reside within one mile of school—Under New York State law, we are required to transport any student who must travel a hazardous route. The lack of sidewalks on Cemetery Lane/Old Johnstown Road creates a dangerous situation obligating us to transport all students.

• Purchase buses—A school bus costs over $100,000. We contract with Brown's transportation for 25 buses. To convert to our own fleet would cost $2.5 million for buses in addition to constructing a bus garage and hiring (with benefits) drivers, a full time transportation director, and mechanics.

• Work with area businesses to improve opportunities—Dr. Hoffman is the chairman of the Hamilton-Fulton-Montgomery Business Education Alliance (HFMBEA). The HFMBEA partners businesses, colleges, and schools to provide information about job opportunities and the skills students need for those jobs. The ultimate goal is to provide our youth with careers that enable them to stay in the area.