GUILDERLAND — The school superintendent has proposed a $79 million district budget for next year — an increase of about $3 million or 4.51 percent over this year.

He estimates Guilderland residents would pay 5.66 percent more in taxes — or $19.39 per $1,000 of assessed value.
"I’d much rather see it lower," said Superintendent Gregory Aidala, but the hike is needed, he said, "to maintain the program and goals."

Aidala presented his spending plan last Thursday to volunteers on a citizens’ committee who will review the proposal in a half-dozen televised sessions over the course of the month.

The school board is slated to adopt the budget on April 11 and voters will have their say on May 16.
"We hope our revenues go up and we can control costs and live happily ever after," said Aidala. "Easier said than done."

The plan calls for some administrative cuts (see related story) and for cutting 25 or more teaching assistants for a total of 150 hours.
"Children are our community’s future," Aidala said as he concluded his presentation. "Everyone has a stake in the success of our schools. We’re proud of the Guilderland Central School District but we also have to ensure that the financial resources in our schools are used wisely to educate students.
"Balancing program needs with the impact on taxes is very important," said Aidala.

Revenues

The $79,048,065 budget proposal counts on about $20.5 million in state aid, which accounts for about 26 percent of the total costs.

While the dollar amount of state aid to Guilderland has increased from five years ago, when it was $18.9 million, the percentage of the local budget it covered has declined steadily from about 31 percent.

The $20.5 million Guilderland is planning on for next year assumes $300,000 in state aid will be restored.
"The single biggest source of revenue becomes property taxes," said Aidala; this will account for about 70 percent of the spending plan. The rest comes from a variety of sources including federal funds and room rentals to programs using the Guilderland schools.

The budget drafters have planned on using $850,000 from the district’s fund balance, the same as this year, and they have assumed property assessments in the town of Guilderland will increase by $10 million.
"I think that’s a conservative estimate," said Aidala.

He displayed a triangle-shaped chart that listed, at its base, state-requirements and, on top, non-required expenditures supported by the school board such as social workers, psychologists, art and music programs, advanced high-school courses, enrichment programs, and half-day kindergarten.

For the first time in decades, the state met its April 1 deadline last year for adopting a budget, making it easier for school districts to adopt their budgets.

Guilderland’s $76 million budget was approved by 56 percent of the voters last May, in a year when property values jumped dramatically because of town-wide reassessment.

Expenditures

The district currently has 5,551 students, a decline of 94 from the previous year. Guilderland expects another slight decline next year — of 37 students — to 5,514. The district employs 1,108 workers — 700 full-time and 408 part-time.
"We are a people-intense organization," said Aidala, noting that typically 75 percent of the budget goes for salaries and benefits.

Aidala listed several assumptions made by the budget drafters. One is that the district will realize a $300,000 savings in health-insurance costs. (See related story.)

They also plan on spending $350,000 when the debt service for the Farnsworth Middle School’s expansion and renovation project moves to serial bonds.
Finally, the cost for meeting requirements set out by the federal No Child Left Behind legislation, of $90,000 to $100,000, is embedded in the budget. Aidala termed the extensive testing required district-wide "an unfunded mandate."

Some of the biggest cost increases are:

— $241,500 more for the state’s Teachers’ Retirement System, an increase of 7.4 percent;

— $537,000 more for health-insurance benefits, an increase of 6.6 percent, which includes a projected savings of $300,000;

— $1,093,100 more for salaries, an increase of 2.61 percent;

— $395,500 more for fuel and utility costs, a 20.9-percent increase, which includes a $150,000 reduction from a new energy-education program; and

— $635,400 more in debt service for the middle-school project, an increase of 9.69 percent.

Challenges

Aidala outlined five challenges for the upcoming year. The first is to carefully review class sizes. The second is to maintain existing instructional programs.

The third is to recognize, with state aid declining, that fringe-benefit costs, for health insurance and retirement, along with energy prices continue to increase dramatically.
The fourth is to recognize that a tax-rate increase below 5 percent without additional state aid or major reductions in expenditures "will be difficult."
The final challenge is to avoid making the budget situation worse in 2007-08. "What we eliminate this year may cost a lot more the following year," said Aidala.

Aidala also went over several budget highlights.

Small class sizes will be maintained, he said, with a range of 14 to 22 students in kindergarten through second grade, and of 17 to 23 students in third through fifth grade.

There will be no change in total teaching positions at the elementary level, but there will be minor changes at the middle school and high school. The middle school will loose nearly one full-time post, made up of cuts in math, English, and science. The high school will lose just over one full-time post with reductions in business and the loss of an instructional supervisor. (See related story.)

The budget does not include $170,000 for teaching Spanish in the elementary schools as many parents had requested. Nor does it include requested posts of a guidance counselor at the high school or of two teachers at the middle school to maintain 18 sections in sixth grade.

Tax rates

While the lion’s share of the Guilderland School District falls within the town of Guilderland (about 93 percent of true value), small portions also fall in Bethlehem (about 6 percent) and in New Scotland and Knox (each less than 1 percent of true value).

The estimated tax rate for Guilderland residents next year is $19.39 per $1,000 of assessed valuation. That means a Guilderland resident owning a $200,000 house would pay an estimated $3,878 in school taxes next year.

For Bethlehem residents, the estimated tax rate is $28.34 per $1,000 of assessed value. For New Scotland residents, it is $26.38. And for Knox residents, it is $25.86 per $1,000 of assessed valuation.

Both Bethlehem and New Scotland are currently undergoing town-wide reassessment, as Guilderland did last year.