HILLTOWNS — For the first time in over 10 years, Berne-Knox-Westerlo residents have rejected the district’s proposed budget, forcing the board of education to decide whether it will offer residents an alternative budget to vote on next month, or move directly to a contingency budget. 

The current proposal required a 60-percent supermajority to pass because its tax levy increase, 5.09 percent, exceeded the state-set cap of 4.35 percent. The budget fell short of that mark by less than 10 votes, with 345 in favor and 243 opposed, for a total approval rate of 58.7 percent. 

Since the state adopted a tax cap a decade ago, it is rare for school budgets in New York to be rejected by voters. Data from the New York State Department of Education shows that only 11 of the 674 school budgets put to a vote last year failed; of those 11, four had needed a supermajority to pass. Revote data shows that, of the 10 of those districts that went to a second vote, seven were successful, including two that still needed a supermajority. 

According to the New York State School Boards Association on Wednesday morning, nearly 99 percent of school budgets under the tax cap passed, while only about 69 percent of schools above it did; of the 32 districts over the cap, 10, including BKW, failed to get a supermajority.

In April, the board had decided that it would risk going over the tax cap in order to preserve the school resource officer program offered by the Albany County Sheriff’s Office. Superintendent Timothy Mundell had initially presented a budget that cut that program, saving the district $81,000, but the board felt that the value of the program was worth the cost, and that cutting the program would cost more voters than keeping it and going over the tax cap. 

Since finding itself in a period of stability that began roughly when the board hired Mundell in 2015, the district has passed its budgets by large margins, with residents receiving tax cuts in many of those years. Mundell is retiring this year. 

Board member Matthew Tedeschi estimated in April that the district had room to lose some voters based on those previous margins. At a later budget hearing, only two residents spoke against the budget, though attendance may have been affected by the fact that — in accordance with New York state law — the hearing was held after the proposal was adopted by the board, meaning that comments would have little impact anyway. 

One of the speakers, Berne resident and former board of education member and BKW teacher Helen Lounsbury wrote in a letter to the Enterprise editor, in part, “Our district is facing a fiscal cliff! The board is proposing a budget with a 5.1-percent tax increase to a community where 32 percent of BKW students are considered by the state controller as economically disadvantaged as compared to 12 percent of Voorheesville students.

“We just cannot afford the board’s budget proposal. Many of our residents are struggling to put food on the table and gas in the car. This proposal could well be the straw that breaks the camel’s back! 

“What to do? The administration and board need to search out creative solutions.”

In a response letter, Mundell wrote, in part, “Suggestions were made about reducing staffing. The budget proposal eliminates two teaching positions and one administrative position. Over the last three years, the district has eliminated a total of six teaching positions, four teacher assistant/aid positions, and a part-time clerical position.

“These efforts in total controlled costs by roughly $750,000. The district will continue to make staffing reductions strategically to reflect declines in enrollment, while also ensuring the success of students.

“On the issue of the purchase of the doctor’s office in 2022, the board anticipated a necessary capital project involving the current bus garage. The long-term plan is to coincide the work with the retirement of two bonds in 2025-26.”

An update posted to the district website says that, if the district decides to put up a second budget, residents would vote on it on June 18. However, it suggests that the board may be willing to adopt a contingency budget, which would mean the tax levy stays flat at just over $11 million, with certain other requirements laid out by state law. 

“We are currently working through our options and plan to discuss our next steps at our board meeting on May 29th,” board president Kim Lovell told The Enterprise.

BKW has outlined what its 2024-25 contingency budget would look like in its budget newsletter, showing cuts in the categories of general support, operations, and employee benefits from the current school year. This would mean a roughly $150,000 increase in expenses from the current year rather than the proposed $700,000 increase that was just rejected. 

“As a district, we will hold a discussion on the next steps for our district and review our priorities moving forward,” Mundell is quoted as saying on the district website.

District residents also voted Tuesday night to send board of education member Lisa Joslin, of Westerlo, back for a second, three-year term. Uncontested, she received 469 votes. Voters were not presented with a bus proposition this year.