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Shortchanged in Upstate NY

 

A Four-Point Plan to bring
education costs under control

Statewide School Finance Consortium

1. The state must freeze wages for all public school employees when state aid is frozen or reduced.

2. The State must cap the amount a school district can spend on health insurance and require employees to pay a larger share of their health insurance costs.

3. The State must enact a new major pension reform and require public employees to contribute significantly more toward their pensions.

4. The State must reduce the costs of special education by bringing New York’s regulations into conformance with federal guidelines.

www.statewideonline.org

 

What schools can expect
under the tax cap

Timothy Kremer, NYSSBA president

“If the tax cap was in place this past year, 67 percent of New York schools would have had to reduce their budget proposals to fit under the cap. We used to build school programs and then figure out how to pay for them. Now we will determine what we can afford to spend, and hope it meets our students’ needs.”

"Under the tax cap I expect to see:

Layoffs – primarily in
non-instructional areas

Larger class sizes

School closings

Reduced electives and extracurricular activities

Less extra time/help/resources for students" -- Timothy Kremer

 

5 tax cap myths dispelled

The new tax cap legislation signed into law on June 24 has scrambled many school and business leaders in an attempt to fully understand the law’s impact. Misapprehensions have emerged about how the law will affect school districts. This five-point clarification may help dispel misunderstanding.

#1. Districts must submit their proposed budget to New York State Education Department by March 1. - NOT TRUE

#2. The portion of the pension increase that is over the tax cap can be added to the tax levy. - NOT TRUE

#3. Voters will now be voting on the tax levy increase and not a spending plan. - NOT TRUE

#4. If two budget proposals were defeated, a district would be required to spend the same amount as in the previous year. - NOT TRUE

#5. Under the new tax cap legislation, school districts are able to borrow money to help pay for pension increases. - NOT TRUE


 

Central Administration
 

HFM BOCES news

 
 

School boards association challenged by speakers

Leadership needed now to solve complex education issues

NYSSBA president Timothy KremerAug. 29, 2011 - “Our problems are bigger than the solutions we have right now.” That ominous assessment by New York State School Boards Association President Timothy Kremer summed up the initial mood of area education leaders when they gathered to consider life under the new tax cap.

About 75 members and colleagues of the Mohawk Sacandaga School Boards Association gathered on Aug. 15 to hear Kremer, Fulton Montgomery Community College President Dustin Swanger, Fulton County Regional Chamber of Commerce President Wally Hart, and others address the pressures on educators to improve student achievement and career readiness in an environment of reduced funding and increased accountability.

HFM BOCES Board of Education President Robert Townsend immediately challenged them to embrace the leadership necessary for the future.

“As elected officials, it’s our responsibility to deliver the highest quality education for our children and communities,” Townsend told the audience in his opening remarks. “The old way of doing business is gone forever, and it will take our collective leadership to guide our schools to a new model that meets the demanding needs of our region.”

The first presenter was Dr. Richard Timbs, executive director of the Statewide School Finance Consortium, who used charts and spreadsheets to forecast graphically the coming fiscal storm for districts under the new tax cap.

“The school property tax cap will not have the same impact on every school district in the state and will be much more harmful to average to low-wealth school districts,” Timbs said. “That is most of your districts in the HFM BOCES region.”

Dr. Timbs explained how the combination of frozen or reduced state aid, the new restrictions on raising revenue through the tax levy, and the ability to rely on dwindling reserves forces school districts into a corner where cutting staff and eliminating programs will be the only way for the district to survive.

“This is not a problem of upstate vs. downstate schools. It’s about poor and wealthy school districts having the capacity to thrive under the tax cap – for now.”

Dr. Richard Timbs, Executive Director of Statewide School finance consortiumTimbs illustrated how wealthy districts, defined by their combined wealth ratio, could sustain their abundant programs because the dollars they could raise under the tax cap were many times greater than poorer, mostly rural school districts.

The law and complicated formulas used to calculate the tax levy cap and any exemptions pose a number of unanswered questions, something Timbs suggests will hamstring school districts everywhere trying to explain the complexities to their communities and build consent for future budget proposals.

“When will the inflation factor be published? How are pension costs calculated? If a school budget fails twice and the district chooses a contingency budget with zero tax levy change, what’s the status of the exemptions?” Timbs queried the room. “Nobody knows these answers. Not you. Not me. Not the people in Albany.”

Timbs said that 67 percent of school districts budgets were above the cap this year, and forecast that within three years more than 200 districts would hit structural deficit – essentially exhaust their reserve funds and have no means to operate their schools.

Can a school district go bankrupt? Dr. Timbs was asked.

“We don’t know. Before the tax cap, the state would just require a district in this kind of trouble to increase its tax levy to cover its cost. The new law apparently closes that door. We just don’t know what might happen,” Timbs admitted.

Then Dr. Timbs laid a torch to the tinder.

“You are being pounded into the pavement!” he said. “Our public school districts are at a fiscal and educational crossroads, and we can no longer allow the rhetoric, lack of support, political gamesmanship and illogical legislation and regulation to go unchallenged.”

Timbs told the audience that it was time to insist, not ask for changes from the Legislature, the governor and the Board of Regents.

“They are supposed to help you prosper. Remedies based on current laws won’t work,” Timbs insisted. “Quit being complacent. Don’t apologize for hurting their feelings when they get defensive. Don’t grovel. You can at least help your own kids.”

NYSSBA’ Game plan

NYSSBA President Tim Kremer added to the call for action by presenting NYSSBA’s Essential Fiscal Reform Playbook. The football-themed report informs districts on the major cost drivers for public education, and proposes a game plan to deal with the new fiscal realities facing school districts. [Download the Essential Fiscal Reform Playbook here]

“We have given this to everyoneevery legislator, the governor, everyone that can make a difference,” Kremer said. “We’ve even included legislative languagesample billsto make the job easier for them. If enacted, each of these proposals would result in dramatic improvements to the fiscal health of our schools. They would result in a more viable system for operating our public education system in this era of increased fiscal accountability and taxpayer fatigue.”

Kremer pointed to the states promise of mandate relief in the year following the tax cap as a way to help balance the financial scenario for schools.

“This was the promise, to look at ways to relieve the mandates on special education, pension and healthcare expenditures, and labor issues. We’ll see,” Kremer said.

Kremer voiced his concern about local communities losing ownership of their own schools through the advent of new state and federal education rules.

“I sometimes think the government is saying to local school boards, ‘We don’t trust you to put a budget together, to determine a decent curriculum for your children, to decide how much a superintendent makes,’” Kremer said. “This governor has often been dismissive of school boards; thinks we have been asleep at the switch, giving away the store to unions and not being aggressive about cutting costs. We must embrace the leadership role we were elected to assume.”

Local collaboration

FMCC President Dr. Dustin Swanger shared the concern over the impact of new legislation on school districts, and encouraged school leaders to take a practical view of their mission.

“Preparing people for jobs is the way to frame your arguments for the governor,” Dr. Swanger said.

Swanger noted that local schools were filled with dedicated professionals who want their students to learn, and that trends indicate that 65 percent of new jobs will require an associate’s degree. He emphasized the strong relationship between area schools and the college, noting that enrollment is growing at FMCC.

“We have tremendous energy for collaboration in this region,” Dr. Swanger said.

However, Dr. Swanger cautioned that the number of students entering FMCC needing remedial courses is too high. Despite the emphasis and need for higher education in the workforce, young people were leaving high school ill prepared for the rigor of college-level course work.

“We need to do better,” he said.

Dr. Swanger explained that FMCC’s overall graduation rate is improving each year, except for those kids who start out needing remedial help.

FMCC is rethinking how they engage students, and is piloting a program to administer the college’s COMPAS placement test to students still in high school. Students would take the assessment in their junior year to reveal areas where they may need extra help before starting college. They would have their senior year to take the remedial classes needed to be college ready at graduation.

“You need to understand that you are not alone in this effort to preserve opportunities for our students,” Dr. Swanger said.

Fulton County Regional Chamber of Commerce President Wally Hart echoed that sentiment. He explained that a central priority of the newly released Regional Business Plan was to educate and train the region’s children.

Mr. Hart said that the business community recognizes that its success is tied to the success of local schools. He promised to carry the message of the schools to Albany when business leaders lobby state legislators.

HFM BOCES District Superintendent Dr. Patrick Michel took control of the meeting after the main speakers had concluded their presentation.

“Where do we go from here?” Dr. Michel asked the audience. “What advocacy plan does our local schools and communities endorse that includes real action, and not just committees looking at the problems?"

Suggestions from the floor strongly encouraged more collaboration and alliances with other upstate school board associations, stronger advocacy efforts in Albany, more emphasis on shared services and resources, deeper understanding of common core standards, and increased use of technology in the classroom and in regional communications efforts. Plans are underway to move these initiatives forward, and not let the enthusiasm die down with one meeting.

“Adversity creates opportunity. It is imperative that we leverage our associations and relationships with our business community to bring solidarity to our message both to our communities and in Albany. Let’s hope tonight can be a genesis of a new vision for progress and excellence for the Hamilton-Fulton-Montgomery region,” HFM BOCES Board President Robert Townsend said.

Additional Resources

Regional Business Plan

Statewide School Finance Consortium

Dr. Dustin Swanger's blog about collaboration and the regional plan

 

 
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