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Fort Plain, N.Y. —
The executive director of the Statewide School Finance Consortium outlined a fiscal plan to members of the Fort Plain Board of Education on Tuesday where the district can remain solvent through 2017 by using its reserves and keeping taxes under the two percent tax levy limit.
“We can safely get through 2017 and be solvent without many cuts to programs if the state government can come through,” said Dr. Richard Timbs. “The district is way ahead of other places. Out of the 40 school districts I’m working with, only four or five look like they can make it to 2018. I have about 10 that we’re trying to make it through the year after next.”
Timbs praised the measures the Fort Plain Central School District has taken to curb costs, including an administrative staff reduction, instructional staff reductions, greater use of BOCES services, using grant writer services, using less energy and reducing transportation costs.
“We did a long-range plan here in 2009 and predicted we’d run out of money in 2013. The district didn’t because it took the right long-range financial steps. All districts should do this,” he said.
The outline also incorporated the components of a corrective plan that has been submitted to the Office of the State Comptroller. In the fall, auditors found the district has been holding more money in fund balance than is allowed by law. District leaders took steps to make adjustments in reserve funds to accurately reflect the district’s liabilities and its long-range educational and fiscal plans
A part of that corrective plan includes a voter referendum scheduled for Tuesday, Feb. 12, with three propositions on the ballot. The propositions seek to create a reserve called the bus and transportation reserve fund that would be used to buy buses, vehicles and other transportation equipment; to transfer $409,631 in capital reserve fund to the bus and transportation reserve fund and to spend no more than $245,000 in surplus fund balance to buy two full-sized buses.
Timbs said the district’s required contributions to the state’s Employee Retirement System and Teacher Retirement System could be “trouble” in coming years because of large increases.
He also explained how the district has lost $2,828,042 in aid because of the Gap Elimination Adjustment, which is essentially an annual aid “take back” by the state to balance the state budget.
Timbs showed possible budgets for the years 2013 to 2018 — including projections of revenues, expenses and fund balance — with a one percent tax levy increase, and under his projections, the school district would have no remaining fund balance by 2018.
When asked during the meeting what happens when a district does not have money to stay solvent, Timbs said the state does not have a plan.
“There is no plan in the state for what to do when a district goes broke,” he said. “In the next few years, we may see 100 districts go broke … Fort Plain is way ahead of a lot of places.”
The executive director of the Statewide School Finance Consortium outlined a fiscal plan to members of the Fort Plain Board of Education on Tuesday where the district can remain solvent through 2017 by using its reserves and keeping taxes under the two percent tax levy limit.
“We can safely get through 2017 and be solvent without many cuts to programs if the state government can come through,” said Dr. Richard Timbs. “The district is way ahead of other places. Out of the 40 school districts I’m working with, only four or five look like they can make it to 2018. I have about 10 that we’re trying to make it through the year after next.”
Timbs praised the measures the Fort Plain Central School District has taken to curb costs, including an administrative staff reduction, instructional staff reductions, greater use of BOCES services, using grant writer services, using less energy and reducing transportation costs.
“We did a long-range plan here in 2009 and predicted we’d run out of money in 2013. The district didn’t because it took the right long-range financial steps. All districts should do this,” he said.
The outline also incorporated the components of a corrective plan that has been submitted to the Office of the State Comptroller. In the fall, auditors found the district has been holding more money in fund balance than is allowed by law. District leaders took steps to make adjustments in reserve funds to accurately reflect the district’s liabilities and its long-range educational and fiscal plans
A part of that corrective plan includes a voter referendum scheduled for Tuesday, Feb. 12, with three propositions on the ballot. The propositions seek to create a reserve called the bus and transportation reserve fund that would be used to buy buses, vehicles and other transportation equipment; to transfer $409,631 in capital reserve fund to the bus and transportation reserve fund and to spend no more than $245,000 in surplus fund balance to buy two full-sized buses.
Timbs said the district’s required contributions to the state’s Employee Retirement System and Teacher Retirement System could be “trouble” in coming years because of large increases.
He also explained how the district has lost $2,828,042 in aid because of the Gap Elimination Adjustment, which is essentially an annual aid “take back” by the state to balance the state budget.
Timbs showed possible budgets for the years 2013 to 2018 — including projections of revenues, expenses and fund balance — with a one percent tax levy increase, and under his projections, the school district would have no remaining fund balance by 2018.
When asked during the meeting what happens when a district does not have money to stay solvent, Timbs said the state does not have a plan.
“There is no plan in the state for what to do when a district goes broke,” he said. “In the next few years, we may see 100 districts go broke … Fort Plain is way ahead of a lot of places.”
