Rising costs, enrollment likely to force NWCSD to increase budget, taxes for 2004-05

District aims to maintain low true-value tax rate

by Ralph Schwarz
Niagara Wheatfield Tribune, April 8, 2004

Despite maintaining the cuts from the 2003-04 budget, a combination of increased costs and a growing student enrollment could most likely force the Niagara Wheatfield Central School District to once again levy higher school taxes for 2004-05 in order to maintain the same level of service.

In a presentation given to the school board on March 31, School Business Executive Kerin Dumphrey outlined that several budget items on which the district has little or no influence, are going to account for 85 percent of the overall budget increase. As a result, the proposed operating budget for 2004-05 would go up by 7.49 percent to $52.04 million. The district currently operates on a $48.4 million budget.

"The increases are due to either state mandates, increased cost for employee benefits or cost due to increased enrollment," Dumphrey said. "And due to this increased enrollment, we are here in a situation where no further cuts would be prudent."

According to Dumphrey, the district expects 74 more students for the Senior High School and another 26 more for Errick Road Elementary School.

"We used to be at an enrollment of about 3,600 [students]," he said. "Now, we are over 4,000."

Uncontrollable Costs

In addition to a $913,277 increase in the instructural budget, the uncontrollable cost of almost $3.1 million are made up by a $102,610 state mandate calling for the replacement of all buses in the district that offer standing room; a $454,811 increase for employee retirement compensation; a $532,067 increase for teacher retirement compensation; a $95,720 increase for FICA expenses; a $838,760 increase for health care insurance; and a $128,822 increase for electric and gas.

"Financially, we are taking a bath," Dumphrey said.

Combined with cuts in state aid and decreases in business taxes and investment income, Dumphrey said the proposed overall budget would increase the Program Budget, which covers everything directly needed for students programs and services, by 9.05 percent; the Capital Budget, which covers all cost for buildings and utilities, by 2.99 percent, and the Administrative Budget by 1.61 percent.

Low True-value Tax Rate

Despite the overall budget increases, Dumphrey pointed out the Niagara Wheatfield had the lowest true-value tax rate of all school districts in Niagara County for the 2003-04 school year. A true-value rate of $19.48 placed the district ahead of Niagara Falls and Barker, which has a true-value rate of $19.55 and $20.77 respectively.

"We still hope to maintain that position," he said. "People always tend to see the increases, but we are working on keeping that tax rate low."

Maintaining that reasonable tax rate, however, will not be easy since the district cannot use its fund balance in the same way as it did in the past to offset the impact on the local taxpayers. According to Dumphrey, the fund balance has been declined by more than $500,000 during the last three years.

"This decreases the amount available for new school busses and new instructional equipment," he said. "State-mandated services are also forced onto the local taxpayer."

Board Commendations

The board congratulated DeAndra Contangelo, a fourth grader at Colonial Village Elementary School, for placing second at the Regional Fourth Grade Spelling Bee, which was hosted by the Lewiston Porter school district on March 6. The students will now advance to the state spelling bee, set for April 24 in Weedsport, PA.

The board members also extended their congratulations to Lisa Herrington, a fifth grade teacher at Colonial Village, for being named Niagara University's Teacher of the Year for 2004.

Agenda Items

In other business, the board unanimously voted:

• To approve, upon recommendation of the superintendent, to authorize Cannon Design to proceed with the professional services required for the pre-referendum comprehensive feasibility and land-use planning studies, needed to prepare a proposed referendum, determining the size and estimated cost of such a project in order to accommodate the demands of increased enrollment and other needs of the Niagara Wheatfield School District.
• To approve, upon recommendation of the superintendent, the action items of granting resignations, retirements, appointments, leaves of absences, and other miscellaneous items for administrative, instructional and school-related personnel as submitted.

Those items included the retirement of Patricia Dailey, school counselor at Colonial Village, effective July 1 as per MOA; the appointments of Steve Vardian, Brooke Harris, Kristin Colosi, and Christine Zilbauer as elementary teachers at Errick Road Elementary School, effective Sept. 1; Leslie Mulligan as special education teacher at West Street Elementary School, effective Sept. 1; and Jessica Maliszewski as elementary teacher at Colonial Village, effective Sept. 1.

• To approve the second reading and adoption of the Board Policy, "Student Use of Educational Technology," #7314 and #7314F, as submitted at the March 17 board meeting.
• To approve, upon recommendation of the superintendent, two late transportation requests as submitted.
• To approve, upon recommendation of the superintendent, three fund-raiser requests as submitted.

Next Meeting

The Board of Education will hold its next meeting on Wednesday, April 21, at 7 p.m.