Home

. . . . .

March 17 2011

Superintendent Yagielski presents first budget draft
District faces $9.6 million gap

Superintendent John Yagielski presented the first draft of the Schenectady City School District 2011-12 Budget to the board of education Wednesday evening.  Yagielski outlined a baseline expenditure budget, reviewed revenue projections and discussed his plans to tackle the challenges of balancing a budget. 

“We are facing unusually difficult times,” said Yagielski regarding what is ahead in the budget process.  But the superintendent assured the board of education that the fine details of the budget will be fully disclosed, presented publically and available. "The entire process will be transparent," said Yagielski.   The school district is facing a $9.6 million gap despite crafting a  budget that is less than the current year.  This is the result of a significant decrease in revenue.  Yagielski said the district will not be turning to the taxpayers to make up the difference.  “This community does not have tolerance for a tax increase,” he said.     

Yagielski built the baseline budget from scratch (zero-base).  “I did not use the current budget as a starting point,” said Yagielski.  “I started with a blank piece of paper.”   

Expenditures 

Yagielski said he went through every account line by line, examined and squeezed as much from the budget as possible without eliminating any programs or positions.  In the end, the superintendent produced a draft budget package of $159,200,397, which reflects a savings of more than $6 million and one that is $1.5 million less than the 2010-2011 budget. [Link to “First Draft Budget]  The reduced budget includes contractual increases and all current staff positions with the exception of the assistant superintendent positions which are abolished effective June 30, 2011.   

General Fund Baseline Budget Summary

Note:  In addition to K-12 enrollments, we have responsibilities for many other students including Pre-K, Special Education students in public and private placements, foster placement and resident students attending charter and private schools.

The budget also includes “very limited additions.”  Yagielski proposes:

• that the district provide transportation to students who have been suspended and assigned to the tutoring program held at Washington Irving Adult Education Center.   $90,000
   

• implementing an “In-Residency” pilot program at the elementary level.  Two teachers holding administrative certification would serve administrative residency among three elementary schools.  $46,000
  
  “About 40 teachers hold administration certification,” said Yagielski. “This would give them live administrative experience, growth opportunity and provide principals with some degree of relief so they can focus on teachers, classrooms and teaching and learning.”
   

• adding academic area curriculum leaders at the middle schools. $15,000
   

• adding academic department chairs at the high school.  $108,000.

“We need to supplement what we do with coordinators and add in-level support at the secondary level,” said Yagielski. 

The key cost drivers in the budget are salary and benefits for current staff members and employer contributions to the retirement system.  Also, last year the district adopted the retirement incentive.  The first installment of $229,00 is due to come out of the 2011-12 budget.

[Link to “First Draft Budget] 

[Link to First Draft Budget by Expenditure Type]

Revenues

The $9.6 million budget shortfall results from a shortage of revenue.  Yagielski presented a chart [Link to Revenues Chart] that outlined the current as well as next year’s revenue stream.  Revenues are expected to total $146,391,803 in 2011-12. 

“Look at this ‘GAP Elimination' figure ($9,956,628),” said Yagielski.  “It’s almost $10 million.”  The GAP elimination is an additional amount the district should expect to get according to state aid formula but won't get because the funds are being withheld to offset New York State’s budget challenges.   “If we were getting that money, by design of the formula, we’d be having a much different conversation right now,” said Yagielski.  “We’d be whistling a happy song. But, unfortunately, we are not whistling a happy song.”  

A tax base reduced by $1.3 million will also adversely affect the school district’s revenue total.  

By starting with a zero base budget and squeezing funds, Yagielski said the district will save about $3 million from the current year budget.  The district would have roughly $6.2 million in fund balance.  Yagielski’s first budget draft proposes utilizing $3,150,000 in the new budget.    

“I normally would suggest spreading the fund balance over three years,” said Yagielski.  “I’m going against what I would usually do here.  Only because the situation calls for it.”

The Challenge of Balancing the Budget

[Link to Chart: Challenge of Balancing the Budget] 

 “We face a very serious financial  problem,” said Yagielski.  “We must reduce overall costs not just next year but beyond.”  The superintendent said he does not see the ‘gap elimination’ going away.  “We have to down size and not lose sight of why we are here.” 

Yagielski reiterated that throughout the process, the district cannot lose sight of the need to keep moving forward and to keep the focus on student achievement.  “We have to look for opportunities to improve teaching and learning,” he said. 

Moving ahead, Yagielski said he will identify alternatives and less costly ways of operating.   “Adjusting to new structure is not only challenging, it’s painful, because we are a people business,” he said.  “We must look at changes that will help us not just next year, but far down the road."

“I can’t think of a cut that won’t have significant impact,” he said.  “We have to look closely at determine what things are working right now.”  He also plans to identify permanent changes that might take time to develop and implement.  “We are interested in creating programs that respond to needs,” said Yagielski. 

Examples of Potential Alternatives include: 

• Establish programs to bring students who are currently attending BOCES programs back to the district
   
• Hire district staff to perform various itinerant services currently provided by BOCES
   
• Accelerate the change from the AIS model to a model emphasizing earlier intervention
   
• Explore modification to school day schedules
   
• Suspend current policies and practices related to transportation and staff development

Yagielski is making a “budget book” with various levels of detail including program summaries and descriptions available to the public.  The book will be available for review in the district office, Schenectady High School library and four public libraries.  The final budget book will be accessible from the district website.

“I want this process to be as transparent as possible and for people to easily get any information they need,” said Yagielski.

 Schedule of Budget Sessions

March 23
Present and discuss specific less costly alternative ways of operating

March 30
Present and discuss a multi-year plan for the use of fund balance, including reserve accounts as well as an  initial list of other budget reductions

April 6
Present and discuss budget reductions needed to balance the budget

April 14
Final selection of alternatives and budget reductions

April 20
Board of Education adopts 2011-12 Budget

“I’m committed to making the process as calm, rational and orderly as possible,” said Yagielski.  “I need the help of everyone. Let’s keep our eyes on the target and strengthen the district for years ahead.”

Back