Warwick School Board offers another look at proposed $92.6 million budget

By Abby Wolf
WARWICK — The Warwick Valley School District board sharpened its proverbial pencils at its regular meeting Monday evening, offering the public a look at the latest numbers in its proposed $92.6 million budget for the 2018-19 school year.
The projected budget would be an increase of just under $2.5 million – or 2.72 percent – over the current year’s $90,116,888 (this number includes more than $3.4 million in non-tax revenue, an increase of about $250,000 over the current year).
According to a statement by Superintendent of Schools Dr. David Leach, the district has “adjusted for known changes such as salary increases, debt service, Special Education needs, student programs, student enrollment, new state mandates, security, etc.”
He continued: “Administration completed projections for health insurance premiums, energy, pension costs, figured in estimated state aid, and calculated the allowable increase in the tax levy.”
The proposed increase in the tax levy would be 2.95 percent, Leach said – less than the 3.02 percent allowed under the New York State tax cap.
Leach added that the district initially projected a funding gap greater than $1 million for the past several years: this year, he said, “the difference widened by $280,000 to a total deficit of about $1.4 million when the district elected to have a full-time police officer at each school.” (Included in this total: the district also expects to add a Special Education teacher, for $80,000.)
The school district anticipates $26 million in state aid – an increase of about $440,000 over the current year. However, it won’t know for certain before March 31, when the legislative run is expected.
Closing the gap“Declining enrollment,” Leach said, “continues to assist with closing the funding gap while maintaining student programs.”
Nine teachers will retire at the end of this year, and four of them will not be replaced. The district stand to realize a savings of about $800,000.
Also, now that the high school offers three new Career and Technical Education courses – Cosmetology, Criminal Justice and Video Production – Leach pointed out that, as more students enroll in these classes (versus going to BOCES CTEC in Goshen), the district stands to save an additional $300,000 in tuition.
Leach said that the district’s solar power project on Sanfordville Road – which will feed into O&R’s grid – is estimated to save the district about $250,000 a year.
The superintendent maintains that these reductions will “just about eliminate the deficit.”
District looks to buy five new buses The School Board will ask voters for their approval to buy five new school buses to replace five older buses that have come to the end of their useful life spans: three 65-passenger, propane-powered buses; one 29-passenger bus; and one 21-passenger wheelchair bus, at a maximum cost of $485,000.
New York State would reimburse the district in the form of transportation aid, at around 58 percent of the value, or about $279,000.
Propane is “great for around here,” said Assistant Superintendent for Business Tim Holmes. “(It) offers better (fuel) economy than gas.”
“The annual replacement plan of the existing bus fleet has helped to maintain student safety and control repair and maintenance costs on older buses,” Leach said. “The replacement plan has also helped the District establish an excellent safety record with the NY State Department of Transportation.”
Repair reserve soughtThis fund would be established to pay for non-recurring repairs for capital improvements and equipment, mainly at the former Kings and Pine Island Elementary schools.
The district earns more than $300,000 a year in rental income from Kings; the school’s boilers, though, are 53-years old, and are essentially on borrowed time, according to Holmes. “We don’t know how long (the boiler) will last … it’s not energy efficient …we’ve got to protect that asset (Kings).”
Given the age of the building, other repairs may become necessary sooner rather than later. The proposed reserve will “allow (WVSD) to save for this significant expenditure, and others, over the course of many years,” Leach said. The total is not to exceed $750,000. (The district’s current repair reserve, established in 2014, has a balance of $250,000; adding the proposed reserve amount would create a total reserve of $1 million.)
According to Holmes, it will take a minimum of five years to fully fund this reserve – and by then the boilers at Kings will be nearly 60 years old.
Other businessThe school board approved a merger with the Florida Union Free School District 11th and 12th grade swimming and football for the 2018-19 school year, pending the Florida school board’s OK.
Next Work session: Secondary comprehensive school plans and budget update, March 19, 7 p.m., at the high school.