By Stephanie Mariel Petrellese

Garden City residents were given an opportunity to ask questions and voice concerns on the proposed school budget at a May 12th public hearing that preceded the regular work session of the Garden City Board of Education.

The school budget vote will be held on Tuesday from 7 a.m. to 10 p.m. in the high school gymnasium.

On April 16th, the Board of Education adopted a budget totaling $94,505,801. This is a budget to budget increase of 4.49 percent, the district's lowest since 1999. The "average" home, which is one assessed at $2,310, will see an increase in taxes of approximately $374.05. A budget increase is warranted due to significant increases in fuel costs, surcharges and other utilities; costs for mandated special education programs, including the extended day program; contractual salaries and related benefits; and the Social Security ceiling from $100,200 to $104,700.

To determine your exact tax increase, visit the district's Web site, www.gardencity.k12.ny.us and click on the link "Property Tax Calculator for 2008-2009." Through this site, residents can access Nassau County Dept. of Assessment's Web site, where they can type in their tax lot information and find out how much their taxes will increase. The amount will not reflect STAR program discounts.

Homeowners would see a decrease of $105 over the year, or 28 cents a day, if the adopted budget ultimately fails and the district is forced to follow a contingency budget. Dr. Feirsen said that although projects affecting safety and health would have to be kept in the budget, the school board would be called upon to make "significant choices" when it comes to other places to cut. School Board Vice President Colleen Foley said any changes, including in programs and extra-curricular activities, would be discussed by the board in public.

Garden City's proposed budget is composed of three parts: 74.01 percent for instruction and pupil personnel, 15.17 percent for capital projects and 10.82 for administrative costs. Superintendent of Schools Dr. Robert Feirsen explained that the higher percentages of a school budget should be allocated for instruction and pupil personnel.

The district will spend $14,000 per pupil, which is the lowest amount when compared with 11 other districts in Nassau County with residents in a similar income bracket: Jericho, Locust Valley, Great Neck, Manhasset, North Shore, Roslyn, East Williston, Syosset, Port Washington, Rockville Centre and Herricks.

Garden City resident Mort Yuter questioned why the district should be proud to spend less money on their students. Dr. Feirsen explained that it shows residents that they are getting a comparable level of quality for less money.

"Yes, taxes are outrageously high in suburban New York City areas. Yes, it costs a lot to keep this operation going," Dr. Feirsen said. "However, everything needs to be viewed relatively. What we spend, even $14,000, upstate districts would drool over. On the other hand, when you look at districts that deliver similar results, it seems to be saying that taxpayers are getting a lot of bang for their buck...When you look at the whole package, we're doing pretty well and not abusing the public trust in terms of spending."

Garden City resident Robert Orosz questioned the amounts designated for fund balances. In the proposed 2008-09 budget, $11,256,120 is set aside for the reserved fund balance and $2.8 million is designated for the appropriated fund balance, a total of three percent of the budget. The fund balance numbers at this point are only projections; the actual figures will not be known until the district's books are closed and their statements are audited.

The undesignated fund balance is $3,780,232, which comprises four percent of the budget. This money is to be used in the event of an unexpected contingency, such as extensive building damage due to a natural disaster. Albert Chase, assistant superintendent for business and finance, explained that this particular balance is legally limited to four percent of the budget. "To put this in perspective, this is the same as allowing a family with a $100,000 income to only retain $4,000 in their bank accounts," he said in an e-mail to the Garden City News after the hearing.

"As far as our reserved fund balances are concerned, the district is estimating that we will have approximately $11 million when the books are closed this summer," Chase explained. "This money is reserved for specific obligations that our auditors, as well as other independent entities, have determined we that we will have as future liabilities. Specifically, the firm of Milliman & Co., an independent actuary, has determined that the district has a present value liability in excess of $95 million for the payment of post-employment benefits, which needs to be recognized in accordance with General Accounting Board Standards (GASB) # 45. In addition, a study of our Workers Compensation potential liabilities, based on actual incidents and the potential claims arising from these incidents (as completed by the firm of Actuarial Solutions last year) show that the district has a liability of approximately $2.1 million. Lastly, our outstanding debt service on past bond issuances account for another $32 million, of which $3 million is budgeted in the 2008-09 school year, leaving $29 million as a future obligation.

"In total, these figures represent over $125 million of outstanding liabilities," he continued. "The district estimates that it will have covered approximately $11 million of that obligation, or 8.7%, as we enter the 2008-09 school year. To not put away funds to partially cover these obligations would mean that the district ultimately would have to raise the funds in a given year when the obligations come due, which would then have the effect of boosting tax increases. The district philosophy of putting away funds now for future obligations is a wise one, and will help to avoid tax spikes in the future. You can see this by looking at the fairly level nature of our school tax increases in the district over the last five to six years. Our financial stability has enabled the district to achieve a strong bond rating, resulting in lower borrowing costs, unlike a number of other school districts on Long Island."

In other budget-related news, residents have already received a yellow budget notice postcard in the mail. However, they will be receiving another card before Tuesday, which will be identical except for the color. Dr. Feirsen explained that the printer erroneously mailed the card before the public hearing. The district is legally required to send the card after the hearing. The printer is taking full responsibility for the mistake and will cover the cost of printing and mailing another card.