Superintendent of Schools Dr. Robert Feirsen proposed a 2010/2011 budget of $98,275,256, which is 3.21 percent higher than last year, at the first Garden City Board of Education budget work session on February 9th. The projected tax levy increase (with STAR) is 4.52 percent.

“What I want to stress to the community is two things,” Dr. Feirsen said. “I don’t want to be Debbie Downer and tell you that the sky is falling. It is not. The district has survived and has mastered challenges in the past. It will continue to survive. It will continue to be a good district. It will continue to provide kids with a good education.”

He has been an administrator for more than 25 years, and looks to save money in every budget. In a “usual” year, he would ask the school board to make tough choices.

“This is not a ‘business as usual’ type year,” Dr. Feirsen said. “This is a year where we are going to have to make some incredibly difficult choices, choices that in some ways will challenge the assumptions that many people have had about what’s definitely part of the program and will never leave. But, we will do the best that we can.”

Dr. Feirsen emphasized that the budget is still a work in progress. The tax levy increase in particular is expected to change since the amount of state aid the district will receive has yet to be determined.

Albert Chase, assistant superintendent for business and finance, said Garden City will see a state aid decrease of nearly 13.29 percent, which would total $602,933, if Gov. David A. Paterson’s budget is passed. Federal aid is also uncertain.

Chase predicts the district will experience an even bigger revenue reduction, totaling close to $1 million, next year since this is the last year the district will receive $365,000 in American Recovery and Reinvestment Act aid. ARRA aid has prevented even greater reductions in state aid and additional support for special education.

“That’s a huge hit,” he said. “What happens is that million dollars has to come from somewhere, and eventually it comes from the tax base. So, the cut in state aid, absent any increase in the budget, will increase the tax burden by a million dollars. It’s not a pretty picture at all.”

He explained that property taxes from individual homeowners are the budget’s major revenue source, comprising 86.45 percent of the overall budget revenue. Other revenue streams include state aid (4.81 percent); STAR reimbursement (3.97 percent); fund balance (2.86 percent); local revenue, including continuing education, the after school program and winter program (1.71 percent); and payments in lieu of taxes, or PILOTs (.2 percent). A PILOT of $201,000 is being received from a property on Franklin Avenue.

Dr. Feirsen said he is concerned with two proposals currently being considered by the legislature. The state and county are pushing to shift a percentage of the cost for preschool special education to school districts. The state and counties currently fund a significant portion of this education and school districts are responsible for coordinating the services. The state is also considering using district wealth as a factor when it reimburses districts for summer school special education costs, which would mean Garden City would receive less money.

The superintendent also noted that the district is dealing with other serious issues that will affect the budget: high tax and foundation aids will be frozen at the current year’s level; fuel costs have risen again; a state budget will likely not be passed on time, making it very difficult for the district to provide precise revenue estimates; contracts with all four district bargaining groups will expire after June; and the school district will most likely not receive the MTA tax reimbursement, which was promised more than 18 months ago. Interest rates are very low and generate little revenue for the district at this time, at the same time that pension costs are expected to rise.

“In recognition of this climate and in concert with good fiscal practice, we wanted to produce and recommend to the board a budget that reflected an understanding of what our program needs are but also reflected an understanding of what our taxpayers and community would support,” Dr. Feirsen said.

Many aspects of district operations are governed by contracts, mandates and laws. While observing these requirements, the district also remains steadfast in keeping health and safety issues as top priorities. The superintendent also said administrators want to protect the program core, which he defined as those aspects that are essential to the accomplishment of the district’s mission and goals.

‘We have defined that program core more narrowly than we have in the past in recognition of the fiscal challenges that we face,” he said.

Dr. Feirsen also wants to ensure that whatever is done to the budget this year does not jeopardize the district’s future financial health. For example, $2.8 million will continue to be allocated to the district fund balance. The fund balance is a fund that school districts are allowed to retain as a contingency account in case of unexpected emergencies. School districts can keep up to four percent of the total amount of the budget for this purpose.

Dr. Feirsen stressed the importance of receiving the most “honest and open” input from school board members and residents as administrators continue to work on the budget. The public has several upcoming opportunities to comment and ask budget-related questions. Besides the regular Board work sessions and meetings, there will be a public hearing on the budget on Tuesday, May 11. Garden City residents will be asked to vote on the budget on Tuesday, May 18. For a complete list of budget sessions, visit www.gardencity.k12.ny.us.