Chappaqua's Proposed School Budget Has 2.11% Tax Levy Hike, 10.64 Job Cuts

Chappaqua's proposed school budget stays under the state's tax levy cap and continues its job cuts trend that has taken hold.

The early budget version, for the 2012-13 school year, was released Tuesday by the district. It totals $112,202,888, versus $111,448,488 from 2011-12. This represents a spending increase of 754,400, which is 0.68 percent. The proposal

Meanwhile, the tax levy, which is the total amount of real property tax revenue that schools and local governments collect, will jump from from $98,944,582 to $101,032,134. The increase is $2,087,552, or 2.11 percent but stays under the new tax levy cap of 2 percent. Meanwhile, a net total of 10.64 full-time and part-time positions are proposed for cuts.

The loss of jobs has been steady over the past four years. When adding all of the lost positions from 2009-13 (with next year still being tentative) the district could face a long-term reduction of 87.86 positions, figures show.

How is the District Meeting the Tax Cap When the Proposed Levy Increase Exceeds 2 Percent?

This budget cycle represents the first in which the district is operating under the tax levy cap that limits levy increases by up to 2 percent or the rate of inflation, which ever is lower. This year, 2 percent is being used.

The district is able to increase the levy by more than that due to a series of exemptions granted in the cap's law, which are arrived at due to a complicated math equation. The exemptions are applied with the following equation and steps:

1. Taking the previous year's levy, then multiply by a "growth factor" number, which is a state-issued number to account to adjustments to the local tax base. The resulting figure is $99,488,777.
2. That figure is then subtracted by $3,259,827 in cost exemptions, including capital projects and debt service, which equals $96,228,950.
3. The resulting number from this second equation, $96,228,950, is called an adjusted prior year levy. In essence, it's a newly created levy starting point from which calculation for the cap's increase can begin.
4. The adjusted levy is then multiplied by 1.02, which signifies a net increase of two percent. The answer is $98,153,529.
5. Out of that $98,153,529, a total of $2,902,190 is exemptions, such as debt service and capital spending, are added in. In addition, $49,342 in allowed pension contribution exemptions is also allowed in.
6. The sum of the adjusted levy and the exemptions equals $101,105,061, or an increase of $2,160,479 from the adjusted number. This is the highest in which the district can legally increase the levy.
7. However, the district has opted to come in below the maximum, with its increase of $2,087,552 

No Tax Rate is Set At This Point

Another key part of the budget is that the district has not release projected tax rates for residents in both New Castle and Mount Pleasant. The rate is what property owner pay per $1,000 of assessed value. In essence, it's what comes out of pocket, while the levy is merely how much the district needs to get from all taxpayers. The cap only applies to the levy, so the district is allowed to have the rates increase by more than 2 percent.

Tax rates, based on statements in past years made by Assistant Superintendent John Chow, are not finalized until August. That time of year coincides with work being done on town assessment rolls. They will likely lead to residents in New Castle and Mount Pleasant paying different tax rates because properties in the towns are not assessed at the same percentages of property market value. For more on why that's the case, for a primer.

Continuing Property Tax Dependence...and Fewer Reserves to Help

Historically, Chappaqua's school district has relied heavily on property taxes to fund most of its operations, a trend that will continue this year. Taxes are projected to make up 90 pecent, up from 88.8 percent for this year. In contrast, the second-largest district revenue source is state aid, which comes in at a distant 5.5 percent ($6,199,063 total) for its projection for next year, which is a decrease from this year's 5.7 percent of revenue ($6,344,215 total).

In addition, the proposed budget calls for relying less on reserves. This year, just $3 million in fund balance is requested for use as a revenue source, versus $4,250,000 for 2011-12. Using fund balance, or surplus money, has allowed the district to keep tax increases lower than without applying it.

What Will Happen to Instruction, Enrollment & Classes?

Overall enrollment continues its declining trend that has taken hold in recent years. There is a projected decrease from 4,121 to 4,104 for next year. A lot of that drop can be explained by declining elementary level enrollment, from 1,463 to a projection of 1,425. The two middle schools could see an increase of 20 students, from 1,334 to a projected 1,354. Horace Greeley High School is expected to see a net increase of just one student, from 1,286 to 1,287. Students being placed outside of the school district could remaining unchanged, remaining at 38.

At the elementary level, the biggest drops will come at Westorchard and Douglas G. Grafflin, with decreases in average class sizes of 16 and 17, respectively. Roaring Brook, will see a decrease of just five students. There will be a shifting of section per grade, with students aging upwards appearing to be a reason. However, the total number of sections for each elementary school will be unchanged.

Changes to teaching teams at the middle school level diverges between Robert E. Bell and Seven Bridges. In total, the district will keep 31 team teachers for Bell, unchanged from this year. Seven Bridges, meanwhile, is proposed to get an increase of teachers, from 25 to 27. Enrolment are each school will rise, ranging from 9 more students projected for Seven Bridges, to 11 more for Bell.

For Greeley, the data does not indicate what sort of changes could occur in class sections.

The full budget slideshow is attached to this story as a PDF.