Herricks Superintendent of Schools John Bierwirth issued a grim school budget forecast at last week’s school board meeting, projecting a 7.65 percent increase of $7.3 million based on rising costs of health insurance, retirement contributions and negotiated salary increases.
Bierwirth said that although the school board is several weeks away from producing a preliminary draft of the budget, he wants to spread the word about the dire budget prospects, particularly among PTA members, to engage the community earlier in the process.
“We’re coming to you now because we’re facing some extra challenges from the expenditure side and the revenue side,” Bierwirth said.
Rates for health insurance coverage will increase 13.75 percent during the first half of 2011, translating to an increase of $1.6 million, according to Bierwirth, who said the rate of increase for the second half of the year is not known. Contribution rates for the teacher retirement system and the employee retirement system are increasing by one-third, to $1.6 million and $846,031 respectively, which will be partially offset with funds from an ERS reserve.
Anticipated salary increases represent the largest segment of the increases Bierwirth outlined, totaling $3.1 million next year.
“A shaved, stand-pat budget would increase by 7.65 percent. I don’t see it changing much,” he said.
Bierwirth said he expects state aid to bring between $500,000 and $700,000 less to the Herricks school district than was projected last spring. He noted that the school board had set aside a reserve of $500,000 last spring in anticipation of that shortfall. He said more than $400,000 in federal stimulus funds the district received last year won’t be in the mix this time around.
And Bierwirth said it’s possible the financial picture could get worse, depending on the state’s budget numbers for the coming year.
“I just want to make it clear, if there are any changes it’ll be down, not up,” he said.
A proposed 2 percent state property tax cap, which he said also caps tax levy increases would “complicate things further.”
School board member Peter Grifasi asked whether it the school district could set up its own health insurance plan. Bierwirth said that would only be a viable alternative if a group encompassing all school boards and municipalities in the county were formed.
“I’d need my head examined to get my head into that,” Bierwirth said.
Bierwirth suggested that the board draft two sets of budgets by the end of January, with one based on the 2 percent tax levy cap.
Last year, after the Herricks school budget was rejected by a one-vote margin, the board made cuts and presented a $96.5 million budget, representing a 2.91 percent increase and a 3.8 percent hike in the tax levy that passed in a subsequent vote.
“They keep talking about school budget spending being out of whack, and then they decide to force us to spend more money,” said board member Paul Ehrbar.
Bierwirth said he wants the public to “grapple with it” and PTA members at the meeting agreed.
“It’s very important for the public to know where we are today,” said Jonai Singh, co-president of the Herricks PTA.
Singh said she intended to set up a meeting with Bierwirth and PTA members on Wednesday this week.
Bierwirth said what he doesn’t yet have a handle on potential cuts, but said it was important to discuss issues such as increasing class sizes “to start talking about what the real ramifications would be.”
Asked about likely prospective budget cuts after the meeting, he declined to get specific.
“It’s going to be cuts in programs and services,” Bierwirth said.
