Budget work session #2; does anyone care

[Lee Chowaniec]

It is mindboggling to read in the media the extensive coverage that is being given to the upcoming Lancaster public forum and community engagement session giving residents opportunity to voice and hear varying opinions on the topic of the school’s Redskins mascot and team name and so little information on the budget work sessions that are being held.

Whereas the attendance at the coming March 3rd public forum is expected to full house, only one resident attended the second Lancaster Central School District's (LCSD) second budget work session; despite repeated pleas by LCSD to attend the budget work sessions, learn where their tax dollars are going and why and to provide input on what needs to be cut – in their opinion.

Being in the early stages on the budget process, it is too early to predict outcome; especially considering no information on what state aid dollars will be provided to school districts.

However, before the final budget is presented, and where the bottom line tells taxpayers what their tax status will be, before they pass judgment and say the district is acting fiscally irresponsible, they should have some idea on how the bottom line was derived.

But at this point in the process, the following is some of what I understand takes place.

Monday evening Jamie Phillips, assistant superintendent for business and support services, presented in detail to the board her tax cap calculations, which have been submitted to New York State. It showed that the maximum allowable tax levy increase for the next school year would be 2.61 percent. Under the tax cap guidelines the tax levy could be increased by 2.61% from last year’s budgeted $47.79 million to $49.03 million in this year’s budget. This allows for a revenue increase of $1.2 million.

Salaries and Benefits

Salaries and benefits are historically a total of 75% of the overall budget and the district expects that proportion to remain for 2015-16.

The Lancaster Central Teachers Association (LCTA) contract extension for 14-15 and 15-16 was an average of 3.82% each year for two years. The Triborough* (state mandated) portion is 3.31%. The amount of salary money each of the two years attributed to raises above and beyond Triborough is around $200,000.

At this point in the budget process, where 98% of the salary and benefit increases have been accounted for, but where final numbers can see change, employee salary increases are at $1.6 million and benefit cost increases at $635,000; a total of $2.24 million.

Total employee benefits costs increase over last year’s budget by 2.40% ($635,000) despite the $793,032 decrease in the NYS Teachers Retirement contribution.

Employee Benefits

These are the current numbers and subject to change

$27.11 million ($26.47 in 2014-15 budget year)

Budget / Increases and decreases:

$5.28 million: (-) $793,032 Teacher Retirement decrease (13.07%) – as the Stock market continues doing well LCSD now paying 13.5% of teacher staff salaries into the NYSTRS system instead of 17.75%

$3.14 million: $320,175 increase (11.35%) in employee retirement system (NYSERS -non instructional) contributions – LCSD will now contribute 18% of staff salary to the system instead of 20.4%

$4.09 million: $119,000 increase (3%) for Social Security – from contractual increases in salaries

$1.26 million: $370,471 increase (41.45%) in Workers Compensation – state adopted new formula rating system (LCSD rated experienced) that changed calculations and increased premium expense. LCSD looked at self funding, but not feasible at this time.

$10.65 million: $429,000 increase (4.20) in Hospital and Medical expenses – would have been higher but offset by 1% increase in employee contributions

$1.79 million: $162,000 increase (10%) for dental insurance – industry standard

$180,503: increase of $18,050 (10%) – industry standard

Total budget increase of $634,301 (2.40%) from 2014-15 budget

As employees contribute an additional 1% towards health insurance in each year of the contract, they will be contributing 14% for 2015-16. The additional 1% contribution in health insurance premiums nets out some of the instructional increases, but that is shown in the employee benefits section, not in the salary line items.

Other

*Salaries and benefits on average make up roughly 70 percent of a school district’s total operating budget. This means that budgets are driven primarily by the cost of personnel. Clearly, school districts will not be able to continue to operate at this rate given the currently proposed education budget and property tax cap. To add insult to injury, the Triborough Amendment of the Taylor Law places an additional burden upon school districts regarding the payment of salary increases under an expired contract.

School districts await word on what Governor Cuomo will dispense in state aid this year. Districts are focusing on the Governor ending the Gap Elimination Adjustment (GEA), which began under former Gov. David Paterson. The GEA has stripped public schools of aid in order to plug other gaps in the state budget. LCSD has received $23 million less in state aid in the last five years.

Ninety percent (90%) of last year’s budget increase of $2.72 million was attributed to employee increases in salaries and benefits. So, 90% of the budget increase is comprised of mandates, less state aid over the last five years of $23 million and yet some label the district fiscally irresponsible - a district that has improved by leaps and bounds in performance in the past five years.

[yaksplat]

Lancaster has the cheapest teachers in WNY. Quite the bargain.

[4248]

First off - createing the "Battle for the Red Skins" is a political stunt to give hopefuls for election something to WHoop Whoop about.

This stunt was hinted at months ago in a thread under the Depew thread here at Speakup.

Shameful politics to suck people into a grandstand event to capture votes - Whoop Whoop !

Any Politician or Political hopeful who grandstands at that event is a discredit to the actual student players history and the students achievements.

Second - the school budget is what it is - voters will have their ceremonial vote and all will be well ! Going to these meetings/forums changes nothing. I vote !

Thanks for all your time - it makes good reading !

[NY The Vampire State]

Lancaster has the cheapest teachers in WNY. Quite the bargain.

Congratulations you're the best of the losers. They told us Clarence had the cheapest teachers too. Guess it was a line of bull**** to protect the machine.

[gorja]

Lancaster has the cheapest teachers in WNY. Quite the bargain.

Holland and Cheektowaga Central have lower median salaries.
http://data.buffalonews.com/databuff...rrentPageSize=

[Lee Chowaniec]

4248: Second - the school budget is what it is - voters will have their ceremonial vote and all will be well ! Going to these meetings/forums changes nothing. I vote !

Thanks for all your time - it makes good reading !

The intent in putting out budget information is inform Lancaster residents the where’s, what’s, and why the budget increases and in the amount it does. Too often we hear the district is fiscally irresponsible and/or squanders the money.

You are correct in saying that the general public attending these meetings have little or no impact on the budget bottom line, but the public comes to understand that 90% of the budget increase comes from employee mandated programs – mandated policies with costs that are no longer sustainable.

Your statement that the public has no need to know that is analogous to Nancy Pelosi’s statement: “You don’t have to know what’s in to vote for it.”

At least the school district employees are contributing 14% to their health insurance policy. No town employee contributes a dime toward their health insurance. After not negotiating a contract due 3+ years ago the police union will be in arbitration this coming week and are still reticent in agreeing because of the request to start contributing to their health insurance.

But then you know all this because you were a public sector employee, right?

[Lee Chowaniec]

Lancaster has the cheapest teachers in WNY. Quite the bargain.

Yes, some of the best and at the low end of median salary costs. Some of the best considering how they have adapted programs to meet Common Core curriculum requirements and in improving LCSD'S performance and in receiving local, state and national recognition.

Is salary cost containment a bad thing and if it is to whom; certainly not the taxpayer. And overall, Lancaster teachers make out pretty well, especially in the 95% percentile period and in their retirement payouts.

That said, I am openly a supporter of a school district that puts out a good product - a public school at that.

[4248]

Just woundering - who does this refer to "Your statement that the public has no need to know" ????????

Who said that - I don't believe I did ?

Then this bit of snarkyness, "But then you know all this because you were a public sector employee, right?" what was your purpose in that - sarcasm ? And what is the "all this" your referring to ?

Maybe your not addressing me - not sure ! But then again - I am curious