OP School District 2009-10 Budget and Taxes

[opfrontdoor]

For those interested, here are the results of some quick number crunching by a novice concerned citizen, parent, and taxpayer with regard to the future 2009-2010 Orchard Park School District budget and property taxes.

‘Not a pretty picture.

First, some assumptions:

- Increasing Fixed Costs: The OP School District will be saddled with continued intense and increasing “fixed costs”, to include, but not limited to, labor contracts (with more 3.99% raises, cash-in of unused sick-leave by retirees, and increases in the costs of 100% paid healthcare bennies); retirement, administration, debt service, operations, transportation, capital project commitments, replenishment of “fund balance”, etc.; and

- Spending Will Increase, As It Always Does: Spending increases in 2009-2010 will inevitably be at or near the same annual percentage as it has been in the last few years (about 4.5%, or a “low end” estimate of approx $3M), and will grow from the $73,832,860 proposed and voter-approved budget of 2008-09 to perhaps nearly $76,850,000 in 2009-10. Any proposed spending “cuts” offered by the District will be noble, but insignificant; and

- Reduction in “State Aid”: State aid will be reduced by approx $1.45M as proposed in the State Executive Budget; and

- A $4.45M Budget Shortfall: Taxpayers in the District will be asked to “work with the School District” and cover the combined spending increase ($3M) and state aid shortfall ($1.45M), or a total of approx $4.45M via property taxes; and

- Increased Total Tax Levy: The 2009-10 OP School tax levy figure will total nearly $47,560,000 (based upon the 08-09 tax levy of $43,112,245 PLUS the estimated $4.45M shortfall); a 10.3% increase; and

- Value of Available Taxable Property Remains Stagnant: Available property to tax, property value assessments, and equalization rates for 2009-10 will stay essentially the same in OP, West Seneca, Hamburg, Boston, and Aurora as were calculated in 2008-09.

The Novice Calculations:

Based upon these assumptions:

- 10.7% Increase in Tax Rate per $1000 AV: The tax rate per $1000 Assessed Valuation for residents living in the Town of Orchard Park (who, in 2008-09, were responsible to pay about 81% of the total district tax levy) will increase from $26.0684 (in 2008-09) to a whopping $28.90 - an increase of over $2.80 per $1000 AV – a tax rate increase of 10.7%. Similar percentage increases in tax assessments would apply to District residents residing in West Seneca, Hamburg, Boston, and Aurora.

- My "Actual" Taxes - A 23% Increase: The OP School District property taxes on my modest shack (which, with Basic STAR exemption, is assessed at $89,300) look like this:

- 2008-2009: $2,099 ($2,328 minus my 2008 STAR Rebate check of $229)
- 2009-2010: $2,581 (a tax increase of $482.00, or approx 23%).

Other Program Notes:

- Goodbye STAR “Rebate”: The STAR “Rebate” program (the “check in the mail”) is scrapped in the proposed State Executive Budget.

- ‘Thinking “Contingency Budget”?: The dreaded “Contingency Budget” for 2009-2010, if similar to previous years, will not be much better, and not much of a choice – In 2008-09, the District’s “Contingency” spending plan totaled $73,567,139 - a reduction of only $265,721 (a mere 0.04%) from the proposed (and passed) budget of $73,832,860. Further, this same “Contingency Budget” also contained a spending increase of 3.8% (or approx $3M) over the 2007-08 approved budget.

For your consideration and indigestion.

[opfrontdoor]

Let the taxpayer hostage taking begin....

A link to an article in the Buffalo News Today, Thursday, January 15, 2009:

http://www.buffalonews.com/cityregio...ry/549900.html

A .pdf of the article is also attached for when the link goes away.

Here's the mindset of the OP School District (and, frankly, all school districts), as quoted from the article:

“You would not normally put out a budget that’s less than your contingent budget,” said Jeffrey Petrus, assistant superintendent for business. “However, in these unique circumstances, we do want to be fiscally responsible and not tax more than we have to.”

"The only spending increase would be from contractual increases, including those due to employees."

“Our belief is that all districts will be facing state aid reductions,” Superintendent Joan Thomas said. “And all districts will have to look at increasing their tax levies from where they are at this point.”

"She said of all the districts in Western New York, Orchard Park’s taxes are among the lowest."

My favorite: "“Obviously, we’ve got a lot of work to do over the next couple months."

For your consideration.

PS - A inquiry was made recently to the Buffalo News Reporter who wrote the article and who covers the "school" beat (and also to the editors of the OP Bee and the OP Press) that asked:

"I was wondering when (and if) one of you are planning to interview the president of the Orchard Park Teachers Association to inquire as to the union's position regarding the pending OP Schools 2009-2010 budget.

Perhaps residents of the community may be interested as to how the OPTA will be assisting the Superintendent, the School Board, and district taxpayers cope with a proposed $1.45 million reduction in state aid."

Need I say that there was no response.......

[JustMakeSensePlease]

[QUOTE=opfrontdoor;435210]Let the taxpayer hostage taking begin....


"My favorite: "“Obviously, we’ve got a lot of work to do over the next couple months."

[And mine would be..Just what are these people on..I need some!!!!

"She said of all the districts in Western New York, Orchard Park’s taxes are among the lowest

[GRANDPOOBA]

Paterson is going to screw all the School Districts.