By Carol P. Bartold

Jan. 25, 2017: News of a 1.60 percent tax levy cap for the 2017-2018 academic year, as compared with 0.24 percent for the current year, has eased pressure on the Bronxville Board of Education in formulating next year's budget. The higher tax levy cap allows trustees to collect more village real estate taxes to finance school projects.

Dan Carlin, assistant superintendent for business, reported to the board at its regular meeting on January 19 that the budget process for 2017-2018 will begin with a "rollover budget" that falls within the tax levy cap. A rollover budget is the estimate of what it would cost to deliver the same programs and services currently provided but reflecting new conditions such as mandatory retirement contributions, health care premiums, contractual obligations, state aid, and any other known changes.

"It's the first time that has happened since we've had a tax cap," Carlin said.

That $47.1 million rollover budget, which assumes no staff or program additions, represents a 1.07 percent increase over the current year's $46.6 million budget.

The tax levy to fund the 2017-2018 budget will generate $41.5 million in property tax revenue for the district. That levy represents a 1.57 percent increase over the 2016 levy, or $40.9 million.

Carlin noted that the New York State Department of Taxation and Finance's tax-based growth factor is larger than the one he used in preparing the rollover budget. The tax-based growth factor is based on increases in the tax rolls due to such factors as new construction, newly taxable status of existing property, and measurable improvements to taxable property within the boundaries of the local government and school district.

The Finance Committee of the Board of Education has recommended an allocation of $500,000 from reserves, or fund balance, to help offset the tax levy increase, a decrease from the original $580,000 set aside in the rollover budget.

"The tax levy will be a bit higher than last year," said trustee Adele Murray, "but we're preserving our reserves and, I think, exercising good fiscal responsibility."

Trustee Jack Bierwirth agreed, pointing out that "pumping" more reserves to achieve an artificially lowered tax rate only serves to put the district at a disadvantage for the future. "We're moving in the right direction," he said, noting that, at one time, $1.2 million in reserves was used to offset the tax levy.

Murray commented that the tax cap is structured to impose a "perverse incentive" to maximize the allowable budget. "If you reduce your budget and go significantly below the tax cap," she said, "you put more pressure on the budget the next year." She added that reducing the budget reduces flexibility in future rollover budgets.

The Bronxville Board of Education will hold a budget workshop on Saturday, February 4, at 9:00 am in the school's multi-purpose room.

Pictured here:  School board members attending the school budget meeting.

Photo by N. Bower