School district unveil $112 million budget

The Glen Cove City School District unveiled its preliminary budget plan for the 2024-2025 academic year during its first public workshop on Jan. 17. The district estimates a total budget of roughly over $112 million, an increase of approximately $4 million from last year’s $108 million budget.
The draft revenue budget, which is subject to change in oncoming months, outlines several key changes compared to the previous fiscal year. The Consumer Price Index, which measures the costs of goods and services over a period, is what drives the allowable levy growth factor for the budget at 2 percent. One of the main sources of revenue for school district budgets, the levy helps fund the appropriation budget. New York state uses a formula to calculate each district’s maximum allowed tax levy increase, which is generally capped at 2 percent annually under the tax levy limit law.
“Budgets establish your tax levy, not your tax rate for the community,” Victoria Galante, the district’s assistant superintendent for business and finances, explained. “Tax rate includes your assessed value and things like that. This just establishes one part of that formula that the city uses to come up with your taxes.”
Before budgets included the tax cap, compiling “wish lists” from various departments developed district budgets. The total was calculated based on state aid, local revenues and sometimes reserves to avoid a tax levy. However, with the tax levy cap, budgets must start with revenue estimates. Districts consider state and federal aid, local revenue, and reserve usage to determine spending limits within the legal tax levy constraints.
The estimated revenue budget for payments in lieu of taxes witnessed a notable decrease, while other revenue streams experienced varied shifts. PILOTs, a type of subsidy used for economic development that allow beneficiaries to make payments that resemble property taxes for a set period of years but are lower than property taxes, declined by approximately 30.7 percent, totaling $3,682,080. Conversely, revenue from tax on consumer utility bills rose by around 15.4 percent, reaching $1,500,000. Interest and earnings surged significantly, marking an increase of over 388 percent, now standing at $500,000 compared to the previous period.

“A lot of the interest and earnings is where a lot of an increase is coming from,” Galante said. “We are getting more interest in the funds we have in our bank accounts.”
State aid also saw a substantial uptick, climbing by approximately 8.9 percent, reaching $27,419,225. Galante emphasized that the district expects to get a finalized amount of aid in April from the governor’s office. Other revenues showed a modest increase, consolidating at $4,588,714.
Expenditure projections reveal significant challenges. Health insurance rose by 13.5 percent, which Galante said is the highest increase the district has ever seen. Insurance overall increased by 18 percent. Galante explained that dialogue with the district’s insurance company point to a combination of “different things that are happening in the world of insurance,” which include changes in climate, the child victims act, cyber insurance and liability insurance. Galante also noted that much like how homes increase in property value, the property value of school buildings has increased, necessitating higher insurance coverage.
“Last year, we saw about a 20 percent increase in insurance,” Galante said. “We were hoping it would come down a little bit more but it’s not. Hopefully it won’t get any higher than that.”
Retirement system expenses for employees other than teachers, administrators, and central office staff, rose by 15 percent. The teacher’s retirement system saw an increase of 10.25 percent. Furthermore, there are contractual obligations for various employees, including vendors and third-party providers, which naturally incur annual increases. These obligations, including employee-related expenses, are expected to rise consistently from year to year.
“When you look at all these increases, not one thing went down,” Galante stated. “Some years, we’ve had it where at least one or two things may go down. This year, we’re not so lucky. Then you think about 2 percent (tax) cap in the formula-there’s a lot of percentage that we have to make up.”
Future workshops in the coming months will provide more details and updates as the budget numbers were refined and state aid is finalized.
To view the district’s presentations for upcoming workshops, visit: GlenCoveSchools.org