School District Reports Bleak Revenue Projections

– By Jim Byrne –

Faced with the same economic woes that school districts in New York and the rest of the country are mired in, the Rye City School District presented bleak revenue projections at the January 6 Board of Education meeting.

With projected non-tax revenues reduced nearly $700,000 from the $6,577,570 budgeted for the 2008-09 school year, the district is now estimating further reductions – roughly $630,000 for 2009-10. Because of falling revenues the district is looking at a 2.5% tax rate increase.

“We want everyone to understand the situation we are in as we enter the budget cycle,” said Board VP Laura Slack.

Not meeting targets in non-resident tuition and a decrease in interest earnings are the primary reasons for 2008-09’s lowered revenue projections. The district budgeted $700,000 for non-resident tuition this year, but based on a decreased ability to accept non-residents in the middle school, the projection has fallen to $360,700. It is estimated to be reduced by an additional $30,700 for 2009-10.

Interest revenue is also down, with a budgeted $900,000 projected to come in at $550,000 this year. The district estimates interest revenue to be at $400,000 in 2009-10.

Adding to the district’s woes is Governor David Paterson’s proposed “deficit reduction” cut for 2009-10. Rye would lose an estimated $322,766 in State aid. Rye’s projection actually shows a State aid cut of $378,350 because each year the district spends less than its budget and receives $50,000 less than projected from New York State.

“In some ways the cut is less painful for us because we don’t receive that much to begin with, but it is still greater than a 10% reduction,” said Board member Ed Fox. “The question is how, if at all, we can make those up. On top of that, we may have higher expenses because of increased enrollment.”