Thursday, April 10, 2014

Changes ahead for schools in adopted state budget

Aid restored in the recently adopted state budget might temporarily ease but not end the long-term financial challenges for public schools in New York. In 2014-15, Marcellus Central School District will regain one-fifth of the projected $1.5 million in state aid lost to the Gap Elimination Adjustment. The New York state budget also includes funding to launch new education initiatives, a rebate program for eligible taxpayers and some changes related to student data and testing.

On March 31, the Senate and Assembly passed a 2014-15 budget that reduces the GEA to $1.0367 billion in state aid withheld from schools, thereby increasing aid for everyday school operations by almost $251 million. Marcellus will see a $416,105 increase when compared to 2013-2014 budgeted figures, a 3.5 percent increase in state aid.

The funding challenges for schools are likely to increase with the inclusion of a so-called property tax freeze in the state budget. In the first year of the rebate program, a district must stay within its 2014-15 tax levy cap. In the second year, a district must stay within its 2015-16 tax levy cap and receive state approval for a shared-services/efficiency plan that achieves savings of 1 percent of the tax levy each year for three years.

If a district does so, homeowners who are eligible for the school tax relief program, or STAR, can receive a rebate check from the state after paying their school tax bills. At this time, it appears the rebate amount will be the greater of either a) the amount by which a new school tax bill exceeds the prior year school tax bill or b) the allowable levy growth factor (0.0146 for 2014-15) multiplied by the prior year school tax bill.

For example, a Marcellus resident with a home assessed for $130,000 and receiving the basic STAR exemption of $30,000 would have a school tax bill in 2013-14 of approximately $2,274. The district’s tax levy is projected to increase by 2.37 percent. For the aforementioned home, that represents an estimated tax increase of $53.89, which, under the state’s plan, would be refunded to the homeowner by the state in fall 2014. Please note that individual school tax bills and rebates in 2014-15 may vary depending on a variety of factors still to be determined.

The district is now analyzing other aspects of the state budget that may impact the local education program:

  • Universal, full-day, pre-kindergarten funds – The budget allocates $300 million to supplement universal, full-day pre-kindergarten programs in New York City and $40 million for such programs in the rest of the state. Marcellus does not currently offer pre-kindergarten, so it is unlikely to benefit from this funding next year.
  • Smart Schools bond referendum – The state will hold a public vote in November for permission to borrow $2 billion for school technology infrastructure, broadband or wireless connectivity, pre-kindergarten instructional space, and/or replacement of classroom trailers. Marcellus would receive $1,121,225, if that bond is approved by the voting public.
  • Student testing changes – The budget includes several provisions related to state assessments: 
    • Individual student scores on grades 3-8 state assessments in English language arts and math: 
      • Can be used in required state and federal reporting. 
      • Cannot be placed on a student’s official transcript or in the student’s permanent record.
      • Cannot be the sole basis for student promotion and placement decisions. 
    • The commissioner of education must create new regulations that: 
      • Set restrictions on the amount of time spent on testing and the number of field tests, among other things. 
      • Allow alternative assessment options for students with disabilities and English language learners.
  • Student data privacy changes – Following are some of the budget provisions related to student data privacy: 
    • While parents cannot opt out of having students’ data shared with the state, the transfer of such data to InBloom or any similar provider is prohibited. 
    • Districts can opt out of using state data dashboards. 
    • The state will create a chief privacy officer position and have tougher penalties for unauthorized disclosure of data. 
Visit Education Speaks to learn more about the 2014-15 state budget.

Visit the district’s budget webpage for more information about the impact of the state budget on the 2014-15 school budget proposal as it becomes available.


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