Joint Statement on Board of Education Operating and Capital Budgets

Joint Statement on Board of Education Operating and Capital Budgets
Posted on 02/28/2017

Common Council President John Igneri, Board of Education Chairman Mike Lyons, Mayor Harry Rilling, and Superintendent Steven Adamowski are pleased to announce that they have reached an agreement on an operating budget proposal and a framework for a capital budget which builds new schools and repairs existing schools.

We agree that our schools are making progress that has not been seen in many years. We agree that investing in education is not only the right thing to do, but also necessary and in the best interest of the future of our city. We agree that to continue to make strides and bring our schools up to the quality of neighboring districts, we will have to tighten our belts in other areas of the city budget.  We agree that we need to be responsible in making spending decisions that will keep our tax rates reasonable and encourage our diversity.  With these joint beliefs as our guide, we have agreed on the following:

Operating Budget

While the BET will make the final decision on appropriations to the Board of Education, the Mayor, Council and Board of Education will put forward a unified proposal which will enable the Board to implement its strategic plan as well as maintain a reasonable increase in the tax rate. The Board of Education was faced with a 10.1% increase in its operating budget over the prior year. The City’s finance director recommended a 3.8% increase. Half of the BOE increase was caused by the increased cost of employee health insurance. The BOE will neutralize this cost by switching to the State 2.0 medical insurance plan and utilizing its remaining medical increase reserves, which brings the net BOE request to a 5.2% increase.

After much discussion the following is recommended:

  • The Board of Education will identify efficiencies and program reductions to enable a savings of $1.3 million
  • The City will recommend appropriating $1.3 million from its fund balance to go toward the BOE operating budget.

This will result in a year over year increase of 4.5% in the education budget and a 2.5% increase on the City side for a combined year over year increase of 3.4%.

Capital Budget

While the details and timing remains to be worked out, the Mayor, Council and Board of Education have agreed on a framework for a Capital Budget request and are confident that working together they can solidify this plan in the next two weeks. There is a joint commitment to making a long-awaited major investment in the school building program, which will include the building of new schools, the renovation of schools, and priority repairs and capital projects at all schools. The Board of Education will work with the City on a revised proposal to achieve these goals while keeping the level of bonding at a rate which will maintain the City’s favorable bond rating  The City Finance Director is presently working on recommendations for timing of appropriations and bonding to facilitate these objectives.

Of course, this agreement is subject to the approval of the Council, BET and BOE. But the Mayor and the leadership of the respective boards believe this is the right solution for both our school children and our taxpayers, and are confident of its approval.