Board of Education adopts 2009-10 budget proposal

April 9, 2009 - The North Colonie Board of Education adopted a $90,096,000 budget proposal at its meeting on March 23.

The school district’s strong financial condition allowed the Board of Education to approve the smallest proposed residential property tax increase in more than a decade and, at the same time, avoid cuts to staffing levels or programs.

“Our commitment to fiscal responsibility has placed the district in a position where we will be able to weather the current economic storm without the need for dramatic action,” said Superintendent Randy Ehrenberg.

The small tax rate increase on residential property was been made possible by the Board of Education’s decision to move to a single tax rate for both residential and commercial property. The change will take effect commencing with the 2009-10 school year. Read more about the change to a single tax rate.

Residents will vote on the budget proposal on Tuesday, May 19. Polls will be open at all elementary schools, and Maplewood residents will vote at Maplewood School this year. Voters will also elect two board of education candidates to serve five-year terms on the board.

If voters approve the budget proposal, spending would increase by 1.9 percent, or $1,657,000, while the residential property tax rate is projected to increase 2.9 percent, to $21.07 per $1,000 of assessed value. Both increases are the lowest proposed increases in more than a decade.

The Board of Education understands that these are difficult economic times. However, the property tax rate increase might be even lower than the current projection if the district receives money from the federal stimulus package, officially called the American Recovery and Reinvestment Act.

North Colonie is expected to receive in excess of $1 million from the federal stimulus program. Should the district receive full restoration of state aid cuts, the Board has proposed to use a portion of the money to further reduce the tax levy and lower tax rates; transfer $700,000 to capital funds to pay for various improvements and save on borrowing costs; and to establish and fund a reserve for future retirement contribution costs, which are expected to rise dramatically in future years. In summary, this proposal would lower the tax rate, reduce future debt service expenses and set money aside for future liabilities.

Residents encouraged to attend budget presentations

Residents can learn more about the proposed budget by attending any one of several budget presentations over the next two months. A Public Forum and Meet the Board of Education Candidates Night will also be held on Thursday, May 7, at 7:30 p.m. at Shaker Junior High School. District residents will soon receive a detailed budget edition of Inside North Colonie.

Board of Education elections

Two five-year seats are up for election on May 19. The five-year seats are currently held by Mary Nardolillo and Mary-Ellen Raup.

For more information, visit the Budget Development section of the district Web site.