Shelter Island School Superintendent Brian Doelger has presented the preliminary 2022/23 school budget proposal to stay below the state’s tax levy cap.
[This post, published on January 19, has been updated to include additional budget information presented on January 31 and February 15.]
“We want to develop a budget that maintains all the great programs we have and also builds support with the community,” Dr. Doelger said while giving a slideshow at the BOE meeting on January 18. “We want to design a budget that values fiscal restraint, which I guarantee you this budget will.”
The school board will review the proposal in meetings through April. Meantime, you can email questions to district clerk Jacki Dunning at jacki.dunning@shelterisland.k12.ny.us.
Please note all figures are subject to change.
Budget Summary
As of the February 15 meeting, here is where the budget proposal stands:
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Administration, Buildings & Grounds, Data | $1,794,274 | $1,826,637 | +1.80 |
| Insurance and BOCES Administration | $174,010 | $178,520 | +2.59 |
| Academic Administration | $358,348 | $409,760 | +14.35 |
| Classroom Operations | $3,163,887 | $3,253,914 | +2.85 |
| Special and Occupational Education | $1,196,483 | $1,124,360 | -6.03 |
| Computer, Library, Summer, ESL | $521,352 | $487,271 | -6.54 |
| Guidance, Counseling, Health | $496,316 | $539,414 | +8.68 |
| Clubs and Athletics | $276,413 | $286,094 | +3.50 |
| Transportation | $517,245 | $541,555 | +4.70 |
| Benefits and Debt Service | $3,750,620 | $3,789,779 | +1.04 |
| Transfers to Cafeteria & Special Aid | $136,000 | $136,000 | 0 |
| Total | $12,384,947 | $12,573,305 | +1.52 |
Accomplishments
Dr. Doelger kicked off the initial 2022/23 presentation with a list of recent accomplishments that include:
- NYSPHASAA School of Distinctioni for a 6th consecutive year
- Significant improvement in state exams
- Successful operation in the pandemic
- Continued focus on social and emotion learning
- Further investment in safety protocols, enabling in-person learning
- Profession development for continuous faculty improvement
- Settled profession contracts, creating stability in long-term planning
Budget process
To date, administrators, working with consultants, have:
- Consulted with teachers and staff to determine programmatic wishes and goals for the 2022/23 school year
- Examined the value and efficacy of existing programs to determine if changes are needed
- Gathered pricing, contractual obligations and best estimates in compiling the spending plan
Now the Board of Education will review the decisions to determine if they represent the district and taxpayers’ proper direction. Goals for this year are to design, develop and adopt a budget that:
- Stays within the tax cap limitations
- Maintains district programs and community support
- Values fiscal restraint
- Seeks to identify and implement cost savings
- Provides the best education at the most efficient cost
Budgeting basics
Dr. Doelger noted there are two sides to the budget — the expenditure plan voted on by the community in May and the revenue plan that the Board of Education determines.
“Both plans represent the best estimates as to what the District’s financial needs will be for the upcoming school year,” he said. He described the budget as “an aspirational document that will certainly evolve even as we go through the budgeting process.”
Essential to the revenue side of the plan is the state aid package. While it is not yet available, the package is not likely to be reduced, Dr. Doelger said in a follow-up phone call.
Tax levy cap
Under state law, revenues raised by the district through the property tax levy can increase no more than approximately 2 percent, or CPI, whichever is less, plus several exemptions, Dr. Doelger said. Exempt from school tax levy cap calculations are certain capital costs and substantial rises in pensions costs. Dr. Doelger said that the district expects to have some exempt capital costs in the 2022/23 budget, but pension costs will not be exempt.
“This year, the CPI is really high,” Doelger said. “The state comptroller has said that every district can go to 2 percent if they wanted to. But, like I said, our goal is to come in below that number.”
(You can read more about the formula for the tax levy cap in this NYS Cap Guidelines pdf.)
Salary costs
Dr. Doelger said that most District employees are employed through a union contract, and annual raises are determined through a negotiation process and cannot be unilaterally changed. Some union contracts have raises based on years of experience, supplementary education, or other negotiated methods. Anticipated salary costs are as follows:
| Category | 2021/22 Budget | 2022/23 Proposed | % Change |
| Administration and General Support | $532,792 | $502,401 | -5.70* |
| Operations and Maintenance | $470,563 | $490,922 | +4.33 |
| Instructional Oversight and Development | $326,219 | $377,388 | +15.69* |
| General Education | $3,366,895 | $3,356,951 | -0.30 |
| Special Education and Wellness | $137,322 | $1,368,584 | -0.56 |
| Extra-Curricular and Athletics | $220,659 | $213,746 | +6.52 |
| Total | $6,273,450 | $6,309,922 | +0.58 |
Administration and General Support
This area includes the Board of Education (BOE), Central Administration, and Support. BOE members serve as unpaid volunteers, Dr. Doelger said, with the responsibility to:
- Adopt District policies
- Approve the hiring and dismissal of district employees
- Oversee the public’s tax dollars and assets
The District Clerk serves as the BOE secretary, recording its official actions. The district’s Central Administration includes the superintendent, the assistant superintendent, and the operations of their offices. The district’s Business Office oversees purchasing, payroll, benefits, debt service, revenue receipt, central treasury, auditing compliance, and real property insurance. Outside entities providing support:
- External Auditor, conducts annual review of the district’s finances and monetary operations
- Claims Auditor, an outside agent judges the correctness of each payment made by the district in advance of payment
- Legal Services, attorneys from the firm Ingerman Smith LLP advise the district on all legal matters
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| BOE | $122,809 | $125,458 | +2.16 |
| Central Administration | $211,936 | $220,260 | +3.93 |
| Business Office and Treasury | $354,982 | $320,224 | -9.79* |
| Auditing and Legal | $99,579 | $102,878 | +3.31 |
| Purchasing and Personnel | $4,458 | $4,547 | +2.00 |
| Real Property Insurance | $57,000 | $58,140 | +2.00 |
| BOCES Administration | $116,210 | $119,580 | +2.90 |
| Total | $966,973 | $951,088 | -1.64 |
Operations and Maintenance
The district employs six people who maintain, repair, clean, and operate the buildings and property. The department works with outside vendors on larger projects and on special projects, such as the abatement of hazardous materials, Dr. Doelger said. It also works with the district’s architect/engineer on long-range planning and preventative maintenance.
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Plant Operations | $639,002 | $629,906 | -1.42 |
| Plant Maintenance | $292,789 | $285,871 | -2.36 |
| Printing & Postage | $40,050 | $43,500 | +8.61 |
| Total | $916,141 | $948,081 | +3.49 |
Academic Administration and Classroom Instruction
Two administrators and 28 teachers provide general classroom instruction to the district’s 222 students. The district also employs non-instructional personnel who assist teachers and administrators. Other classroom costs:
- Equipment is any object purchased for instructional use that costs more than $500
- Contractual expenses include field trip fees and Response to Intervention (RTI) expenses
- Materials and supplies include textbooks and instructional items under $500
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Academic Administration & Curriculum Development | $358,348 | $409,760 | +14.35* |
| Classroom Instructional Salaries | $3,102,282 | $3,076,504 | -0.83 |
| Classroom Non-instructional Salaries | $111,451 | $165,853 | +48.81* |
| Classroom Equipment | $3,780 | $3,780 | 0 |
| Classroom Contractual Expenses | $44,118 | $46,781 | +13.77 |
| Classroom Materials & Supplies | $127,490 | $137,460 | +7.82 |
| Total | $3,744,469 | $3,840,138 | +2.55 |
Special Areas
These areas are grouped together: Special Education, Occupational Education, Summer School, Library & Computer Instruction, and Guidance, Counseling & Health.
Special Education students receive uniquely tailored instruction, Dr. Doelger said. The academic path of Special Education students is determined by the Committee on Special Education, which writes an Individual Education Plan for each eligible student. Such instruction might include:
- Smaller class sizes
- One-to-one aides to focus on learning tasks
- Speech instruction, physical therapy and occupational therapy
- Residential settings with limited outside influences
Select high school students can attend half-day courses at BOCES to learn career and occupational skills, such as automotive and marine engine repair, barbering, and culinary, he said. Rates are set by BOCES and are subject to a three-year rolling average as a way to keep costs stable. This year, regardless of enrollment, the District will be paying for one student to attend BOCES Occupational Education programs due to the rolling average.
The district provides summer reading and math instruction for elementary-aged students in the month of July. A guidance counselor works with students to select courses and plan a cohesive and logical progression of study and help seniors apply for college and/or prepare for career pathways. A psychologist and social worker provide counseling and specialized services to students and families. The school nurse monitors student health and works with families and local physicians to promote healthy lifestyles.
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Special Education | $1,153,484 | $1,112,982 | -3.51 |
| Occupational Education | $42,999 | $14,618 | -66.00* |
| Summer School | $23,575 | $24,990 | +6.00 |
| Library & Computer Instruction | $305,102 | $314,876 | +3.23 |
| Guidance, Counseling & Health | $496,316 | $539,414 | +8.68** |
| Total | $2,021,386 | $2,006,880 | -0.72 |
Co-Curricular Activities & Athletics
After-school offerings include:
- Book Craft Club
- Debate Team
- DECA Business Club
- Jazz Band
- National Honor Society
- National Junior Honor Society
- Science Club
- Select Choir
- Student Council
- Unity Club
- Video Game/Programming Club
- Yearbook
Field trip chaperones, the school newspaper, and the annual science fair are also funded from this section of the budget.
The District offers the following athletic opportunities for students grades 7 to 12:
| Sport | Level(s) | Gender |
| Baseball | Varsity (V) | Boys |
| Basketball | V, Junior Varsity (JV), Junior High School (JHS) | Boys and Girls teams |
| Cheer | n/a | Mixed |
| Cross Country | V, JV, JHS | Boys and Girls teams |
| Fitness | Intramural | Mixed |
| Golf | V | Mixed |
| Running | Intramural | Mixed |
| Softball | JV | Girls |
| Tennis | Intramural | Mixed |
| Track | JHS | Boys and Girls teams |
| Volleyball | V, JV, JHS | Mixed (Girls only JHS) |
| Winter Track | V, JHS | Mixed (Boys and Girls Teams JHS) |
The proposed budget for co-curricular and athletics is:
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Co-Curricular Activities | $106,469 | $107,123 | +0.61 |
| Athletics | $169,944 | $178,971 | +5.31 |
| Total | $276,413 | $286,904 | +3.50 |
Transportation
The district provides transportation for students both on-island as well as off-island (to any private placement within 15 miles of the students home; 50 miles for special education students). Costs include contracts to bus companies and ferry fares.
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Busing | $400,557 | $419,383 | +4.70 |
| Ferriage | $116,688 | $122,172 | +4.70 |
| Total | $517,245 | $541,555 | +4.70 |
Benefits
- All employees of the District are required to participate in either the New York State Teachers Retirement System (teachers and administrators) or the New York State Employees Retirement System (clerical, custodial and other support staff). The systems set contribution rates. Total anticipated pension and social security cost is $1,163,553 as follows:
| Pensions | TRS | ERS | Social Security |
| Proposed Applicable Salaries | $4,995,183 | $1,238,207 | $6,233,390 |
| Contribution Rate | 10.5% | 13.1% | 7.65% |
| Proposed Budget appropriation | $524,494 | $162,205 | $476,854 |
For health insurance, Dr. Doelger noted that contribution rates are negotiated in employment contracts and can only be changed through an agreement of the district and the relevant union. All active employees pay a share of health insurance (most pay about 20 percent), but most retirees do not as their benefits were set at the time of employment (but they come off the district rolls as they age into Medicare).
Dr. Doelger noted that employees who have coverage elsewhere are eligible for a waiver payment, which is less costly for the district.
The district participates in the New York State Health Insurance Program (NYSHIP), along with NYS and hundreds of local government entities. NYSHIP set rates in December for the next 12 months. Schools are required to make a good-faith estimate of what costs may be for January to June. Dr. Doelger said that Rates for family coverage would rise in 2022 by more than 12 percent over 2021.
Full share costs for active employees are:
- Single = $14,353.44
- Family = $33,164.88
The total anticipated cost for health insurance is:
| Health Insurance | 2021/22 Budget | 2022/23 Proposed | % Change |
| Medical Insurance Waiver | $152,537 | $167,826 | +9.11 |
| Employee Medical Insurance | $1,090,550 | $1,070,569 | -1.87 |
| Retiree Medical Insurance | $792,098 | $647,294 | -23.37 |
The district, like other employers, also has to budget for costs associated with mandated unemployment and workers’ compensation. The budget for benefits is as follows:
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Pension & Social Security | $1,115,287 | $1,195,992 | +7.24 |
| Health Insurance & Other | $2,217,855 | $2,067,814 | -6.77 |
| Total | $3,333,142 | $3,263,806 | -2.08 |
Debt Service & Transfer to Other Funds
The district has issued bonds or other borrowings that represent the unconditional promise to repay the loan according to schedules determined when the loan is finalized. School districts borrow money using Tax Anticipation Notes (TANs) in the fall to cover expenses incurred before property tax revenue is received.
Transfers to other funds include a portion of the costs of summer instruction for certain Special Education students via a Special Aid Fund grant. And, while the school/cafeteria should support itself through the sale of food to students and staff, Dr. Doelger says the cafeteria runs a deficit each year. The General Fund then must support such deficits through a transfer to the Cafeteria Fund.
| 2021/22 Budget | 2022/23 Proposed | % Change | |
| Bonds Principal & Interest | $365,056 | $298,856 | -18.13 |
| Energy Performance Contract P&I | $82,982 | $82,982 | 0 |
| TANs Interest | $38,775 | $38,775 | 0 |
| Transfer to Special Aid Fund | $11,000 | $11,000 | 0 |
| Transfer to Cafeteria Fund | $125,000 | $125,000 | 0 |
| Total | $622,813 | $566,613 | -10.63 |
Revenue
School district revenue comes from three main sources:
- Property Taxes, paid by the property owners in the district
- State Aid, funds remitted to the district from New York State, as proposed by the Governor and authorized by the Legislature
- Appropriated Fund Balance (AFB), funds that are unspent from the prior year
“We did get good news on state aid today,” Dr. Doelger said. “You can’t believe it until it’s in black and white, as the consultant said, but the governor in her budget speech today said that no school will get less than a 3 percent increase.”
State aid for 2021/22 is anticipated at $650,907; for the 2022/23 school year that figure is $679,231, Doelger said.
“That’s a nice thing to know because we usually don’t see that big of an increase.”
The state budget is due on April 1; the final aid figure impacts how much revenue must come from property taxes.
Tax Levy Cap
Under state law, revenues raised by the district through the property tax levy can increase no more than approximately 2 percent, or CPI, whichever is less, plus several exemptions, Dr. Doelger said. Exempt from school tax levy cap calculations are certain capital costs and unusually large rises in pensions costs. The district expects to have some exempt capital costs in the 2022/23 budget, Dr. Doelger said, but pension costs will not be exempt.
The formula to determine the allowable rise is subject to a “tax base growth factor,” which is set by the state and reflects changes in property valuations. At 1.0015, the tax base growth factor for Shelter Island UFSD is in line with other nearby school communities (shown alphabetically):
Amagansett (1.0062), Bridgehampton (1.0100), East Hampton (1.0054), Greenport (1.0139), Montauk (1.0038), Oysterponds (1.0071), Sag Harbor (1.0156), Sagaponack (1.0084), Southampton (1.0083), Southold (1.0042), Springs (1.0076), Tuckahoe Common (1.0122), and Wainscott (1.0083).
(You can read more about the formula for the tax levy cap in this NYS Cap Guidelines pdf.)
The formula also includes an “allowable levy growth factor”, also established by the state. For entities with a fiscal year that runs from July 1 to June 30 (most public school districts), this has been set at 1.02 (see details in this chart from the state comptroller’s office).
SIUFSD Property Tax Calculation (all figures subject to change)
| Prior school year tax levy | $11,016,571.00 |
| Tax base growth factor | 1.0015 |
| Product | $11,033,095.86 |
| Capital Tax Levy in Prior Year | $429,921.00 |
| Difference | $10,603,174.86 |
| Allowable Levy Growth Factor | 1.02 |
| Product | $10,815,238.35 |
| Capital Tax Levy in Coming Year | $363,124.15 |
| Tax Levy Limit Plus Exclusions | $11,178,362.50 |
School districts are required to file their tax levy limit calculations with the Office of the State Comptroller prior to approving their budget proposals. After the budget presentation on February 15, the board passed a resolution adopting the calculations in order to meet the filing requirements.
| ESTIMATES subject to change | 2021/22 Budget | 2022/23 Proposed | Change |
| Property Taxes | $11,016,572 | $11,178,363 | +$161,791 |
| State Aid | $650,907 | $679,231* | +$28,324 |
| Appropriated Fund Balance | $704,464 | $715,711* | +11,247 |
| Total | $12,371,943 | $12,573,305 | $201,362 |
Remaining budget schedule
The remaining budget schedule is as follows:
- February 28 – General budget workshop
- March 14 – Budget overview and adjustments
- April 11 – Budget adoption by the BOE
- May 9 – Budget hearing at BOE Meeting
- May 17 – Budget vote, noon to 9 PM in the school gym.
Follow this link to the school website see Dr. Doelger’s slideshows about each section of the budget.
