East Ramapo board hears budget outlook showing proposed tax levy increase and cash-flow projections

Assistant Superintendent for Business Mr. Stark gave a detailed presentation on district finances, saying the first draft of the tax-levy calculation shows a maximum allowable levy of $167,000,230,534 and an increase of $4,428,732 (2.72 percent). He said final state aid projections released the same day would be reviewed and incorporated into the revenue forecast.

Stark explained the district must calculate the revenue side first because New York’s property tax cap (as implemented by the New York State Comptroller’s Office) constrains levy-setting. “When we put those factors in, the first draft…shows a maximum allowable tax levy for the next school year at 167,000,230 534. That would represent an increase of $4,428,732, or a 2.72% increase,” Mr. Stark said.

The presentation separated the general fund from other funds: Stark said the general-fund revenue projection was roughly $323.5 million, while a cash-flow analysis that includes federal grants, ARPA and other funds showed total receipts and beginning balances that produced a projected end-of-year cash balance (after projected disbursements) of about $107 million under the current estimate. Stark stressed that the cash-flow figure includes all district funds—general fund, federal grants, capital and other accounts—and that the numbers were preliminary and would be refined in January and February updates.

Stark also noted several items were not yet fully posted to projections: teachers’ salary increases and retroactive payments to be entered in payroll (anticipated to appear in the February payroll), remaining debt-service encumbrances of $3.8 million, and other employee-benefit encumbrances.

Board members asked clarifying questions about the difference between general-fund totals and cash-flow totals, whether federal funds were included in the revenue figure, and the apparent large cumulative receipts figure; Stark explained the cash-flow includes grants and non-general-fund items. The superintendent suggested an additional board meeting or a budget work session in late February to allow detailed review before the district’s draft must be submitted to the state by March 1.

Why it matters: the tax-levy figure frames what the board can seek in local property-tax revenue and will drive expenditure choices in the draft budget. Stark emphasized that the presented figures are initial estimates and that more-accurate projections will be given at future meetings.