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Board reviews budget options, tax‑cap math and reserve use as litigation costs loom
Summary
Finance staff told the board a $350,000 transfer‑to‑capital for a security booth could be repurposed to cover unanticipated CVA litigation costs, which would lower the district's maximum allowable tax levy from about 2.12% to roughly 1.62%; the proposed 2024–25 budget stands near $80.1 million with major drivers in benefits, security and legal costs.
District finance staff on March 12 walked the Cold Spring Harbor Board of Education through detailed tax‑cap calculations, multi‑year projections and choices that could change next year’s allowable levy and reserves.
"71,035,000 is our maximum allowable tax levy," the finance presenter said while explaining the tax‑cap worked through the state controller’s filing; she then showed that declaring the previously budgeted $350,000 transfer to capital (for a security booth) instead as coverage for unanticipated CVA litigation costs would reduce the district’s maximum allowable levy from about 2.12% to approximately 1.62%.
Why it matters: The board is weighing whether to proceed with planned capital spending or to repurpose funds to cover ongoing litigation related to CVA insurance claims. That choice affects the tax‑cap calculation now and in out years and therefore may influence how the board structures the 2024–25 budget.
Key budget figures: The presenter said the working budget total was about $80,000,190 as of the meeting and described drivers totaling a roughly $3 million increase over the current year. The largest drivers cited were benefits and health insurance ($1.1 million), contractual non‑salary increases (~$700,000), collective bargaining increases (~$400,000), transportation (~$300,000), security and rising legal costs related to ongoing CVA litigation.
Staff also noted that some items not built into next year’s budget could be handled this fiscal year with existing funds, and summarized potential reductions (about $424,000) that could lower next year’s baseline ask. The presenter said the district expects a strong fund balance, projecting about $16 million in reserves at the end of 2023–24 and possibly $18 million the following year.
Legal and timing issues: Finance staff acknowledged a risk that the state budget could be late, which would complicate planning. Board counsel and staff flagged that repurposing the transfer‑to‑capital would affect multi‑year tax‑cap math and asked trustees to consider both near‑term cash‑flow and longer‑term levy impacts.
What’s next: Trustees scheduled further budget discussion for March 25, with adoption targeted for April 16 (the district’s stated adoption date) and legal deadlines noted for later in April and May for the public hearing and vote.
Ending: No final decisions were made March 12; trustees requested additional materials and will revisit the transfer‑to‑capital, CVA litigation expense estimates and transportation costs at the March 25 meeting.
