Oswego District Proposes Cuts; Still Face Nearly $1 Million Gap

by Steve Yablonski | March 15, 2016 11:57 pm

OSWEGO, NY – More than two dozen cuts loom in the tentative 2016-17 Oswego City School District budget, Superintendent Dr. Dean Goewey told the school board Tuesday night.

“We want to build a revenue based budget on the money that is coming into the district,” he said.

The gap was originally $5.6 million. It shrunk to $4.9 million last month. Now it’s less than $1 million – but at a cost.

Dr. Goewey presented the board an overview of the budget process up to work done earlier Tuesday.

On Feb. 8 the revenue projection was $77,763,939.

The full restoration of the Gap Elimination Adjustment would add $516,916.

The goal is a 2% tax levy increase, which would generate $563,397, the superintendent said.

“So, our projected revenue right now (as of March 1) is $78,844,252. That has not changed,” he said.

Expenses as of Feb. 8 were $82,734,860.

“At our last meeting, I reported some initial reductions that were done by departments, Central Office, principals … we generated an initial pocket of reductions. There were 10 instructional FTEs (full-time employment) – $618,877. There were 13 support staff FTEs reductions – $459,129. There were extra comp positions in the amount of $260,078 and the fringe benefits ($350,362) associated with those 13 FTEs,” he said. “Total payroll and benefit reductions reported at the last meeting was $1,688,446.”

$250,000 was cut out of athletics.

Dr. Goewey was also exploring ways to save $2,000,000 on health insurance. However, Tuesday night he noted that work on this is ongoing and will move forward, but might not provide any relief for the upcoming budget.

“The clock is ticking,” he said. “I determined yesterday that we really need to move forward and stay true to our budget calendar. We’re not going to get to a place in the next four weeks where we’re going to get to enjoy those savings. As much as I am confident that we’re going to move forward in those negotiations, I am very hopeful that those savings will come into our district over the next weeks and months, we have to do some additional work to get to that point where that gap is eliminated.”

It isn’t a lost cause but time isn’t on the district’s side, he explained.

However, due to that, the projected expense jumped to $80,796,414, the superintendent said. That’s up $2 million from his last budget presentation.

They have come up with some more cuts “that will be painful but completely necessary” to balance the budget, he said.

A mandatory teacher of the blind ($60,000) was added to the budget. Also added was an ESL teacher ($60,000), an additional $250,000 to provide steps associated with collective bargaining and another $36,000 for the associated fringe benefits.

The additions total $406,000 for a projected expense of $81,202,414.

The additional proposed reductions include 14 more instructional FTEs ($87,440), three more support staff FTEs ($35,361), fringe benefits ($261,432), and some other reductions ($240,200). That comes to another $1,408,433 in reductions.

These largely come from the secondary program; the previous reductions largely came from the elementary program, the superintendent explained.

“Our goal is to keep reductions as far away from the kids as we can,” Dr. Goewey said.

Revenue projections are $78,844,252.

Expense projections are $79,793,981.

That leaves a gap of $949,729.

“We had hoped not to go this deep. But we had to go this deep, we had a responsibility to balance our budget and present it to the public,” Dr. Goewey said. “The deeper we go, the more painful it gets. And the closer it gets to students and programs.”

“How much more can we go” asked board member Sam Tripp.

“It’s a situation where you continually wring out the towel and eventually it stops dripping,” the superintendent replied.

“Are all of the bargaining units aware of this?” asked board member Tom DeCastro.

They all are and have been participating in the budget process, the superintendent said.

Over the last five years the district has spent down its fund balance and reserves by $12 million, the district’s business manager pointed out. There is about $5 million left and according to the state comptroller’s report, Oswego is a district susceptible to financial stress, she added.

That’s why they have to build a revenue based budget, Dr. Goewey said, adding “We have nothing more than what we have.”

Even if they eliminate the gap this year, they have to start worrying about how to reduce (2017-18) budget by an additional $4 million, he added.

“We need the help of every single employee in the district,” Tripp said.

Everyone is pitching in, Dr. Goewey said.

“Nothing we did today made any of us happy. But, we’re realists,” he said.

Dr. Goewey will provide further details at the next board meeting.

Source URL: https://oswegocountytoday.com/news/oswego/oswego-district-proposes-cuts-still-face-nearly-1-million-gap/

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