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Potsdam Central will not ask voters to override tax cap as it faces budget crunch

Posted 5/29/20

BY MATT LINDSEY North Country This Week POTSDAM — Potsdam Central School’s Board of Education met Tuesday, where Superintendent Joann Chambers shared a budget presentation outlining the 2020-21 …

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Potsdam Central will not ask voters to override tax cap as it faces budget crunch

Posted

BY MATT LINDSEY
North Country This Week

POTSDAM — Potsdam Central School’s Board of Education met Tuesday, where Superintendent Joann Chambers shared a budget presentation outlining the 2020-21 budget.

The budget tax cap is 2.84%, which will raise $13,945,896, an increase of $385.505 from the previous year. Chambers said PCS will not ask taxpayers to override the tax cap as she realizes many are facing financial hardships.

The school board approved a budget of $34,985,741 on May 12, which is a 2.1% increase over 2019-20. The main areas that resulted in the increase are employee benefits, BOCES services and materials, supplies, contracts and utilities.

The school made $687,058 in reductions that include eliminating several staff positions, some student clubs with low participation, JV football and savings realized through retirements and new hires.

To view the entire presentation, see video here. To read the district newsletter, click here.

School budget presentation shared with staff and emailed to students. She encouraged anyone with questions about the public to reach out to her.

“If the budget is not passed after two public votes, we will be required, by law, to adopt a contingency budget,” Chambers said. This would mean the district would need to make additional reductions of $385,505.

District taxpayers cover about 40% of the school budget, state aid and local revenue provide about 53% of the cost, Chambers said. The remaining funds needed to close the budget gap comes from the use of district fund balance and reserves.

Chambers said factors impacting the 2020-21 budget include the COVID-19 pandemic impact on NYS revenue, the threat of mid-year state aid cuts, special education costs, employee benefits, and the tax cap.

Foundation aid for PCS is expected to be about the same as last year, even though costs have increased, she said. There were “modest” increases in other aid that resulted in an increase of $82,750, which is an increase of only .47%.

The state says it will do three look-back periods of its revenue and if those numbers falls short of the goal, school districts may actually receive less aid than previously announced. If that happens, Chambers said PCS would need to make more cuts to staff or programing, or apply more fund balance funds.

Voters will also be asked to approve a school bus proposition to purchase three school buses at a total cost of $466,000. This purchase would be finances for a period of 5 years. The district is eligible for state transportation aid on the purchase of school buses.

All ballots must be received by 5 p.m. June 9. Anyone who did not receive a ballot and believes they should have; can contact Davida Martin at 315-265-2000 ext. 733.

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