Batavia Public Schools To Explore Budget Cuts, Curb Million-Dollar Shortfalls

 is operating on an estimated $4 million deficit this school year, and that number is expected to grow to $7.6 million in two years.

The deficit will continue to rise if changes are not made. That means Batavia, like every other district in the area, is now tasked with making sacrifices and cuts to their budget.

The Board's Finance Committee will continue to discuss the budget deficit at a special noon meeting today , 335 W. Wilson St. District leaders will also discuss options for cuts during tonight's 7 p.m. regular Board meeting at the same location.

The 2011-12 school year budget deficit is currently projected to be just under $5 million, and will likely reach $7.6 million in 2012-13, if the current tax rate holds.

Kris Monn, the district's finance director, on Feb. 8 presented those budget figures to district leaders and Batavia School Board members.

According to Monn, everything is on the table. This could mean cuts in the district’s staffing.

“We’re looking at personnel expenses as well as non-personnel,” Monn explained. “We can’t rule anything out yet.”

Monn said that the administration will soon bring its proposed budget cuts to the board, but he could not discuss the options that are being considered until their next board meeting taking place today.

“We’ll start to lay out some details then,” he said. “That information is coming quickly.”

Fixed Costs, Rising Costs

For the current school year, the district projects that it will spend just over $67 million, with revenues at just over $63 million.

The majority of any school district's budget goes toward salary and benefits for teachers, district leaders and other staff. Employee pay and benefits make up 72 percent, or $48.6 million, of Batavia's budget this year.

The 2011-12 school year will likely see nearly $69 million in expenses, with close to $64 million in revenue, and 2012-13 projects close to $70 million in expenditures, and just over $62 million in revenue.

Where's The Money?

Even though the district's operational costs will go up, its revenue is expected to drop.

Financial constraints are nothing new to public school districts across the region and the entire state. The struggling economy has resulted in a decline in home values, specifically Equalized Assessed Valuations. These figures lately have resulted in less property tax dollars for the school district.

In 2010, the valuation declined by 2.75 percent and might fall by 5 percent in 2011, according to financial estimates.

The shrinking home values come at a time when Batavia schools have to rely more heavily on property taxes to pay its bills because of uncertainty in state funding.

Despite the recent income tax increase, which is expected to help the state honor and catch up on its many financial obligations to public schools, the delay in state payments is not expected to diminish until 2012.

Current projections show that only one of the four categorical payments to schools is expected by the state in 2011.