Schools

District Finance Leaders Issue Fiscal Warning Shots

Babylon's business chief and a district auditor say upcoming budget effort won't be a pleasant one for district.

While public budget hearings are more than a few months off, Babylon School District finance officials are already warning that adhering to the newly-enacted state tax cap, which mandates districts not raise taxes more than 2 percent than the prior year, could mean $1.1 million in cuts come next school year.

Interim Assistant Superintendent for Business Stephen Bilyk said a rollover budget scenario, in which no new costs are added to the current budget, would require the million-dollar spend cut due to next year's increases in retirement and compensation costs.

This year’s $47 million school district budget, Bilyk said, would require a 4 percent increase to meet contractual costs, and would amount to about $1.8 million. That would translate to a 5.2 percent tax rate increase.

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The tax cap provision, however, would allow only a $706,000 budget increase, he noted.

“There are going to be hard, hard decisions to make as we start putting the next budget together,” said Bilyk.

Find out what's happening in Babylon Villagewith free, real-time updates from Patch.

Warnings about fiscal challenges are also being heard from the district’s independent auditor Vinny Cullen, of Cullen and Danowski, who presented board members with draft independent audit findings in late October.

“The district is in sound financial condition, which is important,” said Cullen, but what is in store for Babylon, and all Long Island districts, doesn’t bode well, he warned.

Cullen cited eroding state aid, the new tax cap, contractual costs and unfunded state mandates as top fiscal challenges.

“There are rough times ahead and this isn’t due to errors or mistakes by districts,” Cullen said, noting that Babylon’s’ draft audit reveals no “overly significant” issues or serious improvements needed.

Babylon, said Cullen, is in a strong fiscal position right now due to a healthy budget reserve strategy.

“Some districts are already falling off the cliff and you’ll be reading about them next year,” said Cullen.

The Babylon school board is expected to adopt the internal audit report at its next public meeting on November 14.



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