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The Lansing Board of Education voted 4-1 to reduce the tax rate for the 2009-2010 budget year.  A number of positive and negative impacts to the coming budget more or less evened out to assure most board members that they could stick close to the tax levy amount they approved in May.  A growing overall assessed value positively impacted by a Payment In Lieu Of taxes (PILOT) agreement with AES Cayuga meant that keeping the same tax rate would raise more than the board anticipated when they calculated the budget last Spring.

"With the amount of additional assessment I think we should think about giving a decrease in our tax assessment figure of 75 cents," said board member Richard Thayler.  "If we feel we can't do the 75 cents I feel we ought to do something to indicate to the taxpayers that we're aware of the additional assessments and that we have some kind of consideration for them."

The board discussed a number of factors that could affect next year's budget.  Property assessment challenges by Borg Warner could have an impact of $350,000 on the school district if the company's challenge is successful in court.  Another $50,000 could be in jeopardy if challenges by UPS and property owners on Bolton Point are successful.  Additionally the district did not plan for about $110,000 in charter school tuition for nine Lansing students who will attend the New Roots School next year.

But Superintendent Stephen Grimm says that due to underspending and greater than anticipated revenues in the current budget year the district has $1.3 million more than was planned for last year.  About $950,000 of that represents the maximum New York State allows the district to place in its unappropriated fund balance.  The rest approximates the amount of risk represented by the Borg Warner, UPS, and Bolton point tax challenges.  Grimm and District Business Administrator Mary June King recommended the board place that money in a certiorari reserve to protect the district in case the challenges are 100% successful.  King said that the charter school tuition can be taken from the unappropriated fund balance.

School boards must put their budgets to a public vote in May, but the overall assessment figures don't come in until later in the summer.  Exact state aid and other figures that impact revenue are a changing landscape, and unexpected expenses for anything from new teachers or aids required for special education or a blown boiler are impossible to foresee.  In other words, the May budget is an educated guess.

When the community voted to allow the school board to spend $23,944,315 in May, state aid and other revenues were subtracted to get the amount the district would have to levy, the part property owners pay for.  That was  $15,553,809.  But the board has wiggle room in setting the tax rate, and that impacts the actual amount of tax money they collect.  In a way it comes down to how much confidence the board has in the budget they put before the public actually paying real expenses during the coming year.  If you keep the same tax rate you get more money when the overall assessed value of all the properties in the district rises, or less when it falls.  This year's $883,871,626 current assessment would yield the district $15,696,758, just under $143,000 more than the board said it wanted in May.

Last year there also could have been a windfall, but the board voted to split the difference, raising more money, but not the maximum they could have raised.

"If we had left the tax rate the same at $17.96 we would have collected $320,000 more than we anticipated," Grimm said. " We decided at that time if we had collected exactly what we predicted it would have been $17.56.  We decided to split the difference at $17.76.  So last year we had a tax rate decrease of 20 cents."

But in the current economic climate Thayler said the board should only raise what they need.  He added that it would be good public relations showing taxpayers the board is considering them.

"As we came to the end of the year we'll have another million dollars, right?," said board member David Dittman.  "I see no reason not to drop the tax rate given that we have those kinds of reserves.  I think we should at least go to 17.60.  That gives us a nice operating cushion."

Board member Glenn Cobb said that over the long run the board should strongly consider what it needs versus what it wants.

"We're obviously spending more than we have.  We're getting a stimulus package.  If that goes away can we afford to operate if we continue to increase the amount of money we spend each year as a school district?  Are we spending more than we should per student?"

Lansing spends more per student than any other district in Tompkins County.  The district spends $12,850 per student as compared to Ithaca's $12,113, Dryden's $10,200, Trumansburg's $10,114, or Newfield's $8,923.

"We have a decision to make," Cobb said.  "We have to try to thin down the budget we have as painlessly as we can year to year so that if (the stimulus money goes away) have we leaned down enough that we can survive without impacting the quality of the education to our students?  It also helps the community and prepares us.  For now we've got to be responsible and try to reduce it as much as possible, not so much because we want to give it back to the community as that we've got to learn to live within a budget we can afford."

When it came to a vote the board approved a tax levy of $15,559,339 four to one, with Aziza Benson voting no.  That levy will translate to a $17.60 tax rate.

Other board members asked Benson whether she opposed the amount or wanted more discussion.  The board was under some pressure to pass the levy amount Monday night because of the realities of printing and mailing the tax bills on time.  "Do I want more discussion?," she said.  "Yes, but we have to decide now so I have to say no right now."

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