
Members of the East Quogue Board of Education said Tuesday night that they would consider piercing the state-mandated 2-percent tax levy cap in order to avoid layoffs during the 2013-14 school year.
School Superintendent Les Black announced during the meeting that teachers’ pension costs had increased by 17 percent, employee pension costs by 20 percent, and health insurance costs by 10 percent. He did not provide specific numbers on Tuesday night and, the next morning, said he did not have the information regarding those increases handy.
But Mr. Black said that hike in spending alone would require the district to increase the tax levy—or the amount it can raise in property taxes—by more than the cap allows.
“It’s a very difficult year for us,” he told board members and members of the community.
On Wednesday, Mr. Black said he did not have the amount by which the district can increase its overall spending next year and still remain under the cap.
Last year, the board adopted a $22.4 million spending plan that increased the tax levy by 2.2 percent, which fell well under the cap. Mr. Black explained that the district was able to stay under the cap, in part, because its teachers agreed to defer their salary increases—a “generous” and timely agreement, he said—and due to the fact that the board was able to utilize reserve funds that are not available this year.
“I don’t know if we will be as successful this year,” Mr. Black said.
School districts that opt to pierce the cap must get 60 percent of taxpayers, known as a super-majority, to sign off on their spending plans. If its spending plan fails, a board can put a second, amended budget to a vote. If it fails a second time, the district would be forced to adopt a budget that does not increase spending by one penny over the prior year.
Last year, 73 percent of taxpayers signed off on the current year’s budget.
“It’s a gamble,” Board of Education member Joseph Tsaveras said.
Mr. Black noted that salaries make up a large percentage of the school’s budget, and the board may have to consider eliminating positions in order to cut costs if it chooses to draft a budget that stays within the tax levy cap. He added that the board will have to make that decision before their meeting on March 19, when he will present his proposed budget.