District News

Canajoharie CSD tax levy for 2011-12 lower than projected

 

August, 2011

 

District officials announced on Thursday, Aug. 11, that the tax levy increase in the voter-approved 2011-12 school budget will be half of what was projected.

The adopted $18,823,340 budget called for a tax levy increase of 4 percent, but the tax levy (the total amount the district raises in taxes) will only increase 2 percent for the upcoming year.

“When we developed our budget, we projected a worst-case scenario of needing a four percent increase in the tax levy,” said Superintendent Richard Rose.

“Our fiscal year ends one and a half months after the budget vote. Although we try to project where our finances will end up, we don’t have exact numbers until we close out our books on June 30.

“This year we discovered that we had spent less than expected in areas such as heat and special education, leaving us with a fund balance.”

At its regular meeting on Aug. 11, the board of education voted to use an additional $126,822 of that fund balance to reduce the tax levy.

Although the overall tax levy is lower, individual tax bills will vary depending on changes in assessments and equalization rates within each of the district’s eight municipalities. For the tax rates of each municipality, click here.

In making its decision, the board of education weighed lowering the tax levy against setting the funds aside to offset anticipated frozen or decreased state aid in 2012-13 and the limits of the 2 percent tax cap. In the end it opted for a lower tax levy.

“We don’t want to overburden the taxpayers, especially during these hard times, and we are pleased the tax levy is less than we projected. At the same time, we know our community expects a quality education for their children, and we do our best to provide that,” Mr. Rose said.

The district is positioned to get through the next few difficult years, Mrs. Rose said, and the board will do everything it can to preserve jobs and programs.

“Still, our district and many others in our region will be tried financially in the future, and the situation won’t change unless there is significant mandate reform and change to the state aid formula.”