SOUTH OTSELIC – Otselic Valley Central School District Superintendent Richard Hughes said he was well aware the biggest challenge he would face when he took over in July was the 2011-2012 budget.
Due to an estimated 9 to 10 percent increase in health insurance costs, approximately $170,000 in retirement system increases, expected increases in energy costs, the loss of $154,000 in federal stimulus aid and an expected 5 percent, or $255,000, reduction in state aid, Hughes reported a total estimated budget gap of $516,500 for the approximately $9 million 2011-2010 budget.
That figure, however, does not include payroll increases, and Hughes admitted the total budget gap could soar to $750,000 or higher.
To address the issue, the district has once again formed a special Board Advisory Team for Facilities, Buildings and Grounds. The committee is comprised of approximately a dozen local residents and chaired by former superintendent and local resident Jim Franklin.
“The whole premise of this team is to look at all the issues we’re facing, get everything on the table and find the areas where we can improve,” stated Hughes. “We have to find the problems first, before we can make any kind of decision on what to do and we need to get more input from the community, they’ll be involved throughout the budget process.”
In an effort to get that input, the OV Central School District will hold a pair of community forums – 7 p.m. on Feb. 8 at the OV Elementary School in Georgetown and 7 p.m. on Feb. 10 at the OV Junior-Senior High School in South Otselic.
Hughes said the overall 2011-2012 budget scenario is “definitely bleaker” than in previous years, and while Otselic Valley has done a commendable job keeping finances under control, the district must be prepared to make some difficult decisions. Unlike last year, however, consolidation of the OV Junior-Senior High and Elementary Schools is not under consideration at this time, he added.
At this point, all the district can do is wait until Feb. 1 and Governor Andrew Cuomo’s 2011-2012 budget proposal, stated Hughes.
“A school this size makes tough economic times like these even more challenging and our faculty, staff and community have all helped to adjust to any changes,” said the superintendent, who’s also serving as the OV Elementary School Principal, in an effort to curb spending. “At some point, if these budget cuts continue, we may lose entire programs. We can’t make those choices until we know the numbers.”
Hughes said he believed mandate relief would be of the utmost help for counties, villages, cities and communities state-wide as now is not the time to raise taxes, due to the current economic climate.
“It’s all about mitigating the loss of funding while trying to increase student achievement,” added Hughes. “That’s going to be the real balancing act.”