Peekskill Schools Turn to Reserve to Close Budget Gap

Peekskill schools will close a gap between projected revenue and expenses in the budget for the 2012-13 school year by drawing on reserve funds.

The latest figures, presented to the Board of Education Tuesday by Gregory Sullivan, assistant superintendent for business, show a total proposed budget of $76,256,950, an increase of $4,243,860, or 5.9 percent, over the spending plan of $72,013,090 for the current school year. Projected revenue totals $73,603,834, leaving a gap of $2,653,116 to be financed from the district’s reserves, which total around $7 million.

The numbers presented Tuesday include the required 2 percent cap on the increase in the tax levy and assume no staff cuts, a 3 percent increase in health insurance costs, increased pension fund contributions, bonding funds for tax certiorari settlements, and the state aid proposed by Gov. Andrew Cuomo. Cuomo, in his January budget, listed $28,905,784 for Peekskill, a 0.53 percent increase over this year’s amount. The Legislature traditionally increases the aid figure when it adopts the state budget, which is due by April 1.

“We are looking at future problems if extra revenue or mandate relief is not forthcoming,” Superintendent of Schools James Willis said.

The board expects to adopt the 2012-13 budget at its April 17 meeting. District residents will vote on the budget May 15.

For earlier budget developments, please click here. To read about Peekskill’s quest for relief from unfunded or underfunded mandates, please click here.