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The proposed 2021-22 budget for the Frewsburg Central School District could be over 2%, but would still be under the state's tax cap.
On Thursday, the Frewsburg Board of Education discussed the proposed budget during its second workshop meeting. Jerome Lee Yaw, Frewsburg business manager, and Shelly O'Boyle, Frewsburg superintendent, discussed two tax levy proposals with the board.
One proposal would increase the 2021-22 school district budget by 2.63% compared to this year's spending plan, which would be the highest allowed under the state's tax cap program. The second proposal would increase next year's tax levy by 1.71% and would be under the 2% tax cap.
Yaw said the 2.63% proposal, even though it's over 2%, would still be under the tax cap because it would include a $52,410 exclusion. The tax levy limit, plus exclusions, is the maximum that a school district can raise taxes without passing a tax cap override. With the additional $52,410, the 2.63% proposal would have a tax levy of $5,846,987.
"This is our true max tax cap limit," Yaw said.
O'Boyle said to have a tax levy increase of 2.63%, the board would still need to decrease appropriations or increase revenues by $227,153. She said if the board wanted to have the tax levy at 1.71%, they would need to lower cost or grow revenues by $270,563.
O'Boyle said trying to trim the budget at this point in the process is nothing new to the district.
She said last year following a budget workshop meeting the district had to reduce appropriations or increase revenues by $221,000 to finalize what was presented to district voters.
Board members then discussed the significance of being below 2% because of the perception voters may have of the state's tax cap. The board also discussed finalizing the budget proposal during its April meeting because by then the state's budget, which has an April 1 deadline, might be approved and they would know exactly how much state aid they will be receiving next school year.
It was then decided that the board will continue to discuss the proposed 2021-22 budget during another workshop meeting prior to its next regular meeting Tuesday, April 20.