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Northport School Board Asks for Two Budgets

Trustees directed the Superintendent to create two budgets for 2012-2013 at zero percent and 2 percent.

 

Northport Trustees were divided during much of Monday’s BOE meeting as to what direction to give Superintendent Marylou McDermott in crafting a hard budget for 2012-2013.  In the end, they requested two budgets, one with a zero percent budget-to-budget increase and one at two percent.

At the Jan. 23 Board meeting, McDermott had said she would strive for a budget with a tax levy range of 1.15 to 2 percent with a budget range of $152.6 to $153.8 million.  The 2011-2012 approved budget was $151.1 million. A pdf of the Jan. 23 budget presentation is attached to this article.

Board President Steve Waldenburg suggested a two percent increase but Trustee Joe Sabia had a different idea.

Using a chart showing that the district has operated with a surplus of roughly $10 million dollars for the past several years, Sabia suggested that McDermott craft a budget of $139 million.  “Give the taxpayers a break this year,” he urged.

Trustee Andrew Rapiejko wasn’t comfortable with that idea because of the unknown impact it might have on programs. “We’re not settling on a number tonight,” he told Sabia.  “We’re just giving guidance.”

Trustee Tammie Topel asked McDermott for her input as to impact. McDermott replied that because of a loss of ARRA funding, the district might have to further deplete reserves. However, she was unable to say what impact a zero percent increase might have on staff or programs.

Trustees Julia Binger and Kristen Gavin supported Waldenburg.  “I think it would be unwise to go the route that Trustee Sabia has suggested,” Binger said, noting that it’s hard to see ‘what’s down the road.”

One possible source of additional revenue may come from the Iroquois Pipeline. Northport-East Northport had joined a consortium of other districts last year to extend its boundaries into the Long Island Sound. Waldenburg said the district had just been advised that the estimated tax revenue for 2012-2013 from the Pipeline would be $532,700. However, it was unclear whether the amount would come in the form of additional revenue or assessed valuation.  Assistant Superintendent for Business Kathleen Molander said she would look into the matter.

Trustee Lori McCue agreed with Waldenburg but wanted a clearer picture of what the tax rate might be for residents. McDermott said that while the district has control over the levy, it doesn’t with regard to the rate, which is set in November by the Town of Huntington and is affected by assessed valuations.

With an eye towards last year’s budget vote, Trustee Jennifer Thompson reminded her colleagues that even though the budget passed by 57%, a large number didn’t support it. “We have to remember what our community is saying to us in that vote.”

Board VP Donna McNaughton wasn’t comfortable starting at the zero level, and asked for two budgets for comparison.

Sabia pushed in favor of the zero percent. “We have a pattern of overbudgeting and underspending,” he said, charging that taxpayers have been overtaxed for the past four years.

Not so, according to Waldenburg, who said that any excess goes back to the taxpayer.

Topel agreed with Sabia. “Let the taxpayers have a break this year.”

After motions for a budget at zero percent and one percent failed, Trustee Lori McCue proposed a 2.31% increase, which is still legally within the limits of a tax cap because of certain exemptions. Sabia called that motion “immoral and unconscionable. You’re not making a vibrant community. You’re making a ghost town.”

“I’m not saying I would approve it,” McCue replied. “I would like to see what it looks like.”

After more discussion, it was former Board member Rob Ingraham who brought Trustees back to McNaughton’s original suggestion of two budgets.  The Board ultimately directed McDermott to return with one reflecting a zero percent budget-to-budget increase and one at two percent.

McDermott will present the two budgets on March 5.

Related Topics: Board of Education, Iroquois Pipeline, School Budgets, and northport BOE

Phil M Sr

8:04 am on Saturday, February 11, 2012

Trustee Sabia, Keep up the good work! We know you're fighting for us against a lot of opposition from the majority of the board. When will this board listen to the people?

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East N'ptr

8:38 am on Saturday, February 11, 2012

What a joke. Waldenburg's comment "the excess goes back to the taxpayer" is absolutely false. Of the $10 million surplus, if less than HALF went back to the taxpayers there would have been a zero tax increase, and still there would be $5 million left to go to reserves.

Mark my word, what you will see with a "proposed 0% budget" will be threats of cuts to services and programs so that the PTA Moms, parents and students will go nuts and support a budget with a tax increase. When all they really need to do is stop overbudgeting by such a wide margin. C'Mon Board of Education...stop with the smoke and mirrors!

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Louise

10:57 am on Saturday, February 11, 2012

Exactly my thoughts, East N'ptr. Seniors in the district would love to see some of that excess back in their pockets, especially when they are trying to figure out how to buy groceries after paying their school tax bills. But no excess ever goes back; it is just hoarded from year to year. While some expenses may go up, the built in excess covers them and then some.
With so many homes on the market and sliding property values, the district can't afford to increase its budget through threats. Potential buyers are already being scared off by high tax bills on homes that simply don't warrant them.

AM Truthful

9:11 am on Saturday, February 11, 2012

$5.75M from reserves were applied to the 11/12 budget according to the pdf attached to this article. The last 3 years, the sum of our tax rate increases have totaled 5.51% - the prior 3 years, 15.94% (TOH website has data back to 05/06. I'd say the board has listened to the people.

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East N'ptr

9:50 am on Saturday, February 11, 2012

"The Board has listened to the people"??? Are you kidding me??? Were you at the Board meeting last year...the one that was "supposed" to be the last meeting where comments from the public could be heard? About a dozen community members got up to say they wanted NO TAX INCREASE. There was maybe only one or two people who spoke in favor of the proposed budget at that meeting. Then, without regard to their own documented policies and regulations, at the next meeting the Board allowed more community members to speak! Miraculously, all these people came out to support the budget. Wow, how suprprising!!! This is just one example of how our Board will manipulate the community to push their own one-sided views. The fact that several trustees dismissed the possibility of a lower budget without consideration just demonstrates that these people don't want to listen or consider other points of view. It's very sad. We need more open-minded people on this Board. I'm sure the teacher's union will agree.

Nick Folger

9:21 am on Saturday, February 11, 2012

What I find just as disturbing as Waldenburg's erroneous statement, is the lack of critical thought most of the Board has with the smoke and mirrors the district puts in front of them. Oh...the district will say that if they don't increase the budget for next year there will be cuts because they still want to hoard and overtax the community and that they won't stop doing unless the community votes against any increase in the budget. This is not rocket science...the district has been spending about $140 million for the past 4 years and has not cut any programs. In fact, I have read that there is increased spending on special initiatives such as technology and more spending for the IB program at the HS. What about the fields and full-day K?
If they spend about $140 million, why does the district need more than a $151 million budget?
And the Union knows this too (in spite of what one thinks about teachers not accepting the deal)

Thank goodness for Sabia, Topel, and Thompson. They seem to get it.

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justaxusmore

9:38 am on Saturday, February 11, 2012

At a time when most of the country is learning to do more with less, our local BOE wants to do the same with more. A manager goes into a budget process knowing what the fallback position is, what cuts would need to be made to survive without increases. A GOOD manager takes the time to perform zero-based budgeting, building a budget based on needs, not last year's spend plus a few percent. Unfortunately this concept appears to be completely foreign to McDermott, Waldenberg and the like.

It will be interesting to see what scare tactics are built into the 0% growth budget presented in March. If it is anything like those presented in years past, I'm guessing they will say that with no budget growth the BOE can no longer guarantee air in our classrooms.

Joe Sabia - keep up the good work!

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Patricia

10:21 am on Saturday, February 11, 2012

It time for the Board of Education to educate themselves to the reality of business. The model they wish to create for themselves needs to be derivative of the private sector, which is not wrapped in a security blanket of constantly increased revenue. We experience pay cuts, complete loss of retirement accounts [no safety net here], taking on the work load of those who used to work along side us and were laid off, and the constant threat of the companies we work for folding. The only alternative to tolerating what is the current market value of our employment is to be without a job completely. Does the BOE understand any of this? And finally, how many of us taxpayers have our eyes on a move OUT of this hi-tax area? My child will never afford to live in Northport anyway. Educators, eductate yourselves, please, before it's too late for the majority of us.

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Concerned Citizen

10:37 am on Saturday, February 11, 2012

I think the need for understanding expands beyond the BOE.

Concerned Citizen

10:24 am on Saturday, February 11, 2012

Please look at the numbers in the presentation. There are increases in mandated expenses like the TRS and the ERS, so realize that an increase in these expenditures within a proposal to keep the budget at the same level as the current year results in a cut, somewhere, and that could mean a cut in staff or program. That is just a fact and if you think rather than react you would understand.

On another note, the BOE President needs to be specific in his retort to Sabia regarding the exact number that goes back the taxpayer. It should be clearly indicated on the official revenue statement of the budget listed under applied, or associated fund balance – this is the amount of the under spent part of the budget that goes back to the taxpayer as a revenue item in lieu of revenue from the tax levy. If there is a greater "savings" in the budget than the Associated Fund Balance revenue item noted, then that excess goes to either building the Unassociated, or Undesignated Fund Balance, or another allowable reserve, and does NOT go back to the taxpayer. We have a right to know exactly what these numbers are prior to voting on a budget.

Lastly, according to the Governor’s budget proposal, we have been provided with a significant increase in State Aid over last year’s amount. This could serve to either offset any increase in the budget without effecting the taxpayer at all, or serve to lower taxes with a budget proposal flat to last year. Why was this not discussed?

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Nick Folger

11:35 am on Saturday, February 11, 2012

"There are increases in mandated expenses like the TRS and the ERS, so realize that an increase in these expenditures within a proposal to keep the budget at the same level as the current year results in a cut, somewhere, and that could mean a cut in staff or program. That is just a fact and if you think rather than react you would understand."
The above statement is a classic example of the smoke & mirrors to the community.
Cutting the budget is not cutting spending. Cutting the budget assumes the district spends the entire budget, but the it UNDERSPENDS THE BUDGET
If the district wants to "cut" it would have to reduce what it spends & spending has been about $140 million or less over the recent past.
What concerned citizen is saying is to cut the budget. Go ahead cut it to below $151 million & maybe there will be a tax decrease for the community, assuming that the assessed valuation doesn't drop,but that is a BIG assumption,better yet unrealistic as more & more challenge their taxes.
If the budget stays the same at $151 million & the district increases spending to $142 million they still have $9 million to handle the increases in TRS etc. & fund reserves etc.
Isn't that enough? Why do they need more?
If the district gets more money from the pipeline (as stated in a local paper) maybe with that extra money they could fix the ceiling in the high school.
The district controls spending & the tax levy, not the revenue. See through the smoke & mirrors. Be skeptical.

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Concerned Citizen

12:39 pm on Saturday, February 11, 2012

Nick, this is a classic case of reacting with a myopic mindset and not reading my entire statement. I said nothing of the sort; rather I just laid out some mathamatical facts. First, you need to understand the difference between tax rate (which is not controlled byt the BOE) and the tax levy (which is controlled by the BOE and in the end, the community)... Read the presentation! Secondly, what I am saying is that if the budget proposal is flat to last year and the mandated expenses rise, then something must be cut, and that COULD BE staff or program. If it is a depletion of reserves, well then that is also a cut of sorts, and maybe a sound strategy. However, with the information presented, that is not entirely clear.

Read the entire post before commenting. Know what you are talking about before shooting from the hip in an uninformed, obtuse fashion. Perhaps the smoke and mirrors you see is in your head.

Jerry Hannon

12:47 pm on Saturday, February 11, 2012

Northport, like other districts, needs to do a 5 year projected budget. Elwood is having its own Citizens Finance/Budget Advisory Committee, comprised of about ten active community members plus one BOE Trustee, prepare a projected five year plan. Elwood's CFBAC, created in 2004, long ago proposed a 5 year projection; finally, with the draconian action by Cuomo & the Legislature restricting revenue without restricting mandated expenses, the new Superintendent welcomed the proposal as essential to the future of this district.

But, this important step is really essential for ALL districts, since the public (& the unions) may not appreciate the severity of the problem until they stop looking at the next year, only, as if that financial plan was the only consideration.

But, it seems obvious that some of Northport's naysayer posters, here, need to have a better understanding of what the State has historically done to districts in terms of imposed costs which then prove to be out of any district's control.

One of the biggest cost factors, of course, are State-run pension plans, TRS & ERS, and the fact that the State created a sweet deal for employees regarding the level of their own contributions to their pension.

We could go on and on and on about State mandates, and the hypocrisy of some State Senators and Assemblymen who use their own smoke and mirrors to trick voters into imagining that they are solving problems, when they are really compounding them.

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Concerned Citizen

1:01 pm on Saturday, February 11, 2012

Thank you Jerry! Obviously, the CFBAC that you mention is doing more for Elwood than is going on in Northport. Besides some clear thinking and looking into the district's long-term finances, it is providing some transparency between the district and all of its stakeholders. That leads to trust, and trust is the foundation of a solid community and school district. The lack of transparency only serves to feed the argument of the uninformed and obtuse. The BOE in Northport woudl be wise to embrace the community rather than to keep them at arms lenght.

AM Truthful

4:08 pm on Saturday, February 11, 2012

With all due respect to the Elwood school district, I wonder how the residents of N-EN would take to the tax levy increases seen by that district over the last few years:
09/10 N-EN=1.85%, Elwood=3.66%, 10/11 N-EN-1.48%, Elwood=4.04%, 11/12 N-EN=1.69%, Elwood=7.98%.
It is perplexing, all the negativity expressed here by the same dozen or so commenters towards our district. Tax increases the lowest in the last 3 years than they have EVER been in the last 20 - cries of poor fiscal planning. A district website that has as much information than any other schools I have looked at, if not more - cries of lack of transparency. A BOE who allows excessive public commentary at meetings that detract and limit the conversations that should be taking place with regard to curriculum efficacy and student performance - cries of keeping the community at arms length. It seems NOTHING this board/administration does is good enough for some of you. So sad that all you can see is a half empty cup.

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Nick Folger

6:00 pm on Saturday, February 11, 2012

“Resident … brought up the issue of reserves, asking if it would be possible to build into the budget a reserve for future years. Scordo said that a certain amount of reserves is being applied to maintain the 13.33% budget and noted that other districts with very large reserves are “artificially reducing” the tax rate for their communities. He noted that Elwood’s reserves are about 3% of the budget.”
http://northport.patch.com/articles/elwood-residents-react-to-possible-budget-cuts
That is why Northport’s tax rate increases appear to be lower than surrounding districts. In this community, most folks may get the impression that the district is doing a great job keeping tax rates low & let’s face it, most folks won’t think twice about small rate increase. But if the district were truly transparent, tax rates changes should reflect changes in actual spending needs. Then rates may be more comparable to surrounding districts & will be just as high. Having reserves is important if they are used for what they should be used. But having an arsenal of reserves is as the wizard says “a horse of a different color.” Until the reserves run out or the district stops the hoarding, they will most likely get their spending plan passed because the votes are not there yet & they will go on spending like crazy on the backs of the community, including the resident teachers, regardless of whether it could afford it or not.

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Concerned Citizen

7:51 pm on Saturday, February 11, 2012

@AM - good point on the Elwood tax increases over the past two years. I can tell you that those increases are COMPLETELY due to the increases in mandated special education needs and the the excessive increases in the retirement systems (both TRS and ERS) along with the LACK of reserves. It frustrates me as well when I see Northport residents complaining about the "hoarding" of monies when that is the reason that the Nortport tax levies have been relatively low.

The bottom line is Elwood did not burden the taxpayers in the past, even when aid increases from the state were relatively significant. So, in fact, the Elwood board went as far as returning money to the taxpayer after the budget was passed. They felt it was wrong to advertise a tax rate and then lose credibility by having the tax rate go above the advertised rate after the TOH Assessor gave them the bad news on assessed home values. They returned $320k to the taxpayers when they did not have to... So, why are the people of N-EN complaining. The BOE in Elwood have been vocal about the strategy they took in the recent past and their rationale for not building reserves. However, when you look at the recent percentage increases in the tax levy relative to Northports, it is hard to argue with the different strategy deployed by the Northport BOE.

East N'ptr

5:20 pm on Saturday, February 11, 2012

Funny, before AM Truthful's last comment, I was going to mention how the N-EN's Board always uses "at least we're not like Elwood..." as an excuse for the overtaxing. I've heard that comment at least a few times at Board meetings and now from the sole defender of the BOE, AM Truthful. The same "dozen or so commenters" are likely the same people who have frustratingly attended Board meetings over the years and pleaded and begged for the Board to LISTEN. The excessive public commentary wouldn't be necessary if people proposing ideas to the Board weren't so rudely dismissed and publicly denounced as "anti-education", which is not true. And let's face it, the transparency sucks. Try to FOIL info from the district and see the runaround you get, if not a flat out, illegal denial. Look at the Committees within our district and they are "friends and family clubs" that go to great measures to keep out the folks who don't agree to go with the flow. Recently the Board decided it would begin being selective about which letters from the public would be included on the agenda What's that about? And Concerned Citizen brought up an excellent point about accountability of the budget surplus. Where is that transparency? Was it mentioned anywhere that AFTER the $5.75mil of reserves used to reduce the tax levy, the total reserve fund balance shot up to $28million!!! Btw, I don't disagree with everything the Board does, I just have a big problem with their approach.

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AM Truthful

7:49 pm on Saturday, February 11, 2012

I have been to approx. 30 BOD of meetings over the last 4-5 years. Since Munson left, I can't say that I have ever seen the BOE be 'rudely dismissive' or call anyone who disagrees anti-ed. But that's just me - the sole defender. You obviously see it differently and have invested considerable time here on this blog trying to convince others of your view. Hopefully, the greater majority of residents in this fine community take the time to seek out the truth and facts from more reliable sources than the commenters here.

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Concerned Citizen

8:28 pm on Saturday, February 11, 2012

"at least we're not like Elwood..." Cheap shot from arrogant, stupid people. They should take their collective heads out from where the sun does not shine and learn a little from the Elwood. Elwood does a lot in a time when the odds are against small districts.

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East N'ptr

8:31 pm on Saturday, February 11, 2012

I guess we have not attended the same meetings because I too, have been to many meetings over the years and I am certain that there are many people who will agree that Board members have been rude and disrespectful to people who have addressed them. As a matter of fact, I witnessed some pretty disrespectful behavior towards one particular person who is now ON the Board. Again, I don't disagree with everything the Board does, I just don't appreciate the close mindedness and feel that a change is in order. If the greater majority of residents disagree, then so be it. But if they do seek out the truth, I am confident many will feel the same way I do. We shall see.

Jerry Hannon

6:18 pm on Saturday, February 11, 2012

Boy, AM "Truthful", takes a few comments, intended to be helpful to a district in which I spent twenty-two years (and still recall fondly), and responds by attacking Elwood.

You know, A-M, that it's easy to hold down your property tax increases when you have one of the biggest commercial property tax bases -- proportionately -- on Long Island. Elwood is one of several districts with a very, very small -- proportionately -- commercial tax base, and that means that we have to work harder than you do to hold down tax increases and yet preserve the quality of the education of our children.

In some years, as was true recently, that became impossible after the State radically cut our aid, even while expenses which were out of the control of our district, like heating costs, and electricity expenses, and health care costs, and State pension costs, and transportation costs, etc, continued to rise dramatically.

But you, A-M want to criticize Elwood's residents for supporting an unusually large property tax increase recently, and slightly higher tax increases previously, instead of dealing with the valid points made about how Northport could emulate the openness of Elwood's Board of Education, and its inclusion of community members in meaningful committee contributions for the current and long-term health of the district.

Why? What are you afraid of?

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Concerned Citizen

8:07 pm on Saturday, February 11, 2012

Jerry, AM's comments are a little off-base and hopefully she wasn't intending to take a shot at Elwood. That would not be fair. BTW, you bring up a good point about industry. If / when the LIPA certiorari goes through, lets see what happens then. I don't even want to think of our schools and taxes. However, AM's post was a good comment to illustrate the two strategies on building reserves in N-EN's ultra conservative way, or taking Elwood's approach which is less conservative. You know Elwood would have loved to have those big, fat reserves like Northport istead of sweating out an above average tax levy that was embraced by 62% of the voters of Elwood.

At the end of the day, you pay now or pay later for the burdensome mandates imposed by NYS legislation... and the legislators that are in bed with NYSUT. Senator Marcellino, where are you and Ms. NYSUT having breakfast tomorrow morning.

Jack

6:36 pm on Saturday, February 11, 2012

Joe Sabia for Board President

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Jerry Hannon

6:36 pm on Saturday, February 11, 2012

By the way, A-M, after I took early retirement in 2000, I began attending BOE meetings in other districts, in a Best Practices effort, as I felt that Elwood and its BOE at that time, were insufficiently open. I ended up learning a lot from Northort, in particular, among the 20 plus districts in Suffolk and Nassau whose BOE meetings I sampled. In fact, I began attending many Northport BOE meetings from 2001 through 2009, in fact in some years 1/3 of them, and in other years 1/4 of them.

So, I understand your district's strengths, and your weaknesses, and unlike some (hopefully few) destructive residents of Northport, who would prefer diminution of the quality of Northport's education, as long as they can get close to a zero increase in property taxes, I prefer to help Northport, and its BOE, learn and improve.

We learned, and we changed, and even Northport can learn and change.

As to the commercial property tax base, we'd be happy to "adopt" some of your surplus, but one has to wonder what will happen if LIPA succeeds in their effort to claw back on what they contend are overcharges.

Don't fear change A-M; embrace it.

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AM Truthful

7:33 pm on Saturday, February 11, 2012

Jerry, You have completely misunderstood my post. Nothing in my comment attacked Elwood at all. I happen to think you are one of the FEW intelligent and objective posters here. I think the residents of Elwood's school district are speaking volumes by NOT spewing here and passing budgets that, let's face it, are more financially demanding than NEN's have been over the last few years. So defensive...

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Concerned Citizen

8:11 pm on Saturday, February 11, 2012

Jerry for BOE President - darn he lives in Elwood.

Jerry Hannon

7:50 pm on Saturday, February 11, 2012

A-M, thanks for the clarification. I guess there must have been some nuances that escaped my attention.

I will say that I was surprised that the people were willing to pass so large an increase in May of 2011; the prior year our residents rejected the first budget, so it's not as if everything gets a rubber stamp.

But our Superintendent made a huge financial sacrifice in the Spring of 2011, and the Central Office administrators (but NOT the building administrators) also made big sacrifices, as did some of our smaller bargaining units, so that may have helped motivate our voters.

It is going to get ugly for school districts, until teachers unions in general, and many administrators, recognize that districts can no longer afford the generous pay and benefits packages of the past ten or twenty years.

I will be gone to less expensive jurisdictions before it happens, but I do expect significant consolidations of school districts throughout NY State, which is currently one of the rare examples without county-wide school districts (or at least Town-wide school districts) in the country. Aside from the hypocritical selfishness of older teachers and administrators, who fail to recognize economic reality, duplications of administrative positions and balkanized teacher union contracts are no longer reasonable.

Again, thanks for clarifying. We can make a difference.

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Concerned Citizen

8:21 pm on Saturday, February 11, 2012

UGH! Jerry, not consolidation. School districts need to keep the character of their communities. As a former NYC resident and product of NYC public schools, big municipal districts do not work. However, with the new Common Core Curriculum being established in NYS, and 40 other states, there are great opportunities for shared services and even better managment and efficiencies to be gained among school districts that do NOT affect a district's / community's character.

Free 2B Me

9:18 pm on Saturday, February 11, 2012

I think that the biggest difference between these two neighboring districts is in transparency. Elwood lays it all out for its constituents to understand. They have their challenges, but they are (mostly) pulling the rope together.

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Concerned Citizen

12:02 am on Sunday, February 12, 2012

Free 2B - I think you have made a very astute observation... It was that transparency that led to trust, that led to the passing of a 7%+ budget with 62% of the vote. No one wanted that tax increase, not even the BOE, but the frankness and transparency during the budget process moved the Elwood voter to support the budget.

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