ELDRED, NY — “We have to do a better job of educating.” That’s a statement you’d expect from the school superintendent when talking about the students for whom he is responsible. But when he made that statement, Dr. John Morgano was referring to the public.

A number of erroneous statements were made at the November school board meeting, and Morgano tried to set the record straight following the meeting. The most significant was regarding the planned tax increase for the 2018-19 budget. When acknowledging the increase, board president Carol Bliefernich said that it would be a “one-time” event, the purpose of which was to reinforce or restore the fund balance. Not so, says Morgano. A tax increase cannot be implemented for the purpose of increasing the fund balance. The fund balance can be replenished only when revenues exceed expenses. Morgano said that the district has gotten the expense side of the equation in order, due to the reduction of teachers, which is now in line with the current student enrollment. He said that the former cadre of teachers could serve an enrollment of 700.

District treasurer Caleb Russell stated that funds received from taxpayers is the same as at 2011 levels. The district raised $11.4 million in taxes this year, approximately the same amount as was collected in 2010-2011. Though the student enrollment at that time was about 700, costs have risen. The two heavy hitters percentage-wise are health insurance and salaries.

It was around the 2010 timeframe that the then-current administration started to dip into the fund balance for a variety of reasons, which led to its depletion in 2018. This kept tax increases at modest levels but was not viable long-term.

A fund balance is more than a “rainy day” or slush fund. In addition to the myriad of issues that can arise to play havoc with the best-laid plans, one of the most significant unknowns while preparing the school budget is the cost of special education. A student with significant special needs can be enrolled at any time during the year, long after the budget has been developed, and the district is mandated to meet and fund that student’s needs. The funds must be paid out in advance of any relief coming from the state.

Morgano commented that, in addition, state aid for special education may not keep up with its cost. The state mandates that a fund balance be maintained at a minimum of 2% of a school’s operating budget. Asked why he did not correct the record during the meeting, particularly regarding the purpose of the tax increase, Morgano responded, “I knew that is not what she [Bliefernich] intended to say based on my prior discussions with her. I don’t feel it appropriate to correct my boss in public. We will clarify the matter at the next meeting.”

There was discussion among the school board members regarding the effect on taxpayers of the former Eldred Preserve property. Scott Hallock stated that his understanding of the tax situation was that the assessed value of that property had been lowered to reflect the demolition of buildings at the site prior to construction of the new facilities. Fortunately, this is not the case. According to Town of Highland assessor Lorry King, the buildings were indeed demolished, but the assessment was not decreased. The board stated that the coming on-line of the Millennium Pipeline and the increase to the tax base which will result would help mitigate the effect of the tax increase on individuals. The amount of the tax to be collected will be allocated to a larger base, though the amount by which that base will increase will not be known for several months. Also stated incorrectly at a prior meeting was the number of students enrolled in the junior-senior high school. As of September 14, enrollment stood at 516, with 275 in the elementary school and 241 in grades seven through 12.