LONG ISLAND BULLETIN BOARD

Fair & Honest Budget?

It’s time to take a look at the budget in a purely objective light and determine if the budget is fair and honest. In one sense a ‘fair budget is a completely subjective judgment. However, to make that ‘individual’ subjective judgment the budget has to be presented honestly so residents can evaluate valid data. Therefore, we need to focus on the honesty or the validity of the numbers in the budget. In this part we are just going to look at the revenue side.

The BOE has already voted on the revenue side of the budget. This is the most important component of the budget, because it allows the board to go out and tax residents to get that money. In one sense the ‘how they spend the money’ is less significant because once a budget is passed they can spend it anyway they want, they are not held accountable to what was said during budget presentations. So it’s important to read between the lines. The Revenue side of the budget has been approved. The BOE approved a budget of $287.8 million dollars. This represents an increase from $280.7 million dollars from last years original budget. The budget last year was actually increased $2 million for emergency repairs but as a one time emergency cost you should not include it in any comparison. So, the actual year on year increase in the budget is $7.1 million or 2,5%.

It is important to look at where the sources of revenue are coming from. They come from local property taxes, state aide and reserves. Approximately $100 million of the total budget comes from state aide. This is a decrease of nearly $13 million in state aide from the current school fiscal year. So, with a decrease of $13 million in state aide and an increase of $7.5 million in revenue over last year, the district needs to come up with an additional $20 million. Where are they getting it?

The district is getting the $20 million by increasing taxes and using reserved funds. The district is increasing the taxes by just over $6 million dollars and the basically the rest of the money is being funded using reserves. In fact so much reserves are being used the question needs to be asked, is the district really allowed to hold that much money in reserve? The answer is no. In last years’ $280 million budget they were only allowed to hold just over $11 million in reserve. So, how do they get away with holding much more then the legal allowed amount? Simple, there is no enforcement and they hide the money in accounts like the workers compensation reserve.

Now the question is how much will our taxes increase because of the $6 million dollar increase. The district claims the increase in property taxes will be somewhere in the area of 4.5% or $350.00 per house. Is that number correct? Probably not. The actual tax increase is not known until October and won’t be reflected in your tax bill until December. The amount of the actual increase is really dependent on several things. For example, how much of a tax base is really out there. For example, if there is a poor economy and houses are foreclosing and people are delinquent in paying taxes, than more money has to be collected from less taxpayers thereby increasing taxes. This is just an example but one thing is certain. The district number is low. What is a realistic number? A more realistic number is that the Board approved budget will increase the taxes of each property by closer to $500.00. The Nesconset side of the district will be hit harder.

So, the real question is, ‘Does the district really need the revenue it is asking for? There are two sides on this issue, the revenue and the spending side. Here we will just look at the revenue side, and save the spending side for another post.

On the budget the Board just approved for next year they have stated that there is an extra $5 million dollars that the budget will be under spent or extra. Because the state aide was just increased by $2.5 million that would be a total of $7.5 in ‘extra’ money they don’t need. Two questions, why is the board saying they need to do this and is this amount real? The answer to the first question is they are doing this because they want to raise the base budget before a possible tax cap of 2% is put on. The bottom line is the tax cap is very unlikely to be passed this year. They just want to increase the base budget. This allows ‘built in’ extra money for future years and a higher contingency budget in future years if a budget were to fail. It’s a game. If this money were not put the budget and given back to taxpayers, taxes would be reduced in the area of $600.00 per house hold. These are district published numbers, but are they real?

But the question really needs to be asked is the ‘fudge factor’ or extra money in the budget more than they are saying? Let’s take a look. FG thinks it is closer to $30 million. Let’s try to get a realistic number. To do that we need to try to estimate what the district will really spend in next years budget. We can’t look at the proposed budget to do that because we know there is at least an extra $7.5 million that the budget has been fudged so the spending numbers are admittedly inflated by the district. So, the only way we can come up with a real number is by looking at past budget trends and applying those percentages to the proposed budget. Again, we need to do it this way because the budget does not contain real spending numbers.

The district has admitted that the current budget of $280 million is under spent or ‘surplus’ by $11 million as of the beginning of March. This means that they are saying the actual spending will be about $269 million. This seems pretty consistent. Over the past three years the district has under spent the budget by over $12 million each year and has run a surplus each year for the last 10 years. The only year the district actually spent the budget published amount was in the contingency year. In fact, if you add up the surplus or the under spent budgets for the last 10 years the total comes to over $60 million. These are district published numbers! Kind of makes you wonder where all that money went. It easily supports the argument that the reserves are over funded by close to $37 million since some was spent on capital spending and we are allowed to have 13 in reverses. So, how much was legitimately put into appropriated reserves as opposed to unappropriated reserves. The board doesn’t have a clue. Only the business manager knows what is going on here.

So, to get back to the question of how much the district will actually need to spend next year, based upon the history and past budget trends the number is probably in the area of $275 million. Actual spending this year will end up at about $268 (based on trends). We know factually last year (2008-2009) the actual spending number was about $260 million taking out one time costs (district supplied number). Do spending increased just under 3% from 2008-2009 to 2009-2010. It is fair to say that based on past trends, minus one time costs, the budget will increase in actual numbers next year by about $8 million. This brings us to actual real spending in next years’ budget (2011-2012) at about $275 million or that same just shy or 3%.

So the bottom line is the district will under spend the proposed 2011-2012 budget by approximately $12 million. So, as you look at the revenue side of this passed budget you really need to decide do I want to vote to give the district an extra $12 million. Based upon current reserves which will be at their legal limit come July 1 and the fact that the tax cap will not be passed next year the answer is the budget is grossly over funded. The district has cried poverty every year for the last 10 years yet every year but one it under spent the budget by close to $10 million a year. This Board cannot be believed. This budget, based on revenue projects, is bogus and should fail. Giving back $10 million of the $12 million would mean a tax break of close to $750 per tax payer. In this economy there is no justification to pad a budget by this absurd amount. A nearly 5% tax increase in this economy is uncalled for when the district is still in very good fiscal health. Remember, a passed budget increases your taxes by $500.00.

Next, what does the cost side look like. How is the district planning to spend or not spend the $287 million….. or do they even need to tall you?
This year the Board is hiding $25 Million of fund balance and hording $40 million of reserves and available funds. They are building fund balance at the expense of taxpayers, employees and programs to banking money because they fear the Tax Cap.
This year the district will spend $259 million and collect $287 million

The District has
$28 million in reserves (13 million ) and liability accounts ($15 million)
$11 million in un-appropriated fund balance
$25 million of budget surplus
$10 million in capital funds that can be used to restore programs

Everyone needs to understand every line on this one page http://www.sachemunspun.com/10-6Auditpg21.pdf

The Board sees no need for honesty in dealing with voters or taxpayers.

Next Year’s Tax Increase is 4.7% and they don’t need it

The 2011-12 Tax increase is $5,722,460…$5 million declared budget fat and $1.2 million of capital improvements.

See last page http://www.sachem.edu/board/budget11/pd ... on%203.pdf

The Sachem Board can only deal in fear and deception they have no trust in the community or a moral compass.

Go to www.Sachemunspun.com to hear the Board members confirm all the below

Current Budget, $282 Million … Passed Budget $287 Million … Contingent Budget $285 Million
Current Taxes, $145 Million … Passed Budget $151 Million … Contingent Budget $149 Million
Fund Balance, $17 Million … Passed Budget $23 Million … Contingent Budget $23 Million
Fund balance is the money you were overtaxed this year that is used to reduce taxes next year

CAN YOU TRUST THIS BOARD WITH A PASSED BUDGET? Twice in the last two years the Board increased the voter approved budget for $ 6 million of unforeseen circumstances. This year their meetings are full of “emergency repairs”. If the Budget passes expect a $4million increase for unforeseen circumstances.

A PASSED BUDGET IS AN OPEN CHECKBOOK! It permits the Board to increase spending and taxes for unforeseen circumstances. It also increases every future budget’s base by $6 million.

A DEFEATED BUDGET LIMITS SPENDING TO $285 MILLION AND NOT A DIME MORE In the last two years the Board has found excuses to increase spending and taxes beyond what the voters approved to avoid returning over taxation to the voters. Last year they collected $282,111,665 and only spent $265,509,366

The Board picks taxpayer pockets every year to level future taxes and bank money
2006-07 Budget 266,665,361 Expenses 262,000,417 Fund Balance 25,471,388
2007-08 Budget 274,707,921 Expenses 265,060,293 Fund Balance 32,148,964
2008-09 Budget 278,801,607 Expenses 267,926,888 Fund Balance 36,110,757
2009-10 Budget 277,694,940 Expenses 265,509,366 Fund Balance 41,687.472
2010-11 Budget 282,111,665 Expenses 259,700,000 Fund Balance 61,700.000 est. inc Excel TAN
2011-12 Budget 287,834,125 Expenses 270,000,000 Fund Balance 72,700.000 est.. inc Excel TAN

This page may help http://www.sachem.edu/board/budget11/pd ... istory.pdf

For 2011-12 http://www.sachem.edu/board/budget11/pd ... ndices.pdf
For 2010-11 http://www.sachem.edu/board/budget10/pdf/Appendices.pdf
For 2009-10 http://www.sachem.edu/board/budget09/pd ... 09to10.pdf
For 2008-09 http://www.sachem.edu/board/budget08/pd ... NDICES.pdf
For 2007-08 http://www.sachem.edu/board/budget07/20 ... ndices.pdf
For 2006-07 http://www.sachemunspun.com/documents/06-7Apendix.pdf

Now Listen to the 4 one minute clips and understand why I call the Board Pickpockets and deceivers.
http://www.sachemunspun.com/wcdeb.mp3
http://www.sachemunspun.com/10106timo.mp3
http://www.sachemunspun.com/11fb20m.mp3
http://www.sachemunspun.com/11blies.mp3

EXCELLENT POST and thank you for taking the time.

You are making a lot of claims here so who are you and what is your budget expertise? A fact is that when the 11 million in reserves ,which is the legal amount, went over by a few million that money was moved out of reserves and some of it was spent on the east roof. I think this year we are using 8 million of that reserve to keep taxes down.
another point for the sake of fairness is that the fact is for ,was it 3 or 4 years in row sachem had a ZERO percent tax raise. So they are doing something right.

when you say the district"claims the increase in property taxes will be somewhere in the area of 4.5% or $350.00 per house. Is that number correct? well they aren't claiming it is exact. Why? because of what you go on to say:" The actual tax increase is not known until October and won’t be reflected in your tax bill until December. The amount of the actual increase is really dependent on several things. For example, how much of a tax base is really out there. For example, if there is a poor economy and houses are foreclosing and people are delinquent in paying taxes, than more money has to be collected from less taxpayers thereby increasing taxes" you are answering your own question with the truth which is until the final numbers come in nobody can know exactly. You act like this reality is in some way devuios on the part of the BOE. It is just a plain fact. you are doing the same thing they are but you think your estimation is better then theirs that s all. Let's see how much we really get first. The BOE has no control over that. Let's see how much we lose thru tax grievances first,among other things. No shaky abbout that ecept for your self serving interpretation. There are many ways of looking at this yours is just but one way.

This year the Board is hiding $25 Million of fund balance and hording $40 million of reserves and available funds. They are building fund balance at the expense of taxpayers, employees and programs to banking money because they fear the Tax Cap.
This year the district will spend $259 million and collect $287 million

The District has
$28 million in reserves (13 million ) and liability accounts ($15 million)
$11 million in un-appropriated fund balance
$25 million of budget surplus
$10 million in capital funds that can be used to restore programs

Everyone needs to understand every line on this one page http://www.sachemunspun.com/10-6Auditpg21.pdf

The Board sees no need for honesty in dealing with voters or taxpayers.

Next Year’s Tax Increase is 4.7% and they don’t need it

The 2011-12 Tax increase is $5,722,460…$5 million declared budget fat and $1.2 million of capital improvements.

See last page http://www.sachem.edu/board/budget11/pd ... on%203.pdf

The Sachem Board can only deal in fear and deception they have no trust in the community or a moral compass.

Go to www.Sachemunspun.com to hear the Board members confirm all the below

Current Budget, $282 Million … Passed Budget $287 Million … Contingent Budget $285 Million
Current Taxes, $145 Million … Passed Budget $151 Million … Contingent Budget $149 Million
Fund Balance, $17 Million … Passed Budget $23 Million … Contingent Budget $23 Million
Fund balance is the money you were overtaxed this year that is used to reduce taxes next year

CAN YOU TRUST THIS BOARD WITH A PASSED BUDGET? Twice in the last two years the Board increased the voter approved budget for $ 6 million of unforeseen circumstances. This year their meetings are full of “emergency repairs”. If the Budget passes expect a $4million increase for unforeseen circumstances.

A PASSED BUDGET IS AN OPEN CHECKBOOK! It permits the Board to increase spending and taxes for unforeseen circumstances. It also increases every future budget’s base by $6 million.

A DEFEATED BUDGET LIMITS SPENDING TO $285 MILLION AND NOT A DIME MORE In the last two years the Board has found excuses to increase spending and taxes beyond what the voters approved to avoid returning over taxation to the voters. Last year they collected $282,111,665 and only spent $265,509,366

The Board picks taxpayer pockets every year to level future taxes and bank money
2006-07 Budget 266,665,361 Expenses 262,000,417 Fund Balance 25,471,388
2007-08 Budget 274,707,921 Expenses 265,060,293 Fund Balance 32,148,964
2008-09 Budget 278,801,607 Expenses 267,926,888 Fund Balance 36,110,757
2009-10 Budget 277,694,940 Expenses 265,509,366 Fund Balance 41,687.472
2010-11 Budget 282,111,665 Expenses 259,700,000 Fund Balance 61,700.000 est. inc Excel TAN
2011-12 Budget 287,834,125 Expenses 270,000,000 Fund Balance 72,700.000 est.. inc Excel TAN

This page may help http://www.sachem.edu/board/budget11/pd ... istory.pdf

For 2011-12 http://www.sachem.edu/board/budget11/pd ... ndices.pdf
For 2010-11 http://www.sachem.edu/board/budget10/pdf/Appendices.pdf
For 2009-10 http://www.sachem.edu/board/budget09/pd ... 09to10.pdf
For 2008-09 http://www.sachem.edu/board/budget08/pd ... NDICES.pdf
For 2007-08 http://www.sachem.edu/board/budget07/20 ... ndices.pdf
For 2006-07 http://www.sachemunspun.com/documents/06-7Apendix.pdf

Now Listen to the 4 one minute clips and understand why I call the Board Pickpockets and deceivers.
http://www.sachemunspun.com/wcdeb.mp3
http://www.sachemunspun.com/10106timo.mp3
http://www.sachemunspun.com/11fb20m.mp3
http://www.sachemunspun.com/11blies.mp3

You are making a lot of claims here so who are you and what is your budget expertise?

I have a graduate degree in busines with a specialty in financial statement analysis. I have managed the budget process in the private sector for budgets totally over $500 million.

A fact is that when the 11 million in reserves ,which is the legal amount, went over by a few million that money was moved out of reserves and some of it was spent on the east roof. I think this year we are using 8 million of that reserve to keep taxes down.

The 11 million is the legal amount. However, there were other accounts such as the workers comp reserve that in itself was overfunded by over $5 million. It adds up. Funds were placed in the appropriated fund balance that should have been put in the unappropriated fund balance. If it were accounted for properly and legally the reserve would have been well over the 4%. No question here. I may think Fred's numbers are a bit high but the district numbers are totally bogus.

another point for the sake of fairness is that the fact is for ,was it 3 or 4 years in row sachem had a ZERO percent tax raise. So they are doing something right.

You are correct there was a zero percent tax increase for serveral years. But during those zero percent incrase years the district was still running a $10 million surplus every year. They simply were overtaxing us for years. To veryify the for these years go to the Revenue and Expense History section that is on the districts website. Just two clicks away from their home page. Here is the link directly:http:

//www.sachem.edu/board/budget11/pdf/Revenue%20Expense%20History.pdf

when you say the district"claims the increase in property taxes will be somewhere in the area of 4.5% or $350.00 per house. Is that number correct? well they aren't claiming it is exact. Why? because of what you go on to say:" The actual tax increase is not known until October and won’t be reflected in your tax bill until December. The amount of the actual increase is really dependent on several things. For example, how much of a tax base is really out there. For example, if there is a poor economy and houses are foreclosing and people are delinquent in paying taxes, than more money has to be collected from less taxpayers thereby increasing taxes" you are answering your own question with the truth which is until the final numbers come in nobody can know exactly. You act like this reality is in some way devuios on the part of the BOE. It is just a plain fact. you are doing the same thing they are but you think your estimation is better then theirs that s all. Let's see how much we really get first. The BOE has no control over that. Let's see how much we lose thru tax grievances first,among other things. No shaky abbout that ecept for your self serving interpretation. There are many ways of looking at this yours is just but one way.

As you say we wont' know until exactly unitl October. However, we do know as a fact that grievances were at an all time hight the last 12 months. This was confirmed with the Brookhaven tax assessor. Foreclosure rates have increased in the last 24 months as have tax deliquencies. These are facts. So, all data indicates my numbers are much more likely to happen than the district. You have to say what does the data support and how is it trending.

As for self serving? How would that be?

You really haven't indicated what part of what was written was factually incorrect.


I'm not over estimating at all. Read the numbers right off the district website

Using Singers numbers last year spending was $265 million. http://www.sachem.edu/board/budget11/pd ... 0_2010.pdf
The budget increase is $4 million.
The district added the roof repair to this years budget but paid the repair with last years surples, that means the most the district could spend this year is $269 million.

Now subtract the 9 million in reduced cost. $260 million is the maximum amount the district could spend.

Now add to the revenue side $282 million + $2,000,000 Compensation Reserve to fund2010-2011 expenditureshttp://www.sachem.edu/board ... 20Page.pdf
and $1,051,758 increased revenue as of 3/3/11

Lasr year' spending and reserves http://www.sachem.edu/board/budget11/pd ... 0_2010.pdf

2010-11 Reduced Expense as of 3/3/11
Professional Salaries $6,127,000
Salaries Custodial 200,000
Salaries Mechanics 100,000
Payroll Taxes 740,000
Admin. Salaries 150,516
Debt Interest 105,000
TAN Interest 101,920
Transfer to Special Aid Fund 500,000
District Insurance 37,000
BOCES Technology Project 600,000
District Wide Spending Freeze 800,000
Testing and Scoring -140,000
Sub-total $9,321,436

2010-11 Increased Revenue as of 3/3/11
State Aid $1,206,359
Com Ed, Child Care Build Use 47,000
STAR -201,601
$1,051,758

Collected this year....................$285 million
Maximum Spending this year...$260 million
Undesignated Fund Balance....$25 million

Hou much is Holbrook property taxes going up?

For 27 years I have respected the Board of Education members for their dedication and voted for every budget This grope is terrible. Their budget presentations are rambling and confusing. The Board meetings start off with student awards to fill the room with parents. Something is very wrong and I don’t know what it is. I’m so discussed that I may not vote. I enjoy this site because there is good information and locker-room talk. This is my first post and if the boardmembers don’t get out of district office and wake up! It won’t be my last post

OK, so if you’re like me, I really have no patience to go into every URL or listen to every file Frederick post here, so let me summaries and try and Keep It Simple Stupid, as I sure need it that way.

I went into one of Frederick’s files and found the Sachem School budget from 1998/99 to 2010/11. During this 13 year period, the budget increased from 162MM to 277MM, a 71% total increase or 5.46% a year. During that same period, the Consumer Price Index for inflation increased 36.28% or 2.79% a year. Why has the budget increased almost twice as much as the CPI, which is the undisputed US economic barometer?

I personally will be voting a big NO for the budget, as this needs to stop NOW!

CPI does not include, Energy increases, additional State Mandates, welfare food, all kinds of education regulations , mainly pertaining to liabilities..Dig deep before throwing out 1/2 truths....This is one good school district....I'm proud of the way it looks,runs, its attitude, and the hard working folks, most who are just barely making ends meet..."Most". My gosh you'd think sachems taxes were the higest on LI, and mine have been quite stable for years....Tired of this bashing Diatribe....

Really, CPI is not the economic barometer that every financial institution uses to baseline various scenarios.
OK, I will dummy it down a bit more. If over the past 5 years, you as a taxpayer, received more than a 5.46% annually increase to your take home pay, vote YES. If you received less, vote NO.
Simple – We have to budget our family finances just like everything else. If your net income increased by 5.46% or more annually, congratulations and I’m sure you won’t mind paying an increase of 5.46% when enrollment is down 5.1%.

Me, I have not averaged 5.46% net increase and I’m not trilled paying twice as much as CPI, when enrollment continues to decline.

Expenses have not gone up Only the budget and Fund balance has has.
The Board picks taxpayer pockets every year to level future taxes and bank money
2006-07 Budget 266,665,361 Expenses 262,000,417 Fund Balance 25,471,388
2007-08 Budget 274,707,921 Expenses 265,060,293 Fund Balance 32,148,964
2008-09 Budget 278,801,607 Expenses 267,926,888 Fund Balance 36,110,757
2009-10 Budget 277,694,940 Expenses 265,509,366 Fund Balance 41,687.472
2010-11 Budget 282,111,665 Expenses 259,700,000 Fund Balance 61,700.000 est. inc Excel TAN
2011-12 Budget 287,834,125 Expenses 270,000,000 Fund Balance 72,700.000 est.. inc Excel TAN




Know this. The cost of operating Sachem has not increased since 2007. It has remained constant at $265 million. This year it will reduce to $259 million because of last year's retirement insensitive. http://www.sachem.edu/board/budget11/pd ... istory.pdf

The district estimate is that the Brookhaven side of the district will go up $350-$375. The real tax increase will not be known until sometime in October and you won't see it in your tax bill until december. However, based on trends which include a record number of grievances, tax deliquencies and foreclosures the tax base will shrink. This means that all will pay more and those that have not grieved their taxes successfully will pay even more. An estimate of a $500 increase is pretty conservative considering the trends.