Thursday, March 31, 2011

Albany Passes Budget

Smithtown Central School District will see a slight improvement as New York State aid will be reduced by $3.4 million rather than the expected $5.5 million the district has been considering. This means a real change in aid to the district by -8.9%. State aid information in the published version of Governor Cuomo's budget is not yet correct. Our thanks for this currant information to State Senator John Flanagan's local office.

Wednesday, March 30, 2011

Facts for Schools in New York


The Taylor Law--Adopted in 1967 granting public employees the right to organize and bargain collectively with their employer.

Strikes Prohibited--Within eight months of its enactment, N.Y. Times describes the Taylor Law as having an "almost revolutionary effect" on public sector labor relations. 

By the fall of 1968, an additional 360,000 state and local government employees had been unionized, in addition to the roughly 340,000  (mostly in New York City) who were already engaged in collective bargaining before the law passed.

Duty to Bargain in Good Faith Section of the Taylor Law

“The duty to bargain in good faith means that both parties approach the negotiations table with a sincere desire to reach an agreement. Thus, good faith is a matter of intention”

Duty to Negotiate in Good Faith means that both parties approach the negotiating table with a sincere desire to reach an agreement – a matter of intent.

The Duty Does Not Include Agreement!

To Determine the Parties' Intent, PERB looks at the Overall Conduct of Parties:
(1) willingness to exchange proposals,
(2) willingness to discuss the issues,
(3) willingness to explain the rationale of negotiating positions upon request
(4) willingness to accommodate the idea of compromise

The Process of Negotiating and Good Faith Bargaining

“Hard bargaining” is not a per se violation of good--faith bargaining proper for the board to submit demands to freeze or even decrease current levels of benefits

Negotiations Related Communications during contentious times-- merely informative in nature and did not contain threats of reprisal or promise of benefits or otherwise attempt to circumvent the union negotiators

When Negotiations Fail- -Next Steps
Mediation
Fact Finding
Super Conciliation

Uncertainty in the Present Economic Climate

Governor Cuomo has proposed a property tax cap on local tax levies
of 2% or the inflation rate, whichever is lower, effective July 1, 2012.
If the tax cap is set at the maximum of 2%, school districts will
automatically be forced to operate at a minimum of a 10% deficit.

Property Tax Cap

If the Governor ’s proposed property tax cap were to pass, the 668 school districts with independent taxing authority in the State would only be able to increase property taxes a maximum of $229 million per year, on average, over the next four year period. 

Increases in personnel expenses, collectively, during that same period, however, are projected to average approximately $1.044 billion per year, resulting in a $815 million deficit, per year.
Step increases alone would result in a rise above
the cap.  (Source “Property Tax Cap: Pass or Fail for School Districts”, New York State School Boards Association, December 2010 at p. 3).

more to come....
 


Thursday, March 24, 2011

What an Eye-opener!

A funny thing happened at the Smithtown Board of Education meeting on the evening of March 22, 2011. I encountered a swarm of “black shirted- button wearing” drones representing the Teachers. After gathering and organizing outside the school building they obediently marched in and were told by their organizers were to sit.

After the Board’s business was completed; the Supervisor gave the state of the District’s financial health. He showed how the District’s costs for Salaries, Pensions and Employee Benefits have gotten out of control over the past ten years. From my standpoint, and some others in the audience the situation is dire.

When this phase of the meeting was completed, the Board opened the session for Public debate. The first to speak was the head of the local Teacher’s Union. He proceeded to tell the public how the Union had offered to compromise with the Board, but the Board had refused their offers. Of course no mention was made as to what the Unions offered to comprise.

I should also mention the crowds of students who were present in the auditorium holding signs in support of various programs that might be in danger of being cut. I wondered how many parents counseled their children on the true nature of the situation.

After the Union boss had completed his speech, the next speaker approached the podium and an amazing thing happened; in one of the rudest and unprofessional actions I have ever seen, all the drones got up and walked out of the meeting. Apparently not wanting to hear what some of the Taxpayers had to say.

After the Taxpayers had their say, another group, including some Smithtown Graduates, spoke in support of the Business Curriculum. They went on to inform the public what a great benefit it was to them and what they had accomplished since their graduation. While listening, I wondered how many had to go to the private learning centers in order to boost the SAT scores like my Grandson had to do.

All in all, it gave me a wonderful insight into the Professionals who are teaching our children.

Frank

Tuesday, March 22, 2011

The Pied Piper of Smithtown

Tonight's Smithtown School Board meeting, held at High School West, was packed. People made their way through a mass of school faculty protesting by wearing black outfits and the ubiquitous pins declaring, "Working Without a Contract." And the contract (in mediation) was the subject of much discussion.

The Board and Administration took care of the business of the district and then opened the floor to the public. Rich Forzano, president of the Smithtown Teachers Association was the first speaker. Mr Forzano claimed that over the past two contracts, the district gave nothing and asked too much of the union. Unfortunately, there was nothing detectably compromising in his address--no hands across the table. It was an inauspicious beginning that grew bizarre as Mr Forzano left the podium, the auditorium, and the building--followed by hundreds of the black-clad STA members. It was the low point of the evening. Even so, the room was almost half full after the exodus.

There followed 23 more speakers including recent Smithtown HS grads; moms of SCSD students; Decca volunteers; Industry Advisory Board members; a Junior Achievement Rep; seniors; business men and women of the district; and concerned citizens. Many plead for retaining the Business program which sounds fabulous--effective and one well-preparing its students for the future. 

There were a couple passionate speakers who begged the Board to keep all programs, and do the right thing for the children. The major theme, however, was: dare to make a change, and do it now. The absent union members were asked to join the taxpayers and make a sacrifice. They wanted to know what the teachers were willing to do. They had left, so we were not able to have any dialogue. 

One small group of teachers--not wearing the uniform of protest--actually stayed to the very end--they were the Business program teachers, who were warmly received. Their maturity and commitment to the students was appreciated. 

Three speakers really stood out--a retired teacher and resident with the guts to challenge an out-of-control union, a businessman who offered to work on the Housing Advisory Committee and pointed out how simple it would be to balance the budget--with an STA contract with give-backs, and another businessman who reminded the Board and Administration to remember the definition of insanity and asked the Board and Admin to....

Take a look at Wisconsin! Stand up for us! Do something different!

Thanks to everyone who made this a productive evening--unfortunately--not the STA.




Sunday, March 20, 2011

An Overview on Our School District

Smithtown Central School District (SCSD) does a good job educating its students; it is something of which we can be proud.  But there is a very big crack in the system that needs fixing now!

NYS is in a difficult financial situation, people leaving has resulted in the loss of 3 Congressional seats after the 2010 census. The birth-rate is declining.  Businesses are struggling, unemployment is high, and home sales are sluggish, with a 2 year inventory of unsold homes in Nassau and Suffolk. Taxes are being grieved.

NYS is contributing 16.31% less than last year in school aid for SCSD. We learned that for the '11-12 year we will have a shortfall of $5 million from the state--that's on top of last year when we were cut by $3.5 million! At the same time, we were told to expect an increase of at least $7 million in payments we must make for retirement pensions and benefits this year alone. [The amount is being questioned.] In addition to increases in fuel, salaries, and more, we have to find about $12 million (give or take) more.

In the last couple years, the school tax increase has been low, before that, the average increase was around 7% per year. Every year there has been a 'capture' of money 'left over' that are called reserves. This amount can range from $3 to $10 million. It is, essentially, money we are over-taxed that is kept by the SCSD. In 2005, a year we had a contingent budget, meaning that taxpayers voted down the proposed budget and we went to a pared down budget, we had about $6 million in reserves! How did that happen?

There is nothing wrong with carrying a percentage of the budget in reserves--the state lets us keep 4% on hand--like a rainy day fund. We actually have several reserve funds with a total of about $48 million. Some reserves are dedicated to fund to a particular action and may not be used for anything else. One use for a reserve fund is to pay it toward the next year's tax bill--we did and that is why our recent tax increases were so low.


Our school budget is being thrashed out right now, as the Administration proposes and the Board gives direction. Already, the district has been in turmoil over the possibility of 1. changing the walker area, 2. issuing a referendum to change private and parochial school student busing, 3. a referendum to change SCSD busing, and 4. the proposed closing of one elementary school which would only save about $340,000.

The Administration has discussed raising class size as a means to save some money. Unfortunately, even though we have elementary classes with 17 and 18 students, their model didn't produce much more that $1 million in savings.

Last year the district made some changes that we applaud that saved money: buses made to carry 66 passengers had been loaded with 12-15 students--no more,  High School electives without an enrollment of at least 15 students are not run, and after-school athletic program teams were combined, creating savings. 

If the governor's proposed tax cap goes through, and it is believed it will, we will be limited to a 2% increase a year. And that is where the problem lies. Some would like to tax us by, maybe, 12%, and use the 'excess' money for future years to ease the burden. Others want to see big cuts NOW, as they will surely need to be more cuts made around the corner.

Why do we say this? Contributions we make to pay pension and benefits for TRS (teachers) and ERS (other employees) in  2003-04 were $1,161,857. and eight years later  in '11-12 it is projected we will pay $11,621,929.  Pension, benefits, and salary eat up 78% of our budget this year--it will be greater, next year. In fact, these bills will increase exponentially. We can't afford the contracts we are in, and we can't afford the current retirement system. 


Negotiate a package that is good for teachers and for the district.

Saturday, March 19, 2011

DO YOU KNOW what “working without a contract means”?

The facts are that The Smithtown Teachers Association (STA) is working under a contract that expired on June 30, 2010. Under the Triborough Amendment School Districts are required to continue operating under that expired contract, until a new contract has been negotiated.

Did you know…currently teachers salaries are doubling in 10 years here in Smithtown. (Source: BOE meeting 2/7/2011)
 
Did you know… only 40.8% of New York State high school graduates are considered college ready? (Source: Commissioner Steiner 2/15/11 Albany)

The Next meeting of the Smithtown Board of Education will be held Tuesday, March 22nd 2011 at the Smithtown High School West auditorium at 8:00 pm. Arrive early!
 
Our district’s known costs for the 2011 school year contrasted to 2006:
 TRS:     2011:  $7,727,089.00          2006:  $5,394, 783.30
 ERS:     2011:  $3,894,840.00          2006: $2,287,000.00 
 Healthcare contribution:  2011: $15,000,000.00 2006: $10,616,886.78
 
BECOME INVOLVED THE BOE NEEDS YOUR SUPPORT 
 
How the pie is divided this year:

salary/benefit/pension 78%
transportation 7%
operations 11%
what's left 4%   
 
No wonder we are chasing every red herring for a few cents here and there: change the walker area, the buses for private & parochial students, or close a school and save ~$340,000.* 
 
The SCSD must sit down NOW and make the real cuts needed to save our schools for the future.
 
*We find other districts in NYS closing an elementary school expect to save from $800,000 to $1,200,000.

Friday, March 18, 2011

CSA's Flanagan Testifies in Support of NYS Tax Cap

Did you know?

78% of our $211 million budget for 2011 is spent on salary, benefit, and pension? That's a very big piece of the pie.

We must make cuts in our budget NOW rather than giving already burdened taxpayers a double digit increase to amass bucks for the coming tax cap when spending will be limited. Is it even legal?

We have been so extravagant with contracts that we CANNOT now afford them. We have gone from educating our children and are now in the "people business," as our Superintendent says. That's got to change. Let's make it about educating our kids, rather than an out of control monster.

Teachers who left the system ten years ago would not recognize what Long Island school districts look like NOW.

Smithtown Board of Education Special Meeting!

Tuesday, March 22, 2011, at 8 p.m. the Board has moved the general meeting to Smithtown High School West. The Smithtown teachers union (STA) has told all teachers to be present. As you know, the contract expired in spring '2010 and the union claimed impasse in June.

Teachers have been wearing black buttons proclaiming, "working without a contract," while in fact, the Triborough Amendment provides for the previous contract to be in effect until a new one is agreed upon.

Teachers received a 3.93% salary STEP this year, as well.

We face a possible double digit tax increase this year, and there are fears of a 2% tax cap next year that will be unsustainable for districts who must cover ever increasing teacher and employee benefit and pension costs. These costs are anticipated to increase close to 50% in 2012 over 2011!

Smithown taxpayers please show up!