Vote NO on the $13.8 million capital project proposal on Nov. 19, 2013

After careful consideration, I cannot support the Chatham Central Schools $13.8 million capital project proposal on Nov. 19 and will vote no. Here’s why:
 
First is the lack of transparency in the estimates. There is no breakdown of components of the various costs. Especially troublesome was the jump in total costs from $12.5 million to $13.8 million without a single word of explanation.

Secondly, and of nearly equal concern is the fact that more than ½ of the money will be spent before a single dime reaches an academic classroom, classroom supplies, or a teacher or teacher assistant. 52% of the money goes towards a gym, fitness room and parking/roadways.

Thirdly, the costs that were given for the gym and fitness room seem more worthy of 24 Hour Fitness or Planet Fitness rather than our modest-sized school district. Nearly $4.5 million for the gym and fitness room - compare that with the $9 million that the University of Michigan (with nearly 43,000 students vs. our current enrollment of 1158) will spend on their new athletic facility. The cost of the gym and fitness room is more than $3,800 per CCS student, more than 18 times the UMich cost per student.

Part of the $13.8 million cost will be met by using all of the district’s capital reserve funds of $2.07 million, leaving nothing in capital reserves. Since these reserves have been used and replenished from time to time in the past, it is not unreasonable to assume they will need to be replenished in the future. The only source of funds will be future taxes.

The proposal is being marketed as requiring no tax increase. I suspect, but do not have the data to prove, that if the reserves were not used to offset part of the costs, they would no longer be able to make this statement. In fact, if the costs of the proposal were scaled back, it is entirely possible that there could actually be a reduction in taxes, as other districts have been able to do.

In July the board revisited the proposal to see if there were any parts of it that could be scaled back, reduced, or eliminated. On August 13, the board decided that there was not a single part of the entire $13.8 million that was not 100% absolutely essential and could not be accomplished in a less expensive manner – there was not one cent of savings to be found!

The district has stated that if the capital proposal is defeated “a new consolidation blueprint would need to be developed which would involve making compromises and eliminating some of items [sic] that support our educational program.”

I find it hard to believe that this consolidation cannot be successfully completed at a lower cost without compromising our educational program. Let’s defeat this financially unrealistic proposal and hope we are presented with a more commonsense solution we can live with.

Vote NO on the Chatham Central Schools $13.8 million capital project proposal on Nov. 19.

Thank you.

David Levow

Radio Interview About The Consolidation Project

I was interviewed on Thursday, July 11 by Phil Grant, host of the morning show on our local community radio station WGXC, 90.7 FM. You can listen to it at

http://youtu.be/M_loJMavPEE

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Good news and bad news

The good news: at tonight's board meeting, the Option B gymnasium and related project ($13.0 million) was taken off the table, reverting to the Option A gymnasium project ($12.5 million).


The bad news: the cost has now increased to $13.8 million from $12.5 million.


But the really bad news is that not one single board member asked why the project has increased in cost by $1.3 million in two months, nor was any explanation given.

I am losing what little confidence I had left in the ability of the board to understand, critically examine and question the proposal.

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CCS Consolidation Study (closing the Middle School) and 2013-2014 Budget

At the April 16 meeting of the Board of Education, the tentative 2013-2014 budget was approved. It includes a tax levy increase of 3.60%. As you may know, the “2%” tax cap is not a fixed 2%. It is a starting point from which a number of adjustments can be made based on certain capital expenditures, retirement plan contributions and some other adjustments. For Chatham, the cap for 2013-2014 is actually 4.34%, so the proposed increase is within the cap, requiring a simple majority vote to pass on May 21, the date of the vote. If the proposed levy exceeded the cap, it would require a super-majority of 60% to pass. Much of the increase is due to state mandated retirement plan contributions.

 Overall, I think the proposal is reasonable and recommend voting for it.

 However, of greater long-term importance is the issue of closing the middle school.

 I attended the town hall meeting on March 28 regarding the possible closing of the middle school. On face value, closing the middle school will result in significant savings even with the multi-million dollar capital improvement proposals that would be required, but it is my opinion that upon deeper examination of these plans, these expenditures are excessive.

 Three options were presented:

Keep the middle school open (non-consolidation, called Option C), which would require capital improvements totaling $5.66 million

Close the middle school (consolidation, called Option A), which would require capital improvements of $12.47 million

Close the middle school (consolidation, called Option B), which would require capital improvements totaling $13.04 million.

 At its June 25 meeting, the board will decide whether or not to close the middle school. Whether they do so or not, any capital expenditures will have to be approved by the voters, probably in November.

The district’s financial consultant estimated that the capital improvements necessary to keep the middle school open (option C) would cost approximately $92 thousand on an annual basis to service the debt that would be incurred, while options A and B (closing the middle school) would result in net savings of $411 thousand (A) and $384 thousand (B). The savings in the latter two options would be the result of saving approximately $800 thousand in annual expenses by closing the building, along with state aid for part of the capital costs.

However, while these savings sound appealing, the are based on what are in my opinion extravagant expenditures well beyond what are necessary to maintain the educational standards we subscribe to.

When they put up the details of the various capital improvement options I had a sinking feeling of déjà vu. If you need a refresher or were not around at the time, read the blog posts beginning at the earliest ones in 2007 when the then-current board proposed $47 million in capital improvements. As a results of community response, it was scaled down to 2 separate proposals ($25 million and $10 million), both of which were defeated by margins greater than 5 to 1. The board then presented a single $6 million proposal, which was passed by the voters.

Many of the components in the current proposals sound to me like “nice to have” wish-list things but not critically required (gym additions/renovations, data/power/seating upgrades in the auditorium, cafeteria renovations in both MED and HS, etc.). I was surprised that option B ($13 million) includes expanding the MED gym to seating capacity of 700 (this in an environment that includes the current kindergarten enrollment of 72 students!).

The following graph and spreadsheet represent my projections of the enrollment. The figures in red are the actual current enrollment for 2012-2013, and they are carried forward at their current level until the present kindergarten graduates. The figures in black are enrollment projections made by the board’s consultant based on actual live births and estimates they have made. Note in particular the enrollment forecasted in 2015-16 of 1094 students, a decrease of 116 students or almost 10% from today. This year is important because the 2015-2016 school year is the earliest the middle school would close under either Option A or B, so we would be spending $12.5 or $13 million to build larger facilities to house a significantly declining population.

 

 



The Board's enrollment projections are given here:

http://www.chathamcentralschools.com/Facilities_Study/Enrollment_Projection_Report.pdf

Their study is dated November 2011, so the data I have used is more current and shows a larger decline than their study does.

 

 I am also concerned that that Option A ($12.5 million) includes almost $2.5 million for MED gym addition and renovations and Option B ($13.0 million) includes $2.9 million for an even larger gym! This latter option should never have seen the light of day – what were these people thinking? By the time these projects are completed the school population would have declined by nearly 10% from today. How many teachers would the additional $400,000 pay for? In fact, the gym expenses are far and away the largest items in those two proposals – is there some sort of reality disconnect or is it just me?

 

Furthermore, there are no specifications regarding the various improvements, no range of estimates suggesting different levels of improvements showing tradeoffs and costs. I find it hard to imagine we need to spend $2.5 or $2.9 million on a gym – there must be a cheaper way to do it if indeed we need to do it at all.

 

While I personally am somewhat on the fence about closing the middle school, perhaps leaning towards doing so, I am absolutely opposed to doing so along with either of the two options proposed without a very thoughtful examination and cost-benefit analysis by the entire board (as opposed to just the 3 member facilities committee) as to what is really necessary in terms of capital improvements. While closing the middle school under either proposal suggests cost savings, a more realistic capital improvement proposal could result in even larger cost savings. Can we achieve our goals without spending so much money?

 

Here is the link to the district’s information regarding the consolidation study:

 

http://www.chathamcentralschools.com/Facilities_Study/index.asp

Here are the details of the proposals:

 

Option C - keep middle school open (plus capital improvements of $5.66 million):



 

 

 

Option A - close middle school (plus capital improvements of $12.47 million):

 

 

 

Option B - close middle school (plus capital improvements of $13.04 million):

 



Budget Update August 11, 2010

At a special Board of Education meeting tonight, the tax levy was approved, based on the budget approved by the voters in May.

The process was complicated by the difficult economic and political climate, particularly due to the uncertainly regarding federal and state aid.

Based on the Superintendent's estimates that State aid will be higher than anticipated in May, the Board was able to reduce the increase in the tax levy. The original budget called for a 2.54% increase in the tax levy. The actual increase (subject to a computation of the exact amount) will be closer to 2% or 2.1%, with some additional amount going into the district's reserves.

There was much discussion regarding how to apportion the extra money and a compromise was reached to reduce the tax levy increase and to increase the district's reserves as well.

Final Budget Approved

At Tuesday's meeting, the Board of Education approved the budget that we will vote for on May 18. The budget amount totals $26,614,687, a .72% decrease from last year. Due to decreased state aid (the amount of which is still in flux), the tax levy will increase 2.54%. If state aid comes in better than estimated, the tax levy could possibly decrease, but if state aid is less than expected, the tax levy might increase and/or additional budget cuts would have to be made. Regardless of the breakdown between state aid and tax levy, the total spending cannot be more than is approved by the voters in May, assuming the budget is passed then. The Superintendent is confident that the budget projections are conservative and are based on estimates of state aid at the lower end of likely possibilities.

Included as part of the budget are funds to replace school buses which are being used more heavily than previously due to the one-bell system. In the past, school buses have been voted upon separately and the expense would have been in addition to the budget. If they were separate this year as in the past, the budget would actually be less than indicated above.

Additionally, the budget has been prepared without using any federal stimulus money, which will no longer be available. A number of school districts have used their stimulus funds to pay normal operating expenses, and when this money ends, they will have a big budget gap to fill. Chatham's stimulus money has been used for capital projects and has not been included in the operating budget, so when it ends, it will have no impact on our budget.

I support the budget proposal and recommend voting to approve it on May 18.

The budget calendar is available at http://www.chathamcentralschools.com/budget/Budget%20Calendar%202010-11.pdf.

Chatham Central Schools budget for 2010-2011

At yesterday's Board of Education meeting the Superintendent presented the proposed budget for the next school year.

The Superintendent and the business office have been working very hard to keep costs down in light of declining enrollments and expected significant and ongoing reductions in state education aid. They have come up with a number of savings and efficiencies in various areas but have also found it necessary to reduce staff, partially through resignations and retirements but also though layoffs. By reconfiguring schedules and leveling class sizes, the district's core educational values will not be negatively impacted.

Overall, as a result, the total budget proposed represents a decrease from the current year of approximately .6%, but due to reductions in state aid (and the amount of the reductions has not yet been fully determined by the state), the tax levy will have to make up the difference.

As the budget proposal now stands, the tax levy would increase by 2.75%.

Some people have expressed concern that this is too high, since inflation this past year was negligible in many parts of the economy (although this may be misleading since part of the low inflation was due to falling housing prices). Should the Board need to reduce the tax levy increase, it would mean further cuts, most likely in staff, since this is the largest component of the budget.

Please take a moment to express your opinion (which is anonymous) by taking the survey on the left. I will forward the results to the Superintendent and the Board for their guidance. You can, of course, post your thoughts to this blog as well (also anonymously if you choose).

Proposed Capital Project Vote Jan. 12, 2010

The Board of Education held a town hall meeting today presenting the capital projects (details are at http://www.chathamcentralschools.com/district/cap_project.asp).

There are two propositions.

The first is for approximately $5.087 million and consists of a number of projects relating to energy efficiency, safety, Americans With Disabilites Act, infrastructure, and various program needs. This will be financed with no increase in taxes by using funds left over from the previous capital project, federal stimulus money, state aid, and funds from the district's capital reserve. As I've said before, not everyone would agree with each of the individual projects within this proposal, but as a whole, it makes sense.

There are two points I want to make regarding the financing of this proposal. First, the federal stimulus money (approx. $547,000) is a one-time opportunity to be used now. If the funds are not spent by June, they will no longer be available. Secondly, while there has been a lot of press about New York's budget crisis and possible cuts to school budgets, the cuts that have been discussed have been only to operating, rather than building budgets, so the state aid portion (approx. 50%, or $2.5 million) should not be affected.

The second proposition (which can only pass if the first passes) is for $320,000 and consists only of replacing lights on the high school athletic field. It is included in the total $5.087 million. This proposition would be financed $160,000 from the district capital reserve, and $160,000 state aid. If this proposition does not pass, but the first does, then the total amount would be reduced by $320,000, and the amount from the capital reserve and state aid portions would be reduced by $160,000 each.

I am in favor of the first proposition, but think the second is on shaky ground. We already have lights, albeit not what we would like. Twenty events were held under the lights during the fall. Obviously they are doing the job. At this point in our economic cycle, I do not think this is the way our money should be spent.

I recommend voting YES for Proposition One, and NO for Proposition Two.


The vote is this Tuesday, January 12, from 9AM to 9PM in the MED gymnasium.

As usual, in our relatively small district with a relatively small number of voters, every vote will count. While the original $35 million proposal was defeated by a margin of more than 5 to 1 (approx. 800 vote margin), the revised $6 million proposal passed by passed by only 10 (ten!) votes out of more than 800 cast. Please vote!

Capital proposal - Board of Education meeting Oct. 13, 2009

At last week's board meeting, the architect provided a summary of building needs and estimated total cost by building, but there were no costs attached to specific projects within each building, in part due to the preliminary nature of the evaluation.

At the board meeting last night, audience members and some board members expressed concern that the voters would not have a clear picture of what would be voted upon, should the board go ahead with presenting the $5 million capital proposal to the voters (potential voting date of Dec.8, 2009), nor would the voters have an understanding of individual project costs or the criteria by which a given project might or might not eventually be included in the final construction. As construction costs are refined later in the project, it might be necessary to include or exclude certain elements due to their costs being less than or more than originally thought.

The board agreed to develop and make known such criteria, but the voters should realize that the actual work that will be completed may differ from that which is specified, and that voters are voting for the $5MM bond issue, not for a specific package of projects.

The board will be holding public meetings and make available further information. At present I have the architect's spreadsheet showing the individual projects and total cost by building. If you would like a copy, send an e-mail to chathamny@gmail.com. Please keep in mind that this may be revised and may not represent the actual work that will be done!!!

Capital Proposal - Board of Education meeting Oct. 6, 2009

At a very sparsely attended BOE meeting last night, there was a presentation by the district's (new) architect and the superintendent regarding a capital project proposal.


What they would like to do is to take $547,000 in federal stimulus money that must be spent by the end of the school year (6-30-2010), add to it $550,000 from the previous bond issue of approx. $6 million that was not spent due to some of the project coming in under budget and in addition allocate approx. $1.4 million from the district's existing capital reserve fund. This gives a total of approx. $2.5 million and then adding in estimated state aid of a little under 50% brings the total to approx. $5 million that could be used with no direct tax impact.


The architect reviewed the projects that would be implemented were the proposal to be approved. Details will be coming from the BOE but there were none of the grandiose projects that were in the original referendum that was defeated. There were mostly smaller items across all 3 buildings (costs attached to specific projects were not given) that related to improving energy efficiency, roof repairs still remaining, some ADA issues, and a number of others.

I'm not sure I agree with the necessity for every single one of the suggestions but as an entire package I think it's worthwhile for a number of reasons:


- No tax impact (however, see below)

- Use of federal stimulus money which will not be available on an on-going basis

- Availability of approx. 50% state aid which, due to the fiscal condition of the state, may be lower in the future


It does appear that the project can be implemented with no tax impact. However, using the capital reserve funds of $1.4 million will nearly deplete the district's capital reserve, which then must be rebuilt. I was assured by the superintendent and a number of board members that, although the fund will need to be rebuilt, it will be rebuilt over a number of years, not all at once, so it is possible that there might be an indirect impact on taxes in the future. I believe the board is very aware of taxpayer concerns and will consider the speed at which the reserve is rebuilt when formulating the 2010-2011 district budget.

Due to various regulatory constraints, this proposal would have to be presented to the voters for approval in December.

At this point, and subject to further details from the BOE, I think the project makes sense.

I will forward further details as they become available.

Final Budget Information

The Board of Education met last night, the final meeting before the budget vote next Tuesday, May 19 at the MED (9AM - 9PM). No new budget information was presented.

To summarize, the total budget is .98% above last year's, with the tax levy increasing 1.55% as a result of decreased state aid. The one-bell transportation system is incorporated in this budget.

A few items directly or indirectly relating to the budget:

-Funds are included for an external hire if necessary to replace the retiring MED principal.

-No new buses will be purchased this year.

-The district has identified a bus surveillance system that will be purchased if the budget is approved; details were sketchy but it will apparently be able to view the entire bus and store the data on a hard drive. While not mentioned at the meeting, it seemed as if the video would be saved for a period of time and be viewed only if circumstances require.

-There are two BOE seats being voted upon and two candidates. The candidate with the higher vote total will get a 3 year term; the other candidate will fill out the 1 year remaining on Ric Campbell's term.

-There is also a proposition to allow a student to sit on the BOE as a non-voting member.

Please come out on the 19th and vote to support this budget!

Board of Education meeting April 21, 2009

The board approved the 2009-2010 budget. It is essentially unchanged from the initial draft, and includes the one-bell transportation proposal and a tax levy increase of 1.55%. Here's the link:

http://www.chathamcentralschools.com/April212009Budget.pdf.

It is a good budget, preserving and improving Chatham's educational values and making good use of our scarce budget resources.

Remember, we must vote to approve it on May 19!

The board also introduced the new superintendent, Cheryl Nuciforo, who will start on July 1.

Board of Education meeting April 7, 2009

At the meeting, a brief budget presentation was made. It is essentially unchanged from the original presentation.

As a result of stimulus money, state aid will be increased by approximately $500,000. The interim superintendent strongly recommended that this one-time (although there may be a second payment next year) payment be used to fund capital improvements, rather than operating expenses. When added to a like amount already in the capital improvement fund, and leveraged with state aid for capital improvements, approximately $2 million in needed capital improvements can be funded with no tax increase. This makes a lot of sense and the board agreed.

In addition, the board announced that, pending final contract negotiations, a new school superintendent has been hired.

While not formally announced at the meeting, it is essentially public knowledge that board member Ric Campbell will be leaving the board due to increasing demands on his time at Bard College. His depth of experience and the perspective as an educator that he brought to the board will be missed and will leave a hole that hopefully can be filled.

At the next board meeting on April 21, the board will vote to adopt a budget.

At the May 12 meeting, the board will present the education plan and the budget, and the taxpayers' vote will take place on May 19.