on the Putnam Valley Schools 1998-1999 Budget Issue April 1998 Phone: 914-528-8143 Fax: 914-528-0274 email: [email protected]

Most of the Budget Goes for Instruction

A Letter from the Board of Education This proposed budget for the 1998-99 school year promotes our learning goals for our students. The Report Cards from the spring of 1997 show significant improvement in many areas, but much remains to be done. In order to continue this progress of continued improvement, this budget supports the addition of a fourth grade teacher and the maintaining of our early intervention programs at kindergarten and first grade at the Elementary School. At the Middle School this budget supports increasing the librarian to full time (from four-fifths) and replacing a ten-month secretary position in the main office with a twelve-month position. We are continuing our implementation of a new five year technology plan. Our current plan has put us in the forefront of local school districts. Our technology program is nationally recognized and has received many awards. This budget supports a new plan that will upgrade or add much needed equipment. The plan will keep us moving forward in this important area. This budget also supports the addition of a part time technology aide. This budget maintains most existing programs at their current levels and boosts a few programs, as previously described. The proposed budget will cost $18,598,330, with an estimated tax rate increase in Putnam Valley of 2.34%. The Board of Education feels that this budget maintains excellent educational programs while, at the same time, it keeps in mind the taxpayers' ability to support the school system. If you wish additional information on the school budget please contact: John C. Kleinegris, Superintendent of Schools, at 528-8143 or any of our Board of Education members listed below: Pat Bellino (President) - 528-1796 Edward MacDonald (Vice-President) - 526-3672 Candido DeJesus - 528-2399 Therese Dwyer - 528-8067 Barbara Parmly - 528-1155

The Proposed Budget at a Glance

Budget Total:	$18,598,330
Budget-to-Budget Increase:	5.05%

Projected Tax Rate Increase per $1,000 of Assessed Value

Putnam Valley	2.34%
Carmel	0.95%
Cortlandt	23.67%

The Cortlandt Tax Rate

Why is the projected tax rate increase for Cortlandt so much higher than Putnam Valley's or Carmel's?

The 1998-99 tax rate for Cortlandt is estimated to be $483.52 per $1,000 assessed value. Putnam Valley's tax rate is projected to be $19.49 and Carmel's tax rate is also estimated to be $19.49. These tax rates represent percentage increase of 23.67% for Cortlandt, 2.34% for Putnam Valley, and 0.95% for Carmel.

There are two reasons for the wide disparity in the tax rate increase; both of which are beyond the District's control. First, the New York State Office of Real Property Services set each town's State Equalization Rate. That rate is used to calculate the tax levy distribution for each town. New York State, through the Equalization rate, determines how much of the tax levy is to be paid by the taxpayers of each town and the District is required by law to comply. Second, the Cortlandt taxpayers received a one time Court ordered tax credit of $96,255 last year. The tax credit lowered Cortlandt's share of the 1997-98 taxes, which resulted in a tax rate reduction for 1997-98.

The combined effect of the State Equalization Rate change and not having another tax credit for 1998-99 has resulted in Cortlandt's share of the tax levy increasing from 6.34% in 1997-98 to 7.66% for 1998-99. Keep in mind that the 6.34% in 1997-98 was lower than than it should have been because of the tax credit.

At first glance, the percentage change in the tax levy paid by Cortlandt Taxpayers from 6.34% to 7.66% (+1.32%) may seem to be small and insignificant. However, this is not the case. For example, if everything in the proposed 1998-99 budget is kept the same - and if we only change the tax levy distribution back to the same percentages they were for 1997-98 school year - the tax rate percentage increases for each of the towns would be 2.29% for Cortlandt, 3.79% for Putnam Valley, and 3.78% for Carmel.

In summary, the 1.32% increase in Cortlandt's tax levy distribution is due to the combined effects of the State Equalization Rate change and the 1997-98 tax credit - both of which are outside the District's control. It is this change in the tax levy distribution that results in Cortlandt's 23.67% tax rate increase.