The Port Washington School District proposed a 2024-2025 rollover budget back in February which features a 6.8% increase from last year’s budget.

The district’s budget for the current school year is set at $184,265,295, but assuming the 2023-2024 budget rollovers, the district would see an increase to $196,705,700 in 2024-2025,  marking approximately a $12,440,405 rise. 

Taking a closer look at the expenditure increases some of the biggest rises come from salaries which increased by $3,259,489, benefits which increased by $3,375,765, and contractual services which increased by $3,008,553. 

Despite this, the estimated increase in revenue only amounts to $1.8 million. 

As of Mar.13. The Port Washington School District has an enrollment of 5,337 which is 66 more students than at this time last year. 

While the state has implemented a 2% tax cap on the budget, Assistant Superintendent for Business Kathleen Manuel explained that the district’s tax levy growth factor is only at 1.02%, meaning that the allowable tax levy to increase is $5,240,635- an increase of 3.39%. 

The 2023-2024 tax levy limit amounted to $154,523,228 while the newly presented tax levy limit would amount to $159,763,863. 

To reach the rollover budget, the required property tax levy would be $165,149,146 resulting in the Port Washington School District being $5.3 million over the allowed tax levy limit of  $159,763,863. 

The board has been able to reduce the amount they are over the tax levy by $1.3 million. Using $700,000 from retirement reserves, $550,000 from additional interest revenue, and $100,000 in additional facilities use revenue, the new gap amounts to just over $4 million. 

To reduce the gap between the levy limit, Manuel presented two scenarios at Tuesday night’s Board of Education meeting, in which the board will eventually adopt one of the two. 

Scenario number one reduces expenditures with minimal impact to programs with the reduction of 11.5 full-time employees. It includes additional expenditures to address students’ mental health and class sizes with the addition of 2.0 full-time employees.  It helps preserve current programs with an overall reduction in expenditures of $2,127,900. This scenario however will require a supermajority vote (60% of the voters) to pass, as this is $1.9 million over the allowable levy limit. 

Scenario number two reduces expenditures with a greater impact to programs with the reduction of 24.5 full-time employees.

It also removes all additional expenditures provided in scenario one. The total reduction in expenditures amounts to  $4,047,900 which stays within the allowable tax levy limit. This only requires a simple majority vote (50% of the voters +1)

Forecasting the financial implication of either scenario it should be mentioned that both scenarios will presumably result in a $2.4 million gap over the tax levy in 2026 and over $5 million in 2027. This is due to the change in inflation without an increase in revenue. 

For residents, assuming the assessed values remain flat, the estimated tax rate amounts to $1,703.91 for scenario one, and $ 1,683.68 for scenario two-, an estimated yearly difference of $207 for the average household.

It should be noted that the numbers mentioned are based on a house valued at $1.1 million in Port Washington. 

Superintendent Michael Hynes says that despite scenario number one amounting to $1.9 million over the allowable tax levy limit, it has a focus on mental health which he views as being extremely important. 

Trustee Rachel Gilliar calls scenario number two a “dumpster fire.” “ The impact on the school and the education would be dramatic and definitely negative”, said Gilliar. 

Specific additions and reductions that come with either scenario can be viewed on the district’s website under the 2024-2025 budget overview tab. 

The board conducted an unofficial poll to see where board members stood if they had to choose a scenario. Unanimously scenario one was picked by all seven board members despite the majority of them expressing their unliking of being over the tax levy limit. 

The Port Washington School District is estimated to receive $ 20,268,574 in 2024-2025 under Gov. Kathy Hochul’s state aid proposal. This is a 5.56% increase from the district’s state aid last year of $19,201,487. 

If the district presents scenario one that requires a tax cap override, if they don’t receive a 60% approval by voters, according to the State Comptroller’s office, “the school board may adopt a final budget with no growth in the tax levy from the prior year or resubmit the original or a revised budget. If a resubmitted budget is defeated, the district must adopt a final budget with a tax levy that is no greater than the levy of the prior year. Districts may also pass separate referenda on individual programs which, if they cause the levy to go over the cap, would each need to receive a 60 percent vote to pass.” 

The board will reconvene on April 2. In their final budget discussion work session. The board will be adopting one of the two scenarios on April 16. With the annual budget vote being May. 21. From 6. a.m. to 9 p.m. at Weber Middle School.