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The Times-Herald Record covers the the new utility tax in this article today: New utility tax will help fund Newurgh schools.

The article covers the usual bases. There is this piece of new information:

The state has already warned the district that school aid will remain flat for the next three years. Ever-increasing expenses mean finding new revenue or cutting expenses, and they've already slashed expenses, Saturnelli said.

If state aid is expected to remain flat for three years that is quite a looming crisis. State aid covers approximately half of the Newburgh School District's approximately $240m budget. Take a look at what the district spends the most on. Three out of the top four items (teacher salaries) are contractually required to increase by around %4 each year. The fourth item is Medical Insurance--it will probably go up 10% each year.

Here's an interesting letter from the Mid Hudson Times, Wednesday, June 3, 2009, page 9. I give Mr. Weiss a lot of credit for making the effort to find out about public opinions and for encouraging greater public involvement with the Newburgh School District. Thank you Mr. Weiss.

Letters: Polling Survey

On School Board election day, my son Ian and I briefly interviewed 102 voters as they exited four polling places located in the towns of Newburgh and New Windsor and the City of Newburgh. Although it would be ludicrous to claim scientific accuracy, I do believe the results of our polling are meaningful. There was a surprisingly high level of participation in the survey with only 15 voters declining to answer our questions. The vast majority seemed genuinely grateful for the opportunity to share their thoughts, many offering opinions and providing details about their voting experience that extended far beyond the narrow scope of the survey.

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Do read the full letter at this link.

I don't think the impact of the utility tax on businesses is well understood.
From the June 3, 2009 Mid Hudson Times...

More school taxes
Newburgh school district approves utility tax

By JESSICA McALEESE

Newburgh Enlarged City School District officials may have managed to keep next year's budget increase relatively low, but come Sept. 1 they will turn to a new source for generating revenue for the district.

Last week, the Board of Education authorized the establishment of a utility tax as permitted by New York State Tax Law 1212. According to the law, small city school districts may impose a utility tax of up to 3 percent on certain services such as gas, electricity and telephone.

Newburgh Assistant Superintendent for Finance Michael Pacella explained that the district decided to administer the 3 percent tax with help from the New York State Department of Taxation and Finance as a way to offset the anticipated zero percent state aid increase next year.

"We're trying to plan ahead for next year," he said. "We're not anticipating enough revenue for the district."

According to Pacella, the tax will also help relieve some of the burden on homeowners who are paying property taxes by broadening the source revenue. And while some may not agree, he said that establishing a "use tax" (payment is based on how much of a service is used) is something that the district is more than entitled to do.

"There are lots of school districts throughout the state who are doing this," Pacella said. "The Middletown School District has imposed a utility tax since the 1960s. The City of Newburgh instituted one in 1988. It's no different for us."

But for Newburgh residents like Bill and Sandra Wiseman, the difference is huge.

"As a business owner, that tax is going to be passed along to the consumer," said Bill, addressing the school board before the decision had been made. "It's a tough burden to bear."

Sandra spoke next, urging school officials and members of the board to think hard before imposing yet another tax on local residents.

"We are struggling to pay our taxes as it is," she said. "Tell us how we're supposed to do this. It's unfair."

"Nobody likes taxes," Pacella said in response. "But my job is to look for ways to fund the education system in the best way possible. If the state's not going to give us money we have to get it someplace else; we either have to cut expenses or collect money from the taxpayers."

The district has already completed the first option, Pacella said. Now it's time to turn to the second.

From the May 27, 2009 issue of the Mid Hudson Times. Lewis has served on the Newburgh School District Board of Education for many years.

Lewis 'shocked' by election defeat
By Jessica McAleese

More than one week after learning that he had not been re-elected by voters, Newburgh Enlarged City School District Board of Education President Runston T. Lewis says he is still in a state of shock.

"I was very surprised," said Lewis, who finished fourth in last Tuesday's election to newcomers John Guidice and Nathan Veseley and incumbent Pamela Resch. The lifelong City of Newburgh resident who has spent the past 19 years on the school board blamed his loss on backlash from the layoffs and other measures that the district had to take in order to deal with the slumping economy. He also noted that both the Newburgh Teachers Association (NTA) and the Civil Service Employees Association (CSEA) declined to endorse any of the candidates running in this year's election.

"I met with both groups and I understand they were upset over the layoffs and I guess that was their way of showing it," he said. "But at the same time I don't think they expected me to lose."

Given his long track record, Lewis said it's disappointing and unfair to have to depend on the support of a certain group in order to get elected. He insisted that voters should instead make their decisions based on a candidate's background, qualifications and history of success.

"I've been successful for 19 years," he said. "I've always worked very well with the unions and the administrators to come up with decisions that benefit everybody. I even got a letter from the NTA president that would attest to that. He said he was very sorry about the way things turned out."

Looking ahead, Lewis said he is exploring his options but has yet to decide if he will run for re-election in the future.

"It's hard but I will move ahead," he said. "The district will continue to survive."

NTA President Phil Cordella could not be reached for comment.

At the May 28 Newburgh Schools Board of Ed Meeting the Utility Tax proposition was passed by the Board of Education. Two board members voted no: I believe that the No votes were Resch and Woodhull.

This means there will be a 3% tax on utilities for residents of the Newburgh School district. This is likely to show up on utility bills in October or so. Noone seems really certain how this will look on bills, or precisely which companies will be collecting the taxes.

For other items at the meeting see May 28 meeting notes.

The meeting started at 7pm at the Board conference room. The room was crowded during the West Street School presentation. There were plenty of free seats after that. Board Member Fucheck lead the meeting.

There was a presentation by Principal Torres of the West Street School. She spoke about the bilingual program being offered to kindergartners at the school. There is a video about the program here. Students from the program presented poetry and songs in English and Spanish. This is a successful and well run program. The class sizes are small.

There was the usual update on building projects underway for the summer.

A board member asked if it would still be necessary to charge organizations useing school facilities or if that policy changes since the budget for next year passed (the policy was introduced this year because the district was operating on a contingency budget). Various administrators answered that as of July 1 the no-charge policy is resumed, but there would still be a charge if extra personnel need to be scheduled to cover an event (custodial, sound, security).

Mr. Collett, the District's extremely competent Directory of Transportation, spoke to the Board about bussing matters. He is promoting the adoption of language in the District's transportation contracts that gives the School District greater control over bus routing. By scheduling routes more efficiently, he expects significant cost savings. He also said it could be feasible to keep West Street School on an early schedule, without incurring a large expense. The budget for 2009-2010 school year anticipated West Street changing to a late schedule in order to save on transportation costs.

In the HR update it was mentioned that 500 people applied to 200 Extended School Year Program positions. There may be some postings for regular school year specialty area positions after June 15. HR has notified all employees that are to be laid off via certified mail, and is conducting meetings with the displaced workers over the coming weeks. Someone from NY State is expected to be available to meet to talk about unemployment issues. There was discussion about whether there should be a formal performance assessments for work done under "Schedule J Stipends". There was also a request from the Board to receive written material as backup for an administrative tenure recommendation.

Corrections are welcome via email at newburghedinfo@gmail.com, or post a comment.

This evening, Thursday May 28, there will be a "Public Hearing on Utility Tax - 7:15 p.m.". That's just before the regularly scheduled Newburgh School District Board of Ed meeting at 7:30 p.m. I guess they're not expecting many questions.

Here's some background information.

The Newburgh School District Board of Education met Wednesday May 27, 2009 at 5:00PM for about 45 minutes.

Meetings of the Board of Education are supposed to be public meetings.

It is possible that the subject matter of the meeting could only be discussed in executive session, so there may have been little for the Public to hear at the meeting. However, the Board does not have the authority to choose which meetings they announce and which they do not.

Tuesday's Times Herald-Record reports that Russ Agostero will be leaving the Newburgh School District to become superintendent at another school district. (The position of Assistant Superintendent for Secondary Curriculum and Instruction in the Newburgh School District will be a challenging one next year due to the closing of Heritage at Stewart and North Junior High School becoming a grade 9 only school for one year.)

Rondout Valley schools name superintendent

ACCORD -- The Rondout Valley School Board announced the appointment last week of Russell Agostaro as its superintendent of schools, effective July 1.

Agostaro was evaluated by five committees in the school district and chosen by the school board from among 35 applicants for the position. He is currently the assistant superintendent for secondary curriculum and instruction in the Newburgh School District, a position he has held for the past three years.

He has also served as the director of math, science and technology in Newburgh and as assistant high school principal in Arlington. He previously was a secondary science teacher for 12 years in Washingtonville.

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School District Budget: Yes.

Transport resolution: Yes.

Library budget: Yes.

Board of Education Members: Giudice, Resch, Vesely.