Economy bleak, C-R struggles to close budget gap

4/8/2020

By Jim Poole

Cobleskill-Richmondville’s 2020-21 budget picture isn’t pretty.
But with no increase in state aid and a fragile local economy, C-R will strive to maintain quality programs for students, Superintendent Carl Mummenthey told school board members Monday night.
Even before COVID-19 hit, C-R was wrestling with a smaller-than-expected increase in state aid and rising costs. The earliest budget talks had a $1 million gap between costs and revenue, Mr. Mummenthey said.
C-R reduced the gap to $600,000 and then to just about zero, he said, “and now we must cut another $450,000” because the state is cutting aid further.
“The state is in a fiscal crisis,” Mr. Mummenthey said. “They can’t give money they don’t have.”
Asking taxpayers to close that additional gap is unlikely. Taxable property wealth isn’t growing, and, more importantly, Mr. Mummenthey said, taxpayers are stressed, too.
A recent survey by the Schoharie Economic Enterprise Corporation found that responding businesses had laid off 545 workers. Also, many businesses closed.
“Our economy is fragile,” Mr. Mummenthey said. “We struggled out of the last recession, and this is a real setback.”
Nonetheless, C-R must close the 2020-21 budget gap. Mr. Mummenthey outlined possiblities, among them:
•Analyze money not spent in this year’s budget for savings.
•Consider not filling vacant positions for next year. “We’ll be looking at every position,” Mr. Mummenthey said.
•Freeze new purchases.
•Use fund balance, or savings in the bank, to help close the gap. “You have to be careful with fund balance,” Mr. Mummenthey said. “Once you use it, it’s gone. It’s not recurring revenue.”
•Review contracted services the district pays for, such as those with BOCES.
•Plan long-term, because the pandemic will likely affect future budgets beyond 2020-21.
Further complicating the budget is that the state will be considering reducing aid through “look backs” each quarter of this year and next.
“We’ve had mid-year cuts in the past,” Mr. Mummenthey said, “but not quarterly.”
If the pandemic hadn’t hit, C-R would adopt a budget this month and have a public vote May 19.
Now, Mr. Mummenthey said, the plan is to adopt a budget in early May and aim for a public vote June 8 or 15.
The goal is to keep a quality program for students, be sensitive to taxpayers and plan for the long-term, he added.
Mr. Mummenthey also praised the staff for enduring through the pandemic.
“I’m honored to lead this team,” he said. “We will climb our way back to better days. We will get through this.”