For the past few meetings, discussion has ensued regarding non-resident tuition in the Fredonia Central School District. During the April 27 regular Board of Education meeting it was requested that a cost-benefit analysis be prepared for review.
Before presenting his findings, Business Manager John Forbes reminded everyone again that he is a tuition parent and that all of the data and calculations made in his report are readily available in one form or another.
The report presented looked to answer several questions including: What would the impact be on the budget if the rate was increased, how would it affect the number of non-resident students attending, would a decrease in the number of non-resident students significantly affect class sizes, and would an increased rate in tuition increase the potential number of collection/residency issues? If the non-resident tuition rates were increased significantly, how many non-resident students would then move into the district and rent or purchase homes, thereby not reducing total enrollment, with no additional revenue?
"If you were to purchase a home in Fredonia, that home in one form or another is already on the tax bill so there's no increase in taxes to the district," Forbes said.
"And even if you come into the district as a renter, even though it's rolled into your rent payment and the landlord is paying school tax, there would probably be no increase to the district there," he added.
If a decision was made to move to a policy of elimination of all non-resident tuition students, it would result in the an immediate decrease of $105,000 on the revenue side of the budget.
With an average reduction per grade level of 4.33 students, would there be any offset on the loss of revenue through cuts on the expenditure side of the budget? Non-resident tuition for grades K-6 were as follows since 2006-2007: 23 students in 06-07, 40 in 07-08, 35 in 08-09, and 24 in 09-10. Non-resident students in grades 7-12 were as follows since 2006-2007: 29 students in 06-07, 30 in 07-08, 28 in 08-09, and 28 in 09-10. The average number of tuition students since 1985-86 is 60.96 per year. The 2007-08 number increased due to the closure of St. Hyacinth's School.
Starting in 2004-05, the Board enacted a policy whereas the non-resident tuition rates for each subsequent year are to be increased by the percentage increase in the tax levy as approved by the voters each May. In addition, the Board amended the policy to include the addition of $300 to the 7-12 rate, per year, starting with 2009-10.
Eight of the 44 non-resident student families attending the District have multiple children; none with more than two children, according to Forbes. None of the current 52 non-resident students are receiving special education services. The 52 non-resident students are comprised from: 5 Brocton, 2 Cassadaga, 2 Westfield, 1 South Dayton, 4 Forestville, and 38 Dunkirk.
The state rate in 2008-2009 for K-6 was $4,302, and for grades 7-12 the rate was $7,632. With 52 non-resident students using the current rate the district would receive a total potential revenue for 2009-2010 of $118,532. That number would total more than $300,000 using the state rate. If 50 percent of the students opted out due to an increased rate, the district would still receive an estimated $157,000 in revenue while decreasing class sizes an average of 2.16 students per grade level.
"A Town of Pomfret home with an assessed value of $20,440 (market value of $100,000) has a school tax due of approximately $1,979.00," Forbes said. "A non-resident family with one student pays $2,084.00 for Grades K-6; $2,447 for Grades 7-12. A non-resident family with two students pays $4,168.00 for Grades K-6; $4,894 for Grades 7-12."
According to the NYS School Report Card Fiscal Accountability Supplement (the most current year released is 2007-08); the Instructional Expenditure per pupil is $8,782.00.
"There's probably 12 or 15 different ways you can look at figures and try and come up with something that is an equitable cost per student. If you were to take the Total Budget proposed for 2010-11 and divided that by the Full District Attendance ($27,381,166 by 1,572 students, the cost per student is $17,418.04," Forbes noted. "If you were to take the Total Tax Levy proposed for 2010-11 and divided that by the Full District Attendance ($13,902,999 by 1,572 students), the cost per student is $8,884.14."
Board member Edith Byrne questioned why the $8,700 figure on the district report card for cost per student exceeds the maximum amount the Seneca Falls formula allows the district to charge for a tuition student. Another difficult question to answer according to Forbes is whether or not the district receives more or less aid per student lost or gained. While it is part of the foundation aid formula, it is not the basis.
"This is a very difficult thing to look for. If you look at the expenditure side of the budget and you have one student move out, whether resident or non-resident, I'm taking nothing out," Forbes said. "If you took out a group of 10,12 or 15 at one grade level then certainly there would be all kinds of things you could look at including staffing, supplies, materials and scheduling. But the way the tuition is broken out across the district right now it's difficult to point to one set expenditure figure."
The District is currently carrying an unpaid balance of approximately $7,000 comprised from 10 families since 2005-2006. Forbes also noted the few districts he spoke to are using the state formula, noting they did not have many tuition students.
Board member Michael Bobseine informed the board he would be looking for a vote on accepting a tuition policy he recently proposed during the next regular board meeting on May 25.
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