Council to Review Budget With $12M YPS Shortfall

By Dan Murphy

As the Yonkers City Council reviews and debates Mayor Mike Spano’s proposed $1.15 billion budget for the next fiscal year, which begins July 1, there are divisions on which direction the council will go, with the three republicans more inclined to cut Spano’s budget and get the property tax down from 3.93 percent, and the three democratic councilmembers listening to the Yonkers Pubic Schools and Superintendent Dr. Edwin Quezada, who is seeking an additional $17 million above and beyond the $12 million increase that Spano has proposed in his budget.

Last week, Spano proposed a budget that includes a 2.5 percent tax levy increase, which equates to a 3.93 percent property tax increase. Under the state-mandated property tax cap guidelines, Yonkers property owners will get their rebate checks from the state because, with allowable exceptions, Spano’s budget plan does stay below the cap.

The biggest issue, as always, is funding for YPS. Currently, the YPS, despite getting an additional $27.5 million from the state and an additional $12 million from the city in Spano’s budget, still has a $17 million budget hole.

Spano made a return trip to Albany after receiving an additional $27.5 million in education aid, and asked for more. While the possibility remains or additional funds coming from Albany, the possibility that the entire $17 million will be covered is next to impossible. Maybe another $1 million or $2 million for YPS will come from Albany, if anything.

One way the city can reduce the $17 million YPS hole is to bond out the cost of buying books, which for the 30,000-plus YPS students is $5 million. Although this practice is not supported by a few on the council, notably Council President Mike Khader, it is a quick fix and Band-Aid approach that is usually required.

Bonding the cost of books brings the YPS budget down to $12 million, which may be the amount Quezada and the Board of Education may be forced to cut. As one councilmember told Yonkers Rising, “In a budget of $645 million, if they have to cut $12 million, that is 2 percent, and that is not an unreasonable request. We all have to tighten our belts.”

On the city side of the budget, Spano has proposed the hiring of 25 new employees. Out of that 25, five are in the building department and are needed to help collect fees and are said to be safe. The other jobs proposed by Spano are being eyed by council republicans as an area to cut, and reduce the tax increase.

City Council Minority Leader Mike Breen said: “We have a lot of work to do. I think we can do a little better than a 3.9 percent property tax increase. I’m also not sure there are four votes to give the YPS an additional $12 million, as proposed in the mayor’s budget. This is a tough year, coming off a budget last year that raised property taxes by more than 6 percent.”

One unique aspect of the City of Yonkers budget is the maintenance of effort, which means that whenever the city increases its contribution to YPS, that increase becomes permanent and can never be reduced. So the $12 million in additional YPS funding that Spano has proposed will put the total city contribution at $265.5 million.

Khader sent out an email blast last week about the budget, which stated: “This week, Mayor Spano released his proposed $1.25 billion budget for FY 2020, and my initial review of the proposed budget is one of cautious optimism. While it proposes the largest increase in the city’s maintenance-of-effort for Yonkers Schools at $12.1 million, the fact remains that the Board of Education still is facing a significant deficit of $17.6 million.

“In the coming weeks, the Board of Education will have tough choices to make and the council will be doing everything in our power to make sure that city dollars reach the classrooms that so desperately need them. I look forward to working with Dr. Quezada and the Board of Trustees to make sure our kids get the quality education that they deserve.

“Some other key points from mayor’s proposed budget include: No proposed City of Yonkers layoffs or cuts to city services for the upcoming year; a 3.93 percent tax rate increase and tax levy increase of 2.5 percent; and added positions for the Department of Public Works and Housing and Buildings.

“While I’m pleased to hear there won’t be any layoffs or cuts to city service, I’m less pleased about the prospect of paying more taxes. We’ll be evaluating these requests for more staffing very closely, and will advocate on behalf of taxpayers for a lean, trim budget of fiscal responsibility.”

“As I stated in last week’s newsletter, with budget season right around the corner, the council will be holding budget hearings with the various departments to hear how they will be spending your money in the upcoming year. I invite you to join us in the coming weeks so that you can stay in the know, sign up to speak at one of our public hearings to let your voice be heard.

“As always, feel free to reach out to my office with any suggestions or concerns about how we can help to improve the quality of life of those who call Yonkers home. My office can be reached by sending us an email at councilpresident@yonkersny.gov or by giving us a call at 914-377-6060,” wrote Khader, who is currently reviewing the proposed budget.

The Yonkers City Council will hold budget hearings starting next month.