NEW SCOTLAND — Superintendent Brian Hunt examined the district’s current and past finances at a school board meeting last Monday; the board is set to begin its budget season at a special meeting next week.

“We are in a sound financial position,” Hunt told the board. “We are able to maintain our programs.

The state tax cap, held at 2 percent the last few years, is expected to be near zero in 2016-17. With some exceptions, the state’s property tax cap limits the amount local governments and most school districts can increase property taxes. Any increases must be the lower of 2 percent, or the rate of inflation, according to the state comptroller’s office. The consumer Price Index did not rise this year.

“Voorheesville is dependent on the tax levy for the majority of its revenue,” Hunt said.

In 2001, Voorheesville received 37 percent of its budget from state aid; this year, the percentage of the budget covered by state aid has dropped to 24 percent, he said. The district’s current budget is $22.8 million.

Rates have varied throughout the last 15 years, he said, calling the budgets during the recession from 2008 to 2012 the “tough years.”

“At one time, we were fat and happy,” he said. “Now, we’re in the middle.”

In Hunt’s presentation of the budget data over time, he said, “Voorheesville is dependent on state aid increases to maintain its programs, and we must be careful to control cost increases during each budget cycle.”

Hunt gave examples of expenses the district faces now: Teacher salaries are budgeted this year at $5.89 million of the district’s total $10.85 million spent on employee salaries; $6.4 million is allotted to health benefits; and $323,000 is budgeted for all athletics. Employee salaries and benefits comprise 75 percent of the district’s budget, he said; this is typical of school budgets.

Hunt said that the appropriated fund balance is larger than it was the past few years, and was used to preserve district programs. The balance now is between $500,000 and $700,000, he said, but the district must reduce it to $250,000 for “financial health.”

 “We will need about $600,000 per year more [from state aid] to maintain” programs, Hunt said, assuming a 2-percent increase in spending. “We know this is coming. The out years are worrisome, depending on the tax levy, because we’re so dependent on it,” he said.

He said that funds used to cover the Gap Elimination Adjustment shortfalls in the district’s budget — about $450,000 — could help with increased expenses next year, but then the funds would be wiped out.

The New York State Senate passed a bill on Jan. 11 that would get rid of the Gap Elimination Adjustment this year and end its effect on state funding to public schools. The GEA was created in 2010 under Governor David Paterson as a way for the state to deduct from school districts’ state aid allocation a formulaic amount to help the state with its own revenue shortfall.

If passed by the New York State Assembly and signed by the governor, the bill could restore about $434 million in GEA cuts slated for schools next year, according to the Senate.

Voorheesville must maintain funds to cover basic operating expenses, like roof repairs and water heater replacements, as in a home, Hunt said.

“Literally, we have to do those things,” he said.

The district must also keep funds for unexpected expenses; for example, students with needs greater than Voorheesville can provide may move into the district, he said; the district would then have to pay for special outside services.

“You’d better have some reserves to pay for that, because you are going to have to pay for that,” Hunt said.

Hunt also suggested that Voorheesville could consider a large project within five years, at which time the middle-school wing will be paid off.

“Any district gets aid on a project,” he said, noting that Voorheesville’s aid is around 60 percent. “You’ve got to come up with 40 percent.”

Hunt and the board also discussed the finances of district updates to technology and safety in a brief public hearing on the Smart Bond Investment Plan, during which no one from the public spoke. In 2014, New York State voters approved the Smart Schools Bond Act to invest $2 billion in schools to finance educational technology and infrastructure.

Hunt said that the state-sponsored bond would reimburse districts for 100 percent of costs for items like these chosen by Voorheesville: $105,728 to replace 118 teacher desktop computers; $2,984 for security cameras; and $36,250 for interior doors that can be locked from within for safety reasons against intruders.

The average age for district teachers’ computers is seven years, Hunt said. The computers “struggle with newer software, as you might imagine,” he said.

Voorheesville’s Smart Schools Investment Plan is slated to be approved by the school board at its special budget meeting at the high school on Jan. 25 at 7:30 p.m.