Info On Taxes

Will closing the Bridgehampton High School lower taxes? Tuitioning out the Bridgehampton high school students will not lower taxes as Mr. Conti states. His “analysis” is the same faulty and inadequate analysis used by him and Mr. Berhalter in their proposal to close the high school last year. This is the proposal which was denied by the board of education last year and which Mr. Conti and Mr. Berhalter then appealed to the Commissioner of Education only to be denied again. Mr. Conti states that the out of district tuition charged by the other districts is between $20,000 and $25,000. However, he fails to mention that these rates are for general education students only. All the surrounding districts have much higher rates for special education students. The figures from the NYS Education Department report entitled, “2008-09 Estimated Non Resident Tuition Report” are as follows: Sag Harbor Regular Ed. Special Ed.

Out of District tuition costs: $ 26,101

$50,746

Southampton Regular Ed.

Special Ed.

$23,425

$ 94,504

East Hampton Regular Ed. Special Ed.

$25,379

$53,305

(The figures Mr. Conti quotes for general education are in line with those in the 2007-08 report from the NYSED. These figures are for the 2008-09 year.)

Based on past enrollment figures, a realistic estimate of the number of students to be tuitioned to other districts is 50. Currently there are 61 students enrolled in the Bridgehampton High School. Projections for next year’s enrollment is also 61, made up of 57 students already enrolled in the school and 4 new students who have completed paperwork to enroll next year. There are an additional 18 students who have toured the High School and are interested in attending. However this number doesn’t include any of the children who live in Bridgehampton but attend private schools (there are at least 60 such children). According to the Conti, Ludlow, Gordon team, many of these families would like to put their children in public school but will not consider Bridgehampton School. If this is the case, there could be at least another 30 high school students to pay for. A more reasonable estimate is that only 10 high school students will join the public school ranks for a total of 60 students. At least 15% of these students are likely to be special education students (the current Bridgehampton High School has a higher rate of special education students than this). This would result in tuition costs of between $2.1 and $2.4 million. (See table below.) You can see how conservative this estimate is when you consider that Wainscott School tuitions only 42 students from grades 5 through 12 to East Hampton at a cost of $1.755 million for the 2009-10 budget. This is further emphasized when you consider that tuition rates for grades 5 and 6 are lower than those for high school. (http://www.hamptons.com/New-Schools/Main-Articles/6803/WainscottSchool-Board-Debates-Tax-Increase.html) In addition to tuition costs, transportation costs will also increase. A conservative estimate of these increased costs based on existing transportation costs is $350,000. This gives us a total cost of between $2 and $2.2 million depending on which school the students go to.

COSTS OF TUITIONING HIGH SCHOOL STUDENTS Sag Harbor Est. Out of District tuition costs:

Southampton

East Hampton

Reg Ed.

Special Ed.

Reg Ed.

Special Ed.

Reg Ed.

Special Ed.

$26,101

$50,746

$23,425

$94,504

$25,379

$53,305

51

9

51

9

51

9

$1,194,675

$850,536

(source NYS Board of ED.)

Number of Bridgehampton High School Students:

Tuition Cost: $1,331,151 $456,714 Total Tuition Costs (Reg. Ed. plus Special Ed.): Estimated Increased Transportation Costs

$1,787,865 $350,000

Total Cost: $2,137,865

$1,294,329 $479,745

$2,045,211 $350,000

$1,774,074 $350,000

$2,395,211

$2,124,074

As for savings from closing the high school: there are currently 13.5 middle and high school teachers (i.e. grades 7 – 12) at Bridgehampton School and an additional 2 special education teachers for this age group. The maximum number of teachers that could be eliminated is 9 because 6.5 teachers will be required to teach the middle school students and some 6th grade classes. This represents a savings of $1.11 million in teachers’ salaries and benefits. Adding further savings from reducing non-instructional staff ($90,000) and savings from purchases of books, computers, materials and supplies etc. ($125,000), we have a grand total $1.33 million in savings.

Savings From Closing the High School Teachers Salaries and benefits 7-12 $1,272,791 Total Number of Teachers 7-12 High School Special Ed. Teacher Total: Possible Teacher Eliminations

13.5 1.5 15.0 9.0

Teacher Salary Savings Special Ed. Total Salary:

$707,106 $146,415 $853,521

Teacher Benefit Savings: $264,592 Total Teacher Salary and Benefit Savings: $1,118,113 Additional Savings: Non instructiuonal staff: Books, Paper, Computers, Materials and Supplies

$89,895 $125,000

Total Savings: $1,333,008

Comparing these savings with the increased costs, you can see that by closing the high school the school budget (and consequently the tax levy) would actually increase by between $800,000 and $1,000,000.

Total Cost: Total Savings: NET INCREASE IN BRIDGEHAMPTON SCHOOL BUDGET:

Option 1:

Option 2:

Option 3:

Sag Harbor

Southampton

East Hampton

$2,137,865 $1,333,008

$ 2,395,211 $1,333,008

$2,124,074 $1,333,008

$804,857

$1,062,203

$791,066

There are some additional savings the school could make (for example consolidating the positions of business administrator and superintendent). These savings have not been included because they are not dependent on closing the high school and are already under consideration with the High School in tact. They would total approximately $200,000 and so even if these savings were included there would still be a net increase in the school budget after closing the High School.

Even allowing for “discounts” on the tuition rates charged by the other districts it is clear that closing the Bridgehampton High School will not result in lower taxes and is much more likely to result in higher taxes over time.

The reason for the increase is that because we are still maintaining an elementary and middle school, all of the fixed overhead costs of the building, administrative staff , etc must still be covered, with or without the high school. If the estimate of only 10 additional students enrolling from the number who currently attend private schools proves too low and the school population increases even more, this situation will only worsen. Whereas if we keep the high school open and the population increases we could easily absorb an additional 40 high school students without significantly increasing the budget.

Average Increase in Bridgehampton School Budget of tuitioning HS students to Sag Harbor, Southampton and East Hampton Average Increase in budget $1,820,567

$1,509,059

$1,197,551

$886,042

$574,534

Based on 50 HS Students

Based on 60 HS Students

Based on70 HS Students

Based on 80 HS Students

Based on 90 HS Students

Moreover, if you tuition your students to another high school you loose control, not only of the quality of education your students receive, but also of a large part of your budget. To put this risk in perspective, over the last 5 years the Bridgehampton School budget has only increased by 2% whereas East Hampton’s has increased by 33%; Sag Harbor 16.5% and Southampton 19% over the same time period.

Increase in local school budgets over last 5 years 135 130 125 East Hampton: 32%

120

Sag Harbor: 16.5% 115

Southampton: 19%

Bridgehampton: 2%

110 105 100 2006

2007

2008

2009

2010

The parents and children actually enrolled in Bridgehampton School are highly satisfied with the school. The school is continuing to improve. It offers a safe, individualized learning experience where children do not fall between the cracks.

% Graduates Receiving Regents Dipolma 2008 Regents All Graduates

General Ed only (excluding Special Ed.)

100 86 79

Bridgehampton

84

Southampton

89 82

East Hampton

84

87

Hampton Bays

85

89

Riverhead

92

92

Sag Harbor