On Tuesday, June 18, the City of Ithaca voted to adopt a reduced school budget and a reduced plan to purchase new vehicles.
Previously, on May 21, Ithaca witnessed an unprecedented taxpayer revolt where the initial budget was voted down by a two-to-one margin and three spending critics were elected to the Ithaca school board.
The preliminary results of the revote were:
Proposition No. 1: Proposed 2024-2025 Annual District Budget
- YES Votes: 4,979
- NO Votes: 1,736
Proposition No. 2: Appropriation and Expenditure of Capital Reserve Funds
- YES Votes: 4,593
- NO Votes: 2,104
The voters adopted a reduced budget that would cut 48 positions and would increase total school spending by 2.8% instead of the 6.5% increase rejected in May. The schools believe that they can achieve the reduction through attrition and what Superintendent Luvelle Brown described as a “hiring chill” on filling some new positions.
If the voters had rejected the second budget proposal during Tuesday’s re-vote, the school district must adopt a contingency budget. Historically, this rarely happens. Under a contingency budget, the school district cannot increase its tax levy, which is the portion of the budget that is derived from property taxes. So, the voters approved a budget that cut 48 positions instead of the contingency budget that would have cut 87 positions.
In May, the voters also rejected a proposal to spend $3.2 million on new low emission buses. The voters on Tuesday approved a substitute proposal for $1.6 million. This will allow Ithaca to purchase two electric buses using an $800.000 federal EPA subsidy. It also authorizes two propane-fueled buses and three passenger vans.
Ithaca’s school enrollment is dropping while it is increasing in disabled, economically disadvantaged and English-learning students. Source ICSD
Consequences
In the wake of the taxpayer revolt, Superintendent Luvelle Brown announced that he will leave when his current contract expires in 2028. Typically, the contract is extended five years in advance of its expiration.. Lily Talcott, Deputy Superintendent, has also recently resigned to take a position as the new superintendent of the Tompkins Seneca Tioga BOCES.
The Ithaca School Board is appointing an advisory committee to negotiate with Cornell for a $10 million annual payment in lieu of taxes (PILOT). In 2021, Cornell and Ithaca schools agreed upon a $500,000 annual PILOT that was increased to $650,000 in the fall of 2023. This agreement expires in 2026. Cornell also provides free chilled water to air condition Ithaca High School. The Advisory Committee is gathering data on PILOTs paid by other Ivy League Schools. For example, although the University of Pennsylvania stopped its PILOT for unrestricted purposes, it did voluntarily pledge to donate $10 million per year for 10 years to fund removal of lead paint and asbestos from the Philadelphia public schools.
PILOTs are paid out of Cornell’s unrestricted funds, primarily tuition. In April, perhaps in response to displeasure over Palestine protests at Columbia, New York University, and Cornell, New York cut its Bundy Aid to these schools and 13 others. As a result, Cornell lost $1.8 million in annual unrestricted funds. Hence, most observers do not expect that Cornell will bail out the Ithaca schools with a both new and larger PILOT.
In the absence of an enlarged Cornell PILOT, taxpayers will expect a much more conservative fiscal approach from the Ithaca schools, particularly in light of declining enrollments.
