Financial Impact
The $26 million capital improvement project will not increase future taxes. The District’s ability to fund the project without increasing school taxes is a result of utilizing state building aid (86%), and replacing existing debt service payments that will be retiring in 2024.
New York State distributes expense-driven building aid on school construction projects. Each school district has a unique building aid ratio. For Whitesboro, 86% of every dollar spent on construction will be reimbursed by New York State. In addition, the District has budgeted money for debt on previous capital projects that will soon be paid in full.
As a result of careful financial planning, and the option to leverage our high state building aid, Whitesboro CSD is able to eliminate the impact on school taxpayers while improving the facilities for the community and investing in the school district’s future. School taxes will not increase as a result of this project.
ZERO IMPACT TO TAX LEVY
Leveraging state aid:
State aid reduces the cost for local taxpayers. Principal and interest costs for eligible capital improvement projects are reimbursed by New York State at rates specifically calculated for each district.
Strategic Debt Service Payments:
The District was able to eliminate additional local taxes by replacing existing debt service payments that will be retiring in 2024 with new debt service payments that are associated with this proposed capital project.
PROJECT TIMELINE
The District will utilize a multi-phase approach to this project in order to:
- Maximize state aid
- Minimize disruption to instruction
- Minimize disruption to athletic programs/extracurricular activities