JORDAN - As the Jordan-Elbridge Central School District designs its 2009-10 spending plan, its leaders are eyeing a $1 million surplus in this current year's budget and are deciding what to do with it.

Last fall, when Gov. David Paterson proposed midyear cuts to state education aid to deal with a budget deficit in fiscal 2008-09, district administrators were instructed to tighten their belts to save as much money as possible to offset any take-backs.

Since that midyear cut proposal fizzled out and fuel prices plummeted, coupled with the district receiving more state aid this year than anticipated, Jordan-Elbridge managed to save approximately $1 million.

Of that amount, 4 percent will be put toward the district's fund balance - which is a rainy day fund.

While the board of education appears committed to giving back a portion of the remaining money to the taxpayers by way of offsetting the 2009-10 tax levy increase, the board is debating how much to give back.

Board member Diana Foote said that J-E has one of the highest-rated fund balances in all of Onondaga County and right now district residents are hurting. She asked why the district overestimates expenditures and doesn't budget to the more actual numbers,

“Our residents are facing unemployment, pay cuts, increased contributions to health insurance, if they still have it,” she said. “We need to understand that instead of budgeting for the cushion, we have problems now.”

Superintendent Marilyn Dominick and Assistant Superintendent of Business and Finance Bill Hamilton said there are a lot of variables in the cost of health insurance, special education and fuel, and there is a need to keep the district's reserves healthy so it can dip into it if necessary.

“I want us to be real careful of spending down our reserves,” Dominick said. “Each one was established for a special purpose.”

Dominick said that if the board opted to give the entirety of the remaining money back to the taxpayers, it would not be able to offset the 2010-11 tax levy increase.

Board member Noel Hotchkiss said the district would be smart to have money in hand during the next budget cycle as this fiscal crisis will likely not be resolved this year.

“The year after next we better be in a position where we're holding some money,” he said, “so we can soften the impact on our taxpayers and children.”

The board has until the end of April to adopt a 2009-10 spending plan. Currently, the district is looking at a budget number of $27,539,092, which is 2.9 percent more than this current year. This budget plan would carry an estimated tax levy increase of 2.32 percent. Taxpayers will vote on a budget during a statewide vote May 19.

In other news:

* The board will put up two referendum during the May 19 vote.

The first is asking taxpayers to approve the purchase of up to six 70-passenger school buses at a cost of no more than $615,000.

The other is for the establishment of an Operations Equipment Capital Reserve Fund. Up to $250,000 can be put into that fund for the purpose of financing the purchase of equipment and related incidental costs. It will exist for five years, after which point taxpayers will be required to renew the fund for another five years.

* The next board meeting is scheduled for 7 p.m., April 22 at the high school library.

Staff writer Alyssa Sunkin can be reached at 253-5311 ext. 239 or alyssa.sunkin@lee.net