UNION SPRINGS - The Union Springs Central School Board of Education has decided how to spend the $839,873 of deferred building aid cited in the state comptroller's audit report that came out in August.

The board has unanimously agreed to propose a small building project that would utilize about $150,000 of the total building aid amount.

There would be no local share, said superintendent Linda Rice, because the other project expenses would be covered by an 80 to 82 percent state aid rate.

Rice said the project would cover only the essentials, such as light and ceiling repairs that need to be done in older parts of the building; updates for the hot water heaters, as they were installed in the 1980s; and security hardware for the school, which is a safety measure most modern school facilities have already. Rice said the project would need to be done during the summer because of asbestos removal during the ceiling and lighting work.

If the board wants to pursue the project during summer 2010, a vote to get public approval would need to occur in February, said Rice. The board also has the option to do the project in 2011.

The board determined that the rest of the money will go toward offsetting taxes using a schedule which would allow tax alleviation for the next couple of years, said Rice.

“We can continue to offset the tax increase as times get tough,” said Rice. “As we've always done, we need to prepare for the future.”

In addition, Rice and Marge Robbins, business administrator, said the board would possibly commit approximately $75,000 to an insurance reserve for employee liability claims and expenses the school's regular insurance would not cover.

“(The insurance reserve) is one reserve we don't have,” said Rice. “Our financial advisor said it's prudent to have one.”

According to Rice, the board must submit a corrective action plan describing these commitments to the state by Nov. 20 and the money must be spent by June 30, 2011.

Although the board agreed to spend the money on the small project and tax levy reduction, its members expressed concern about the time line of the project. Gov. David Paterson's proposed education cuts could present financial difficulties for the board should they become a reality. Because of this, some board members advised that the project be postponed until summer 2011 to accommodate any changes that may occur with state taxes.

“We're asked to vote on a school budget without solid numbers,” said board member Tom Weaver. “How can you do a budget without solid numbers?”

Staff writer Kelly Voll can be reached at 253-5311 ext. 239 or kelly.voll@lee.net.