In the first official school budget work session of the year, Garden City superintendent Dr. Robert Feirsen presented the budget overview and revenue projections at Garden City High School Tuesday evening.

Feirsen introduced the superintendent's recommended proposed budget for 2012-2013, which stands overall at $104,976,752. This represents a budget-to-budget increase of 3.82 percent or $3,859,693. The proposed tax levy increase will be 4.25 percent, with the maximum tax levy at 4.3 percent.

Approximately $89,094,624 of this budget is proposed to be raised by property taxes - representing 84.87 percent of the recommended budget without including STAR into the equation, according to assistant superintendent Albert Chase.

"To pass the school budget at this level, we take a 50 percent plus one majority," said Feirsen, acknowledging the current difficult fiscal environment. He later explained that a contingency budget would now require the district to operate at the previous year’s budget - meaning $3.8 million would have to be cut.

In designing this budget, Feirsen explained that they were looking to achieve a balance that provides good programs with a "level that the community can afford." The 2012-2013 budget preserves programs and has no major changes proposed. The district will utilize some reserves and will move forward reducing the staff "judiciously" if needed due to declining enrollment, Feirsen said.

Feirsen highlighted the difficulties the district faces this budget season in light of the 2 percent tax levy cap. He explained that the tax levy limit is actually determined by an eight-step formula. Garden City relies heavily on property taxes - generally around 90 percent, he added.

He clarified that the cap is not really a cap, but is composed of two thresholds for approval of the district’s budget. The first is a simple majority of votes - 50 percent plus one. The second is a "supermajority" of voter approval - 60 percent - if the tax levy goes beyond the limit.

"We face a number of challenges in this ... it is extraordinarily complex if you look at that formula," he continued.

The state will provide aid for Garden City at 4.4 percent - about 4.6 million - of total revenues. The district will not see a substantive change on state aid from the 2011-2012 school year. Grants have also been declining in value over recent years and the district is "eligible for little federal aid," according to the presentation.

"Overall, little has been done to help address the things that are driving up our costs like pensions and unfunded mandates," said Feirsen, noting that the district is facing additional "passed down" costs.

According to Chase, other sources of revenue besides property taxes and state aid include PILOT, appropriation from reserves, local revenue, STAR reimbursement and fund balance allocation. Fund balance allocation will be maintained at $2.8 million.

"Over the course of the last six years, we have lost over 21 percent of our state aid and nearly $1.3 million in state aid," Chase said. "Had we had that money, that would have been a reduction in taxes."

The Board of Education will take into account the superintendent's recommendation on the budget, as well as public comments during the budget process. The board is expected to adopt the budget April 17. A public vote will take place May 15.

"This is the superintendent's budget and it is our job to mold it to what the community can tolerate," board president Colleen Foley said.

The next budget presentation will take place Tuesday, Feb. 14, at 8:15 p.m. at Garden City High School during the board's general meeting.