Financial incentive

If Ripley and Westfield Central Schools were to merge, each would receive different financial benefits from the other, according to consultants.

“Each district will win but differently,” Consultant Dan Porter of School Efficiency Services said. “The advantage can't be exactly the same in each category. Ripley will benefit most from a decrease in the tax rate while Westfield's benefit is more in terms of debt, past and future.”

Financial consultant Roy McMaster was invited to the latest meeting to present the financial aspects of the merger, focusing on the merger incentive aid. According to McMaster, the schools, if merged, will receive a total of $20,222,425 in incentive operating aid.

This aid will be distributed over a period of 15 years. For the first five years, the merged district would receive $5,321,692. On the sixth year, the aid percentage begins decreasing until year 15 when it reaches zero.

With a third of this aid applied against the tax levy, Ripley stands to benefit the most by bringing its tax levy down from $35.72 in the projected 2015 rate to $27.10.

“Westfield will benefit by having a more stable tax levy, but not so much a decrease,” Porter said. Westfield's projected rate if unmerged in 2015 is $27.12.

The big benefit for Westfield would be in the building aid available to them through the merger, McMaster said.

Westfield currently receives 88 percent aid from the state for building aid, which means 12 percent of the capital project comes out of taxpayers’ pockets. If merged, that number would match Ripley's current building aid of 98 percent.

“A merger would mean six times more aid for Westfield in this area,” McMaster said.

For general fund expenses per student, both districts would benefit in a merger.

“Both win in the concept of critical mass with the larger number of students and resources,” Porter said. “The cost of a program is the same no matter how many students are enrolled; therefore, if you increase the number of students you decrease the cost per student.”

The consultants asked the committee to begin discussing the student housing options of a merged district.

“You don't have all the information you need to make this decision yet, such as transportation, etcetera,” Porter said, “But what we would like from you is a direction in which the board is leaning so we know how to proceed.”

The committee discussed three options: pre-k to fifth grade remain in home community, all sixth to eighth grade students to Westfield, all ninth to 12th to Ripley; pre-K to fifth remain in home community, all sixth to eighth to Ripley, all ninth to 12th to Westfield; or pre-K to sixth remain in home community, all seventh to 12th to Westfield.

The next merger study meeting will be held at Ripley Central School on July 10 at 5:30 p.m.

http://www.observertoday.com/page/content.detail/id/503449.html?nav=5047

Business Financial Services

Financial incentive