State Comptroller: Wyandanch's 2020-21 budget could face $2.7M shortfall

Wyandanch residents approved a $71.7 million operating budget for the... — Wyandanch residents approved a $71.7 million operating budget for the 2020-21 school term. Credit: James Carbone

By John Hildebrandjohn.hildebrand@newsday.com @johnhnewsdayJuly 17, 2020

Wyandanch school authorities who have grappled with budget crises for years face a newly uncovered need to cut a potential $2.7 million from their 2020-21 budget, because they underestimated expenses for sports and other programs, the state comptroller's office concluded.

In a recent letter to the district, Deputy Comptroller Elliott Auerbach stated revenue and expense projections used in drafting Wyandanch's $71.7 million budget were "not reasonable," and that local officials failed to document adequate funding for several priority items. Among these was a much-publicized effort to rebuild the district's athletics program, which was cut in June 2019, then partly revived with donated money.

The 2,800-student Wyandanch district is rated the poorest district on Long Island in terms of taxable income and property wealth. The state's review ran from May 13 to July 1.

The state's latest findings were surprising in one sense: The 2020-21 budget targeted for criticism by state auditors was approved by Wyandanch's school board and ratified by local voters in mid-June, even as a fiscal expert appointed by the state Education Department had begun working with the system.

Superintendent Gina Talbert, who has been in charge of the district since August 2019, disagreed with the state's findings in a phone interview Friday, and said the district was drafting a response that she hoped would "clear up any misinterpretation." She declined to elaborate on the specific points the district would make in its response.

"The district is working very hard to restore financial integrity and the confidence in our community," Talbert said. "With that in mind, we will continue practicing good stewardship."

Here are some spending areas where the Comptroller's Office found discrepancies and recommended corrections:

In the area of sports, the budget included $500,000 for contractual obligations, which was more than five times the average spent on this line in previous years. Furthermore, there was no specific budget for athletic equipment, which had cost an average $7,623 annually in the past.
No funding was provided in the budget for stipends, which normally cover payments to staff for extra duties such as coaching teams, advising student clubs or chaperoning dances. In previous years, the district paid an average $225,362 annually for such services.
The district's appropriation for electricity could be underbudgeted by about $200,000, auditors said. They cited the fact that the amount budgeted was $480,000, which was about $100,000 less than the previous year and more than 40% less than the average for the past four years.

The state monitor, Al Chase, a longtime business official in other districts, was assigned to Wyandanch on May 1. This was for a five-year term for $145 per hour at a maximum 24 hours weekly. Chase did not respond to a call from Newsday on Friday.

Education department officials, who received a copy of the comptroller's report, said they remained committed to working with Wyandanch authorities and Chase to "remedy the long-standing fiscal and governance issues in the district and to ensure students have access to high-quality instruction, programs and services."

Department representatives added that Chase would begin overseeing Wyandanch's budget process, beginning with the 2021-22 school year.

Wyandanch's approved budget carries a 3.3% increase in taxation. That exceeded what would be the district's normal limit under the state's tax-cap restrictions, and required a 60% majority vote by residents to win approval.

The state law establishing a fiscal monitor for Wyandanch also authorized the system to borrow up to $4.5 million to liquidate its deficit. District officials said Friday that the school board has approved $3.1 million in borrowing, and that the transaction is being negotiated.