If the budget is defeated, the board has three options: present the same budget for another vote; submit a revised budget for a vote; or adopt a contingent budget.
If the budget is defeated twice, the board must adopt a contingent budget, by law. Under the tax levy cap law, if a district adopts a contingent budget, it cannot increase its tax levy from that of the prior year by any amount – a zero percent increase.
For Liberty, a contingent budget will cut approximately $2,680,796 from the proposed budget. The district would be subject to various limits and controls on how the money within the contingent budget is spent, and would have to charge fees for public use of school buildings and grounds.
“If a district must adopt a contingent budget, there can be no increase in the tax levy,” said Interim Superintendent Carol Napolitano. “We’d have to make significant reductions to our program budget should we have to adopt a contingent budget.”
Under contingency, the district would be subject to various limits on how the money within the contingent budget is spent, and would have to charge fees for public use of school grounds.