OXFORD – Oxford, like all of New York’s public school districts, will face tough decisions when drafting its budget for the coming academic year.

“It’s going to take everybody’s input,” Superintendent Randy Squier told members of the district’s board of education on Monday.

According to Squier, anticipated reductions in state and federal aid, coupled with rising healthcare and retirement costs, will leave the district $1,169,000 short based on preliminary estimates.

“We’ve talked about the funding cliff,” he said, reminding the board that Oxford will lose the $832,000 lifeline it was given in stimulus money two years ago under the American Recovery and Reinvestment Act (ARRA). This will only be partially offset by the $243,000 the district has been allocated under the Education Jobs Bill.

As for state aid, Squier said the “best case scenario” would be for it remain flat. But he wasn’t optimistic that would occur. Minimally, he said, the district should expect a 5 percent reduction.

“The only thing that can save us is that we’re a poor, rural district,” the administrator reported, citing rumors in Albany that wealthier districts would shoulder the lion’s share of reductions.

On the expenditure side of the budget, the district is anticipating a 9 to 10 percent increase in healthcare premiums, an estimated $320,000 in additional expense. And retirement contributions will increase as well, by upwards of $260,000.

As for contractual salary and wage increases, those have yet to be factored in, according to Squier. The district is currently engaged in contract negotiations with all three of its employee unions.

“(It) does not help in planning a budget,” the superintendent said.

There is little doubt in anyone’s mind that drastic cuts and cost saving measures will be necessary to close next year’s budget gap. Particularly if a property tax cap is, indeed, passed. The wording of the current proposal dictates levy increases be limited to either 2 percent or the Consumer Price Index (CPI), which ever is lower. According to Squier, the CPI is currently 1.2. For a wealthy district, where a 1 percent levy increase generates over $1 million, that may not create concern. But at Oxford, a 1 percent increase equates to $44,000.