GARDEN CITY PUBLIC SCHOOLS. PROPOSED BUDGET Overview and Revenue Projections

Transcription

1 GARDEN CITY PUBLIC SCHOOLS PROPOSED BUDGET Overview and Revenue Projections February 10,

2 Please remember: Tonight s presentation is the first step in a comprehensive review and discussion of the administration s proposed budget. It is a working document, not a finished product. The budget adopted by the Board of Education and presented for approval on May 20 th will reflect input from the community. 2

3 The Budget Development Process District Administration Recommendations Tonight s presentation Citizens Comments (including focus groups) Board of Education Community Groups (PTA, SEPTA, TMA, FOM, etc. ) Educational and Budget Plan for

4 Budget Figures and Drivers Tough Times Get Even Tougher: The Tax Levy Cap: How the Cap Works and the Challenges It Presents The Proposed State Budget: Little Help for Garden City The Governor s Proposed Tax Rebate : Another Reduction in Local Control of Our Schools The Budget Design Process, Principles and Priorities The Return on the Community s Investment in Its Schools The Revenue Picture and State Aid Q & A Tonight s Agenda 4

5 Proposed overall budget: $109,329,898 Budget to budget increase: $1,727,532 or 1.61% Projected tax levy increase (with STAR): 1.67% Maximum Allowable Tax Levy: 1.67%

6 Budget Drivers Expenditure Increase in $ Budget Impact % Tax Impact % Pension Pension contributions alone are responsible TRS 704,637 for about half of the tax ERS 93,124 increase. Subtotal 797, Other Benefits 780, Debt Service 159, Total 1,738,

7 The Tax Levy Cap: How It Works and the Challenges It Presents 7

8 Not exactly a cap School Budgets and the Tax Levy Cap Instead, requires a much higher level of voter approval ( supermajority ) if the proposed property tax levy increase goes beyond the tax levy limit Supermajority = 60% of voters must approve There is an 8-step formula for determining the tax levy limit" 8

9 What Is Exempt from the Tax Levy Limit? Debt service for capital projects (bonds) Pension contributions rate increases above 2%. This year, neither the TRS rate increase nor the ERS rate increase exceeded 2%. As a result, no portion of the pension expenditures increase is exempt from the tax levy cap. Extraordinarily high legal settlements (Garden City has no such settlements.) There are also 2 adjustments that can be made to the district tax base calculation Tax base growth factor: adjusts for increases in brick and mortar development -- actual growth in the number of properties in the school district, not increases in property value. Garden City has a very low growth factor for :.0022 Costs and/or savings from the transfer of function(s) from one local government to another, to be determined by the Office of the State Comptroller (OSC ) Garden City has not been advised of any new transfer of function changes. 9

10 How is the tax levy cap computed?

11 School District Tax Levy Cap vs. Other Government Tax Levy Caps The School District cannot initiate special fees (for athletics or clubs, for example) to supplement revenues provided by property taxes Only school districts are required to have their budgets approved by a majority or supermajority of voters Other municipalities need have only a majority or supermajority of the governing body The power to borrow money is strictly limited for school districts. Bonding can be used only in a few circumstances, and often requires a referendum. 11

12 The Tax Levy Cap is NOT A limit on the tax increase in dollars that an individual property owner might pay A limit on assessment changes A direct control on the tax rate An end to voting on school budgets A 2% cap on property tax increases or any tax increase A one-year issue An effective way to control costs and ensure high quality 12

13 Challenges for the School District Budget in the Era of the Tax Levy Cap The tax levy cap gives no votes more weight (1.2) than yes votes. The cap limits the decision-making capacity of elected local officials and thereby reduces local control of the community s schools. 13

14 This Year s Tax Levy Cap is 1.67% (Last Year: 3.91%) Why is the cap so much lower? The cost-of-living adjustment factor is just 1.48%. There was little increase in real property within the school district. The contribution rate for the Teachers Retirement System (TRS) increased significantly in dollars, but did not rise above the 2% contribution rate increase threshold that would raise the tax levy cap. The district has completed its borrowing for the 2009 School Investment Bond. 14

15 This Year s Tax Levy Cap is 1.67% (Last Year: 3.91%) Why is the cap so much lower? The district refunded old bonds; the lower rate on the new issue reduces interest payments and thereby reduces the cap. Increases in Building Aid, one type of state aid, reduces the tax levy cap: unfortunately, this aid category is the one area that increased under the Governor s proposal. 15

16 The Governor s Property Tax Rebate Proposal The proposal is designed to make it even harder for communities to exceed the tax levy cap, even if a majority of the voters agree to it. The Governor has proposed property tax relief that would provide a rebate or credit to property owners for but only if the school district s tax levy increase is below the property tax cap. It is estimated that such rebates would range from $100-$250 per household. 16

17 The Governor s Property Tax Rebate Proposal In , the rebate would only be granted if our school district tax increase remained below the tax levy cap and Nassau school districts together achieved tax levy reductions of at least 1%. The details are vague: the percentage tax levy savings would be computed on a regionalized basis, with the region s largest district serving as the plan leader and having the most weight in decisions. In the next three years, tax levy reductions of an additional 1% each year regionally would be required, and all school district tax levy increases would still have to be under the tax levy cap in order for residents to receive any property tax rebate or credit. Districts that fail to achieve the savings could have state aid withheld. The largest school district would have most weight in the decision-making process. 17

18 Challenges for the School District Budget in the Tax Levy Cap Era The tax levy cap is often explained simplistically in the media, which makes it difficult for many to appreciate how it operates Garden City relies extensively (over 90%) on property taxes for the funds that allow it to operate its programs. Eligible for little federal aid, and these grants vary from year to year State aid provides only 4.58% of total revenues. State aid has been reduced by approximately 13.5% just since Garden City receives no Race to the Top funding Projected state aid has decreased. Little revenue is generated from interest on deposits, fees, etc. 18

19 Budget Pressures Escalate 19

20 State Aid: Dismal Other than property taxes, the biggest source of revenue for the school district is state aid. The Governor s school aid proposal reduces aid to Garden City by $14,682. The proposed budget again freezes Foundation Aid, the basic state grant. No consideration is given to the cost-ofliving on Long Island. State aid since 2008 has decreased by 13.5%, even while mandates have increased, technology is changing tremendously, the need for improved security at our schools is great, and the tax levy cap has been imposed. Loss of state aid reduces/eliminates funds vitally important for staff development, curriculum development, academic support, and other initiatives devoted to making sure our students master the high quality, multifaceted curriculum required to be career and college ready and be prepared for an active role in their community. 20

21 State Aid: Dismal The Governor s school aid proposal continues to take away from the school district funding to which it is entitled by state aid formulas. This reduction is known as the Gap Elimination Adjustment (GEA). The GEA takes money that should be going to school districts and puts it in the state s own budget. The GEA has reduced the state aid Garden City actually received from New York State by $3,141,513. These funds could have been used to enhance or save programs for students. 21

22 Mandate Relief The Governor s budget proposal contains no new initiatives for significant mandate relief. 22

23 Unfunded: The Technology Imperative State mandated, on-line testing is still proposed for On-line/digital curriculum content is the most current-- but it is costly! Many devices will be available for use. Continuous investment needed for maintenance and enhancement of infrastructure and network security. Devices have proliferated, and the district has to remain current. Staff development is essential. Technical support staff have taken on significant. additional responsibilities, stretching resources to their limit and beyond. 23

24 24 The Governor s Budget Proposals: Punishing High Quality, High Performing School Districts

25 Where Does This Leave Us? 25

26 26

27 GARDEN CITY SCHOOL DISTRICT Mission Statement The Garden City School District seeks to create an environment for learning which enables each student the opportunity to grow as an individual as well as a group member while striving to achieve the optimal level of academic, social and personal success. Students will thrive in a learning environment that is developmentally appropriate, individualized and challenging. Our goal and responsibility is to help each student develop an enthusiasm for learning, a respect for self and others, and the skills to become a creative independent thinker and problem solver. 27

28 In other words: Inspiring Minds GARDEN CITY SCHOOL DISTRICT Mission Statement Empowering Achievement Building Community 28

29 Garden City Public Schools A long tradition of high achievement Excellent return on investment A history of sound fiscal management A commitment to continuous improvement A key element in making Garden City a destination location A major component of the local economy 29

30 Garden City Public Schools Facts and Figures A K-12 public school district enrolling approximately 3,925 students Highly regarded programs for all students at all achievement levels 7 school buildings: 3 primary (K-1), 2 elementary (2-5), 1 middle (6-8), 1 high school (9-12) 2 support buildings: central administration and transportation 30

31 Garden City Public Schools: One of the Country s Best School Districts Excellence in academic achievement 97% of students go on to higher education 89% of graduates attend 4-year colleges 99% of graduates receive Regents diplomas 83% received Advanced Regents or Advanced Regents with Honors distinctions 80% of Class of 2013 accepted to at least one of Princeton Review s Best Colleges Ranked #1 in New York State for percentage of students enrolled in AP classes High School ranked as one of the best in the nation by Newsweek, U.S. News & World Report, and Washington Post 1 Merit Scholarship National Winner, 2 Merit Scholarship Finalists, and 9 Commended Students 31

32 Garden City Public Schools: One of the Country s Best School Districts Strong programs in the arts--garden City was designated by the NAMM Foundation as one of the Best Communities for Music Education in the nation for its outstanding commitment to music education Three-time Grammy Signature School Semi-Finalist winner. Student recognized as Scholar-Artist, others exhibited at highly competitive shows and selected for All-State and All-Eastern bands. Relatively low cost per pupil Very favorable when compared to similar districts AA1 bond rating Collaborative relationship with Village government Participation in county & regional consortia seeking to lower costs Summer enrichment program; Winter Program for Kids; After School Child Care Program Extensive community education program District provides its own bus transportation 32

33 Garden City Public Schools: One of the Country s Best School Districts Every eligible school has been honored by the U.S. Department of Education as a School of Excellence : Stratford, Stewart, Middle School and High School Middle School recognized as national School to Watch Consistently high test scores 22 Advanced Placement offerings; 220 AP Scholars; 5 college credit courses in world language and business Multigrade, multidisciplinary research curriculum Successful research programs at middle school and high school that have produced Intel finalists, Siemens regional semifinalists and regional finalists, Young Scientist Research Contest finalist; highly popular science clubs at elementary schools. College credit for research available at high school level. 33

34 Garden City Public Schools: One of the Country s Best School Districts Extensive co-curricular, extra-curricular and athletics programs GCHS is eight-time winner of Scholar-Athlete School of Distinction Award; District s athletics program cited by Newsday as Best in Nassau Strong community education program and community use of facilities Comprehensive character education programs begin in primary schools and extend through grade 12 Small, personalized primary schools Comprehensive special education programs & services 34

35 Educational Plan 35

36 Put Another Way: 36

37 Budget Design Principles Align budget with district s mission and goals Ensure health and safety and provide funds to maintain the physical plant Respect that property taxes from individual homeowners remain the major source of revenue for the budget Provide allocations to address laws, mandates, and obligations Reduce potential for tax spikes by maintaining level of appropriated fund balance as well as money for contingencies Utilize but do not empty reserves Fiscal challenges confronting the school district (including tax certiorari) may not end with the budget. 37

38 Budget Design Principles Make certain all department and program budgets have been reviewed thoroughly Promote return-on-investment through accountability for results Use data to assess instructional programs Avoid one-shot remedies that will only add to future budgets or reduce long-term program effectiveness Seek to return classified students to in-district placements, when appropriate Seek savings through green initiatives, consortia, and economies of scale Preserve core programs/instruction that will help ensure that students are college and career ready to the greatest extent practicable in this fiscal environment 38

39 Budget Design Principles Maintain strong financial controls and oversight; promote transparency and maintain long-term district fiscal health Try to identify value added reductions that facilitate economies across budget codes Use conservative enrollment projections Reduce personnel to control costs Working within the constraints of our difficult fiscal environment, try to ensure that current and future students enjoy to the greatest extent possible, the same opportunities that former students enjoyed. 39

40 The Proposed School District Budget Is under the cap, and therefore requires only a simple majority for passage Preserves the robust high school academic program that prepares our students for college Continues to provide resources for technology upgrades Includes funds for possible security upgrades Maintains RtI, the continuum of special education services, and opportunities for diverse learners Reduces personnel costs Education is a labor-intensive enterprise and controlling expenditures for personnel has the greatest impact on budget 40

41 Proposed Budget Sources of Revenue 1. State Aid 2. Local Revenue 3. PILOT (Payment in Lieu of Taxes) 4. Appropriation from Reserves 5. Fund Balance Allocation 6. Property Taxes 41

42 Summary of Revenues Revenues from State Sources Actual Budget Anticipated Proposed Budget Foundation & Other Operating Aids $ 1,798,823 $ 1,826,540 $ 1,688,735 $ 1,816,560 Transportation 194, , , ,349 BOCES 364, , , ,218 Handicapped 2,252,093 2,083,252 2,066,771 2,137,453 Textbook 277, , , ,467 Computer Software 75,649 75,649 75,275 75,275 Library Materials 31,562 33,014 31,406 31,406 TOTAL STATE AID 4,994,917 $ 5,020,410 $ 4,851,378 $ 5,005,728 42

43 Summary of Revenues Actual Revenues Est. Actual Revenues Proposed Budget Charges for Services Continuing Education Fees 430, , ,000 Health Services - Other Districts 659, , ,000 Tuition & Services - Other Districts 263, , ,000 Summer Programs 188,122 15,872 95,000 Other Local Revenues Interest on Deposits and Investments 127,362 92,200 85,000 Charges for Use of Facilities 5,878 4,000 4,000 Rental of Musical Instruments 18,133 17,175 17,000 Lost Textbook, Library Fines 2,317 2,800 3,500 Insurance Recoveries 35,921 10,000 35,000 MTA Payroll Tax Reimbursement Miscellaneous 1,106, , ,000 Total Local Revenues Sub Total 2,838,371 1,623,455 1,699, Total Non-Tax Revenues 7,833,288 6,474,833 6,705,228 Real Property Taxes $88,571,755 $91,500,111 93,005,905 Star Reimbursement 5,308,867 5,359,347 5,466,534 PILOT (Payments in Lieu of Taxes) 278, , ,524 Appropriation from: Workers Comp Reserve 600, , ,000 Appropriation from: NYS ERS Reserve 320, , ,000 Interfund Transfer - Debt Service Fund 37, ,707 Fund Balance Allocation 2,800,000 2,800,000 2,800,000 Total Revenues 105,712, ,389, ,329,898

44 Category REVENUE SOURCES Budget Proposed Dollar Change State Aid 5,020,410 5,005,728 (14,682) Local Revenue 1,705,000 1,699,500 (5,500) PILOT 297, ,524 24,026 Appropriation from Reserves 920, ,000 - Fund Balance 2,800,000 2,800,000 - Inter-fund Transfer 0 110, ,707 STAR Reimb. 5,308,866 5,466, ,668 Property Taxes 91,550,592 93,005,905 1,455,313 TOTAL 107,602, ,329,898 1,727,532 44

45 Revenue Category Percentages Proposed Budget % of Overall Budget State Aid 5,005, Local Revenue 1,699, PILOT 321, Use of Reserves 920, Fund Balance 2,800, Inter-fund Rev 110, STAR Reimb. 5,466, Property Taxes 93,005, TOTAL $109,329, %

46 Proposed Budget : Sources of Revenue Property Tax Levy State Aid Local Revenue PILOT STAR Fund Balance App. From Reserves Inter-fund Revenue 46

47 Fund Balance Allocation Actual Budgeted Proposed Budget $2,800,000 $2,800,000 $2,800,000 Real Property Taxes (A) (B) Actual Budgeted Proposed Budget $88,571,755 91,550,592 93,005,905 93,880,622 96,859,458 98,472,439 (A) Levy without STAR (B) Levy with STAR 47

48 State Aid Actual $ 5,782,916 Projected $ 5,005,728 Reduction of: $ 777,188* *This figure reflects almost a 13.5% decrease in state aid over 8 years 48

49 Don t forget to vote on May 20th 49

50 We have been doing more with less getting more mileage with less gas (fewer resources) We ve tuned up the car We have highly skilled staff We stay within the speed limit and other rules of the road--we manage our resources prudently and exercise excellent fiscal management We put air in the tires We utilize best practices We avoid jackrabbit starts We don t rush into flavor of the day innovations and initiatives; instead, we learn from the experience of others and take a responsible approach to implementing change We don t overload We ve reduced personnel BUT: Sooner or later, the car will need gas if you want to go farther 50

51 51