The Superintendent s Proposed Budget March 5, 2015

Transcription

1 The Superintendent s Proposed Budget March 5, 2015

2 2 AGENDA Review of Financial Context for Budget Development Neil Sanders, Assistant Superintendent for Business Summary and Rationale of Proposed Choices for Marie Wiles, Superintendent of Schools Off the Table Proposals Reductions Included in the Budget Additions Included in the Budget Priorities for Restoration Capital Improvement Proposition

3 3 AGENDA (continued) Brief Intermission Question & Answer Period Moderated by Amy McGeady Communications Services, Capital Region BOCES Additional Opportunities for Public Comment March 10, 2015 Regular Board of Education Meeting March 24, 2015 Regular Board of Education Meeting April 14, 2015 Special Board of Education Meeting Budget Feedback Form

4 UPDATE Voter Approved Budget - May 20, $ 92,132,900 Yes 1,736 (65.8%) Budget increase 1.22% No 901 (34.2%) Tax Rate increase 1.94% FACTS ABOUT OUR SCHOOL DISTRICT IN Enrollment 4,917 Employee Data TOTAL Number of Teachers * Support Staff Administrators & Supervisors TOTAL 615 Full time 274 Part time *(Nurses, teaching assistants, teacher aides & monitors, custodians, bus drivers/aides & mechanics, maintenance workers, food service workers, office staff, technicians and non-instructional supervisors) Total staff reductions for FTEs

5 5 Budget Preparation Timetable October Review of enrollment projections with principals November 5, Public input for budget development December 9, 2014 Board of Education share input on budget November-December Stage 1: District Office Team meets with building principals and supervisors to review status and implications of budget decisions

6 6 Budget Preparation Timetable continued December 2014-January Stage 2: Review needs for staffing, class size, equipment, textbooks, supplies, buildings and grounds, transportation, etc. for Administrators and supervisors complete revenue gap-closing exercise by suggesting 2% of each budget as starting point for budget discussion. February 4, Community Conversation Uncharted Territory: Considering Options in a Sea of Uncertainty -- Initial list of potential changes in released to public for discussion. March 5, Presentation of the Superintendent s Budget March 10 & March 24, 2015 Regular Meetings of the Board of Education: Public comment welcome

7 7 Budget Preparation Timetable-continued April 14, 2015 Special Meeting of the Board of Education: Public comment welcome April 21, Board of Education adopts budget April 22-May budget plan discussed with local organizations and parent groups May 12, Budget Hearing May 19, Budget Vote, 7:00 a.m. - 9:00 Elementary Schools - Five (5) locations

8 8 ENROLLMENT DATA Grade Level Current Projected Grade Level Current Projected K Selfcontained Selfcontained K Selfcontained Grade Level Current Projected K

9 Rollover Budget Projection 9 Budget Projection Change Expenses Salaries $46,244,141 $47,343,491 $1,099,350 Benefits $24,764,415 $24,505,296 ($259,119) Equipment/Supplies/Textbooks $2,358,220 $2,381,802 $23,582 Contracted/BOCES Services $11,180,385 $11,375,162 $194,777 Debt Service/Transfers $7,585,739 $7,626,149 $40,410 Total $92,132,900 $93,231,900 $1,099,000 Revenues State Aid $22,113,685 $21,890,800 ($222,885) Local Sources $1,448,500 $1,455,400 $6,900 Appropriated Reserves/Fund Balance $1,780,000 $1,630,000 ($150,000) Total $25,342,185 $24,976,200 ($365,985) Property Tax Levy $66,790,715 $68,255,700 $1,464,985 Allowable Tax Levy Limit Increase $1,335,800

10 10 The Gap Projected Tax Levy Increase Tax Levy Limit (50% Voter Approval) Budget Gap 1) 2) 3) 4) $1,465,000 $1,335,000 $130,000 Options for Closing the Gap Increase revenues Reduce expenditures Draw down reserves and fund balance Exceed the tax levy limit requires a super majority yes vote

11 11 Tax Levy Limit (Property Tax Cap) Must follow an eight-step formula determined by N.Y.S. Formula limits the increase in the vast majority of expenses to 1.62% for Result of the formula determines the amount that property taxes can increase setting a threshold for voter approval If tax increase is less than the threshold amount, budget passes with 50% or more of the voters voting yes If tax increase is greater than the threshold amount, budget passes with 60% or more of the voters voting yes If budget is ultimately defeated, no increase in tax levy is permitted

12 G.C.S.D. Tax Levy Limit Calculation Prior Year Tax Levy $66,790,715 Library Debt - 0 Adjusted Prior Year Tax Levy $66,790,715 Tax Base Growth Factor x Subtotal Prior Year Tax Levy $67,598,883 Payments in Lieu of Taxes (PILOTS) + 0 Taxes Levied for Exemptions During Prior Year: Capital Expenditures Net of State Aid - $2,151,242 Adjusted Prior Year Tax Levy = $65,447,641 Allowable Levy Growth Factor (Lesser: CPI or 2%) x Subtotal Growth Adjusted Tax Levy $66,507,893 Payments in Lieu of Taxes (PILOTS) - 0 Available Carryover + 0 Taxes Levied for Exemptions During Coming Year: Tax Levy Limit = $66,507,893 Capital Expenditures Net of State Aid + $2,285,502 Pension Cost Exemptions >2% + 0 Maximum Allowable Tax Levy Amount = $68,793, % 12

13 13 Executive Budget Proposes a $1.1B increase (4.6%) in education aid contingent upon implementation of Governor's list of reforms In the absence of those reforms, aid will be held to the amount stipulated in law (1% of income: $377M) The distribution of any potential aid has not been released via aid runs for school districts GCSD roll over budget presumes no additional foundation aid and the GEA at the level

14 14 Susceptible to Fiscal Stress The Comptroller has designated GCSD for the 2nd year in a row as susceptible to fiscal stress This means that the Comptroller would like to see: Less reliance on the use of fund balances and reserves (i.e., savings) to offset state aid losses; Unassigned fund balance to exceed 3% of total expenses on an annual basis Less short term borrowing by increasing the level of cash on hand.

15 15 Guilderland Central School District Fund Balance $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 Unassigned Restricted Assigned $4,000,000 $3,000,000 $2,000,000 $1,000,000 $

16 Revenue Budget Local Sources Interfund Transfers State Aid & Medicaid Final Budget Estimated Budget $1,198,500 $1,145,140 $250,000 $250,000 $22,113,685 Appropriated Reserves $280,000 Difference ($53,360) 0 $21,924,525 ($189,160) $210,000 ($70,000) Appropriated Fund Balance $1,500,000 $1,000,000 ($500,000) Property Taxes (Tax Levy) $66,790,715 $68,786,070 $1,995,355 $92,132,900 $93,315,735 $1,182,835 Total

17 17 Projected Budget for Expenditure Budget Budget Increase Total Total Percentage Increase $ 92,132,900 $ 1,182,835 $ 93,315, %

18 Expenditures at a Glance Budgeted Proposed Salaries (professional) $36,239,685 $37,208,681 $968,996 Salaries (support) $10,005,266 $10,179,799 $174,533 Employee benefits $24,764,415 $24,344,845 ($419,570) $299,800 $356,860 $57,060 Supplies & textbooks $2,058,420 $2,042,730 ($15,690) Contract Services $5,769,430 $5,661,660 ($107,770) BOCES Services $5,410,145 $5,910,010 $499,865 Debt Service $7,585,739 $7,611,150 $25,411 TOTAL $92,132,900 $93,315,735 $1,182,835 Equipment Change

19 Expenditures at a Glance Debt Service 8.2% BOCES 6.3% Contract Services 6.1% Equipment & Supplies 2.5% Salaries & Benefits 76.9%

20 Tax Impact Tax Levy Limit Law Tax Levy * Tax Levy Increase Tax Levy/Rate Percentage Proposed Budget Maximum Allowable $68,786,070 $68,793,395 $1,995,355 $2,002, % Difference ($7,325) 3.00% *The proposed tax levy is less than the maximum allowable tax levy limit threshold therefore, a simple majority approval (50%) results in a passed budget. A supermajority approval rate of 60% is not required.

21 21 Budget Vote Approval Tax Voters Increase Year Yes No % 63.8% 70.3% 55.5% 55.0% 34.2% 36.2% 29.7% 44.5% 45.0% % 3.39% 2.20% 3.48% 3.59% % 41.6% %

22 22 Why is the district not recommending exceeding the tax levy limit threshold? In the three years prior to the implementation of the tax levy limit law, the district s budget approval rating ranged from 55% to 58.4% falling short of the 60% supermajority vote needed. Data is indicative of a tipping point where residents will vote no if taxes are perceived to be too high. If the tax levy limit threshold were to be exceeded and the budget does not pass by the 60% supermajority vote, by law, the tax levy limit cannot increase over the current year. Therefore, expenditure reductions and/or additional revenues totaling $1,995,335 would need to be identified and implemented.

23 23 What influenced our decisions? District Mission/Vision/Goals/Priorities Analysis of data, enrollment, student needs/interests Feedback from Community, Board, and Staff Changes that we HAVE to make because we are mandated Changes that we OUGHT to make because they are good for kids Reductions we would RATHER NOT make but need to because we continue to have a funding gap.

24 24 Decisions: Off the Table Options Elementary: Teaching Assistants at Grades K and 1 Middle Level: Teaching Assistant (Assigned to 504 students); Textbooks and Instructional Supplies High School: Instructional Staff for Math, Science, Technology, Social Studies, ELA, Physical Education, Health, Music, Business Education Advisor Stipends and Instructional Supplies

25 25 Off the Table Options Athletics: Assistant Coaching Positions Support Services Late Bus Runs Custodial Workers.5 FTE Account Clerk Claims Auditor Materials /Supplies/Line Item Reductions District wide

26 26 Proposed Reductions Included in Superintendent s Budget Elementary Staffing and Instruction Program/Service Math TA Hours (PBES & AES) Speech/Language Therapy FTE Cost # of Students 5 hours $15,400 NA 0.6 $46,800 NA

27 27 Proposed Reductions Included in Superintendent s Budget Middle Level Staffing and Instruction Program/Service FTEs Cost # of Student Aide/Monitor 7 hours $29,400 varies TA Assigned to Computer Labs 7 hours $33,500 varies 0.4 $26,280 varies World Languages (Spanish 8 and French 6)

28 28 Proposed Reductions Included in Superintendent s Budget High School Staffing and Instruction Program/Service Regional Summer Mohonasen Site FTEs Cost # of Students varies $44,560 NA Guidance Clerical Staff 0.4 $15,800 NA World Languages (Spanish 6, Italian 4) 0.4 $26, hours $22,000 varies $20,000 varies Hall Monitor Replacement of East Lab Computers

29 29 Proposed Reductions Included in Superintendent s Budget Support Services Program/Service Cost # of Students Contracted Bus Route $60,635 NA Diesel Fuel and Gasoline $50,000 NA Utilities and Custodial Equipment $12,650 NA $39,000 NA $4,000 NA Summer Maintenance Help Human Resources: Tuition Reimbursement FTEs 9

30 30 Proposed Additions Included in Superintendent s Budget Elementary Education and Staffing Program/Service FTEs Cost # of Students 1.0 $78, Teaching Assistants to serve three additional sections of Grade 1 (WES, GES, LES) 9 hours $27, Replace 1.0 Math TA with.5 Math Teacher Specialist NA $7,000 varies English as a Second Language Teacher 1.0 $78,000 varies Additional Class Section at LES

31 31 Proposed Additions Included in Superintendent s Budget Special Education Program/Service FTEs Cost # of Students Special Education Teacher at FMS 0.7 $54,600 varies Special Education Teacher at GHS 0.8 $62, Transition from Teacher on Special Assignment to Instructional Administrator for Elementary Special Education NA $37,

32 32 Proposed Additions Included in Superintendent s Budget High School Staffing and Instruction and Athletics Program/Service FTEs Cost # of Students Focus Program Coordinator 0.2 $13, Media Position 0.2 $13,140 varies District Wellness Coordinator NA $8,700 varies Officiating Fees $4,000 NA Graphing Calculators $1,

33 33 Proposed Additions Included in Superintendent s Budget Support Services Program/Service FTEs Cost # of Students 6.0 $63,000 varies Custodial Supplies $25,000 NA Consultant Services $15,000 NA Architect & Engineer Fees $51,300 NA School Bus Drivers/Attendants

34 34 Potential Restorations Teaching Assistant in Computer Lab at FMS East Lab Computer Replacement Summer Maintenance Help Utilities/Custodial Equipment Hall Monitor at GHS

35 35 Potential Additions 0.3 FTE Math AIS at Farnsworth Middle School ($19,710) Science/Technology Equipment replacement and repair at GHS ($9,790) Additional Health/Safety Support ($10,150) Literacy Coach at LES ($78,000) ESL positions ($78,000 $171,600)

36 36 Technology Support Structure Recent announcement of the Retirement of our Director of Technology and Innovation (6/30/15) District would like to explore alternative leadership structures for Technology Team based approach? Role for Northeast Regional Information Center (NERIC)? Replace Director position? Commit to a proposal that is cost neutral and in time for budget adoption

37 37 Capital Improvement Proposition Current condition of the GHS auditorium is not suitable as a teaching space, which is its primary and intended use: Lighting is poor, students cannot see their work Seating is not up to American with Disabilities Act Standards Seats are original to the space; repair parts are no longer available Sub standard theatrical control systems for lighting and sound

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40 40 Capital Improvement Proposition Safety and liability concerns still exist for the wooden light poles and lights on football/track athletic field Wooden poles have been buried in the ground for 28 years in direct contact with the soil and their condition cannot be determined Each pole supports more than a ton of light fixtures suspended 60 feet in the air In the near future, the district will need to address these safety and liability concerns

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43 43 Why a Capital Project? Why now? As part of a capital project, 65% of the cost to replace the light poles and lights and refurbish the auditorium would be eligible for reimbursement; If part of a stand alone project, none of the costs of the project would be eligible for aid and Guilderland taxpayers would be responsible for 100% of the costs. The timing of our current capital project (set to begin this summer) creates a unique opportunity

44 44 Why a Capital Project? Why now? By pursuing this project now the district can reap significant savings and efficiencies: By capitalizing on building aid associated with a capital construction project By maximizing the efficiencies of doing athletic lights and auditorium improvements while our larger project is underway More favorable bidding Logistical efficiencies of having contractors, etc. already on site, etc.

45 45 Options Chosen: A Summary Striking a Balance: Our Mission and Available Resources Student needs first, over the long run Listen to our community; respect our taxpayers Recognize that the financial challenge has been, and may continue to be, a multi-year problem Recognize that there are significant unknowns associated with the state budget and the aid that we can expect More Foundation Aid? GEA Restoration? Recognize the need to review decisions if/when a state budget is in place

46 46 Summary of Staffing Changes Titles Net Change in # of Positions # of People Effected* Teachers Teaching Assistants Support Staff Supervisors Total *Indicates number of individuals who could be laid off or reduced; does not include individuals who are reassigned to another position within the district.

47 47 Intermission Q&A Board of Education Community Participants Next Steps: March 10 Regular Board of Education Meeting March 24 Regular Board of Education Meeting April 14 Special Board of Education Meeting April 21 Board of Education Adopts Budget Check Website for additional information

48 48 Thank you for coming!