Eastport-South Manor CSD

Transcription

1 Eastport-South Manor CSD Adopted Budget Presentation May 3, 2017

2 Budget Overview Agenda Expenditure Reductions Elementary Class Sizes Budget Highlights Revenue Foundation Aid State Aid Fund Balance & Reserves Tax Cap

3 Eastport-South Manor CSD Budget, State Aid & Tax Levy History Year Adopted Budget State Aid Increase Tax Levy Increase % 0.29% 3.96% % -1.74% 3.61% % -5.86% 4.99% % -1.37% 3.90% % 6.76% 2.75% % 5.86% 1.94% % 3.30% 2.28% %.99% % * 1.01% 3.39% * New York State reserves the right to make mid-year state aid cuts should they incur any reductions in revenue from the Federal Government.

4 Adopted Budget 3 Component Parts $ Change % Change Administrative 7,775,338 8,013, , % Instructional 63,067,567 64,917,131 1,849, % Capital 19,733,046 19,992, , % Total 90,575,950 92,922,780 2,346, % % 8.6% 21.5% 8.6% 69.6% 69.9% Administrative Instructional Capital

5 Top 5 Budget Increases for A 1. Health Insurance $ 889, Special Education Contractual 437, Compensated Absence Payouts B 433, Special Education BOCES 393, Special Education Teacher Assistants 252,350 TOTAL $ 2,407,350 A. The state mandated family health insurance premium will increase by 12.2% for For the 5 year period of 2012 through 2016, the average annual increase for a family health insurance premium was 4.9%. B. Due to the depleted balance of our Employee Benefit Accrued Liability Reserve account (projected to be $2,213,000 as of 6/30/17), we must now begin to budget for anticipated retirements. This is the first year we are budgeting for this expense. These top 5 budget increases account for more than 100% of the total Adopted Budget increase

6 Arriving at a 2.59% Adopted Budget (Total Reductions in of $1,530,000 were made) 10 employee retirements saves $675,000 3 Elementary positions will be eliminated saving $376,000 1 Special Education position will not be filled saving $85,000 Part-time unfilled ENL positions saves $105, Librarian position will be eliminated saving $89,000 Revision to Compensated Absence projection plan saves $200,000

7 Projected Elementary Class Sizes Red Font = Grade South Street Tuttle Dayton Eastport Teacher Contract Limits K Overall, K-2 class sizes will increase from 22.3 in to 23.1 in Overall, 3-6 class sizes will increase from 23.4 in to 24.2 in * Class sizes are estimated and could change depending on final enrollment figures

8 Budget Highlights 1.5 Reading Teacher Assistants for mandated Educationally Related Support Services (Math and ELA) Elementary Science Support AP Insight High School Elementary & Secondary Technology Equipment Junior-Senior High School Courses: Chinese I Social Journalism Advanced Topics in Psychology AP Computer Science Sports & Literature Choreography and Staged Combat High School Orchestra

9 The Foundation Aid Formula? The Foundation Aid is the most important type of state aid a school district receives. Foundation Aid is distributed to school districts based on need. School districts with greater needs get larger allocations of Foundation Aid. Needs are determined using student demographics and a state created financial need variable called the Combined Wealth Ratio or CWR. The CWR measures financial wealth in a school district based on resident income (state tax returns) and property values (town assessor s office). A CWR is the state average. ESM s CWR is.784 ESM has the 11 th lowest CWR in Suffolk County and the 16 th lowest CWR on Long Island.

10 30 Lowest CWR in Suffolk County Rank School District CWR 1 Wyandanch Brentwood Central Islip William Floyd Copiague Rocky Point Center Moriches Bay Shore Longwood North Babylon ESM Lindenhurst Middle Country Patchogue-Medford Comsewogue Rank School District CWR 16 Deer Park South Country Sachem West Babylon Miller Place Amityville East Islip Bayport-Blue Point West Islip Connetquot Islip East Moriches Sayville South Huntington Mt Sinai 1.061

11 30 Highest CWR in Suffolk County Rank School District CWR 1 Fire Island Bridgehampton Quogue Fishers Island Amagansett Southampton Shelter Island East Hampton Montauk Oysterponds Sag Harbor Remsenburg-Speonk Westhampton Beach Tuckahoe Comn Cold Spring Harbor Rank School District CWR 16 Southold Port Jefferson Springs Mattituck-Cutchogue Greenport East Quogue Northport-E. North Huntington Half Hollow Hills Hampton Bays Hauppauge Three Village Babylon Smithtown Kings Park 1.262

12 The Foundation Aid Formula? What would ESM s Foundation Aid be in if the state followed its own formula? ESM's Foundation Aid Formula Amount ESM's Actual Foundation Aid Underfunded Foundation Aid Amount Funding Rate 21,254,140 17,732,435 (3,521,705) 83% Since the inception of Foundation Aid in , ESM has been shortchanged $37,589,344 based on the state s formula The average Foundation Aid Funding Rate for all 65 Suffolk County school districts is 147% 28 Suffolk County school districts receive more than 100% funding. These 28 districts have an average Combined Wealth Ratio of and an average funding rate of 243% 37 Suffolk County school districts receive less than 100% funding. These 37 districts have an average Combined Wealth Ratio of and an average funding rate of 74%

13 ESM: Foundation Aid Formula v. Actual Foundation Aid Received Foundation Aid Formula Amount Historical Analysis Actual Foundation Aid Underfunded Amount Foundation Aid Funding Rate Year ,954,638 15,956,750 (2,997,888) 84% ,172,225 16,694,133 (2,478,092) 87% ,438,565 16,682,712 (2,755,853) 86% ,438,024 16,682,712 (2,755,312) 86% ,284,586 16,682,712 (3,601,874) 82% ,290,217 16,782,808 (3,507,409) 83% ,760,931 16,833,156 (3,927,775) 81% ,044,739 17,014,675 (4,030,064) 81% ,274,281 17,076,786 (4,197,495) 80% ,075,402 17,259,525 (3,815,877) 82% ,254,140 17,732,435 (3,521,705) 83% TOTAL $ 222,987,748 $ 185,398,404 $ (37,589,344) 83%

14 Three Village: Foundation Aid Formula v. Actual Foundation Aid Received Foundation Aid Formula Amount Historical Analysis Actual Foundation Aid Underfunded Amount Foundation Aid Funding Rate Year ,148,492 23,929,762 (2,218,730) 92% ,307,167 25,214,709 5,907, % ,031,075 25,365,248 6,334, % ,833,903 25,365,248 6,531, % ,803,395 25,365,248 8,561, % ,874,138 25,517,439 8,643, % ,395,501 25,593,991 8,198, % ,980,222 25,811,539 7,831, % ,651,606 25,907,041 9,255, % ,183,809 25,907,041 6,723, % ,544,199 26,616,893 9,072, % TOTAL $ 205,753,507 $ 280,594,159 $ 74,840, %

15 ESM: Fund Balance & Reserves Audited Audited 7/1/2010 7/1/2015 Balance Balance Reserve for Retirement 1,513,047 - Reserve for Tax Reduction 9,910 - Reserve for Debt Service 1,289,854 - Reserve for Liability 2,351,361 - Reserve for Workers' Comp 595,310 - Reserve for Unemployment 178,784 - Reserve for Employee Benefit 6,828,076 3,088,499 Designated Reserve 1,290,460 - Designated Fund Balance 3,500,000 - Undesignated Fund Balance 3,173,972 3,173,599 20,730,774 6,262,098 Projected Projected Use 6/30/ Balance (875,000) 2,213,499 (1,110,000) 2,063,599 (1,985,000) 4,277,098 Projected Projected Use 6/30/ Balance (400,000) 1,813,499 (605,000) 1,458,599 (1,005,000) 3,272,098 Our projected 6/30/17 Fund Balance account will be $2,063,599 or 2.2% Our projected 6/30/18 Fund Balance account will be $1,458,599 or 1.5% The state recommended level for a Fund Balance account is 4.0% or $3,714,757.

16 Why is the Tax Levy 3.39%? ESM's Tax Base Growth Factor as per NYS 0.93% Inflationary Increase as per NYS 1.28% PILOT net of Construction 0.76% Construction net of PILOT 0.42% Total Increase in Tax Levy 3.39% 2.21% of the total 3.39% tax levy increase is due to state controlled variables. The tax levy of $53,217,393 represents a 3.39% increase over the prior year tax levy and is compliant with the tax levy cap. This tax levy requires a simple majority vote

17 What is The Projected Tax Levy? ESM's Tax Base Growth Factor as per NYS 1.15% Inflationary Increase as per NYS 1.50% PILOT net of Construction -0.41% Construction net of PILOT -1.16% Total Estimated Increase in Tax Levy 1.08%

18 Tax Rate Projections Proposed Tax Rates $ Increase % Increase Brookhaven (per 100) $ $ % Southampton (per 1,000) $ $ % A typical home in Brookhaven Town assessed at $3,385 would see a tax increase of $25 a month. A typical home in Southampton Town assessed at $320,330 would see a tax increase of $21 a month. These tax rate projections do not include the savings from the STAR Exemption or Tax Credit programs. These tax rate projections are based on current assessed values and equalization rates. Actual assessed values and equalization rates are set by the town and state, respectively, during the summer and fall months. The district has no control over assessed values and equalization rates.

19 Real Property 495 Disclosure Southampton Township RP-495 (9/08) Exemption Code (Column A) Exemption Description (Column B) Statutory Authority (Column C) Number of Exemptions (Column D) Total Equalized Value (Column E) Percentage of Value Exempted (Column F) NYS RPTL 404 (1) 0.00% Pub. Auth. State RPTL ,217, % County Owned RPTL 406 (1) 7 563, % Town Owned RPTL 406 (1) 16 5,347, % School District RPTL ,306, % Mun. Pub. Auth. RPTL % USA Gen. RPTL % Municipal Indust. Dev. RPTL 412-A % Mun. Railroad RPTL ,294, % Clergy Resid. RPTL , % Nonprof. Corp. RPTL 420-A 5 3,704, % Nonprof. Corp. Educ. RPTL 420-A % Nonprof. Corp. Char. RPTL 420-A % Nonprof. Corp. US RPTL 420-B 2 1,625, % Inc. Vol. Fire Dept. RPTL 464 (2) % Cemetery RPTL , % Nonprof. Co-hostels RPTL ,289, % Veterans Alternative RPTL , % Veterans Alternative Combat RPTL , % Veterans Disability RPTL , % Clergy RPTL , % Volunteer Fire/Amb RPTL 466 C , % Volunteer Fire/Amb RPTL 466 C , % Agric. Dist. Cty. AG. Mkts L , % Ag. Individual AG. Mkts L , % AGED 65 RPTL ,118, % AGED 65 RPTL ,249, % STAR Enhanced RPTL ,135, % STAR Enhanced RPTL , % STAR Basic RPTL ,556, % STAR Basic RPTL , % Physically Disabled RPTL , % Disabled w/lmt. Inc RPTL 459 C 5 719, % Disabled w/lmt. Inc RPTL 459 C % Home Improvement RPTL 421-F 598 $64,177, %

20 Real Property 495 Disclosure Brookhaven Town RP-495

21 Summary The 3.39% tax levy is compliant with the tax cap and supports current programs and services. The tax levy requires a simple majority vote to pass, but does not fully fund the Adopted Budget. The total shortfall is $1,005,000.

22 A History Lesson: Since , ESM has been shortchanged $37,589,344 in Foundation Aid. To make up for this dramatic deficiency in Foundation Aid funding: 1. ESM reduced expenditures over $15,000,000 over an 8 year period. 2. ESM, following the directive of NYS, used over $16,000,000 of our Fund Balance and Reserves to support and maintain our instructional programs and services. We no longer have the financial ability to use our Fund Balance and Reserves to support our programs. Over the past 8 years, the ESM administration, Board of Education, Teachers Union and the entire community have lobbied Albany asking for mandate relief, and our fair share of Foundation Aid.

23 What Is Voted On? Proposition # School Budget $ 92,922,780 Proposition #2 Public Library System $ 2,611,358 Election of Members to the Board of Education: Two (2) at-large seats are open Vote for two (2) candidates to serve 3-year terms commencing July 1, 2017 and expiring June 30, 2020 Candidates: Brian Rocha Cheryl Hack Patricia Harran Jeffrey Goldhammer George Cermak Donna Moeller

24 Dates to Remember Budget Vote Tuesday May 16 th :00 AM to 9:00 PM Eastport-South Manor Junior-Senior High School Please remember to vote!