Garden City Public Schools Proposed Budget Revenues and Non-Instructional Components and District Reserves.

Transcription

1 Garden City Public Schools Proposed Budget Revenues and Non-Instructional Components and District Reserves February 24, 2015

2 Please remember: Tonight s presentation is the second 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 19 th will reflect input from the community. 2

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4 Tonight s Agenda Budget Numbers Challenges for the School District The Tax Levy Cap The Tax Rebate and the Government Efficiency Plan State Aid???? GEA??? Mandate relief??? Administrative and Capital Components of the Budget The Revenue Picture: Summary and Details District Reserves Proposal to Establish a Capital Reserve Q & A 4

5 Proposed overall budget: $109,836,814 Budget to budget increase: $429,676 Projected tax levy increase (with STAR): 0.61% Maximum Allowable Tax Levy: 0.69%

6 Pension Contributions (percent of payroll paid by district)

7 Proposed overall budget: $109,836,814 Budget to budget increase: $429,676 Projected tax levy increase (with STAR): 0.61% Maximum Allowable Tax Levy: 0.69%

8 How is the tax levy cap computed?

9 Why is the tax levy cap so much lower than ? Decreased capital tax levy (includes debt service) Small increase in PILOT 9

10 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. 10

11 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 Going away An effective way to control costs and ensure high quality 11

12 The Property Tax Rebate : The Government Efficiency Plan This year, STAR-eligible residents received rebates because the Board s approved budget included a tax levy that was under the tax levy cap For STAR-eligible residents to receive such a tax refund in the coming school year, the district must again pass a budget that is under the tax levy cap AND the school district must receive approval for a State-approved efficiency plan that achieves a tax levy reduction of at least 1% in the ensuing 3 years For Garden City, the reduction would approach $1 million 12

13 The Property Tax Rebate : The Government Efficiency Plan Although New York State passed this legislation almost one year ago, little guidance has been issued to school districts, so it is impossible for us to be certain about the types of savings NYS will accept The time frame for developing the Government Efficiency Plan and having it approved at the state level is now quite limited Given this set of circumstances, it is impossible for the administration to predict with confidence that the district s plan will meet the criteria to be established by New York State. The administration therefore cannot guarantee that the proposed budget will result in rebates for STAR-eligible residents, even though the tax levy increase is under the tax levy cap. 13

14 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 14

15 Proposed overall budget: $109,836,814 Budget to budget increase: $429,676 Projected tax levy increase (with STAR): 0.61% Maximum Allowable Tax Levy: 0.69%

16 State Aid: It s A Secret! The Governor s proposed budget does not provide any indication of how much aid is proposed for Garden City This has never happened before! Instead, the Governor pledges to reveal specific school district aid figures only if the Legislature passes the changes he proposes for teacher evaluation, raising the cap on charter schools, revising the criteria for teacher tenure, and intervening in failing schools In any event, the proposed aid increase of $1.1 billion is far short of the $2 billion requested by the Board of Regents Once again, the school aid proposal seems to ignore the higher cost of living on Long Island Why does the school district need specific state aid proposals?. Other than property taxes, the biggest source of revenue for the school district is state aid 16

17 State Aid: It s A Secret! State aid since 2008 has decreased by 11%*, 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 Since 1990, the percentage of district revenues provided by state aid has dropped from 10.19% to 4.86% Reduced state aid limits funding for 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 * - State aid figures not available yet for

18 The Impact of the GEA 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 $4,683,574 to this point. These funds could have been used to enhance or save programs for students. The Governor s budget proposal contains no information about GEA changes for

19 Mandate Relief The Governor s budget proposal contains no new initiatives for significant mandate relief 19

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

23 Proposed Budget Administrative $12,349,213 Program $80,919,719 Capital $16,567,881 TOTAL $109,836,814 23

24 Proposed Budget Expenditures 15.08% 11.24% 73.68% Administrative Program Capital 24

25 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 25

26 Administrative Budget Board of Education Central Administration School Community Relations Plant Operation and Maintenance Central Data Processing Special Items (Insurance and BOCES) 26

27 Central Administration Superintendent s Office 1.3 clerical employees Assistant Superintendent for Business & Finance 9.3 employees in Business Office Assistant Superintendent for Personnel 1.5 clerical employees in Personnel Office *Assistant Superintendent for Curriculum & Instruction 1 clerical employee *Costs for this area will be included in budget for instruction 27

28 Personnel Office Professional staff recruitment, application and hiring process: 94 teachers, administrators & paraprofessionals, including leave replacements, part-time, & substitutes hired in Enhanced automated system for recording and monitoring staff attendance and substitute placement Contract negotiations and administration Expanded on-line professional development training modules Coordinated and provided continued administrative staff development on observation/evaluation system for professional staff (APPR) a best practice New teacher and administrator mentor programs 28

29 Personnel Office Maintain all personnel files and records District Title IX Compliance Officer; DASA training and compliance Federal Consolidated Grant writing and coordination Data collection for district demographic studies; enrollment projections and staffing recommendations Professional licensing requirements; development of seniority lists Coordinate annual orientation program for new teachers Observation of all first-year teachers and leave replacements Supervision of site-based decision-making team plan and training of team members Data reporting to the New York State Education Department 29

30 Personnel Office Looking Ahead Assess and revise SED mandated district APPR Plan, as needed Refine the system for collecting, monitoring and reporting Employer Mandate health care records in compliance with new mandated Affordable Care Act (ACA) requirements Negotiations and contract administration Continue to coordinate district-wide bullying prevention programs and Dignity Act (DASA) compliance Recruit and retain outstanding teachers, administrators & paraprofessionals Continue efforts to automate and digitize office functions and records, such as teacher evaluation and personnel files Continue to update policies and procedures to reflect best practices and efficiencies Staff development and supervision 30

31 Business & Finance Administration of $109 million budget Supervision of non-instructional operations Facilities & Grounds Transportation Lunch Program Comptroller s 5 Point Plan Policies for business operations Internal controls/segregation of duties Internal audit function Oversight of bond and EPC projects 31

32 Business & Finance: Looking Ahead Continue prudent resource management Comply with government efficiency plan implementation guidelines Continue development of long-term projections for sound fiscal planning Maintain excellent bond rating Assist internal auditor in reviews of operational areas; implement recommendations from final reports Continue to expand participation in consortia and other collaborations to reduce costs Oversee completion of School Investment Bond and Energy Performance Contract (EPC), including project close-outs Data reporting to SED 32

33 Plant Operations & Maintenance 1 Director 1 clerical 7 head custodians; 4 assistants 33 custodians & cleaners 1 Head Groundskeeper 4 groundskeepers 1 Head Maintainer 6 maintainers 1.8 security 33

34 Plant Operation & Maintenance Infrastructure maintenance Preparation and continued upkeep of 20 fields Athletics events: approximately 470 home games Maintenance of walks and driveways Snow/ice removal Implementation of capital projects Day-to-day involvement in bond projects and energy performance contract 34

35 Plant Operation & Maintenance Homestead Major Initiatives Installed new floor tiles in hallways and small classrooms Installing new ceiling tiles in hallways (April 2015) Hemlock Installed new ceiling tiles in hallways Installed privacy slats in fence Installing new exterior lighting (Spring 2015) Locust Installed new ceiling tiles in hallways Installing new exterior lighting (Spring 2015) 35

36 Plant Operation & Maintenance Major Initiatives Stratford Replacement of classroom doors Installed new school sign Stewart Sidewalk replacement Replacement of several classroom doors Installed new school sign 36

37 Plant Operation & Maintenance Major Initiatives Middle School Full renovation of 2 home and careers rooms Replaced classroom tiles Installed air conditioning in Guidance Office High School Upgraded auditorium house lighting Repaired and rewired exhaust fans Installed 3 sets of doors in cafeteria Repaired tennis court cracks Redesigned math wing entrance Renovated math wing univent casework Masonry repair 37

38 Capital Projects: Looking Ahead District-wide Portable bleacher replacement Wireless school clock system Carbon monoxide detection/alarm system Natural gas generator Locust New fencing along field Resurface playground Hemlock Resurface playground 38

39 Capital Projects: Looking Ahead Homestead Replace main office suite tiles Resurface 2 playgrounds Stewart Upgrade auditorium lighting Replace classroom sinks Window blind replacement Stratford Replace gym wall curtain Repair/paint auditorium floor Replace science room cabinets Resurface playground 39

40 Capital Projects: Looking Ahead Middle School Remove old gym partition Replace auditorium floor Ceiling tile replacement 2 nd floor High School Refinish stage floor Replace auditorium curtains Paint auditorium Telephone handset replacement Replace auxiliary gym windows Replace back courtyard fencing 40

41 Pupil Transportation Director and Assistant Director 3 mechanics 1.5 clericals 52 full-time drivers 6 substitute drivers 12 bus attendants 41

42 Pupil Transportation 2,920 students transported to district schools 532 students transported to other schools District transports students to 20 schools outside the district Private contractors transport to 22 other schools 616 athletics trips to date 358 field trips scheduled to date Purchased 2 full-size buses and 2 passenger vans 42

43 Pupil Transportation: Looking Ahead Consider alternative fuels Continue collaborative efforts with other districts and BOCES to share resources, develop cooperative bids for services and assess routing to private schools Purchase one 66-passenger bus, two wide body vans and one wheelchair van 43

44 Other Expenses: Benefits, Debt Service and Transfers Employee benefits Retirement TRS & ERS FICA & Medicare Health insurance Workers compensation & Unemployment Debt service Transfers to capital and special funds 44

45 Summary of Revenues Revenues from State Sources Actual Budget Anticipated Proposed Budget Foundation & Other Operating Aids $ 1,697,758 $ 1,954,493 $ 1,869,398 $ 1,954,493 Transportation 202, , , ,208 BOCES 512, , , ,806 Handicapped 2,088,564 2,139,303 2,059,485 2,139,303 Textbook 274, , , ,110 Computer Software 75,275 75,275 74,271 75,275 Library Materials 37,253 31,406 30,987 31,406 TOTAL STATE AID 4,888,041 $ 5,148,601 $ 4,976,697 $ 5,148,601 45

46 Summary of Revenues Actual Revenues Est. Actual Revenues Proposed Budget Charges for Services Continuing Education Fees 472, , ,000 Health Services - Other Districts 659, , ,000 Tuition & Services - Other Districts 280, , ,500 Summer Programs 15, ,700 96,000 Other Local Revenues Interest on Deposits and Investments 105,471 85,700 85,000 Charges for Use of Facilities 6,705 4,000 4,000 Rental of Musical Instruments 18,111 17,000 17,000 Lost Textbook, Library Fines 2,324 2,500 3,500 Insurance Recoveries 2,788 1,817 35,000 Miscellaneous 898, , ,000 Total Local Revenues Sub Total 2,461,729 2,037,469 1,788,000 Total Non-Tax Revenues 7,349,770 7,014,166 6,936,601 Real Property Taxes $91,710,342 $93,156,229 93,656,640 Star Reimbursement 5,359,347 5,220,577 5,324,989 PILOT (Payments in Lieu of Taxes) 297, , ,584 Appropriation from: Workers Comp Reserve - 600, ,000 Appropriation from: NYS ERS Reserve - 320, ,000 Interfund Transfer - Debt Service Fund - 110, ,000 Fund Balance Allocation 2,800,000 2,800,000 2,500,000 Total Revenues 107,516, ,543, ,836,814 46

47 REVENUE SOURCES Category Budget Proposed Dollar Change State Aid 5,148,601 5,148,601 - Local Revenue 1,729,500 1,788,000 58,500 PILOT 321, ,584 27,060 Appropriation from Reserves 920, ,000 - Fund Balance 2,800,000 2,500,000 (300,000) Inter-fund Transfer 110, ,000 39,293 STAR Reimb. 5,466,534 5,324,989 (141,545) Property Taxes 92,910,272 93,656, ,368 TOTAL 109,407, ,836, ,676 47

48 Revenue Category Percentages Proposed Budget % of Overall Budget State Aid 5,148, Local Revenue 1,788, PILOT 348, Use of Reserves 920, Fund Balance 2,500, Inter-fund Rev. 150, STAR Reimb. 5,324, Property Taxes 93,656, TOTAL $109,836, % 48

49 Proposed Budget : Sources of Revenue Property Tax Levy State Aid Local Revenue PILOT STAR Fund Balance App. From Reserves Inter-fund Revenue 49

50 State Aid Actual $ 5,782,916 Projected $ 5,148,601 Reduction of: $ 634,315* *This figure reflects almost an 11% decrease in state aid over 9 years 50

51 Actual Fund Balance Allocation Budgeted Proposed Budget $2,800,000 $2,800,000 $2,500,000 Actual Real Property Taxes Budgeted Proposed Budget $91,710,342 92,910,272 93,656,640 (A) 97,069,689 98,376,806 98,981,629 (B) (A) Levy without STAR (B) Levy with STAR 51

52 Proposed Budget Adopted Budget Proposed Budget $ Change % of Inc. on Budget Personnel Services 57,842,714 59,671,449 1,828, Equipment 803, ,935 47, Contractual 6,848,513 6,976, , Supplies & Materials 1,801,779 1,848,937 47, Tuition 1,835,855 2,053, , Textbooks 418, ,038 30, BOCES Services 2,680,463 2,792, , Debt Service 7,042,391 5,728,903 (1,313,488) (18.65) Employee Benefits 29,408,901 27,740,794 (1,668,107) (0.57) Capital Projects 600,000 1,600,000 1,000,000 - Interfund Transfers 125, , TOTALS 109,407, ,836, ,

53 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1099 Board of Education 55,521 85,976 87,873 1, Workshop expenses Memberships and dues to school board organizations Administration of annual budget vote and school board elections Legal advertising Payment of election workers Supplies and materials 53

54 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1299 Central Administration 384, , ,697 12, Superintendent s salary Clerical staff salaries Supplies and materials Travel and conference expenses 54

55 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1399 Business Administration 998,184 1,069,370 1,100,909 31, Overall management of all financial and operational functions Salary of Assistant Superintendent for Business & Finance Clerical staff salaries Financial system software and licensing Auditing services Purchasing services Supplies and materials Treasury services 55

56 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1420 Legal Services 169, , , School district counsel Bonding attorney Labor negotiations 56

57 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1430 Personnel Administration 378, , ,395 (11,669) (3.14) Salary of Assistant Superintendent for Personnel Clerical staff salaries Recruitment and orientation of district personnel Supplies and materials 57

58 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1480 School- Community Relations 111,051 94, ,208 28, Creation and disbursement of informational materials to the public Actual Expenses Adopted Budget Proposed Budget Change from % Change 1670 Central Printing & Mailing 54,131 65,525 66, Printing and mailing for the District 58

59 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1680 Central Data Processing 594, , ,190 93, Annual licensing and maintenance of student information system and other software Website design and maintenance Network technicians salaries Clerical staff salaries Supplies and materials 59

60 Administration Actual Expenses Adopted Budget Proposed Budget Change from % Change 1900 Insurance & BOCES Administration 1,127,847 1,127,687 1,164,924 37, Insurance premiums Commercial liability School board legal Student accident Workers compensation excess insurance District share of administration & facilities costs for Nassau BOCES 60

61 Program Actual Expenses Adopted Budget Proposed Budget Change from % Change 5500 Transportation 4,033,596 4,392,738 4,338,349 (54,389) (1.24) District transportation of public and private school children Bus drivers and attendants salaries Mechanics salaries Supervisor salaries Transportation for music, athletic, and extra-curricular activities Private contract costs Supplies and materials 61

62 Program Actual Expenses Adopted Budget Proposed Budget Change from % Change 8060 Civic Activities 22,145 23,248 21,113 (2,135) (9.18) Use of facilities by outside groups during evenings and weekends Actual Expenses Adopted Budget Proposed Budget Change from % Change 8070 School Census 7, Obtaining demographic data regarding school district population 62

63 Program Actual Expenses Adopted Budget Proposed Budget Change from % Change 9901 Transfers to Other Program Funds 108, , , Mandated contributions to state summer program for classified students 63

64 Capital Actual Expenses Adopted Budget Proposed Budget Change from % Change 1620 Facilities- Operations 4,554,515 5,088,432 5,080,007 (8,425) (0.17) Operation of all school facilities Director of Facilities salary Custodian and security staff salaries Clerical staff salaries Utilities Equipment Supplies and materials 64

65 Capital Actual Expenses Adopted Budget Proposed Budget Change from % Change 1621 Facilities- Maintenance 1,645,595 1,723,289 1,754,176 30, Maintenance of district buildings and grounds Maintenance staff salaries Equipment Supplies and materials 65

66 Capital 9950 Capital Projects 9700 Debt Service Actual Expenses Adopted Budget Proposed Budget Change from % Change 600, ,000 1,600,000 1,000, Actual Expenses Adopted Budget Proposed Budget Change from % Change 6,700,886 6,842,391 5,528,903 (1,313,488) (19.20) Capital projects throughout the District Interest payments on tax anticipation notes Principal and interest payments on outstanding bond issuances, including 2009 School Investment Bond Principal and interest payments on Energy Performance Contract Principal and interest payments on Computer Lease Purchase 66

67 Employee Benefits Actual Expenses Adopted Budget Proposed Budget Change from % Change 9000 Employee Benefits 26,372,955 29,408,901 27,740,794 (1,668,107) (5.67) Health insurance Pension costs Social security Workers compensation Unemployment insurance Dental insurance Compensated absences 67

68 Millions $7.50 Debt Service Schedule $7.00 $6.50 $6.00 $5.50 $5.00 $4.50 $4.00 $3.50 $3.00 $ Fiscal Year Ending June 30th 68

69 Cost Saving Measures Energy savings measures Optimizing building management system (BMS) for energy efficiency; high efficiency HS auditorium lighting Implementation of labor contracts with reduced levels of increases Expansion of cooperative bids and participation in consortia, including BOCES IT network Bus routing and seating capacity review to help control transportation costs; shared transportation services where capacity is available Strong controls for photocopying, printing, mailing, advertising, and overtime 69

70 Cost Saving Measures Refunding of bonds at reduced interest rate Prudent use of Worker s Compensation Reserve and Employee Retirement System (ERS) Reserve to reduce burden on taxpayers Inclusion of funding for capital projects to ensure that physical plant concerns are addressed on a timely basis Dedication of $2.5 million in fund balance to reduce the following year s taxes 70

71 Sustaining Excellence through the Use of District Reserves 71

72 Reserve Funds: General Use Reserve funds provide a mechanism for: Reducing reliance on indebtedness to finance capital projects Provide a degree of financial stability by utilizing reserves to help mitigate the need to cut services or to raise taxes 72

73 Current Reserves At the current time, Garden City maintains the following reserve accounts: Workers Compensation Reserve Retirement Contribution Reserve Employee Benefit Accrued Liability Reserve 73

74 District Reserve Funds RESERVE FUNDS Year Ending June 30th (Est.) 2015 (Est.) RESTRICTED Compensated Absences/EBALR $ 4,621,082 $ 8,583,397 $ 8,228,130 $ 8,228,130 $ 8,228,130 Workers Compensation $ 687 $ 1,909,352 $ 1,909,352 $ 1,309,352 $ 709,352 Employee Retirement System $ - $ 1,401,926 $ 1,636,926 $ 1,316,926 $ 996,926 $ 4,621,769 $ 11,894,675 $ 11,774,408 $ 10,854,408 $ 9,934,408 74

75 Proposed Future Reserve: 75

76 Capital Reserve Purpose Serves as a savings account to be used to finance future building renovations and infrastructure needs May be used to pay the cost of any object or purpose for which bonds may otherwise be used Benefits Does not affect the proposed budget Will provide a resource by which the school district can dedicate funds for the preservation and enhancement of its facilities, without placing undue additional burdens on the taxpayer Avoids creating a tax spike to provide funds for major projects Reduces risk of having to make reductions in valued programs to fund capital improvements Preserves and protects the community s investment in its schools Target: $10 million, accrued over time 76

77 Capital Reserve How is the reserve created? Established through voter resolution. The proposition put before the voters must specify the specific purpose, the ultimate $ amount, the life of the reserve and sources of funds. What will be the funding sources? A combination of budget efficiencies (over time), unanticipated revenues, and excess reserves (for example, EBALR) How can reserve funds be spent? The expenditures would be proposed by the Board of Education and would require voter approval 77

78 Projected Capital Reserve Projects High School Replace turf field Resurface track Replace aged univents in cafeteria, little theater, and math wing Air condition auditorium Classroom door replacement Middle School Slate roof flashing replacement Stairwell lighting Corridor window replacement Air condition library Classroom door replacement 78

79 Projected Capital Reserve Projects Stewart Bus loop sidewalk replacement Ductwork repair and cleaning Renovate faculty bathrooms Ceiling replacement Stratford Replace roof Reseal parking lot Renovate faculty bathrooms 79

80 Projected Capital Reserve Projects Hemlock Bathroom renovations Replace aged univents Add rear door card access Homestead Replace roof Replace aged univents Bathroom renovations Locust Bathroom renovations Replace aged univents Add rear door card access 80

81 Projected Capital Reserve Projects Administration building Fire suppression system Window replacement Bus garage Add electrical panel Replace floor slab due to settling of building Raise roof bay to permit better access for repair of buses 81

82 Projected Capital Reserve Projects District-wide Masonry Replace heat and water isolation valves Exterior security lighting Abatement Repair/replace fresh air intakes Ceiling tiles 82

83 Educational Plan 83

84 The Proposed School District Budget Is under the tax levy cap Budget requires only a simple majority for passage Allows eligible taxpayers to receive property tax rebate (subject to NYS approval of government efficiency plan ) Preserves and extends the academic program that prepares our students for college Provides funding for cocurricular programs and athletics Provides resources for technology upgrades Accomplishes health and safety upgrades, district-wide Maintains RtI, the continuum of special education services, and opportunities for diverse learners 84

85 Budget Information: Budget Calendar Each Budget Presentation Voter Registration Information Budget Definitions Property Tax Calculator* Application for Absentee Budget Question of the Week GEA Infographic Ballot 85

86 Remember: 86

87 Don t forget to vote on May 19th 87

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