FARMINGDALE PUBLIC SCHOOLS

Transcription

1 THE GOAL OF THE FARMINGDALE PUBLIC SCHOOLS IS TO ESTABLISH OURSELVES AS A HIGH ACHIEVING SCHOOL DISTRICT AS EVIDENCED BY HIGH LEVELS OF STUDENT PERFORMANCE IN ALL AREAS INCLUDING NEW YORK STATE ASSESSMENTS AND REGENTS EXAMS Board of Education Special Meeting/Budget Workshop March 12, 2014 FARMINGDALE PUBLIC SCHOOLS

2 THE FUTURE OF PUBLIC EDUCATION The state has assumed control over 98% of all revenue that supports public education Maximum Allowable Tax Levy Increases State Aid 2

3 THE FUTURE OF PUBLIC EDUCATION (CONTINUED) Over 95% of the expenditures are either bound by state law or by local collective bargaining agreements Salaries Health Benefits Retirement System Costs Other Lawfully Required Costs As expenditures rise in excess of state approved revenues, all districts in New York State have considered or will consider program decisions that are not aligned with students best interests, but instead are due solely to budgetary constraints 3

4 THE FUTURE OF PUBLIC EDUCATION (CONTINUED) State Aid State Control Maximum Allowable Tax Levy Increases Continuation of Expired Collective Bargaining Agreements Major Medical Premium Rates Retirement System Costs District/BOE Control Negotiating Collective Bargaining Agreements Program Changes/Reductions Material & Supplies, Equipment, Textbooks, Etc. 4

5 THE FUTURE OF FARMINGDALE SCHOOLS Through careful long-term planning, we have fared better in recent history than many of our counterparts on Long Island Many districts across Long Island have been making reductions as a result of the current economic trends There is no financial plan that can insulate a district from the current economic trends in perpetuity This budget has been carefully designed to meet the community s expectations Although there are a number of reductions planned for next year, the budget is expected to maintain most of what our community has come to expect 5

6 WHAT CAN YOU DO TO BE AN ACTIVE PARTICIPANT IN THE FUTURE OF PUBLIC EDUCATION? PAY ATTENTION! Attend monthly board meetings and district meetings PTA meetings, budget meetings, curriculum presentation meetings, etc. Keep yourself and those around you informed about recent changes in public education and what aspects of the law will have a long-term impact on our district Stay focused on the elephant in the room Be a voice in all levels of government 6

7 TONIGHT S DISCUSSION Revenue Tax Levy State Aid Governor s Proposed State Aid Other Proposed Legislation Other Forms of Revenue and Fund Balance & Reserves Appropriation Budget Related Increases Difference between Projected Revenue and Appropriation Budget Related Program Changes Contingent Budget Budget Summary Calendar of Budget Meetings 7

8 REVENUE Funds necessary to support academic programs and maintain district facilities 8

9 REVENUE SOURCES AND FUND BALANCE & RESERVES Tax Levy State Aid Other Forms of Revenue Fund Balance & Reserves 9

10 TAX LEVY Amount of money a school district collects through property taxes to support academic programs and maintain district facilities 10

11 SIX-YEAR HISTORY OF TAX LEVY INCREASES Farmingdale School District Nassau County School Districts 2008/ % 2009/ % 2010/ % 2011/ % 2012/ % 2013/ % 2008/ % 2009/ % 2010/ % 2011/ % 2012/ % 2013/ % Six-Year Average 1.90% Six-Year Average 3.09% Farmingdale School District Proposed 2014/15 Tax Levy Increase 1.81% 11

12 PROPERTY TAX CAP (Established for the 2012/13 school year and in effect through 2016/17) When is 2% Not Really 2%? Property Tax Cap restricts tax levy set by school districts, not the assessed value or tax rate or individual tax bill Basic principle: school districts may not adopt a budget that requires a tax levy that exceeds the tax cap unless the voters approve the budget by a supermajority (60%) Given exclusions and adjustments, the tax cap may not actually be 2% Adjustments and exclusions will increase it Low inflation will decrease it Even under a 2% increase, not all taxpayers will see the same impact on their bills (e.g., if a taxpayer applies for and receives a reduced assessment, everyone else s tax bill would increase) 12

13 2014/15 TAX LEVY LIMIT CALCULATION 2014/15 TAX LEVY CALCULATION tax levy $ 117,229,974 Tax base growth factor $ % 117,429,265 Add: Estimated PILOT $ 1,065,702 $ 118,494,967 Less: Estimated Capital Local Expenditures (net of building aid) $ (1,837,372) A DJUSTED TA X LEVY $ 116,657,595 Allowable growth factor (Lesser of 2% or CPI) % $ 118,360,796 Less: Estimated PILOT $ (1,342,467) Add: Available Carryover from before exclusions $ TA X LEVY LIMIT Before Exclusions $ 117,018, TA X LEVY LIMIT Before Exclusions $ 117,018, EXEMPTIONS: CAPITAL LOCAL EXPENDITURES (net of building aid) $ 2,333,300 COURT ORDERS/JUDGMENTS $ - ERS (0%) $ - TRS (0%) $ - MA XIMUM A LLOWA BLE LEVY $ 119,351,629 % INCREA SE 1.81% 13

14 SUMMATION OF THE PROPERTY TAX CAP The 2% tax cap is not really 2% after completing the calculation Even if the tax levy increase was 2%, your taxes will not necessarily increase by 2% The Assessor of Nassau County is responsible for determining assessed values which will impact individual homeowners tax bills There are other factors outside the district s control that affect actual taxes paid, which include: Two Separate Taxing Entities (Nassau County & Town of Babylon) Nassau County Property Classes (Class I, II, III & IV) STAR and Other Exemptions Settled Grievances So, 2% is not really 2%, and even if it was 2%, it is still not 2% 14

15 GOVERNOR S PROPOSED STATE AID Financial assistance the district receives from New York State to help support academic programs and maintain district facilities 15

16 BASIC STATE AID PACKAGES Unrestricted Foundation & High Tax Wealth and needs-driven aid Reimbursement & Expense-Driven Aid Formulas tied to local district expense Categorical & Grants Need to meet eligibility thresholds 16

17 FOUNDATION AID & HIGH TAX AID Foundation Aid: Intended to provide districts with an appropriate share of state aid based on wealth and student need factors $18,228,973 Frozen from 2008/09 to 2012/13 and again frozen in 2014/15 High Tax Aid: Intended to provide relief to areas in New York State that are viewed as high wealth due to high property values $3,243,907 Frozen at 2013/14 levels 17

18 REIMBURSABLE AID CATEGORIES Aid Categories Amount Transportation Aid $2,769,517 Public Excess High Cost Aid 1,612,806 Private Excess Cost Aid 772,315 BOCES Aid 1,335,111 Software, Library, Textbook Aid 514,193 Computer Hardware & Technology Aid 59,163 Total Reimbursable Aid $7,063,105 18

19 CATEGORICAL & GRANTS Universal Pre-Kindergarten Set to Remain Constant in 2014/15 Has been established as part of state aid in the amount of $419,194. Grant is accounted for in the special aid fund (no connection to general fund revenue) Title Grants IDEA 611 & 619 Nassau County Grants Special Legislative Projects County, State and Federal Grant funding has been reduced in each of the last three years 19

20 GAP ELIMINATION ADJUSTMENT & RESTORATION Gap Elimination Adjustment ($3,171,598) Used to balance the 2014/15 state budget The Gap Elimination Adjustment is based on wealth and student need factors Gap Elimination Restoration $150,294 Used to begin the restoration of aid already taken as part of the Gap Elimination Adjustment Gap Elimination Adjustment is a Legislative priority for the 2014/15 school year 20

21 2014/15 STATE AID State Aid Unrestricted $21,472,880 Reimbursement/Expense-Driven 7,063,105 Categorical/Grants -- Building Aid 2,032,183 State Aid Entitlement 30,568,168 Gap Elimination (State Budget Deficit) (3,171,598) Gap Restoration 150,294 Total *$27,546,864 *Actual state aid used as part of the revenue budget has been discounted due to the volatility of projections and a potential mid-year state aid cut 21

22 OTHER PROPOSED LEGISLATION Other items being recommended by the Governor for the Legislature s consideration 22

23 OTHER PROPOSED LEGISLATION Governor s Other Proposed Items Proposal to offer district residents reimbursement checks from the state equaling the value of a district s increase in the tax levy ($500 million in year 1 or $2.5 billion over 5 years) Year 1 Requirement district stays within their particular tax levy limit Year 2 Requirement district stays within tax levy limit and is able to provide a savings plan to the state through consolidation Year 3 Requirement district stays within tax levy limit and is able to prove 1% savings in the tax levy through consolidation Year 4 Requirement district stays within tax levy limit and is able to prove 2% savings in the tax levy through consolidation Year 5 Requirement district stays within tax levy limit and is able to prove 3% savings in the tax levy through consolidation 23

24 OTHER PROPOSED LEGISLATION (CONTINUED) Governor s Other Proposed Items State to provide funding for full-day Pre-K program ($100 million) Does not impact current funding formulas o Must be applied for and granted by the state Funding intended for low wealth areas Governor s recommended funding levels are inadequate by all outside measures Up to $20,000 in annual supplemental compensation to reward teachers who have been deemed highly effective ($20 million) Applying supplemental compensation to a flawed system will have a negative effect on our evaluation process 24

25 OTHER PROPOSED LEGISLATION (CONTINUED) Governor s Other Proposed Items STAR State to pay reimbursement directly to eligible property owners Creates the impression of a significant tax increase Eliminate annual cost of living adjustment (COLA) for Enhanced STAR beginning in 2015/16 freezing income levels at $81,900 ad infinitum Governor recommending a statewide public referendum to borrow $2 billion in support of technology projects with a focus on infrastructure and hardware needs Details of the plan have not been released Tentative value assigned to Farmingdale is $2,908,802 25

26 OTHER FORMS OF REVENUE AND FUND BALANCE & RESERVES Other funds necessary to support academic programs and maintain district facilities 26

27 INTEREST, TUITIONS, HEALTH SERVICES, PILOT AND FUND BALANCE & RESERVES Interest - Lowest rates in recent history.10% -.30% on money market and checking accounts $80,000 Tuitions - Based on a review of prior year revenue Health Services Based on enrollment in nonpublic schools in the district Closing of LaSalle Regional School has a neutral effect (less revenue with less expense as services are no longer required) PILOT (Payment in Lieu of Taxes) Based on the abated amounts of selected commercial property in the district Fund Balance & Reserves - Maintain application of fund balance To be discussed during the March 26 budget presentation as part of the multi-year financial plan $175,000 $25,000 $1,350,000 $7,500,000 27

28 MISCELLANEOUS REVENUE Miscellaneous Revenue Categories Interfund Revenue $440,000 Rental of Property/Reimbursements 215,000 Insurance Recoveries 65,000 Other Student Fees 65,000 E-Rate 50,000 Continuing Education Tuition 40,000 Medicaid Reimbursement 25,000 Refunds of Prior Year 25,000 Interest & Penalties on Property 20,000 Textbook Fees 5,000 Other 50,000 Total Miscellaneous Revenue $1,000,000 28

29 PUTTING TOGETHER WHAT WE HAVE LEARNED Tax Levy $119,351,629 State Aid $27,015,019 Other Forms of Revenue $2,630,000 Fund Balance & Reserves $7,500,000 TOTAL REVENUE $156,496,648 29

30 2014/15 PROPOSED REVENUE F ARMINGDALE PUB LIC SCHOOLS 2014/15 PROPOSED REVENUE B UDGET REVENUE 2013/14 APPROVED REVENUE BUDGET 2014/15 PROPOSED REVENUE BUDGET STATE AID $ 26,105,631 $ 27,015,019 INTEREST 150,000 80,000 TUITIONS 175, ,000 HEALTH SERVICES 100,000 25,000 PILOT PAYMENTS 1,123,513 1,350,000 MISCELLANEOUS INCOME 1,000,000 1,000,000 TOTAL OTHER INCOME 2,548,513 2,630,000 FUND BALANCE/RESERVES 7,500,000 7,500,000 SUB TOTAL 36,154,144 37,145,019 TAX LEVY 117,229, ,351,629 TOTAL BUDGET $ 153,384,118 $ 156,496,648 TAX LEVY % INCREASE 2.35% 1.81% 30

31 APPROPRIATION Funds necessary to provide academic programs and maintain district facilities 31

32 2014/15 APPROPRIATION Salaries All Collective Bargaining Unit contracts will expire on June 30, 2014 Increases in projected 2014/15 salaries are a result of required step movement Benefits Teachers Retirement System (TRS) set to increase by 7.8% for 2014/15 No exemption from the levy as the change in employer contribution rate is 1.28% Employees Retirement System (ERS) to remain flat for 2014/15 Major Medical Projected premium increase of 6% for January 2015 based on NYSHIP analysis Additional increase in response to the Patient Protection and Affordable Care Act (PPACA) 32

33 2014/15 APPROPRIATION (CONTINUED) Other BOCES 4.3% increase in Special Education related program costs Contract Transportation 2.5% increase as per current negotiated contract Utilities 7.7% decrease based on prior year expenditures and implementation of Energy Performance Project Tuitions 6.3% decrease based on projected Special Education tuition needs Legal $150,000 increase based on litigation expenses 33

34 THE EFFECT OF PROJECTED REVENUE AND APPROPRIATION Calculated difference between the amount of available revenue and the increased costs reflected in a roll forward budget 34

35 THE EFFECT OF PROJECTED REVENUE AND APPROPRIATION Revenue $156,496,648 Appropriation $158,657,398 Required Reductions $(2,160,750) In the past, a board would decide to weigh the value of programs and the community s likelihood to accept a levy increase needed in support of those programs. As the tax levy is a fixed number, the board is forced to instead decide what programs will continue and what programs will be cut. 35

36 BUDGET RELATED PROGRAM CHANGES Reductions necessary to balance revenue and appropriation 36

37 2014/15 BUDGET RELATED PROGRAM CHANGES This year, we discussed the following: Leverage retirements to maximize budgetary savings Utilize data to direct program changes Maximize program opportunities Minimize reductions in support staff in order to largely maintain current level of support services Minimize reductions in facilities staff (custodial, grounds, maintenance) in order to largely maintain current in-house facilities program 37

38 STAFF REDUCTION SUMMARY Instructional Positions Reductions Elementary Classroom 4.00 LOTE 3.00 Music/Art 2.00 Reading 2.00 Social Studies 1.60 Physical Education 1.40 Math 1.20 Science 1.10 Family Consumer Science 1.00 Technology 1.00 English 0.80 Business Education 0.80 Social Work 0.40 Total FTE s Non-Instructional Positions Reductions Districtwide Operations 2.00 Clerical 1.21 Health Services 1.00 Total FTE s 4.21 Total Instructional and Non-Instructional Reductions FTEs 38

39 2014/15 BUDGET RELATED PROGRAM CHANGES/REDUCTIONS Elementary Schools Middle School High School Reduce the Number of K-5 Sections Reduce the Number of Sections in: - Family Consumer Science - Technology Reduce the Number of Core Sections (Including PAGE Program): - ELA - Math - Science - Social Studies Reduce 5 th Grade General Music to Increase Health Education Eliminate 6 th Grade Introduction to Foreign Language (IFL) to Create a Reading Class for all 6 th Grade Students Reduce Art Sections Reduce the Number of Physical Education and Art Sections Eliminate Computer Skills Elective Reduce Attendance and Social Work Services Reduce Physical Education Sections Other Reductions Clerical Custodial Nursing 39

40 2014/15 COST ELEMENT SUMMARY F ARMINGDALE PUB LIC SCHOOLS 2014/15 PROPOSED BUDGET COST ELEMENT SUMMARY DESCRIPTION 2013/14 APPROVED BUDGET 2014/15 PROPOSED BUDGET BUDGET INCREASE/ (DECREASE) SALARIES $ 80,373,255 $ 80,431,179 $ 57,924 EMPLOYEE BENEFITS 38,672,814 41,449,238 2,776,424 BOCES 10,584,923 11,044, ,717 CONTRACT TRANSPORTATION 6,909,913 7,079, ,660 DEBT SERVICE 3,268,725 3,291,913 23,188 CONTRACT SERVICES 4,126,063 4,004,526 (121,537) UTILITIES 2,565,500 2,366,825 (198,675) MATERIALS & SUPPLIES 1,910,845 1,989,423 78,578 TUITIONS 2,068,516 1,937,995 (130,521) INSURANCE 983,100 1,060,000 76,900 TEXTBOOKS 417, ,836 40,336 EQUIPMENT 512, ,500 (44,464) LEGAL FEES 345, , ,000 CAPITAL PROJECTS 250, ,000 - NASSAU COUNTY SEWER TAX 170, ,000 - TAX CERTIORARI 225,000 - (225,000) TOTAL $ 153,384,118 $ 156,496,648 $ 3,112,530 PERCENTAGE INCREASE 2.03% 40

41 CONTINGENT BUDGET If voters of the district fail to approve the school district budget, the district is required by law to operate under a contingent budget 41

42 2014/15 CONTINGENT BUDGET 2014/15 Contingent Budget 2014/15 Proposed Budget $156,496,648 Program Reduction $(2,121,655) 2014/15 Contingent Budget $154,374,993 In the event of a defeated budget, reductions may include, but are not limited, to the following: Increased class size at the elementary level Reduced elective opportunities at the secondary level Reduction in athletic teams Reduction in musical performing groups Reduction in extra-curricular activities Reductions in equipment Reductions in maintenance projects Reductions in support services 42

43 2014/15 PROPOSED BUDGET SUMMARY One page summary of proposed budget information for the 2014/15 school year 43

44 2014/15 PROPOSED BUDGET 2014/15 Proposed Budget $156,496, /14 Approved Budget $153,384,118 Increase $3,112,530 Percentage Increase 2.03% Proposed Tax Levy Increase 1.81% 44

45 2014/15 BUDGET CALENDAR Farmingdale School District s Budget Calendar Board of Education Special Meeting/Budget Workshop March 12, 2014 Board of Education Special Meeting/Budget Workshop March 19, 2014 Board of Education Special Meeting/Budget Workshop March 26, 2014 Board of Education Regular Meeting/Budget Workshop/Public Input April 2, 2014 Board of Education Special Meeting/Adopt Budget for Voter Approval April 9, 2014 Board of Education Special Meeting/Adopt BOCES Admin. Budget April 24, 2014 Board of Education Special Meeting/Public Hearing May 13, 2014 BUDGET VOTE & ELECTION Tuesday, May 20, 2014 Howitt East Gymnasium 6:00 a.m. 9:00 p.m. 45