2015-2016 Budget Discussion March 5, 2015 Dr. Marguerite Vanden Wyngaard, Superintendent William Hogan, Assistant Superintendent for Business Affairs 1 Agenda Budget Calendar Budget Challenges and Update Potential Budget Reductions (if needed) Reserves and Fund Balance Professional Development (studio classrooms and coaches) Academic Intervention Services (AIS) Discussion 2 1
Budget Calendar March 9-11 March 19 March 24 Principal-led Budget Meetings in Schools Board Meeting (3/19/15 Draft) Special Budget Forum and Meeting (3/24/15 Draft) April 1 Board Meeting (4/1/15 Draft) and Budget Adoption April 16 Board Meeting and Budget Adoption (if not adopted on April 1 st.) May 7 Budget Hearing May 8 Budget Newsletter Mailing May 19 Budget Vote Day 3 2015-16 Budget Challenges (1 of 2) Budget Challenges State-aid State-aid allocations for the upcoming year have never been less clear. If the legislature cannot come to agreement on the educational reform proposals, then State aid for both 2015-16 and 2016-17 will remain at current levels (0% increase). The state-wide average increases could range from 0% to 4.8%. In past years, the Governor s proposal issued in January provided school districts with a revenue number to incorporate into budget planning. 4 2
2015-16 Budget Challenges (2 of 2) Budget Challenges on the expenditure side Enrollment growth at the elementary level (Giffen, SPA, SAA, NSES, NAA) Increase of ENL (ESL) positions due to enrollment growth and mandates Increase of full-time teaching assistant positions previously filled with substitutes Charter school tuition increase Affordable Health Care Act Implementation of Core Standards New course offerings (freshman, college, career, CTE and JROTC) 5 Changes since Budget Draft 2/26/15 Expenditure Adjustments from 2/26/15 Draft to 3/5/15 Budget Update Dollar Tax Levy Description Impact Impact Reductions: Salary and Benefits (due to staff transition) (17,145) -0.02% Additions: 0.00% Total $ (17,145) -0.02% Revenue Adjustments from 2/26/15 Draft to 3/5/15 Budget Update Dollar Tax Levy Description Impact Impact PILOTS (Change in Estimate) 150,000 0.13% Total $ 150,000 0.13% 6 3
Budget Update 3/5/15 (1 of 2) Reconciliation from 2/26/15 Budget Draft to 3/5/15 2014 15 2015-16 Dollar Percent Change in Budget Update Budget Budget Change Change Tax Levy Revenues $ 221,752,648 $221,100,392 $ (652,256) -0.29% Expenses 221,752,648 222,009,015 256,367 0.12% Projected Deficit - $ 908,623 0.80% 7 Budget Update 3/5/15 (2 of 2) The current budget gap is $908K. The estimated deficit is before any increases in tax levy. The tax levy would have to increase by 0.80% in order to balance the base budget unless reductions are implemented and/or revenues received. Projected Tax Levy Increase "What If" Scenarios Deficit Required Current Status (If no changes) $ 908,623 0.80% If State-aid Reverts to 2014-15 Levels 2,908,623 2.58% 8 4
Potential Budget Reductions in the Event Stateaid is held at current levels Item Description FTE Amount PSAT/SAT (SUNY) $ (30,000) JROTC new program (170,000) Affordable Care Act Mandate estimated 205 new health insurance plans (100,000) Teaching Assistant - Sp. Ed. classes filled w/ subs for 2014-15 and prior years (7.0) (315,000) Reading Teachers.5 ea @ AHES, EPES, NSES, PHES, TOAST (2.5) (200,000) Coaches from 18 FTE's to 16 FTE's (2.0) (160,000) $ (975,000) In the worse case scenario, if the reductions were made, the remaining budget gap of $1.9 million could be closed with an increase in tax levy of 1.71%. 9 Reserves: Reserves and Fund Balance Funds set aside to meet expected future payments, or set aside for a specific purpose. This tool can be used to help smooth out spikes in the annual budget and in the property tax levy. The practice of planning ahead and systematically saving for capital acquisitions and other contingencies is considered prudent management. (Local Government Management Guide: Reserve Funds, The Office of the NYS Comptroller.) Fund Balance: The total accumulation of revenues minus expenditures since the inception of the school district, less any withdrawals. Fund Balance is equivalent to your lifetime savings. 10 5
Sound Fiscal Practices The CSDA has proactively managed its budgets, fund balance and reserves through the recession and continues the practice of managing long-term funds with long-term planning. The CSDA is NOT on the NYS Comptroller s list of school districts under fiscal stress or susceptible to it. Local districts on this list include: Watervliet CSD, Glens Falls Common, Corinth CSD, Fort Edward CSD, Schenectady CSD, Rensselaer CSD, Greenwich CSD, Hudson Falls CSD, South Glens Falls CSD, Guilderland CSD, and Glens Falls CSD Statewide, there were nearly 100 districts on the list and high-need urban/suburban districts are four times more likely than low-need districts to be on the list. The planned usage of fund balance and reserves extends to 2017-18 and could extend beyond that by underspending budgets. 11 2015-16 Budget Planned Use of Reserves and Fund Balance Planned Use of Resources Projected Planned 2014-15 2015-16 Fund Balance $3,000,000 $5,000,000 Debt Reserve 1,100,000 800,000 Tax Certiorari Reserve 500,000 500,000 Employee Benefit Reserve 648,000 900,000 Totals $5,248,000 $7,200,000 12 6
Impact of Using of Reserves and Fund Balance to Maintain Programs Note: The percentages provided represent total Reserves and Fund Balance as a percent of budget. 13 Impact of Using of Reserves and Fund Balance to Maintain Programs $37.3M Note: Reducing the dependence on Reserves and Fund balance should be on consideration in the event that additional State-aid revenues are obtained and/or when setting the tax levy. 14 7
Professional Development Studio Classrooms Planned for 2015-2016 LITERACY 1. Four K-2 Literacy Studios in Year 1 2. Two K-2 Literacy Studios in Year 2 3. One 3-5 Literacy Studio in Year 1 4. One 6-8 Literacy Studio in Year 1 MATH 1. Two K-2 Math Studios in Year 2 2. Four 3-5 Math Studios in Year 1 3. One 6-8 Math Studio in Year 2 4. One 9-12 Math Studio in Year 1 15 Professional Development Instructional Coaching 18 Coaches Individual and Small Group Coaching Instructional Support Curriculum Support Data Driven Decisions Professional Developers 700 Teachers Impacted 17 Building Leaders Assisted Coach Contact Data 45% elementary teachers participated in coaching cycles 53% middle school teachers participated in coaching cycles 25% AHS teachers participated in coaching cycles Next Steps: Development and enhancement of measurement tool and collection of data to show evidence of change in teacher practice. 16 8
Academic Intervention Services Secondary AIS Tier II 16.5 Teachers (Math or ELA) Students assigned A/B days Classes of 15 Small group learning structure Flexibility to move to Tier III or exit Progress Monitoring AIS Tier III 7 Reading Teachers Classes of 6-8 students Students assigned A/B days or both Research-based interventions Progress Monitoring Students Served: 1300 students in AIS; 500 students served by Reading Teachers 17 2014-15 Tax Cap Calculation The tax cap simply determines the number of votes needed to pass a school budget. If a school district increases the taxes less than or equal to the tax cap, then only a simply majority (50% plus 1 vote) of votes are needed to pass the budget. If a school district increases the taxes above the tax cap, then a super majority (60%) of votes are needed to pass the budget. The tax cap is 2.26% for the 2015-16 fiscal year. 18 9
Discussion Questions and Comments Budget Update and Potential Reductions Reserves and Fund Balance Professional Development and AIS Next Steps and Direction Any Additional Feedback on 2020 Investment Proposals 19 10