Community Budget Workshop Erin Town Hall March 8, 2012 Preliminary 2012-13 School Budget Horseheads Central School District 1
Where have we been since 2008? We are in the fourth year of the economic downturn in our country and state. The Horseheads district has been working for the last four years to combat the downturn while continuing to provide our children with a quality education. 2
Previous reductions May 2009 15% reduction in all building/department budget allocations Eliminated 13 positions through attrition (retirements and resignations) Restructured Educational Support Center Office (replaced three positions with two) Took back two special education classes from BOCES Eliminated BOCES labor relations service Eliminated Student Transition and Recovery (STAR) Program Eliminated one BOCES GED teacher Reduced contract teacher substitute pay from $100 to $75 per day Automated substitute registry through BOCES Eliminated curriculum mapping facilitator stipends Lowered temperature from 72 to 68 degrees in classrooms/offices No appliances in classrooms Total reductions: $2,299,659 3
Previous reductions May 2010 Eliminated 17 positions through attrition (retirements and resignations) Changed garbage collection service Lowered heat in buildings, 3:30pm to 6am and throughout weekends Eliminated food purchases and water coolers (not drinking fountains) Eliminated BOCES GED and Alternative Education programs Eliminated Attendance Teacher position and MS/IS Community Resource Officer Eliminated outsourced tutoring for out of school suspension Defunded K-12 intramurals and assistant coaches - JV football and boys lacrosse; modified girls swimming and outdoor track; varsity outdoor track Reduced technology and substitute expenditures Reduced funds for debt service, property tax refunds, legal services, and strategic plan Reduced contingencies for BOCES, insurance, and federal programs Defunded chairperson positions vacant through attrition: grades 3, 5 and high school social studies; district-wide library, high school guidance, and intermediate audio-visual coordinators. Total reductions: $2,806,905 4
Previous reductions May 2011 Reduced building/department budgets by approximately 22.5% Eliminated approximately 70 positions (26 through layoffs and 44 through retirements/resignations) Reduced three-year teacher mentor program to one year Defunded department chairs, grade level chairs, and team leaders Reduced special area instruction (art, library, music, physical education) and computer lab supervision Phased out German instruction after the 2011-12 school year Defunded approximately 25 extra-curricular stipends, grades K-12 Eliminated freshmen athletic teams and combined sports with two teams into one: 7 th and 8 th grade boys and girls basketball, boys soccer, and girls volleyball Reduced BOCES instructional technology services Eliminated Extended School Year Principal position Total reductions: $4,203,912 5
Total reductions since May 2009 May 2009 $2,299,659 May 2010 $2,806,905 May 2011 $4,203,912 Total $9,310,476 6
The New York State School Boards Association (NYSSBA) has identified the new 3 Rs *: Reducing Restructuring Redesigning The district is committed to preserving the 3 As as much as possible: Academics Arts Athletics *View the entire report at http://www.nyssba.org/clientuploads/nyssba_pdf/the_new_3_rs_reducing_restructuring_report.pdf 7
Meeting our Mission: Quality Education for All Despite the economic downturn of the last four years, we still offer our children, families, and community a quality educational program the three As: Academics Many ACE/AP offerings Pre-Kindergarten Full-Day Kindergarten $4 million + in scholarships earned by senior classes FOSS Challenger Comprehensive ELA Program Class size 25 or fewer Arts Numerous Scholastic Art Award winners Middle/High School musicals Marching Band/Pep Band many students chosen for NYSSMA Athletics Varsity/JV/Modified sports teams record-breaking season athletic scholarships 8
Property Tax Levy Cap Worksheet* (per Chapter 97 of the Laws of 2011) as of 3/8/12** A. Total Real Property Tax Levy for base year $ 32,441,675 B. Excess Levy in Reserve (NA in 2012-13) $ - C. Tax Levy subtotal (A - B) $ 32,441,675 D. Tax Base Growth Factor (min of 1.0)*** 1.0116 E. Adjusted Tax Levy subtotal (C x D) $ 32,817,998 F. Base Year PILOTs $ 819,659 G. Base Year Levy plus PILOTs $ 33,637,657 * The district is awaiting final guidance documents from the NYS Education Department and Comptroller s Office for the tax levy cap calculation. ** Worksheet template (not the data) was provided by School Aid Specialists, Inc., Guilderland, New York. ***This figure is determined by the state. 9
Property Tax Levy Cap Worksheet, continued G. Base year levy plus PILOTS $ 33,637,657 H. Allowable Levy Growth Factor based on CPI (2% for 2012-13) $ 672,753 I. Levy including Levy Growth Factor $ 34,310,410 J. Budget Year PILOT receivables $ 740,280* K. Levy less Budget Year PILOTS (I - J) $ 33,570,130 L. Eligible Carry-Over from Base Year Budget (N/A 2012-13) $ -- M. Tax Levy Limit - before Exclusions (K + L) $ 33,570,130 3.48% *Estimate. 10
Property Tax Levy Cap Worksheet, continued Budget Year Exclusions N. Capital Expenditures net of aid $ 84,476 O. Pension Expenditures above 2% $ 36,039 P. Court orders/judgments in > 5% of the base year levy $ - Q. Total Exclusions (N + O + P) $ 120,515 Total Tax Levy including Exclusions (M + Q) $33,690,645 3.85%* *At this time, this figure is an estimate. A simple majority vote is required to approve this figure. 11
Total Maximum Property Tax Levy under the law, with simple majority vote 2011-12 (voter-approved tax levy) $32,441,675 2012-13 (proposed as of 3/8/12) $33,690,645 Increase of $1,248,970 or 3.85% 12
State Aid Projection as of 3/8/12 2011-12 $25,955,044* 2012-13 (Governor s proposal) $26,557,829 Increase of $602,785 or 2.32% Note: In 2006-07, the district received $26,996,403 in total state aid. We are receiving less state aid than six years ago. * The district s share of NYS lottery revenue is included in our total state aid. In 2011-12, this amount was approximately $4.5 million. 13
Revenue Projections as of 3/8/12 State Aid (Governor s Proposal) $26,557,829 Preliminary Maximum Property Tax Levy $33,690,645 Other Sources* $ 3,932,206 Total Revenue (as of 3/8/12) $64,180,680 Note: For the current school year, the district used $5,295,000 from district reserve funds and $1,745,980 from the federal jobs bill grant to balance the budget. * Other includes rent, interest earnings, gate receipts, donations. 14
Total School Budget: Expense Projections as of 3/8/12 2011-12 (voter-approved budget) $69,329,180 2012-13 (proposed as of 3/8/12) $69,744,389 Increase of $415,208 or 0.59% 15
2012-13 Preliminary School Budget as of 3/8/12 Total Expenses $69,744,389 Total Revenues -$64,180,680 (Includes Governor s 2.32% state aid increase, a 3.85% property tax levy increase, and other sources) Deficit (as of 3/8/12) -$ 5,563,709 Note: For the current school year, the district used $5,295,000 from district reserve funds and $1,745,980 from the federal jobs bill grant to balance the budget. 16
2011-12 Retirements 21 positions 14 positions to be replaced for 2012-13 - at a lower salary Savings: 2 Resource Room Teachers $65,265 2 Reading Teachers $64,242 2 Library Media Specialists $55,593 1 Music Teacher $30,270 2 Building Maintenance Mechanics $30,248 1 Head Cleaner $16,257 1 Elementary Teacher $16,096 1 Clerk Typist (attendance) $4,982 1 Cleaner $4,225 1 Bus Driver $4,057 Savings: $291,235 17
2011-12 Retirements 21 positions 7 positions will not be replaced for 2012-13 Savings: 2 Elementary Teachers $128,673 3 Teaching Assistants $54,045 1 Bus Driver $14,243 1 School Monitor $7,441 Savings: $204,402 18
Unfilled Positions in 2011-12 Budget that Can be Eliminated 3 Teaching Assistants: $45,248 Savings: $45,248 19
Central Office Restructuring Proposal Change the title of Assistant Director of Student Services to Assistant Director of Elementary and Secondary Education: Director of Director of Director of Student Elementary Ed Secondary Ed Services Asst Director of CSE Chair, CSE Chair, Elem/Sec Ed PreSch-5 ASD Cons/6-12 20
Proposed Budget includes Textbooks $150,000 Full-time Middle School Principal (salary and benefits) $130,000 6-8 Electronic Voting Machines (required by law) $100,000 Part-time (shared) BOCES School Business Official $65,000 Part-time Director of Physical Education and Athletics $65,000 (salary and benefits) Part-time Director of Facilities (salary and benefits) $55,000 New Copier Lease through BOCES, Spring 2013 $38,252 Increased slots for BOCES Summer School $35,000 Microsoft Office Update through BOCES $21,720 Wincap Time Sheet Software through BOCES $19,250 Increase Two CSE Chairperson Positions from 11 to 12 months $15,000 BOCES Advanced Academics Online Courses $5,000 [Note: All BOCES expenditures are BOCES-aidable up to 75% the following year.] 21
Five-Year Budget Projection as of 3/8/12 Property Tax Levy State Aid Use of Fund Balance and Reserves 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 $ 32,441,675 $ 33,690,645 $ 34,364,458 $ 35,051,747 $ 35,752,782 $ 36,467,838 ( 3.85%) ( 2%) ( 2%) ( 2%) ( 2%) $ 25,955,044 $ 26,557,829 $ 27,088,986 $ 27,630,765 $ 28,183,381 $ 28,747,048 ( 2.32%) ( 2%) ( 2%) ( 2%) ( 2%) $ 5,295,000????? Federal Jobs Bill Grant $ 1,745,980 $ 0 $ 0 $ 0 $ 0 $ 0 Other Revenue $ 3,891,482 $ 3,932,206 $ 3,932,206 $ 3,932,206 $ 3,932,206 $ 3,932,206 Total Budget $ 69,329,181 $ 69,744,389 ( 0.59%) $ 70,441,833 ( 1%) $ 71,146,251 ( 1%) $ 71,857,714 ( 1%) $ 72,576,291 ( 1%) Projected Deficit $ 0 $ (5,563,709) $ (5,056,183) $ (4,531,533) $ (3,989,345) $ (3,429,199) 22
Summary Assuming the use of $5,000,000 in reserves, $563,709 in reductions may be needed by 4/18/12 We continue to adjust cost projections; therefore, the deficit may be further reduced by 4/18/12 As it did last year, an early or on-time state budget may bring in additional revenue No layoffs or significant program/service reductions are anticipated at this time Reductions (if necessary) will be brought to the board at the April 4 community budget workshop. 23
Board Discussion and Questions 24
Public Comments and Questions 25
Any Further Board Discussion or Questions 26
Remaining Board of Education Community Budget Workshop April 4 6pm Broad Street School Other Upcoming Dates March 29 April 2 April 16 April 18 April 26 May 15 Board of Education Meeting, High School Library, 6pm Prospective Board of Education Member Informational Session, Multi-Media Center, 7pm Board of Education Candidate Petitions due, Business Office, by 5pm Board of Education Meeting, Multi-Media Center, 6pm The board will vote on adopting a proposed budget at this meeting. Board of Education Meeting, Middle School, 6pm Budget Vote/Board of Education Election, High School/ Big Flats/Ridge Road, 7am to 9pm 27
Thank you for attending. This presentation is on the district website. Go to www.horseheadsdistrict.com, and click on 2012-13 Budget Information at the right of the page. Information on the property tax cap law is also in this section. 28