Community Budget Workshop Broad Street School April 4, 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
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 3
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 STEM 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 4
In 2011, New York State passed legislation establishing a property tax cap. The property tax cap law establishes a tax levy limit for each school district. The tax levy limit allows school districts to increase their property tax levy from one year to the next by two percent or the rate of inflation, whichever is less, based on a multi-step formula. School districts are then allowed to take certain exemptions that may boost their tax levy limits to more than two percent or the inflation rate. 5
Property Tax Levy Cap Calculations as of 4/4/12 NYS Comptroller s Property Tax Cap Form (Chapter 97 of the Laws of 2011) Tax Levy Limit (Cap) Before Exclusions: Tax Levy Fiscal Year Ending (FYE) 6/30/12 $32,441,675 Tax Base Growth Factor (per state) x 1.0116 $32,817,998 PILOTS Receivable FYE 6/30/12 + $819,842 $33,637,840 Capital Tax Levy for FYE 6/30/12 - $1,109,721 $32,528,119 Allowable Levy Growth Factor (2%) x 1.02 $33,178,681 PILOTS receivable FYE 6/30/13 - $750,504 Total Tax Levy Limit Before Exclusions $32,428,178 continued 6
Property Tax Levy Cap Calculations, continued Exclusions: Capital Tax Levy for FYE 6/30/13 $1,084,699 Tax Levy Necessary for Pension Contribution Expenditures caused by growth in the system average actuarial contribution rate (ERS) or normal contribution rate (TRS) in excess of 2 percentage points: Employees Retirement System (ERS) + $36,065 Teachers Retirement System (TRS) + $0 Total Exclusions $1,120,764 continued 7
Property Tax Levy Cap Calculations, continued Total Tax Levy Limit Before Exclusions $32,428,178 Total Exclusions + $1,120,764 Total Tax Levy Limit $33,548,942 2012-13 Property Tax Levy Limit $33,548,942 2011-12 Property Tax Levy - $32,441,675 Proposed Increase, 2012-13 school year $1,107,267 Proposed Property Tax Levy 3.41% Percentage Increase 8
Funding of public schools in New York State New York State public school districts receive the majority of their funding from two sources state aid and property taxes. State aid to the Horseheads district will increase in the 2012-13 school year, the first increase since 2008-09. 9
State Aid Projection as of 4/4/12 2011-12 $25,974,249* 2012-13 $27,136,361 Increase of $1,162,112 or 4.47% Note: In 2007-08, the district received $28,436,680 in total state aid. In spite of the increase next year, we are still receiving less state aid than five 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. 10
Revenue Projections as of 4/4/12 State Aid $27,136,361 Preliminary Maximum Property Tax Levy $33,548,942 Use of reserve funds $5,000,000 Other Sources* $ 3,826,368 Total Revenue (as of 4/4/12) $69,511,671 Note: For the current school year, the district assigned $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. 11
Expense Projections as of 4/4/12 Total School Budget: 2011-12 (voter-approved budget) $69,329,180 2012-13 (proposed as of 4/4/12) $69,511,671 Increase of $182,491 or 0.26% 12
2012-13 Proposed School Budget as of 4/4/12 Total Expenses $69,511,671 Total Revenues -$69,511,671 (Includes 4.47% state aid increase, 3.41% proposed property tax levy increase, $5,000,000 from reserves, and other sources) Deficit -0- Note: For the current school year, the district assigned $5,295,000 from district reserve funds and $1,745,980 from the federal jobs bill grant to balance the budget. 13
Proposed reductions for 2012-13 Replace 14 positions (open due to retirements) $291,235 at lower salaries 2 Resource Room Teachers 2 Reading Teachers 2 Library Media Specialists 2 Building Maintenance Mechanics 1 Elementary Teacher 1 Music Teacher 1 Head Cleaner 1 Clerk Typist (attendance) 1 Cleaner 1 Bus Driver Eliminate 7 positions (retirements) $204,402 2 Elementary Teachers 1 Bus Driver 3 Teaching Assistants 1 School Monitor Eliminate 3 unfilled teaching assistant positions $45,248 continued 14
Proposed reductions for 2012-13 Unemployment Insurance $240,900 Medical Reimbursement Accounts (HR 105) $392,500 Bus Debt $133,807 School Construction Debt $326,807 Workers Compensation $53,777 Total reductions $1,688,676 15
Proposed Budget includes Textbooks (PreK-8 Math) $150,000 Full-time Middle School Principal (salary and $130,000 benefits) Rental of 6-8 Electronic Voting Machines $25,000 (required by law) Part-time (shared) BOCES School Business Official $65,227 (with Spencer-Van Etten CSD) Part-time Director of Physical Education and $65,000 Athletics (salary and benefits) Part-time (shared) Director of Facilities $57,273 (with Elmira Heights CSD) New Copier Lease through BOCES, Spring 2013 $38,252 continued 16
Proposed Budget includes 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 $15,000 from 11 to 12 months (Asst Dir of Student Svcs title would be changed to Asst Dir of Elem and Sec Ed: Director of Director of Director of Student Elementary Ed Secondary Ed Services Asst Director of Elem/Sec Ed CSE Chair, Pre-4 CSE Chair, ASD/5-12 BOCES Advanced Academics Online Courses $5,000 [Note: All BOCES expenditures are BOCES-aidable up to 75% the following year.] 17
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 18
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 19
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 20
Total reductions since May 2009 May 2009 $2,299,659 May 2010 $2,806,905 May 2011 $4,203,912 May 2012 $1,688,676 Total $10,999,152 21
Property Tax Levy State Aid Fund Balance and Reserves Five-Year Budget Projection as of 4/4/12 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 $ 32,441,675 $ 33,548,942 $ 34,219,920 $ 34,904,318 $ 35,602,404 $ 36,314,452 ( 3.41%) ( 2%) ( 2%) ( 2%) ( 2%) $ 25,974,249 $ 27,136,361 $ 27,679,088 $ 28,232,669 $ 28,797,322 $ 29,373,268 ( 4.47%) ( 2%) ( 2%) ( 2%) ( 2%) $ 5,295,000 $5,000,000???? Federal Jobs Bill Grant $ 1,745,980 $ 0 $ 0 $ 0 $ 0 $ 0 Other Revenue $ 3,872,277 $ 3,826,368 $ 3,826,368 $ 3,826,368 $ 3,826,368 $ 3,826,368 Total Budget $ 69,329,181 $ 69,511,671 ( 0.26%) $ 70,206,787 ( 1%) $ 70,908,854 ( 1%) $ 71,617,942 ( 1%) $ 72,334,121 ( 1%) Projected Deficit $ 0 $ 0 $ (4,481,411) $ (3,945,499) $ (3,391,848) $ (2,820,033) 22
New York State School Report Card for Fiscal Accountability 2009-10 (most current data published by NYS) Instructional Expenditures Per Pupil* General Education Special Education Horseheads Central Schools $ 8,613 $17,093 Similar School Districts $ 9,695 $29,949 New York State $11,105 $26,888 * Per New York State, Instructional Expenditures are expenditures for classroom instruction plus a portion of building level administrative and instructional support expenditures. District expenditures, such as transportation, debt service, and district-wide administration, are not included. Total Expenditures Per Pupil** Horseheads Central Schools Similar School Districts New York State $15,437 $18,262 $19,921 ** Per New York State, Total Expenditures Per Pupil include district expenditures for classroom instruction, transportation, debt service, and district-wide administration. 23
Summary The three As (academics, arts, athletics) remain intact because of a great deal of hard work by many staff members. In addition to the three As, the new three Rs as defined by NYSSBA (reducing, restructuring, redesigning) continue to be our focus As it did last year, an early state budget brought in additional revenue No layoffs or significant program/service reductions for 2012-13 school year 24
Board Discussion and Questions 25
Public Comments and Questions 26
Any Further Board Discussion or Questions 27
Important Budget Dates April 16 April 18 April 26 May 15 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 28
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. 29