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April and May 2012
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HALF HOLLOW HILLS SCHOOL DISTRICTof Huntington and Babylon
2012‐13 Adopted BudgetPTA Presentations
2012‐13 Adopted Budget – PTA Presentations
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2
2012‐13 Adopted Budget – PTA Presentations
Property Tax Levy “Cap”• Governor Cuomo imposed a formula for districts to use in an effort to “cap” the growth of property taxes
• The “cap” is not a cap; it’s a voter threshold• Formula is flawed since the result of it will be further separating the “haves” and “have‐nots” amongst Long Island school districts
• The Governor’s “2% cap” isn’t 2%!• A “cap” on the tax levy does not mean a cap on an individual homeowner’s property taxes – these are two very different concepts!
3
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
Property Tax Levy “Cap”• HHH Board of Education made a decision to present a 2012‐13 budgetwhich requires a “simple majority”
• The District’s calculated Property Tax Levy “Cap” as a result is 2.33% Put differently: the 2011‐12 total property tax levy of $178 million
can increase by 2.33% for the 2012‐13 school year
4
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
5
2012‐13 Adopted Budget – PTA Presentations
Expenses• Budget development process began in
November 2011 to calculate the cost of providing the same level of programs and support services for 2012‐13 as we do in 2011‐12 Person‐by‐person Budget code‐by‐budget code
• Approximately 80% of budget represents salary and contractually required benefits: 41% for New York State certified staff (teachers/administrators) 14% for Civil Service staff (clerical, custodians, etc) 25% for employee benefits including healthcare, Social
Security, Workers’ Compensation, and pension
6
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
Expenses• Remaining 20% of budget representsequipment, textbooks, supplies, BOCES, transfers to other funds (capital, debt service, special aid) and borrowing costs for cash flow
• Providing the same level of programs and support services next year (2012‐13) as we have this year (2011‐12) would cost us approximately 7% more (over $15 million) than it does today
7
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
8
2012‐13 Adopted Budget – PTA Presentations
Revenues• Total expenses must equal total revenue• Revenue comes from three sources: Property taxes State aid “Other”, including use of reserved and unreserved fund balance
9
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Property Taxes82.15%
State Aid11.34%
"Other"6.51%
2012‐13 Adopted Budget – PTA Presentations
Increase of2.33% or$4,158,533
Revenues• Property Taxes Total property tax levy is now a fixedamount based on the Property Tax Levy formula For HHH, the 2012‐13 total property tax levy is 2.33% more than prior year
10
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
$178,147,6582011‐12
total property tax levy
$182,306,1912012‐13
estimated total property tax levy
2012‐13 Adopted Budget – PTA Presentations
Revenues• State Aid New York State passed an on‐time budget HHH State Aid rose by approximately $900,000 from State Aid budgeted in 2011‐12
Aid in many individual categories changed slightly To interpret State Aid, must also understand:
Deduct for Local Share of Education for Certain StudentsUniversal Pre‐Kindergarten Aid is NOT general fund moneyGap Elimination Adjustment (GEA)
11
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
STATE BUDGET
2012‐13 Adopted Budget – PTA Presentations
Revenues• State Aid
12
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
17,695,337
1,355,779
1,089,746
920,989
851,493
2,882,289
4,554,254 17,887,040
1,355,779
1,220,310
946,635
848,574 3,259,002
4,790,769
‐
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
Foundation High Tax BOCES Special Ed Categorical Transportation Building
2011‐12
2012‐13
Expense Driven Aids
2012‐13 Adopted Budget – PTA Presentations
Revenues• Total “other” revenue expected to
increase as a direct result of: PILOTs Incremental use of appropriated unreserved fund balance Incremental use of reserved fund balance
13
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
PILOTs Use of Reserves Appropriated FundBalance
"All Other"
2011‐12
2012‐13
• Interest earnings• Adult Ed• Medicare Part D
reimbursement• Foster tuition from
other districts• Use of facility charges• Health Services from
other districts
2012‐13 Adopted Budget – PTA Presentations
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
14
2012‐13 Adopted Budget – PTA Presentations
Fiscal and Educational Balance
• Property Tax Levy “Cap” mandatehas shifted the District’s attention from building a budget focused on programs/services first to one which puts expenses and revenues first.
15
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
• 2012‐13 budget must maintain:
Fiscal and Educational Balance
16
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
• Universal Pre‐K• Full‐Day Kindergarten• Elementary Class Size• Middle School Teaming• 27 Advanced Placement Courses• 9‐Period MS / HS School Day• 6th Grade Foreign Language• Special Education / ESL• AHAP / Enrichment• Research Program• Elementary Summer School• Elementary Academic Intervention
Services in reading and math
• Discovery Center / Planetarium• Universal Busing• Field Trips• 131 Athletic Teams• Extracurricular Clubs K‐12• Band, Orchestra & Chorus in
Grades 4‐12 • MS / HS Musicals• Hills on Stage• LIHSPA for Seniors• Participation in SCMEA,
NYSSMA and LISFA• Technology replacements• Drivers’ Education
2012‐13 Adopted Budget – PTA Presentations
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
17
2012‐13 Adopted Budget – PTA Presentations
Prioritizing Budget Reductions
• Address budget reductions resulting from enrollment declines first
• Equitably distribute reductions across all buildings/areas
• Maintain as much of the blending of “AAA” (Academics, Arts and Athletics) as possible
• Over $9 million in reductions were required to be made across all areas
18
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
19
2012‐13 Adopted Budget – PTA Presentations
Proposed 2012‐13 Budget
• $221,918,299 2.75% increase from 2011‐12 budget Lowest budget‐to‐budget increase in 15 years Stays within the Property Tax Levy “Cap”
20
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
Proposed 2012‐13 Budget
21
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Undistributed• Employee benefits (including retirement,
Medicare, Social Security, Workers' Compensation, unemployment insurance, health insurance, life insurance, etc.)
• Debt service (principal and interest payments on outstanding bonds and tax anticipation notes)
• Local share for the cost of offering a summer school special education program
General Support• Expenses supportive of the entire district
management effort• Includes legal, BOE, elections, auditors,
facilities, BOCES admin charges, and insurance
• Includes expenses within the Superintendent, Human Resources, and Business Offices
Instruction• K‐12 instructional programs of
regular and special ed students• Principals, assistant principals,
teachers, guidance counselors, psychologists, attendance, librarians, health services, etc
• Also included is summer school, the interscholastic sports program, co‐curricular activities (clubs) as well as textbooks
Community Services• Costs related to community use of
District pool
Transportation• All costs for transporting pupils to and
from public, private and parochial schools
2012‐13 Adopted Budget – PTA Presentations
Proposed 2012‐13 Budget
22
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
General Support19,978,960
9%
Instruction122,013,160
55%
Transportation14,115,436
6%
Community Service77,751 0%
Undistributed65,732,992
30%
2012‐13 Adopted Budget – PTA Presentations 23
Budget Failure• Scenarios: Budget is defeated after two presentations to the voters OR
After one defeat where the Board decides not to resubmit a budget to voters
• Requirements:1. District must adopt a budget with a tax levy less than or
equal to the prior year (i.e. 0% growth)2. Maintain the administrative cap 3. Eliminate all non‐contingent expenses
• Statewide uniform revote date: third Tuesday in June
2012‐13 Adopted Budget – PTA Presentations 24
Budget Failure1. District must adopt a budget with a tax levy less
than or equal to the prior year Overall contingent budget calculation stricken from law No longer is the contingent budget an increase of the prior
year’s budget which represents the lesser of 120% of CPI or 4% No longer does the contingent budget calculation include
provisions for exceptions and allowances 0% growth in tax levy For HHH, a contingent budget means an additional
over $4 million in cuts
$182,306,191 $178,147,658 $4,158,533
2012‐13 Proposed Tax Levy
2011‐12Tax Levy
Additional Budget Cuts Required under a Contingent Budget
2012‐13 Adopted Budget – PTA Presentations 25
Budget Failure• Scenarios: Budget is defeated after two presentations to the voters OR
After one defeat where the District decides not to resubmit a budget to voters
• Requirements:1. District must adopt a budget with a tax levy less than or
equal to the prior year (i.e. 0% growth)2. Maintain the administrative cap 3. Eliminate all non‐contingent expenses
• Statewide uniform revote date: third Tuesday in June
2012‐13 Adopted Budget – PTA Presentations
26
Budget Failure2. Maintain the administrative cap Stay at or below the same proportion of “Admin” to “Program”
as existed in prior year Districts are required to report their budget in three parts…
PROGRAM78.3% of budget
• Special Ed and Regular Ed Teacher salaries & benefits
• Instructional Technology• Clubs & Sports• Student busing
ADMINISTRATIVE8.9% of budget
• The “people and stuff” working to put all the pieces together
• Board of Education• Auditors & Attorney fees• Property & Liability insurances• Administrators & Support Staff
districtwide• Curriculum Development• BOCES admin charges
CAPITAL12.8% of budget
• Custodians, Maintenance and Grounds salaries & benefits
• Debt Service• Transfer to Capital
2012‐13 Adopted Budget – PTA Presentations 27
Budget Failure• Scenarios: Budget is defeated after two presentations to the voters OR
After one defeat where the District decides not to resubmit a budget to voters
• Requirements:1. District must adopt a budget with a tax levy less than or
equal to the prior year (i.e. 0% growth)2. Maintain the administrative cap 3. Eliminate all non‐contingent expenses
• Statewide uniform revote date: third Tuesday in June
2012‐13 Adopted Budget – PTA Presentations 28
Budget Failure3. Eliminate all non‐contingent expenses Equipment Student supplies Community use of buildings and grounds Board can elect one of the following two options
1. Eliminate ALL community use of buildings and grounds for the entire year
2. Allow community use of buildings and grounds but charge every single group a fee for such use so that all direct and indirect expenses are 100% covered:» Field use: painting fields, irrigation system fees, water fees,
grounds staff salaries/benefits, etc.» Building use: heat/AC, toilet paper, paper towels, maintenance
of septic systems, custodial staff salaries/benefits, etc.
2012‐13 Adopted Budget – PTA Presentations
Budget Failure• What would a contingent budget look like?
29
Reduction Item Approximate $ Reduction Item Approximate $
Eliminate all equipment 1,000,000$ Reduce to half‐day kindergarten
1,200,000$
Eliminate all community use of buildings and grounds
100,000$ Eliminate all extracurricular activity clubs
600,000$
Eliminate Planetarium and Discovery Science Center
200,000$ Eliminate remainder of intramurals
75,000$
Eliminate Elementary Enrichment program and AHAP
400,000$ Elminate 4th and 5th grade orchestra/band
200,000$
Eliminate regular education elementary summer school
200,000$ Eliminate 8th grade teaming 125,000$
Eliminate 7th and 8th grade interscholastic teams
100,000$
$4,158,533
Additional Budget Cuts Required under a Contingent Budget
2012‐13 Adopted Budget – PTA Presentations
Important Dates• Remaining PTA presentations of proposed 2012‐13 budget: Wednesday May 2nd
9:30 am ‐ Chestnut Hill 10:15 am – Vanderbilt 7:30 pm – Sunquam 8:15 pm – Otsego
Tuesday May 8th – 9:30 am – Paumanok Wednesday May 9th
9:30 am – Candlewood 10:15 am – West Hollow
• Tuesday May 15th: Budget Vote and Board of Ed elections
30