North Syracuse Central School District

Proposed Budget 2015-16

April 13, 2015

1

Agenda

Revenues

State Aid & GEA Restoration

Local Tax Levy & Tax Cap

Expenditures

Bus Bond Proposition

Fund Balance & Reserves

Vote & Election Information

Budget Process Timeline

2

Estimated Revenues $150,862,724

State Aid $64,398,201

43%

Tax Levy $81,884,213

54%

PILOTS $583,700

0%

Sales Tax $350,000

0%

Other Revenue $2,156,610

2%

Interest $60,000

0%

Fund Balance $750,000

1%

Medicaid $300,000

0%

Rent $380,000

0%

3

Estimated Revenue Variance 2014-2015 2015-2016 Variance

General Aid $53,141,180 $56,864,117 $3,722,937 7.0%

PILOTS $545,505 $583,700 $38,195 7.0%

Sales Tax $350,000 $350,000 $0 0.0%

Interest $60,000 $60,000 $0 0.0%

Fund Balance $847,356 $750,000 ($97,356) (11.5%)

Rent $350,000 $380,000 $30,000 8.6%

Medicaid $225,000 $300,000 $75,000 33.3%

Other Revenue $2,084,554 $2,156,610 $72,056 3.5%

Sub Total $57,603,595 $61,444,427 $3,840,832 6.7%

Building Aid $7,803,499 $7,534,084 ($269,415) (3.5%)

Possible Tax Levy $80,257,941 $81,884,213 $1,626,272 2.03%

Total $145,665,035 $150,862,724 $5,197,689 3.6%

4

5

North Syracuse Central School District State Aid 2015-16

Approved Approved Difference Budget Budget $ % 2014-15 2015-16

Foundation Aid 43,178,688 43,324,523 145,835 0.3%

Excess Cost - Private 196,291 220,550 24,259 12.4% Excess Cost - Public 1,614,110 1,676,270 62,160 3.9%

Subtotal 44,989,089 45,221,343 232,254 0.5%

Hardware & Technology 165,359 163,022 -2,337 -1.4% Software, Library, Textbook, 767,085 751,266 -15,819 -2.1% Transportation (Net of Adjustment) 8,147,765 8,148,291 526 0.0%

BOCES 4,473,373 4,498,340 24,967 0.6%

Subtotal 13,553,582 13,560,919 7,337 0.1%

GAP Elimination Adjustment (5,401,491) (1,918,145) 3,483,346 -64.5%

Total (Without Building Aid) 53,141,180 56,864,117 3,722,937 7.0% Building Aid 7,803,499 7,534,084 -269,415 -3.5%

TOTAL STATE AID 60,944,679 64,398,201 3,453,522 5.7%

Universal Pre-K 606,120 606,120 0 0.0%

TOTAL STATE AID w/ Pre-K 61,550,799 65,004,321 3,453,522 5.6%

Kindergarten Conversion Aid 3,250,966 0

GEA Restoration

Since 2010-11, NSCSD has lost over $42 million in state aid due to the GAP Elimination Adjustment (GEA).

The loss of state aid in conjunction with the tax cap has severely restricted the district’s revenue, forcing staff and program cuts.

Over the past 6 years, staff has been cut 18.7%, despite an enrollment decline of only 7.9%.

Although the 2015-16 budget includes partial restoration of the GEA, our aid is still reduced by $1.9 million.

We are appreciative of the efforts of our state legislators, Board of Education members, employees, booster groups and community activists for their efforts to help restore the GEA.

6

Tax Cap Calculation Final Filed with NYS OSC April 7, 2015

Tax Levy 2014-2015: $ 80,257,941

Tax Base Growth Factor: x 1.0072

80,835,798

PILOT Revenue for 2014-2015: 545,505

Tax Levy for Capital for 2014-2015: (2,031,583) 79,349,720

Allowable Levy Growth Factor: x 1.0162

$80,635,185

PILOT Revenue for 2015-2016 (ESTIMATE): (583,700)

Tax Levy for Capital for 2015-2016 (ESTIMATE): 1,832,727

Other Exclusions (ERS & TRS> 2%): 0

Available Carryover 0

Tax Levy Limit Plus Exclusions: $81,884,213

Tax Levy Limit Increase: $ 1,626,272 (2.03%)

Potential tax levy increase on home of $100,000 BEFORE STAR $47.03

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Projected School Tax Rates & Amounts 2015-2016 (2.03% Increase)

8

Cicero Clay Salina

FULL VALUE $ 100,000 $ 100,000 $ 100,000

ASSESSED VALUE (AV) $ 100,000 $ 4,330 $ 100,000

EST. TAX RATE PER $1,000 OF AV $ 23.44 $ 541.59 $ 23.44

EST. ANNUAL SCHOOL TAX $ 2,344 $ 2,344 $ 2,344

TAX INCREASE Yr. / Mo. $ 47/$3.92 $47 /$3.92 $47 /$3.92

These calculations exclude the benefits of STAR

Budget History

9

Budget Tax Levy State Aid

$ % Change $ % Change $ % Change

2009-10 138,409,089 0.9% 67,085,581 2.5% 64,941,216 0.8%

2010-11 135,467,060 (2.1%) 69,289,316 3.3% 57,874,752 (10.9%)

2011-12 136,484,471 0.8% 72,797,317 5.1% 53,624,224 (7.3%)

2012-13 138,771,201 1.7% 75,876,961 4.23% 58,366,479 8.8%

2013-14 143,525,985 3.4% 78,498,349 3.45% 59,474,290 (1.9%)

2014-15 145,665,035 1.5% 80,257,941 2.24% 60,944,679 2.5%

2015-16 150,862,724 3.6% 81,884,213 2.03% 64,398,201 5.7%

2010-11 excludes Federal Job Fund aid of $3,179,138 2014-15 excludes one-time Kindergarten conversion aid of $3,368,050 State Aid for 2015-16 is $.5 million less than it was in 2009-10

Revenue Aid vs. Community Funding

Year State Aid Local Tax Levy

2008-2009 46.9% 47.6%

2009-2010 46.9% 48.5%

2010-2011 42.7% 51.1%

2011-2012 41.6% 53.3%

2012-2013 42.1% 54.7%

2013-2014 43.7% 54.7%

2014-2015 41.8% 55.1%

2015-2016 42.7% 54.3%

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Since 2008-09, the burden of funding schools has shifted from the State and Federal government to the local school taxpayer.

Smart Schools Bond Act Passed on November 4, 2014

Funds not Available until 2016-17

NSCSD is expected to receive $6.25 million to fund technology, security and

pre-kindergarten initiatives.

We are still waiting on guidelines from the Smart Schools Review Board.

Funds may not be used for professional development or staff and will be paid as a reimbursement of expenditures.

These funds will not be available for projects earlier than 2016-17.

Spending may require prior approval from Facilities Planning.

More information will be available later this school year.

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Estimated Expenditures $150,862,724

Benefits $47,369,846

32%

Debt Service $10,869,622

7%

Supplies & Other $3,551,819

2%

BOCES $13,023,003

9%

Contractual $7,093,096

5%

Equipment $488,831

0%

Salaries $68,466,507

45%

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Estimated Expenditure Variance

2014-2015 2015-2016 Variance

Salaries $67,356,253 $68,466,507 $1,110,254 1.6%

Benefits $45,385,597 $47,369,846 $1,984,249 4.4%

Debt Service $10,841,948 $10,869,622 $27,674 0.2%

Contractual $6,390,536 $7,093,096 $702,560 11.0%

BOCES $11,878,003 $13,023,003 $1,145,000 9.6%

Equipment $372,100 $488,831 $116,731 31.4%

Supplies & Other $3,440,598 $3,551,819 $111,221 3.2%

Estimated Expenditures $145,665,035 $150,862,724 $5,197,689 3.6%

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Health Benefits:

Based on input from our plan administrators, we expect an increase of approximately 10%.

Retirement Costs:

TRS – Based on preliminary results from the June 30, 2014 actuarial valuation, anticipated ECR for 2015-16 is 13.26% of member payroll. Current rate is 17.53%.

ERS - 20.1% to 18.2%

Salaries & Wages:

Subject to negotiations

11 of 12 bargaining unit contracts expire as of June 30, 2015.

Expenditure Assumptions

Expenditure Assumptions Continued…

Fuel Costs (Transportation):

Gas and diesel have been down for the past year. However, they have increased recently and the trend is expected to continue. Since most of our fuel is used in transportation, aid reductions will offset approximately 75% of savings.

Energy Costs (Gas & Electric):

Although market prices have declined recently, the District’s very favorable 3-year energy contract is ending. New NYSMEC Electricity and Natural Gas bids resulted in increased costs for energy.

BOCES:

We continue to have increases in special needs programs due to new entrants to the district.

Transition to School Tool planned for 2015-16.

Program cost increases based on inflation and enrollment changes.

We will continue to evaluate opportunities to control costs through BOCES services.

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Proposed Staffing Changes Staffing Change Description Budgetary Impact

Increase Elementary Teachers Addition required to maintain class sizes $180,000 (+3 FTE)

Increase Elementary Specials To support additional elementary classes (.3 Music, .2 PE)

$30,000 (+.5 FTE)

Increase ELL Teacher New ELL requirements & enrollment $60,000 (+1 FTE)

Retention of RRMS Reading Teacher Grant ending – move to general fund $52,570 (+1 FTE)

Retirement of Hearing Impaired Teacher Declining case load allows for move to BOCES Service

($50,178) (-1 FTE)

Replace retiring LPN with RN LPN title being phased out $11,000

Grant funded Social Worker @ RRE Grant ends June 30, 2015 $0

Reduction in Secondary ELA Declining enrollment ($12,000) (-.2 FTE)

Consolidation of Head Coach Positions – Track & Field

1 Head coach for both boy’s and girl’s teams. This position would be supported by 3 assistants.

$3,078

Reinstatement of GSA support group Support group $1,800

Total Increase $276,270

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Funded using Conversion Aid during the current year, 2014-15

Conversion Aid was received in October 2014

No impact on local school taxes during the 2015-16 school year

No impact on future local school taxes due to GEA restoration

Unused Conversion Aid will remain in fund balance

Full Day Kindergarten

Bus Proposition

Maintain the average age of our fleet with a limited number of vehicles over 10 years old (approximately 11 vehicles).

Reduce the cost of repairs and avoid problems associated with rusting frames that prevent the vehicles from passing D.O.T. inspection.

Proposed purchases for 2015-16: 10 - 65-passenger diesel school buses (2 with luggage compartment) 1 - 39-passenger diesel school bus with one to three wheelchair

positions, hydraulic lift and air conditioning 1 - 48-passenger bus with air conditioning 1- Suburban

Total estimated cost of all 13 vehicles $1,403,038

Tax Impact, after Transportation Aid: approximately $2 per year for a house assessed at $100,000 before STAR.

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Total General Fund Balance June 30, 2014

Non Spendable (Deposits & Prepaid) $108,890

Restricted for Reserves $2,152,380

Assigned to Appropriated Fund Balance (Lower Tax Levy) $847,356

Unappropriated Fund Balance (Encumbrances) $1,353,193

Unassigned Fund Balance – Available Savings $4,584,356

Total General Fund Balance $9,046,175

Unassigned Fund Balance – Available Savings $4,584,356

Budget for 2014-2015: $145,665,035

Percentage of Budget: 3.15% 19

Projected General Fund Balance June 30, 2015

Unassigned Fund Balance – June 30, 2014: $4,584,356

Estimated Revenue/Expense Variance 2014-2015: $0

Kindergarten Conversion Aid received: $3,368,050

Est. Appropriation to Reduce Tax Levy 2015-2016:

Kindergarten Aid to be used ($1,400,000)

Other Fund Balance ($847,356)

Projected Unassigned Fund Balance–June 30, 2015: $5,705,050

Estimated Budget for 2015-2016: $150,862,724

Percentage of Budget: 3.78%

20

Reserves Actual/Forecast

21

6/30/2014 6/30/2015

Tax Certiorari $302,703 $303,000 (b)

Worker’s Compensation $1,503,494 $1,504,000 (b)

General Liability $41,642 $42,000

Repairs (MJB Stadium) $304,541 $ 0 (a)

Total $2,152,380 $1,849,000

(a) Spent in connection with C-NS capital project summer 2014. A referendum will be required to re-establish this reserve.

(b) An increase may be required by June 30, 2015

Vote & Election Tuesday, May 19, 2015 from 6:00 AM to 9:00 PM

Polling Places: For residents living NORTH of Route 481, Cicero Elementary School (5979 Route 31)

For residents living SOUTH of Route 481, Jerome F. Melvin Administrative Office Building

(5355 West Taft Road) in North Syracuse

Registration: If you are not registered to vote with Onondaga County or the North Syracuse Central School

District, you must pre-register. The District will hold a special evening registration on Tuesday, May 5th, from 4:00 PM to 8:00 PM at

the District Office and at Cicero Elementary School.

Residents may also register at the District Offices, Monday through Friday from 8:00 AM to 4:00 PM until May 14th.

If you are not sure whether or not you are registered with the County or the District, or wish to obtain an application for an absentee ballot, please call Connie Gibson at 218-2131 or e-mail cgibson@nscsd.org.

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2015-16 Budget Process Timeline

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October 6th

BOE approves budget process & timeline

November 18th – February 13th

Principals, Directors & Cabinet develop detailed budget

January 5th – Board of Education

Budget Process Overview & Status

February 2rd – Board of Education

Meeting Cancelled (weather)

February 23th – Board of Education

Initial Budget

Governor’s Budget proposal

Preliminary Tax Cap Calculation

Fund Balance & Reserve Projections

March 2nd & 9th – Board of Education

Departmental Budget Presentations

March 16th – Board of Education

BOCES Budget

Approve Bus Bond Proposition

Approve Notice of Budget Hearing / Election

March 23rd – Board of Education

State Aid Scenarios

Government Efficiency Plan

April 13th – Board of Education

Proposed Budget Presentation

Budget Discussion & Deliberation

April 20th

Adoption of Budget

BOCES Election and Budget Vote

May 5th – Budget Hearing

May 19th – Budget Vote