Public Hearing on the 2015-16 Proposed School Budget

May 7, 2015The Mission of the Horseheads Central School Community is to provide a quality

education for all within a nurturing environment which promotes excellence, growth, and a sense of civic responsibility.

1

Horseheads Central School District

Background…• Planning and development for the 2015-16 proposed budget began in

September 2014 with the Board of Education Finance Committee.

• The Board Finance Committee held a community budget input session in January (a second session was cancelled twice due to weather).

• The Board held three community budget workshops (February 5, March 5, and April 9) to discuss the proposed budget.

• Governor Cuomo presented his budget proposal, and the Legislature passed the state budget on time, providing nearly $2 million in additional state aid to Horseheads, a 6.96% increase.

2

• Includes an increase in state aid of just under $2 million.

• Uses $4.5 million from the fund balance.• Results in a proposed spending increase

of 1.88%. • Results in a proposed tax levy increase

of 0.59%, the allowable increase under the property tax levy cap.

• Maintains programs and services at all levels (academics, arts, and athletics).

2015-16 Proposed Budget

3continued…

4

Reductions:• Replace ten positions (open due to retirements) at lower

salaries:Three secondary teachers, one elementary teacher, one senior clerk typist, one social worker, one building maintenance mechanic, two administrators, one cleaner

• Reduction in TRS/ERS contributions• Retirement of Bus Bond Debt• Reduction in Construction Debt Payments

Total: $2,277,387

2015-16 Proposed Budget

5

Additions:• Three pre-kindergarten teaching

positions* and three teaching assistant positions*; technology, equipment, andsupplies for three pre-kindergarten classrooms

• One 12:1:1 special education position• One autism spectrum disorder (ASD) consultant position• One English as a Second Language (ESL) teaching position,

0.4 part-time occupational therapist position, and tax collection service through BOCES

• One High School science/technology/engineering/math (STEM) position

*UPK positions are partially funded by state aid. continued…

2015-16 Proposed Budget

6

Additions, continued:• Director of athletics and physical education

position increased from part-time to full-time• One registered nurse contract substitute

position and one cleaning position• One Affordable Care Act consultant• Seven buses and two vans for student transportation+

Total: $1,639,957

+ The purchase of seven buses has been included in the proposed 2015-16 budget at an estimated cost of $875,000; therefore, there will not be a separate proposition, as in previous years.

2015-16 Proposed Budget

7

2015-16 Budget Proposal

Total Proposed Budget: $73,641,191Spending Increase – Dollars: $1,356,314Spending Increase – Percentage: 1.88% Tax Levy Increase: 0.59%Estimated Average Tax Rate Increase: 0.59%

Tax Cap Legislation

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 may then take certain exemptions that may increase their tax levy limits

to more than two percent.

8

Property Tax Cap CalculationsTax Levy Limit (Cap) Before Exclusions:

Tax Levy Fiscal Year Ending (FYE) 6/30/15 $35,114,955

Tax Base Growth Factor (per state) x 1.0113

$35,511,754

PILOTS Receivable FYE 6/30/15 + $1,025,983

$36,537,737

Capital Tax Levy for FYE 6/30/15 - $810,015

$35,727,722

Allowable Levy Growth Factor (1.62%) x 1.0162

$36,306,511

PILOTS Receivable FYE 6/30/16 - $982,676

Total Tax Levy Limit Before Exclusions $35,323,835

continued next page

9

10

Property Tax Cap Calculations, continued

Exclusions:

Capital Tax Levy for FYE 6/30/16 $0

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) + $0

Teachers Retirement System (TRS) + $0

Total Exclusions $0

Total Tax Levy Limit Before Exclusions $35,323,835

Total Exclusions + $0

Total Tax Levy Limit $35,323,835

2015-16 Property Tax Levy Limit $35,323,835

2014-15 Property Tax Levy - $35,114,955

Proposed Increase, 2015-16 school year $ 208,880

Proposed Percentage Increase 0.59%

Expenditures by Component

11

Description2014-15 Budget

2015-16 Proposed

Dollar Change

Percent Change

Administrative $9,907,785 $10,100,883 $193,098 1.95%

Program $53,933,969 $54,316,508 $382,539 0.71%

Capital $8,443,123 $9,223,800 $780,677 9.25%

Total Expenditures $72,284,877 $73,641,191 $1,356,314 1.88%

Budget Details…(please refer to handout)

12

13

Five-Year Budget Projection

*The original deficit for fiscal year 2014-15 was estimated at $5 million. We now estimate it at $2.5 million.

Actual Projected Budgeted Budgeted from 2015-16 Tentative Budget

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Property Tax Levy

$32,312,697 $33,548,080 $34,530,132 $35,114,955$35,323,835 (↑0.59%)

$36,030,312(↑2%)

$36,750,918(↑2%)

$37,485,936(↑2%)

$38,235,655(↑2%)

State Aid $25,674,894 $26,517,410 $28,048,419 $28,430,530$30,652,126 (↑6.96%)

$31,265,169(↑2%)

$31,890,472(↑2%)

$32,528,281(↑2%)

$33,178,847(↑2%)

Other Revenue

$3,817,347 $3,673,473 $3,615,218 $3,516,977 $3,130,102 $3,130,102 $3,130,102 $3,130,102 $3,130,102

Total Budget

$63,915,070 $65,052,608 $66,946,557 $69,580,114$73,641,191

(↑1.88%) $74,377,603

(↑1%) $75,121,379

(↑1%) $75,872,593

(↑1%) $76,631,319

(↑1%)

Actual/Projected Deficit

$(2,110,132) $(1,313,645) $(752,789) $(2,517,652)* $(4,535,128) $(3,952,020) $(3,349,887) $(2,728,274) $(2,086,715)

Staffing and Enrollment HistorySchool Year Employee Counts Student Enrollment*

2004-05 720 4339

2005-06 728 4336

2006-07 736 4254

2007-08 759 4255

2008-09 761 4252

2009-10 749 4326

2010-11 732 4247

2011-12 650 4173

2012-13 645 4152

2013-14 620 4143

2014-15 616 4093

2015-16 630 (est) 4093 (est)

14

*From the state’s Basic Educational Data System (BEDS).

The tax levy is the amount of money that the District needs to raise from the taxpayers in order to support the school programs after reviewing all other revenue sources.

The tax rate is determined by the apportionment process using the local assessor’s property values and the NYS Real Property’s equalization rates, which are finalized in early August. The Horseheads district includes seven municipalities, each with its own reassessment schedule and equalization rate.

15

Budget and tax history(percent increase/decrease)

04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16

Spending 3.47% 8.32% 4.81% 4.7% 4.95% 2.95% 0.34% 0.95% 0.26% 3.06% 0.90% 1.88%

Tax Levy 6.81% 4.73% 6.75% 1.91% 1.91% 1.72% 2.00% 4.95% 3.41% 2.90% 1.72% 0.59%

Tax Rate 3.81% 1.74% 0.05% -3.49% -4.4% -0.08% -0.72% 2.61% 0.91% -1.46% -0.88%0.59%(est)

Estimated average tax rate

16

• The district is made up of all or part of seven towns and villages: Horseheads, Big Flats, Catlin, Erin, Veteran, Cayuta, and Baldwin.

• Tax rate is calculated based on assessed value in each municipality and each municipality’s equalization rate, which is calculated by the state and not final until August.

• This is why we refer to “estimated full value tax rate.”• Current full value tax rate: $17.84 per $1,000 of assessed valuation.• Estimated full value tax rate for 2015-16: $17.95 per $1,000.• School taxes are figured on a property’s current assessment.• Some municipalities in the district reassess portions of their

properties each year; others reassess properties periodically. • The district is not involved in property reassessment.

Tax Impact Based on a hypothetical home in the district with a

full assessed value of $100,000 and no increase in assessment

17

2014-152015-16

ProposedTotal

IncreaseMonthlyIncrease

Average annual tax $1,784 $1,795 $11 $0.92

Average annual tax with STAR $1,233 $1,232 -$1 -$0.08

Average annual tax with Enhanced STAR

$636 $624 -$12 -$1.00

18

New York State School Report Card for Fiscal Accountability – 2012-13

(most current data published by NYS)

General Education Special Education

Horseheads Central Schools $8,494 $19,438

Similar School Districts $10,266 $29,257

New York State $11,260 $29,922

Instructional Expenditures Per Pupil*

* 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.

Horseheads Central Schools Similar School Districts New York State

$15,763 $19,721 $21,118

Total Expenditures Per Pupil**

** Per New York State, Total Expenditures Per Pupil include district expenditures for classroom instruction, transportation, debt service, and district-wide administration.

Three Year Comparison, Cost Per Pupil

19

Instructional Expenditures Per Pupil –General Education

Instructional Expenditures Per Pupil –Special Education

Total Expenditures Per Pupil

(Per NYS Fiscal Accountability Supplement)

2010-11

2011-12

2012-13

$8,326

$9,795

$10,963

$8,876

$10,517

$11,615

$8,494

$10,266

$11,260

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Horseheads Similar Schools New York State

$15,437

$18,262 $19,921

$15,063

$18,876 $20,410

$15,507

$19,290 $20,906

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Horseheads Similar Schools New York State

$17,093

$26,949 $26,888

$16,784

$28,585 $29,741

$19,750

$29,262 $30,207

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Horseheads Similar Schools New York State

Tax rate comparison and historyPer $1000 of assessed value

(does not include STAR reduction)

20

Year Horseheads Elmira Elmira HeightsCorning-

Painted Post

2006-07 $19.40 $21.37 $21.76 $23.49

2007-08 $18.72 $20.56 $21.27 $23.42

2008-09 $17.90 $19.80 $21.09 $22.07

2009-10 $17.74 $19.21 $20.26 $22.83

2010-11 $17.64 $19.05 $21.00 $23.16

2011-12 $18.10 $22.25 $21.67 $24.43

2012-13 $18.26 $22.39 $22.23 $25.00

2013-14 $17.99 $20.06 $22.66 $25.50

2014-15 $17.84 $19.65 $22.05 $23.69

Proposed budgets for districts in NYS with similar enrollment (+/- 100 students)

21

District Enrollment2015-16 Proposed

BudgetProposed Spending

Increase

Troy City SD 4060 $108,163,850 1.29%

Deer Park UFSD 4134 $107,329,141 1.32%

West Babylon CSD 4017 $100,893,074 1.60%

Gates-Chili CSD 4071 $99,703,885 2.73%

East Greenbush CSD 4009 $88,181,329 0.36%

Ballston Spa CSD 4159 $86,352,617 2.56%

Niskayuna CSD 4090 $78,085,153 1.00%

Horseheads CSD 4021 $73,641,191 1.88%

Watertown City SD 4044 $68,443,146 0.31%

From the NYS Education Department’s School Property Tax Report Card, 2015-16.

Statewide Budget Comparison

22

2015-16 Proposed Budget

ApproximateSpending Increase

ApproximateTax Levy Increase

Statewide Average 1.90% 1.60%

Horseheads 1.88% 0.59%

Three propositions on the ballot

23

Proposition No. 1: Adoption of the 2015-16 Budget

Shall the proposed budget of the Horseheads Central School District for 2015-2016 in the amount of $73,641,191 be approved in accordance with Section 2022 of the Education Law and that the balance of said budget after applying available public monies thereto, be raised by a tax upon the taxable property of said district?

24

Proposition No. 2: Establishment of a Capital Reserve Fund

Shall the Board of Education establish a capital reserve fund under the provisions of Education Law §3651(1)? The purpose of the fund is for construction, repair and reconstruction of capital improvements and the acquisition of equipment. The ultimate amount of the fund shall be $10,000,000. The probable term shall be ten years. The source from which funds will be obtained can include any or all of the following: Unappropriated fund balances from the general fund as

determined by the Board of Education; State Aid related to expenditures from the capital reserve fund; interest income related to investment of monies in the fund; and any other additional monies thereafter authorized by the voters of the District.

25

Proposition No. 3: Technology Capital Project Phase II and Relocation of Softball Field

Shall the Board of Education of the Horseheads Central School District be authorized to (A) reconstruct the Middle School/Intermediate School Complex, including upgrading building and room security and upgrading technology and technology connectivity, and construct a softball field at the Middle School/Intermediate School complex, at a cost not to exceed $3,000,000, (B) expend such sum for such purpose, (C) levy the necessary tax therefore, to be levied and collected inannual installments in such years and in such amounts as may be determined by the Board of Education in accordance with Section 416

of the Education Law taking into account state aid received, and (D) in anticipation of the collection of such tax, issue bonds and notes of the District at one time or from time to time in the principal amount not to exceed $3,000,000 and levy a tax to pay the interest on said obligations when due?

26

Members of the Board of Education

Voters will elect three members to the Board of Education on May 19. The three people with the highest number of votes will be elected to three-year terms beginning July 1, 2015. There are six candidates. Here are their names, in the order they will appear on the ballot.

Lisa Christiansen

KristineDale

Rose Apgar

(incumbent)

MarkBrinthaupt

(incumbent)

Doug Johnson

(incumbent)

PeterLotocky

Budget Vote/School Board Election

Tuesday, May 19, 20157am to 8pm

Big Flats, Ridge Road, High School

27

Thank you for attending…

Questions?28