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School District Reorganization OptionsInlet Common School District

January 21, 2015

Alan D. Pole4514 Whistler Circle, Manlius, NY 13104

(315.692.4615/polead@yahoo.com)

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Greater Expectations for Students

Common core requirements to be college and career ready

Passing 5 Regents examsMore math, more science, more creditsFocus on increasing graduation ratesSignificant local support for students

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Declining EnrollmentsMost school districts across New York State

are experiencing student enrollment declines

2001-02 2014-15 Difference % Difference

Inlet 29 26 -3 -10%

Old Forge 396 270 -126 -32%

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Financial CrisisFringe benefit costs continue to increaseDistricts spending down fund balances and

reservesUtility costs are increasingProperty tax caps

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The Perfect Storm

Greater expectations and opportunities for all students

Declining student enrollment in many districts

Precarious financial condition 77% of Superintendents say they will not be able to fund

mandates in 4 years; 18% says it will occur in two years.

Business as usual will not be an option

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Reorganization Options

TuitioningSchool District Mergers

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Tuitioning Students to

Other Districts

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Why Do Districts Tuition Students?To provide opportunities for students that are

not feasible to offer in their home school district.

To reduce cost. The cost of running a high school is the most expensive

operation in the K-12 sequence of grades.

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Current Tuitioning ArrangementInlet currently has 27 students in Pre-K-6…..

and 1 kindergarten student who is tuitioned to Old

ForgeInlet currently has 36 students in 7-12 who are

tuitioned to Old ForgeRate for tuitioning Pre-K-6: $15,000/studentRate for tuitioning 7-12: $17,200/student

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Distribution of Secondary Students

Grade 7……3Grade 8……8Grade 9……8Grade 10….4Grade 11….8Grade 12….5 TOTAL……..36

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Cost for Current Tuitioning Arrangement

1 kindergarten student………….…………$15,00036 secondary students………………….…619,200Transportation………………………………..…10,200TOTAL……………………………………..……..$644,400

Plus: School Psychologist: $58.77/hr (4-12 hrs/mo) Speech Therapist: $108.38/hr (12-25 hrs/mo) Secretarial Services: $20.75/hr (1hr/mo) Bus repairs & maintenance: $150/month

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Tuitioning Guidelines

After a public vote, a district can contract for: -All or part of the elementary

students -All or some of the 7-12 students for a period of 2-5 years

Contract may be with one or more school districts

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Tuitioning Support

Receiving district cannot charge more than the difference between the cost of

educating the student and the amount of state aid received for that student

Sending district must provide transportation for the tuitioned students

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Rights of Teachers in TuitioningSending district teachers are considered

employees of the receiving district

If fewer teachers are needed, teachers cannot bump receiving district teachers

If laid off, teachers are placed on a preferred eligible list for 7 years

Length of service carries over for salary, sick leave, and other purposes

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School District Mergers

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Why Consider Merger?Increase course offerings for

studentsUpgrade facilities and equipment More cost effectiveReduce taxes

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Why Merger May be Difficult

Fear of losing local identityUncertainty over board representationBusing time for students will be

increasedFear of losing job security by staffNatural resistance to change

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Mergers-What Research Tells Us

Curriculum opportunities for students will be enhanced

Extra-curricular opportunities for students will be enhanced

Tax rates on true value declineSchool district spending increases

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Types of Reorganization

Centralization-New district created with a new name and a new board of

educationAnnexation-One district takes over the

other district with the annexing board of education, administration, contracts,

policies, etc. remaining in place

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Contiguous Districts for Inlet

Old ForgePolandPiseco*Raquette Lake*

*Non-operating Districts

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The Finances of Merger-Part 1

Incentive Operating Aid

Combined operating/foundation aid (GEN Report-Part VII-2006-07) for both districts is increased as follows:

Year 1-40% Year 6-36% Year 11-16%Year 2-40% Year 7-32% Year 12-12%Year 3-40% Year 8-28% Year 13-8%Year 4-40% Year 9- 24% Year 14-4%Year 5-40% Year 10-20% Year 15-0%

However, a merger of Inlet and Old Forge would not generate any

incentive operating aid.

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The Finances of Merger-Part 2Incentive Building Aid

Additional 30% on top of the higher district’s selected building aid ratio up to 95%

(98% for high needs districts) for 10 years for any new construction

Existing debt is aided at the higher of the previous districts’ selected building aid ratios

District Building Aid Ratio

Inlet 0%

Old Forge 0%

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The 1/3, 1/3, 1/3 Guideline for Incentive Operating Aid

1/3 to finance transition costs to the merged district

1/3 in reserves for long term fiscal stability1/3 to reduce taxes

Tax Rate/$1,000 on True Value

Inlet $4.90Difference of

60%Old Forge $3.07

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Components of Tuitioning or Merger Study

Enrollment History and ProjectionsInstructional and Extracurricular

ProgramFacilitiesTransportationStaffingFinances

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Inlet History

Consultant study in 2000 examined:Stay as isAnnexation to Old ForgeBecome a non-operating districtChange to a Pre-K-3 school

Consultant recommended that Inlet become a non-operating district

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Non-Operating School Districts

South MountainRaquette LakeHopevalePiseco

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Future Options

Remain as currently organizedInvite Old Forge to discuss optionsEngage in a study to define a non-operating

districtOther

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Questions???