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SOUTH ORANGETOWN CENTRAL SCHOOL DISTRICT 2016-2017 Preliminary Budget
Our Mission:
"In a rapidly changing world, the South Orangetown school community affirms its positive vision of the future by providing a safe and caring environment where the excitement of teaching and learning is shared by all, and where we encourage and nurture the uniqueness of each child.
Through diverse and challenging programs, we promote academic standards, creative and critical thinking, self-respect, respect for others, and acceptance of our responsibilities in a global society. We are committed to fostering a love of learning in our students. TOGETHER WE CAN…"
2 4/4/2016
Objectives
1. Accelerate Academic Achievement: Provide for all students by ensuring equitable access to rigorous K-12 curriculum, aligned instructional materials and assessments.
2. Developing Human Capital and Professional Capacity: Recruit, support, and retain high quality teachers and leaders.
3. Improve Communication and Deepen Community Engagement: Build effective communications through meaningful family and community engagement.
4. Ensure Safety and Wellness: Strengthen the foundation of the District culture based on high expectations for respect and good citizenship.
5. Create Quality Performance Management Systems: Develop and align instructional support infrastructure, leveraging technology, operations and business services to build culture of alignment and continuous improvement.
4/4/2016 3
GUIDING PRINCIPLES
Evaluate Needs vs. Wants
Protect & Preserve Instructional Core
Preserve Investments & Reduces Costs
Find Efficiencies and Shared Services
Reduce/Restructure, Don’t Eliminate
Delay Program Impact
4 4/4/2016
Long-Range Action Planning Updates
Fiscal Status
Demographics
Educational
Special Education and
Pupil Personnel
Technology
Facilities
5 4/4/2016
FISCAL PICTURE
6
Significant Cost Drivers
Common Core
Computerized Testing
Employee Contracts
Health Insurance
Pension Expense
7
2016-17 State Aid - Current Law How is the aid distributed?
4
(4.27%)
In millions of dollars
2015-16 2016-17 Change
Foundation Aid $15,856.39 $16,122.76 $266.37
Formula Based Aids (including Building and Community Schools Aid)
7,376.43 7,881.73 505.30
GEA (433.60) (244.19) 189.41
Grant Programs/Other 286.93 288.96 2.03
Performance Grants + 147.00 175.00 28.00
Totals $23,233.16 $24,224.27 $991.11
2016-17 Foundation Aid Increase 7
2016-17 Foundation Aid Increase +$266 million
9% 6%
2%
20%
63%
Big 4
Long Island
Lower Hudson
Rest of State
NYC
2016-17 Gap Elimination Adjustment (GEA): -$244m
10
27%
9%
42%
2015-16 GEA ($433 million) By Region
2%
20%
32%
11% 47%
2016-17 GEA ($244 million) By Region
1%
9%
+ $189 m in Restoration
SOCSD Accumulated Loss in State Aid
2007-08 ($2,356,640)
2008-09 ($2,019,116)
2009-10 ($1,328,921) ($3,008,646)
2010-11 ($1,676,518) ($2,999,509)
2011-12 ($2,121,052) ($3,682,097)
2012-13 ($1,865,881) ($3,697,404)
2013-14 ($1,737,217) ($3,466,491)
2014-15 ($1,491,749) ($3,012,157)
2015-16 ($940,490)* ($2,394,439)
2016-17 (648,120)* ($2,148,259)
Total Loss ($11,809,948) ($28,784,758) ($40,594,706) $13,128 per student
11 *reduction dependent upon renegotiation of 3012 c & d
WHAT HAS SOCSD BEEN DOING FISCAL YEARS 2009 THROUGH 2016 Reducing Costs & Enhancing Efficiencies through planning
13
Summary of cost containment strategies and efficiencies achieved
Personnel Costs
• Worked with Units to achieve savings, using various strategies
• Limit unit increases to 2% in total through 2019 • Consistency among bargaining units
• Budget Certainty • Morale • Retirement Incentive, saves $$ and preserves staff
• Declining enrollment saves $$
Benefits
• Employee contributes to premiums
• New hires contribute towards health premiums in retirement
Consolidation of Space
• Reduces overhead • New revenue streams, i.e. leasing
• Allows for Two-Tier Busing
Transportation
• Increased # of students assigned/budgeted to a bus
• Created safe centralized stops, eliminated house stops, cul-de-sacs, and dead-end streets
14 4/4/2016
Summary of cost containment strategies and efficiencies achieved
Facilities
• Shift consolidation • Staffing analysis based on need
• Closing buildings earlier allowed savings in the areas of night security, cleaning, and energy use
• Installed equipment alarms allowed reduction in overtime for building checks
Debt repayment & refinancing
• Refunding $1.5 m • Paid 1998, 2008 bond issues early
• Technology IPAs paid early
• Used Debt Service Reserve to pay 1991, 2003, EPC & Pool principal & interest payments
• Saves interest expense
• Reduces cost to taxpayers, i.e. reduces tax levy
• Proposed payment of EPC Lease
Use of Capital Reserve
• Funded $10M in Capital Projects, i.e. pool, roofs, security
• Avoids the issuance of Debt
• Eliminates interest expense to taxpayers
Use of Unreserved Fund Balance
• $5.25 used to fund Minor Capital Projects
• Avoids issuance of debt service
• Saves taxpayers $$$
15 4/4/2016
Summary of cost containment strategies and efficiencies achieved
Energy Conservation
• Manage consumption • $4m Energy Performance Lease – upgrade to energy efficient equipment
Shared Services
• Rockland County School Workers;’ Compensation Consortium
• New York Schools Insurance Reciprocal for Property and Casualty Insurance ( NYSIR)
• New York State Empire Health Insurance Plan (NYSHIP)
• New York Benefits for Educators and Students Trust (NYBEST)
• Rockland and Orange County Energy Purchasing Consortium
• BOCES shared services • Cooperative federal, state, and local bids
• Rockland County Special Education Consortium
• Local Municipality: facility use, gas, salt emergency management
Contracted Services
• Transportation • Food Service Management • Cleaning • Security • Landscaping/snow • Accounting • Test Scoring
16 4/4/2016
2016-17 PRELIMINARY BUDGET
17
Summary of the District’s Five Year Adopted Budget & Tax Levy
Adopted Adopted Adopted Adopted Preliminary
Budget Budget Budget Budget Budget
2012-2013 2013-2014 2014-2015 2015-2016 2016-17
SCHOOL DISTRICT BUDGET $ 82,385,278 $ 85,871,296 $ 86,395,154 $ 85,969,882 $ 86,653,782
3.54% 4.23% 0.61% -0.49% 0.80%
LESS:
State Aid (8,633,157) (9,685,748) (10,120,690) (10,290,614) (10,275,070)
Fund Balance (2,736,490) (2,379,189) (1,767,814) - -
Other Revenue (1,227,089) (1,604,220) (1,548,418) (1,547,000) (2,086,107)
TAX LEVY $ 69,788,542 $ 72,202,139 $ 72,958,232 $ 74,132,268 $ 74,292,605
TAX LEVY INCREASE $ 997,068 $ 2,413,597 $ 756,093 $ 1,174,036 $ 160,337
TAX LEVY PERCENTAGE INCREASE 1.45% 3.46% 1.05% 1.61% 0.22%
18
2016-17 Major Sources of Revenue
19
Real Property Taxes 86%
Charges for Services 0%
Use of Money& Property 2%
State Aid & Federal Aid 12%
Tax Levy Cap
Consumer Price Index is 0.12% NOT 2%
20
Year of Tax Cap
Lesser of CPI or 2%
Not 2% = Loss in tax Revenue
2012-13 2.00% $0 2013-14 2.00% $0 2014-15 1.46% ($382,655) 2015-16 1.62% ($282,683) 2016-17 0.12% ($1,414,845) AVG. 1.44% ($2,080,183)
Tax Levy Limit 2016-17
BASIC FORMULA Prior Year Tax Levy 2015-16 $74,132,268 Tax Base Growth Factor (from Off. Real Prop. Services) x 1.0017
74,258,293 Prior Year Pilots + 80,336 Prior Year Capital Tax Levy Exclusion, Net - (676,656) Adjusted Prior Year Levy = 73,661,973
Allowable Growth Factor (Lesser of CPI or 2%) x 0.12% 73,750,368
Current Year Pilots - (82,169) Available Carryover + 0 Tax Levy Limit Before Current Year Exclusions = $73,668,198
21
Tax Levy Limit 2016-17
+ CURRENT YEAR EXCLUSIONS
Capital Tax Levy Exclusion, Net + $624,407
+ 0
TAX LEVY LIMIT WITH EXCLUSIONS = $74,292,605
TAX CAP LIMIT INCREASE $160,337
TAX CAP LEVY PERCENTAGE 0.22%
22
PENSIONS 2015-16 RATE
2016-17 RATE
Chg. Pts
> 2 pts
Teachers Retirement System 13.26% 12.00% (1.26%) No Exclusion
Employees Retirement System 18.20% 15.50% (2.70%) No Exclusion
State Aid Aid Category 2015-16 SOCSD
Projections Proposed State Executive Budget
2016-17
Preliminary 2016-17
Projections General Aids:
Foundation Aid $6,523,136 $6,558,249 $6,550,572 High Tax Aid 327,764 327,764 327,764
Expensed-Based Aids: Building 1,442,283 1,667,533 1,442,822 Transportation 1,163,575 1,215,595 1,215,595 BOCES 1,747,841 1,513,105 1,300,000 Private & Public Excess 599,972 576,504 576,504
Other Aids: textbook, library, etc. 281,969 280,097 280,097
GEA *(940,480) *(648,120) *(1,491,749) Total State Aid $11,146,060 $11,490,727 $10,201,605
23 * Dependent upon renegotiated APPR
Major Budget Areas of Expense
Salary & Benefits 71%
Equipment, Contractual, Supplies & Materials
9%
Pupil Transportation 5%
BOCES 11%
Debt Service 2%
Transfers 2%
24
Comparison
Expense 2015-16 2016-17 % chg. Salary + Benefits $61,779,912 $61,865,309 0.14%
Equipment, Contractual & Materials & Supplies
7,575,810 7,764,253 2.49%
Pupil Transportation 3,943,655 4,014,519 1.80%
BOCES Services 8,709,868 9,107,472 4.56%
Debt Service 2,125,637 2,067,229 (2.75%)
Interfund Transfers 1,835,000 1,835,000 0.00
Total $85,969,882 $86,653,782 0.80%
25
ENROLLMENT TRENDS
26
4/4/2016 27
1000
1500
2000
2500
3000
3500
3,185 3,092
3,010 2,913
2,814 2,745 2,694 2,632 2,585 2,569 2,543
District-Wide Enrollment: Ten Year Projections: 2015-16 to 2025-26
Includes out-placed students
4/4/2016 28
1000
1050
1100
1150
1200
1250
1300
1,251
1,192
1,153
1,109
1,074 1,082 1,058
1,072
1,099 1,116
1,155
Elementary Ten Year Projections: 2015-16 to 2025-26
Not including out-placed students
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900 1,869 1,834
1,793 1,742
1,680
1,605 1,579
1,504
1,431 1,398
1,334
Secondary Ten Year Projections: 2015-16 to 2025-26
Not including out-placed students
Maintains Class-Size Guidelines
Grade Average Class-Size
K 22
1-2 22
3-5 23
6-12 26
AP Courses Min 15
29
SUMMARY OF STAFFING CHANGES
30
Summary of Staffing Changes:
Positions: Dept Teacher Teach
Assts. Other Total
WOS 1.75 (1.00) 1.50 2.25
CLE (3.55) (1.50) - (5.05)
SOMS 0.20 (1.17) - (0.97)
TZHS 0.40 (0.50) - (0.10)
DW 3.23 0.33 (1.00) 2.56
Total (2.03) (3.837) 0.50 (1.31)
Reason: LRP Enroll/
CSE
0.40 1.85
(0.50) (4.55)
- (0.97)
0.20 (0.30)
1.00 1.56
1.10 (2.41)
31 It is anticipated that many changes will be absorbed through attrition due to retirements and leave replacements.
Staffing:
Per LRP: WOS & CLE Psychological Support All Students .90 FTE Library Media Specialist: CLE 1.00 FTE, vacant position Student Support HS - .20 FTE DW Social Worker – 1.00 FTE
Enrollment/CSE – reduction due to enrollment (3.9166) FTE
Other Changes – reduction of vacant positions (1.05) and replenishment of 2.5634 FTE contingency positions to 3.00 FTE
Total net change in staffing (1.3032) FTE
32
Benefits/Debt Service/Capital Transfer
Benefits: Decrease in pension systems – ERS 14.83% and TRS 9.50% Retirement Incentive ended June 30, 2016 – decrease $391,776 Health Insurance – January 2016 increase was approximately 4.16% and per NYSHIP it is estimated
that premium rates will increase 8% in January 2017
Debt Service – Includes savings from the 2015-16 advance refunding of the 2005 and 2006 bond issues and the use of Debt Service Reserve
Transfer to Capital Fund - Minor Capital Projects $1.75m
33
ADMINISTRATIVE, PROGRAM, & CAPITAL BUDGETS (APC) Preliminary Budget by State determined Components
34
APC Budget Components: % of Total Budget
2015-2016 Adopted Budget
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
11.72%
78.93%
9.34%
Capital Program Administrative
2016-17 Preliminary Budget
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
1
11.69%
78.73%
9.58%
Capital Program Administrative
35
APC Budget Components
Total Budget
Administrative Program Capital
$86,653,782 $8,302,924 $68,218,696 $10,132,162 100% 9.58% 78.73% 11.69%
Board of Ed. District Clerk/Meeting
Superintendent Business Operations
Legal Services Personnel
Public Information Central Services
Insurance/Assessments BOCES Admin/Capital
Curriculum Admin Building/Dept Sup. Associated Benefits
Teaching & Instruct. Special Education Special Schools Transportation
Staff Development School Library
Computer Instruction Guidance
Health Services Psychological Services
Co-Curricular Athletics
Associated Benefits
Operations & Maintenance
Capital Projects Bonded Debt
Short-term Debt Associated Benefits
36
CONTINGENCY BUDGET
Potential Impact on District Programs
37
Contingent Budget
What happens if the budget is NOT passed by the voters = 50% +1 Vote?
After second vote, District must adopt a Contingent Budget
= ZERO TAX LEVY INCREASE
Non-contingent expenses must be removed
Administrative cap applies
No longer subject to overall expenditure cap
38
Contingency Budget
2016-17 Tax Levy is LIMITED TO 2015-16 TAX LEVY ZERO INCREASE $74,132,268
Add: State Aid 10,275,070
Other Revenue 2,086,107
Total Revenue = Allowable Appropriations Budget = Maximum Contingency Budget Allowed $86,493,445
Preliminary 2016-17 Budget $86,653,782
Difference to be reduced from 2016-17 Preliminary Budget ($160,337)
39
UPCOMING BUDGET DISCUSSIONS
MARCH 31, 2016- Budget Workshop
April 5, 2016 – Adoption of 2016-17 Budget
May 10, 2016 – Public Budget Hearing
May 17, 2016 - Annual District Budget Meeting & Board Election
42
QUESTIONS??
43