Babylon U.F.S.D. Board of Education

2016 – 2017
Budget Hearing
May 3, 2016
Thousand Islands Central School
Board of Education (BOE)
Term Expires June:









John Warneck
James Ganter
Carolyn Delaney
Amber Brown (Garnsey seat)
Robert Cantwell (Ingerson seat)
Erin Churchill
Brian Lantier
Bruce Mason
Erik Swenson
President
Vice President
District Clerk
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Michael Bashaw Jr., Superintendent
2016
2016
2018
2016
2016
2017
2018
2016
2018
There are basically four ways to
balance the school budget:
 Increase Revenue -Very difficult to do
 Use of Reserves/ Fund Balance
-Dangerous to use too much, as it is similar in concept to
paying your mortgage with your Savings Account
 Tax Levy -Schools are now pressured to limit their tax
levy increase up to the statutory equation, which is usually
insufficient to balance their budgets
 Reduce Expenditures This is basically how
schools now balance their budgets
 Increase Revenue
-Very
difficult to do
2016-17 does see some funding increases, including:
$693,860 in State Aid which includes:
$404,237 in GEA restoration; plus
$289,623 net increase in formula aids for:
Building Aid (due to current capital Project);
Transportation Aid;
PUB Excess Cost Aid (pupils w/ disabilities)
$150,000 revenue from Tax Certiorari Reserve funds
returning back to fund balance
 Use of Reserves/ Fund Balance
-Dangerous to use too much, as it is similar in concept to paying
your mortgage with your Savings Account
2016-17 does continue to have a placeholder for
monies coming back from the following reserves:
$201,754 from Reserve for Debt to help
offset bond payments on the
1999 capital project; and
$175,825 from Retirement System Credits
 Tax Levy -Schools are now pressured to limit their tax levy
increase up to the statutory equation, which is usually insufficient
to balance their budgets
2016-17 Proposed Tax Levy increase is
0.62% or $72,157
For a 50% + 1 voter approval the maximum allowable tax levy
increase the district could levy is $467,269, which is the
Calculated Tax Levy Limit Plus Exclusions. That is MUCH more
than the $72,157 that is actually being proposed.
 Reduce Expenditures This is basically how
schools now balance their budgets
Highlights of the 2016-17 budget:
Level funding of Program Offerings
Level staffing- No major changes
Savings in:
Salaries due to unplanned retirements in 2015-16
Salaries due retirements in 2016-17
Pensions (TRS & ERS rates)
Utilities Costs
New elementary 12:1:1: in-house program vs.
placements with BOCES Special Ed locations
NYS Tax Cap Basics
Multi-step Formula
Since 2012-13
• IT is not a:
o cap on the budget.
o “2% Tax Cap” on your individual property taxes.
cap on the growth in the school tax rate. The
school district has no control over the assessed
value.
• IT is a:
o cap on the growth in the school tax levy from
one year to the next with just a majority voter
approval. (60% voter approval required for a budget with
tax levy greater than Tax Cap threshold.)
Summary of Getting to the Maximum Allowable Tax Levy 2016-17
+
+
+
+
+
2015-16 Tax Levy
TI's Tax Base Growth Factor ( 0.0067)
Allowable NYS Growth Factor (0.0012)
ERS Pension Exclusion
TRS Pension Exclusion
Net Change in PILOTs '15-16 to '16-17
Net Increase in Capital Levy from '15-16 to '16-17
Maximum Allowable Tax Levy 2016-17
Max.
Allowable
4.6%
Updated
4/15/16
$11,585,208
$77,621
$13,689
$0
$0
$0
$448,116
$12,124,634
Proposed
0.62%
Proposed 2016-17 Tax Levy -
Increase over '15-16:
which is
0.0062
$72,157
under
Proposed Tax Levy of :
$11,657,365
Maximum Allowable Tax Levy by ( $467,269)
Therefore budget passes with a simple majority positive vote or 50% + 1
If Proposed '16-17 Tax Levy were greater than the Maximum Allowable Tax Levy of $12,124,634, then would require a 60% positive vote result.
Revenue Summary
•
•
•
State/ Fed. Aid- $9,361,294
40.8%
Incl. restoring $152,526 of GEA
Other Revenue- $753,579
3.3%
Interest, Tuition, Admissions,
Bus rental, Refunds, plus restoring
some reserve funds
(Res. Debt, Tax Cert)
5.1%
Assigned Fund Balance$1,181,356 (Appropriated FB)
Which is made up of monies left over from
‘15-16 where revenue exceeded
expenditures.
•
50.8%
Tax Levy- $11,657,365; or 0.62% inc.
<1%
Summary Revenue Comparisons ‘15-16 to ‘16-17
Increase $916,017
2015-16
Actual
Budget
Aid- State/ Federal
 Other Revenue
 Tax Levy
 Fund Balance
Total ‘16-17 over ‘15-16:

2016-17
Proposed
+/-
$22,037,577
$22,953,594
$916,017
$ 8,667,434
$ 603,579
$11,585,208
$ 1,181,356
$22,037,577
$ 9,361,294
$ 753,579
$11,657,365
$ 1,181,356
$22,953,594
$693,860
$150,000
$ 72,157
$
0
$916,017
Foundation
Aid

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




2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
$6,044,958
$6,044,958
$6,081,227
$6,099,470
$6,151,315
$6,174,074
$6,174,074
Gap Elimination
Adjustment
-
($1,097,871)
($1,349,715)
($1,219,907)
($ 899,818)
($ 683,453)
($ 404,237)
-($
0)
GEA Restored!!!
Moving in the Right Direction!
=
=
=
=
=
=
=
Net
Foundation
$4,947,084
$4,694,243
$4,861,320
$5,199,652
$5,467,862
$5,769,837
$6,174,074
State Aid Still Not Much Gains
2009-10,
$19,570,664
2016-17,
$22,953,594
2016-17,
$9,361,294
2009-10,
$9,119,783
State Aid
Budget
2009-10
2016-17
In
7 years
the
amount of
State Aid
funding is
still
relatively
flat.
What is our Fund Balance?
6/30/15
• Restricted FB (Reserves)
• Assigned FB
(To Balance next year’s Budget)
+ Purchase Orders (Carry Over Purchase Orders)
• Unassigned FB (Less than 4% of ‘15-16 Budget)
Grand Total Fund Balance:
$4,398,026
$1,181,356
$ 615,757
$ 703,926
$6,899,065
Assigned Fund Balance
2009-10
2010-11
2011-12
2012-13
1,121,356
2013-14
2014-15
1,181,356
2015-16
2016-17
1,181,356 1,181,356
1,121,356
1,101,356
1,041,256
668,760


Assigned FB is from prior year used to help balance the budget
Continuing to increase the amount of Assigned FB and Reserves,
to balance the next year’s budget, is not sustainable…
Change in the Budget Development Focus
in the Tax Cap Era:
• Now that we have determined the maximum tax levy, how does that
impact the budget?
With the introduction of the NY State Tax Cap the primary focus in the
budget development process has become the tax levy and not the
budget. The process begins with the tax levy and ends with the
budget rather than beginning with the budget and ending with the
tax levy.
Pre‐Tax Cap
Budget
(‐) minus State Aid
(‐) minus other revenue
(‐) applied fund balance
= Tax Levy
Post‐Tax Cap
Tax Levy (Pre‐determined)
(+) plus State Aid
(+) plus other revenue
(+) plus fund balance
= Budget
Note: The tax levy is the end product
of this process. The primary focus is on
the budget.
Note: The Budget is the end product of
this process. The primary focus is on the
tax levy.
sort
Summary Budget Comparisons ‘15-16 to ‘16-17
Increase $916,017
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Function
2015-16
Actual
2016-17
Proposed
Salaries
Equipment
Contractual/ Tuition
Material/ Supplies/ Aidables
Textbooks
BOCES
Debt Service
Employee Benefits
Transfer Other Funds
$8,617,569
$ 202,459
$1,370,885
$ 709,402
$ 63,905
$3,095,294
$2,037,020
$5,633,584
$ 307,459
$8,634,849 $ 17,280
$ 326,696 $124,237
$1,439,273 $ 68,388
$ 646,529 ($ 62,873)
$ 67,891 $ 3,986
$3,354,882 $259,588
$2,354,697 $317,677
$5,650,277 $ 16,693
$ 478,500 $171,041
Total ‘16-17 over ‘15-16: $22,037,577
$22,953,594
+/-
$916,017
STAFFING SALARIES
Increase over ‘15-16: $17,280


Professional Staff
includes: Teachers,
Guidance, Psychologist,
Librarians,
Administrators, etc.
Support Staff includes:
Nurse, Clerical Staff,
Aides, Buildings &
Grounds, Drivers, etc.
Note: Salaries are
37.6% or $8,634,847
of the budget and
62.2% including fringe
benefits.
Some of the Changes over ‘15-16 Budget
 Staffing- Compensation
Savings due to unplanned Staff Retirements in 2015-16
Savings due to planned Staff Retirements in 2016-17
New:
-2 Special Ed Positions plus 1 teacher aide for new 12:1:1:
elementary class
(corresponding savings in BOCES costs to send students to
out of district placements)
-1 HS/MS placeholder to reconfigure ELA assignments
Change:
-FACS position to FT
-0.5 fte CV AIS to FT
The funding for all other positions carried forward at same level as 2015-16.
High Needs Special Ed. Placements

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
Wiley
Case MS
ACES
IRIS
Calcium
IRMS
‘15-16
Current
3
1
2
5
3
2
BOCES SP Ed Placements
16
’16-17
No Change
6
1
2
5
8
2
24
‘16-17
New Program
0
2
2
4
1
2
11
Cost Savings Over
Not Changing



GES- reg. ed.
GES 12:1:1 NEW
Pre-school aging up
3
0
0
13
5___________________
# High Needs Students: 24
24
24
EQUIPMENT:
Increase over ‘15-16: $124,237
The proposed budget includes equipment purchases of
$326,696.
 Included are: building/maint. equipment, classroom
furniture, instructional instruments, athletic equipment,
AV and Computer Hardware. Items on a scheduled
replacement program i.e computers, truck, mower.
New item:
 Purchase outright 1 additional school bus $129,786

(To get to 5 year fleet rotation this purchase is in addition to
Prop. #1 which finances 3 full size buses + 1 SUV.
Purchasing one additional bus outright
prevents a spike in debt service payments
over time.)
CONTRACTUAL/ TUITION:
Increase over ‘15-16: $68,388
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Total Appropriation = $1,439,273
Building Maintenance Work, Photocopy Rentals,
Fuel, Gas and Electrical Costs, Building Services,
Equipment Repair, etc.
District services such as legal, auditing, insurance,
architectural, consulting
Emphasis on Literacy Programs
Student services such as transportation, tuition,
health, awards, athletic fees, field trips, etc.
SUPPLIES/ SOFTWARE:
Decrease over ‘15-16: ($62,873)
$646,529 for Materials and Supplies:
 INSTRUCTIONAL
Student supplies,
paper, photocopy supplies, computer
supplies & software, library books,
periodicals, AV supplies, interscholastic, etc.

Plant Maintenance, General Operations,
Transportation
Cleaning supplies,
custodial paper supplies, electrical, carpentry,
plumbing, etc. Savings in bus parts.
BOCES
Increase over ‘15-16: $259,588

BOCES expenses $3,354,882 include:
 Instructional
 Occ. Ed.
+$70,500
 Special Education
+$39,475
 Administration
 Computer Assist/ Hardware
+$153,077
 Miscellaneous
Textbooks
Increase over ‘15-16: $3,986



Proposed Textbook
Budget is $67,891
In accordance with
current standards, now
includes some
computer software
Includes texts for
resident students
attending other schools
EMPLOYEE BENEFITS:
Increase over ‘15-16: $16,693


Budget Appropriation for all employee benefits
is $5,650,277
Benefits include:
Savings in Pension fund payments:
11.72% down from13.26% on salaries for TRS &
15.9% down from 18.7% on Tier IV salaries ERS
(NOTE: the pension rate reductions have been a tremendous
help in balancing the ‘16-17 budget)
-
HI premiums budgeted 5% increase
Medicare Part B reimbursement
Unemployment
Dental Insurance, Social Security, &
Workers Compensation, etc.
DEBT SERVICE:
Increase over ‘15-16: $317,677

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



1999 Capital Project Debt Service (DS): principal and
interest payments due. These bonds were re-financed
bonds in 2002 and again in 2012:
$674,650
Bus Payments Financed in ’13-14 through ‘15-16 totals:
Remember buses were not purchased in ‘11-12 and
$276,780
‘12-13 which got us off of the 5 year fleet rotation
2006 Capital Construction Project DS:
$779,694
2006 Energy Performance Contract DS:
$147,882
2011 Capital Project Bond:
$175,175
Dec ‘13 Capital Project BAN:
New $300,516
Total $2,354,697
Transfers:
Increase over ‘15-16: $171,041
 Transfer to Lunch Fund
To support Food Service Operations
$ 12,000
 Transfer to Special Aid Fund
$ 29,000
Local share of Summer Special Ed costs
 Transfer to Capital Fund
$437,500
• $100,000 To support small capital improvement
projects for Safety and Security or Efficiency
(Not budget for excess Capital Outlay expense)
• $337,500 for Clayton Bus Garage Renovation
Project
$337,500 Transfer to Capital Fund
DETAILS ON THE
Capital Project at Clayton Bus Garage
•
Bus Lift Replacement- Current Bus Lift recently
failed inspection. Was allowed a temporarily repair, until
unit is to be replaced this summer.
•
Vehicle Lift Addition- Bus lift unit is too large to
•
Fuel Dispensing System Upgrade- Current
•
Contingency for Contaminated Soil-
safely use on vehicles. Safety concern. Opportune time to
install this unit.
Fuel Master System requires upgrade. Reached end of
useful life.
Prudent planning to put a placeholder in the event that
the lift installation encounters contaminated soil in the bus/
vehicle lift installations.
Budget Summary: Presented into the 3 Parts



Administration
Instruction
Capital
1) Administrative portion of 3 Part
Budget
* Salaries & benefits of all
administration/ supervision &
clerical
* Public relations & central printing
* Curriculum development &
supervision
* Research, planning & evaluation
* Business Office Operations/
Central data processing/ Tax
Collection
* Most legal services
* School Board costs
2016-17
$ 2,348,020
$15,675,732
$ 4,929,842
$22,953,594
2) Program portion of 3 Part
Budget
* Salaries & benefits of all
teachers, guidance, aides,
nurses, psychologist, etc.
* In-service training
* Computer assisted instruction
* Library, AV/ TV
* District transportation (except
bus purchases)
* Co-curricular activities and
Interscholastic athletics
2015-16
$ 2,345,866
$15,355,252
$ 4,336,459
$22,037,577
3) Capital portion of 3-Part
Budget
* Debt service on buildings
* Debt for School bus purchases
* Operations & maintenance of
buildings and grounds including
salaries & benefits of staff
THE TAX LEVY

THE GOAL OF THE BOARD OF EDUCATION IS TO
LIMIT THE TAX LEVY INCREASE FOR THE BASE
BUDGET TO NO MORE THAN:
0.62%
o
o
o
Actual tax rates will vary with final assessments and
equalization rates.
MUCH LESS THAN
School Levy <<
<< Max. Allowable Tax Levy
The base tax levy does not include the public library
levies
MUCH LESS THAN
PROPOSITIONS:

#1
Bond Four School Buses
(Three 71 Passenger & One SUV )
$419,307 before trade-ins

#2
Increase Public Library Funding
Increase by $30,000 for a total of
$165,500 funds collected for Hawn Memorial,
Cape V incent Community, and
Depauville Free Libraries
Board of Education Candidates:
FIVE POSITIONS OPEN
VOTE ONCE FOR EACH SEAT
DIRECTIONS:
Vote for the candidate running for the open seat, or, if you desire, you
may write the name of another person in the “write-in“ space.
Seat
Seat
Seat
Seat
Seat
#1
#2
#3
#4
#5
For the seat of
Kenneth Garnsey
(Currently held by
Amber Brown)
For the seat of
James Ganter
For seat of
Bruce Mason
Term to:
begin 5/18/16
end 6/30/17
Term to:
begin 7/1/16
end 6/30/19
Term to:
begin 7/1/16
end 6/30/19
Term to:
begin 7/1/16
end 6/30/19
Timothy
“Tucker”
Wiley
Amber
Brown
Bruce
Mason
Jolene A.
Radley
____________
(Write-in)
_____________
(Write-in)
____________
(Write-in)
For seat of
John Warneck
for seat of
Lisa Ingerson
(Currently held by
Robert Cantwell)
Term to:
begin 5/18/16
end 6/30/17
Robert W.
Cantwell III
Stephen C.
Byers
______________
(Write-in)
____________
(Write-in)
Thousand Islands CSD
BUDGET, Proposition, and
Board Member VOTE
TUE. MAY 17, 2016
HS Library
2 p.m. to 9 p.m.