2015-2016 Preliminary Budget Presentation

Transcription

South Orangetown Central School District
3/12/2015
"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
WHERE WE STARTED…….
Budget
Student
Outcomes
WHERE WE ARE NOW…….
Long-Range
Planning
Student
Outcomes
Fund balance
Professional
Development
Efficiencies
Curriculum &
Instruction
Systemic
Process &
Procedures
Staffing
3
Goals
Yearly
Budget
Long-Range
Planning
4
Address the
Diverse Needs
of Learners:
2009-10,2013-14
Provide Students
with Skills for
the 21st Century:
Foster a
Respectful
Learning
Environment:
2010-11
2008-09, 2011-12, 2014-15
Enhance
Student
Literacy:
2012-13
5
Student
Preparation for
21st Century
Investment in the
present for the
future
Strong
Fundamentals
Opportunities for
all students
6
William O. Schaefer
Click on each slide and it will bring you to the presentation
7
Challenges & Planning
8
Tax Cap
State Efficiency Plan
Decreasing Enrollment
Mandates
Rising Costs
State Aid & GEA
Forestalling Insolvency
9
Organizational Efficiencies
Succession, Transition &
Sustainability
TZE-CLE Merge
Elementary & Secondary
Start Times
Minor Capital Projects
Facilities Leasing Options
Superintendent Search
Human Resources Office
Retiring Staff Impact
Maintaining a Risk-Averse Culture
GOVERNANCE TEAM (Continuous
Improvement and Goal-setting)
10
Educational
Insolvency
Educational &
Fiscal
Solvency
Systemic erosion
of capacity due to
fiscal constraints
without structural
redesign,
resulting in the
elimination of
both mandated
and nonmandated
programs
Ability to
fund &
provide both
mandated
and nonmandated
curriculum to
create a
sound, basic
education
Erosion of
Capacity
SOCSD
PLANNING,
PLANNING,
AND MORE
PLANNING
Systemic erosion
has reached a point
where the district
can no longer
conceal educational
insolvency.
Insolvency is
exposed and verified
by consistently poor
ratings using the
state accountability
system for five years
or more
Tipping Point
Restriction of
funding stream
required to fulfill
mandates and
contractual
obligations.
Beginning of the
elimination of
non-mandated
programs
Concealed Insolvency
Technical fiscal
solvency but
educationally unsound.
The district perpetuates
a system that cannot
produce a sound basic
education as reflected
by state testing,
standards, and
graduation rates.
Fiscal
Insolvency
District no
longer has
the funds to
make payroll,
pay debt, or
keep other
contractual
obligations
11
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Proactive
Not Reactive
Forecasts Potential
Budget Gaps
Working together do
develop long-term
permanent solutions
Short-term view
Quickest solution “not
the best” solution
Likely to impact
Instructional core
13

Protect & Preserve Instructional Core
Evaluate Needs vs. Wants
Preserve Investments & Prevent Costs
Find Efficiencies and Share Services
Delay Program Impact
Reduce/Restructure, Don’t Eliminate
14
FISCAL STATUS
US
DEMOGRAPHICS
HICS
EDUCATIONAL
AL
TECHNOLOGY
GY
FACILITIES
15
Team work
It
takes
a
Team
Instructional
Administration
Facility
Transportation
Clinical support
Clerical
Accountants
PTA
Coaches
Advisors
Parents
Governance
Team
Volunteers
Implementation
Planning
Enduring
Goals
Budget
Communication
Efficiencies
16
Long-Range Planning:
Is this a practice embraced by our Government?
17
Common Core
PARCC
Employee Contracts
t t
tracts
Health Insurance
nce
Pension
Expense
18
State Aid is currently scheduled by the existing formulas to grow by 1.7% or $377 million
based on Personal Income Growth (since 2012-13)
This represents projected statewide increase, not district-specific increases
Governor proposed 4.8% increase in school aid for 2015-16 if legislature agrees to
proposed education reforms
If no agreement, budget bills say school districts cannot receive aid increase over 2014-15
projected level
$1.1b
(4.8%)
$377m
(1.7%)
$68m
$309m
?
19
20
2014-15 Gap Elimination Adjustment
(GEA): (-$1.036B)
Distribution by
Need Resource Capacity Index
Distribution by Region
(in millions)
$600
LOWER
HUDSON
9%
$89M
$500
$400
NYC
24%
$249M
LONG ISLAND
21%
$218M
REST OF
STATE
$300
BIG4
2%
$23M
$376
$104
$200
44%
$456M
$660
$503
$100
$272
(Big 5)
$157
$0
HIGH
Other Big 4 are the cities of Buffalo, Rochester, Syracuse and Yonkers
Lower Hudson is Putnam, Rockland, Westchester and Orange Counties
AVERAGE
LOW
High Need: NYC, the Big 4, & high-need urban, suburban and rural districts above the 70th percentile
Average Need: Districts between the 20th and 70th percentile
Low Need: Districts below the 20th percentile
21
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)
($3,495,971)
2014-15
($1,491,749)
($3,017,626)
2015-16
($1,491,749)
($3,153,297)
Total Loss
($11,713,087)
($27,430,306)
($39,143,393)
$12,352 per student22
State-Wide
Average increase, 3 years before tax cap: 2.9%
Average increase, 3 years with tax cap: 2.4%
Tax Levy
School Aid
12%
10%
8.2%
8%
6%
4%
Tax Cap Implemented
8.7%
7.5%
6.1%
4.3%
3.7%
3.2%
2.1%
3.4%
3.1%
2.2%
1.9%
2%
0%
-2%
-4%
-6%
SOURCE: Council analysis of NYSED School district property tax report card and state aid data
(Big 5 cities omitted). Federal Education Jobs Fund allocations not included in 2010-11 state aid.
23

Education Reform

Teacher Preparation
Teacher Evaluation
3020-a Reform
Strengthen Accountability for Failing Schools & Educators
Expand Access and Quality of Pre-Kindergarten for 3-Year Old Children
Charter Schools

Increase reimbursements to $425/student in 2015-16 and to $575/student in
2016-2017
Add 100 charters to the current cap
Education Investment Tax Credit
Circuit Breaker Rebate
STAR

Eliminate $41 million in annual STAR breaks to affluent taxpayers in NYC
Move the STAR credit from a credit on school tax bills to a credit on
personal income tax returns for new homeowners
Hold flat total cost of providing STAR benefits to all homeowners
(Currently capped at a 2% increase per year)
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25

Eligible Projects/Expenses

Expansion of Pre K Instructional Space
Transportable Classroom Units
Community Connectivity
Classroom Technology
School Safety
Investment Plans

Review Board will issue guidelines
Consult with parents, teachers, students, community members, and
other stakeholders
26

2015-16 School districts must comply with the tax cap AND have a
state approved government efficiency plan

Savings must be reoccurring of 1% of 2014-15 tax levy - $730K

Savings plans to be submitted to the NYS DOB by 6/1/15

DOB notifies Tax & Finance of approval of plans by 7/31/15

Frequently Asked Questions:
http://www.budget.ny.gov/pubs/press/2015/PropertyTaxFreezeFAQs.pdf
NOTE: At this time, the NYS Division of Budget is developing criteria for the approval of
government efficiency plans required by this law.
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Efficiencies to be Considered:
• Retirement Incentive
• Consolidation of space, reduced overhead
• Transportation – increased # of students
assigned/budget, centralized stops and two-tier busing
• Facilities – shift consolidations, closing of buildings
earlier, equipment alarms, outsourced services, i.e.
cleaners, and security
• Shared Services – workers’ comp, NYSIR, energy
consortium, certain BOCES services
28

Governance Team used to be able to decide
whether to increase the budget or not;

NOW…… Available revenues (Tax Levy Limit)
drive Budget Development
29
Reducing Costs & Enhancing Efficiencies through planning
30
Personnel Costs
Benefits
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
New Supt.
Retirement Incentive,
saves $$ and preserves
staff
Declining enrollment
saves $$
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
31
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 on
weekend and
holidays for
building checks
Energy
Conservation
Manage
consumption, i.e.
appliance audit,
buildings closing
earlier, etc.
$4m Energy
Performance
Lease – upgrade
to energy
efficient
equipment
Debt
repayment &
refinancing
g
Paid 1998, 2008
bond issues early
Technology IPAs
paid early
Used Debt
Service Reserve
fund 1991, 2003,
EPC & pool
principal &
interest
payments
Saves interest
expense
Reduces cost to
taxpayers, i.e.
reduces tax levy
Proposed
repayment of
EPC Lease 14-15
Use of Capital
Reserve
Funded $10M in
Capital Projects,
i.e. pool, roofs,
security
Avoids the
issuance of debt
& increase to tax
levy
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
$$$
32
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
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34
Avg. Increase
5 Years
Adopted
Budget
2011-2012
2%
SCHOOL DISTRICT BUDGET
$
LLESS:
ESS:
State Aid
Aid
State
Fund Balance
Balance
Fund
Other Revenue
Revenue
Other
79,570,592
Adopted
Budget
2012-2013
$
82,385,278
Adopted
Budget
2013-2014
$
85,871,296
Adopted
Budget
2014-2015
$
86,395,154
Preliminary
Budget
2015-2016
$
85,969,882
2.17%
3.54%
4.23%
0.61%
--0.49%
0.49%
(8,566,548)
(8,566,548)
((243,000)
243,000)
(1,969,570)
(1,969,570)
(8,633,157)
(8,633,157)
((2,736,490)
2,736,490)
(1,227,089)
(1,227,089)
(9,685,748)
(9,685,748)
((2,379,189)
2,379,189)
(1,604,220)
(1,604,220)
(10,120,690)
(10,120,690)
((1,767,814)
1,767,814)
(1,548,418)
(1,548,418)
(10,290,614)
(10,290,614)
(1,547,000)
(1,547,000)
TAX LEVY
$
68,791,474
$
69,788,542
$
72,202,139
$
72,958,232
$
74,132,268
TAX LEVY INCREASE
$
2,405,155
$
997,068
$
2,413,597
$
756,093
$
1,174,036
TAX LEVY PERCENTAGE INCREASE
3.62%
1.45%
3.46%
1.05%
1.61%
35
State Aid & FederalOther Use of Fund Balance
Use of Money & Property
Aid
0.00%
0.34%
0.87%
12.02%
Charges for Services
0.49%
Real Property Taxes
84.48%
36

Consumer Price Index is 1.62% NOT 2%
Year of Tax Cap

Less of CPI or 2%
2012-13
2.00%
2013-14
2.00%
2014-15
1.46%
2015-16
1.62%
SOCSD has kept tax bills to homeowners at
an average of 1.20% over the past five years
37
BASIC FORMULA
Prior Year Tax Levy 2014-15
$72,958,232
Tax Base Growth Factor (from Off. Real Prop. Services)
x
1.0064
73,425,164
Prior Year Pilots
+
78,556
Prior Year Capital Tax Levy Exclusion, Net
-
(1,140,063)
Adjusted Prior Year Levy
=
72,363,657
x
1.62%
Allowable Growth Factor (Lesser of CPI or 2%)
If 2%
additional
$275,000
73,535,949
Current Year Pilots
-
(80,336)
Available Carryover
+
0
Tax Levy Limit Before Current Year Exclusions
=
$73,455,612
38
+ CURRENT YEAR EXCLUSIONS
Capital Tax Levy Exclusion, Net
PENSIONS
2014-15
RATE
2015-16
RATE
Chg.
Pts
> 2 pts
Teachers Retirement System
17.53%
13.50%
(4.03%)
No Exclusion
Employees Retirement System
20.10%
18.20%
(1.90%)
No Exclusion
TAX LEVY LIMIT WITH EXCLUSIONS
TAX CAP LIMIT INCREASE
TAX CAP LEVY PERCENTAGE
+
$676,656
+
0
=
$74,132,268
$1,174,037
1.61%
39
State Aid
Aid Category
•
•
•
•
The Governor delivered the
State of the State & the
Executive Budget proposals
on January 21, 2015.
The Executive Budget did
not contain specifics for
Education Aid.
2015-16
Per Governor
SOCSD
Projections –
Current Law
General Aids:
Foundation Aid
$6,463,052
$6,463,052
$6,463,052
327,764
327,764
327,764
Building
1,462,896
1,448,980
1,448,980
Transportation
1,160,782
1,165,628
1,165,628
BOCES
1,739,415
1,757,432
1,270,238
664,271
743,813
743,813
291,683
284,885
284,885
(1,491,749)
(1,491,749)
(1,491,749)
High Tax Aid
Expensed-Based Aids:
If no agreement, Districts
would not receive more than
the State projections for
2014-15, regardless of actual
expenses.
Per BOCES State Aid
Planning, the estimated Aid
for 2014-15 is $10,212,611,
potential loss
in aid of
$487,194.
2014-15
SOCSD
Projections
Private & Public
Excess
Other Aids: textbook,
library, etc.
GEA
Total State Aid
$10,618,114 $10,699,805 $10,212,611
40
BOCES
10.16%
Debt Service
2.47%
Transfers
2.13%
Pupil Trans.
4.82%
Equipment, Contractual,
Supplies & Materials
8.81%
Salary & Benefits
71.45%
41
Expense
Salary + Benefits
2014-15
2015-16
% chg.
$61,944,546
$61,755,403
(0.31%)
Equipment, Contractual & Materials
& Supplies
7,566,029
7,575,810
.001%
Pupil Transportation
3,944,016
3,943,655
(0.01%)
BOCES Services
8,449,741
8,734,377
3.37%
Debt Service
2,655,822
2,125,637
(19.96%)
Interfund Transfers:
Special Aid
Capital Fund
85,000
1,750,000
85,000
1,750,000
0.00%
0.00%
$86,395,154
$85,969,882
(0.49%)
Total
42
43
3500
3000
7
6
0
3,251 3,169
3,067 2,975
2,861 2,780
2,705 2,647
2,576 2,511 2,491
2500
2000
1500
1000
500
0
*Including Outplaced Students
44
1400
1200
1,302
1,233
1,159 1,116
1,053 1,037 1,021 1,023 1,037 1,062 1,085
1000
800
600
400
200
0
*NOT Including Outplaced Students
45
2000
1800
1600
1,883 1,873 1,847
1,800 1,751
1,687 1,630
1,571
1400
1,488
1,399 1,356
1200
1000
800
600
400
200
0
*NOT Including Outplaced Students
46
Grade
Average Class-Size
K
22
1-2
22
3-5
23
6-12
26
AP Courses
Min 15
47
48
POSITIONS:
REASON:
Dept
Teacher
Teach
Assts.
Other
Total
LRP
Enroll/
CSE
Reconf.
Other
WOS
(.95)
(1.00)
(.55)
(2.50)
.75
(1.66)
(1.09)
(.50)
TZE
(19.90)
(1.50)
(8.44)
(29.84)
(.50)
-
(29.34)
-
CLE
16.52
(2.25)
2.76
17.03
1.55
(6.58)
22.22
(.16)
SOMS
2.00
1.25
.25
3.50
1.00
2.33
-
.17
TZHS
2.10
(.17)
(.35)
1.58
1.40
.18
-
-
DW
2.40
(.08)
(1.01)
1.31
1.00
1.31
(1.00)
-
Total
2.17
(3.75)
(7.34)
(8.92)
5.20
(4.42)
(9.21)
(.49)
It is anticipated that many changes will be absorbed through attrition due to retirements and leave replacements.
49
9
ELL “New” Commissioner Regulations: K-12 1.80 FTE
9
Instrumental Music Program: CLE Grade 3 .50 FTE
9
Library Media Specialist: CLE 1.00 FTE, restoration p/y LRP
9
Instructional Technology Teachers : K-12 1.90 FTE
Provide local building level support to teachers in the classroom with the
use of instructional technology tools
Expansion of curriculum offerings - K-2, PLTW engineering design &
capstone courses, and gaming & computer science courses
50
Preliminary Budget by State determined Components
51
2014-2015
ADOPTED BUDGET
100.00%
9.81%
100.00%
80.00%
60.00%
78.02%
60.00%
79.05%
40.00%
20.00%
12.17%
0.00%
Capital
9.30%
80.00%
40.00%
20.00%
2015-16
PRELIMINARY BUDGET
11.65%
0.00%
Program
Administrative
Capital
Program
Administrative
52
Total Budget Administrative
Program
Capital
$85,969,882
$7,997,873
$67,956,407
$10,015,602
100%
9.30%
79.05%
11.65%
Teaching & Instruct.
Board of Ed.
Special Education
District Clerk/Meeting
Special Schools
Superintendent
Transportation
Business Operations
Staff Development
Legal Services
School Library
Personnel
Computer Instruction
Public Information
Guidance
Central Services
Health Services
Insurance/Assessments
BOCES Admin/Capital Psychological Services
Co-Curricular
Curriculum Admin
Athletics
Building/Dept Sup.
Associated Benefits
Associated Benefits
Operations &
Maintenance
Capital Projects
Bonded Debt
Short-term Debt
Associated Benefits
53
Potential Impact on District Programs
54
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
55
2015-16 Tax Levy is LIMITED TO 2014-15 TAX LEVY
ZERO INCREASE
Add: State Aid
Other Revenue
Use of Unassigned Fund Balance
Total Revenue = Allowable Appropriations Budget
= Maximum Contingency Budget Allowed
Preliminary 2015-16 Budget
Difference to be reduced from 2015-16
Preliminary Budget
$72,958,232
10,290,614
1,547,000
$84,795,846
$85,969,882
($1,174,036)
56
If we don’t get 50% +1
then……
57
58
Class-size &
Instructional
Staff /Support
Athletics &
Extracurricular
Activities
Administrative
& Support Staff
Facility Use &
Infrastructure
projects
59
Click on each slide and it will bring you to the presentation
60
MARCH 26, 2015 - Budget Workshop
April 9, 2015 – Adoption of 2015-16 Budget
May 12, 2015 – Public Budget Hearing
May 19, 2015 - Annual District Budget Meeting &
Board Election
61
To our entire Staff, the Board, the PTA,
Volunteers, parents, everyone who helps us to
continue to move our goals forward for the
success of each individual student.
62
63