2013-2014 Budget Update

April 8, 2013 Board of Education Presentation

Working Budget Topics: Instruction, revenue & budget recap

Budget Factors & Challenges

The GOOD news: State aid IS increasing for next year. While its NOT the $656,139 increase thats been reported overall aid (operating & expense driven) is going up by about 1.5 percent for next year. This is higher than was projected in the Governors budget. Through the recent fiscal downturn, weve taken many steps to stay efficient, save money and save programs. Things would look VERY different without the following: NYS Performance Improvement & Strengthening Teacher/Leader grants Federal PEP Grant Bargaining Units teachers, administrators & support staff have given concessions, saving money and positions. Consolidated some services and adopted efficient business practices like transportation and purchasing through BOCES; locking into pricing for gas, electricity and general liability insurance; and our energy curtailment program. ALSO: Weve applied for a DOS Efficiency Grant funding with Schalmont to study possible merger/shared services.
4/8/13 Budget Update

Budget Factors & Challenges

The BAD news: The fiscal storm certainly isnt over. Weve lost $9.37 million to the Gap Elimination Adjustment in three years and are set to lose $2.6 million more in 2013-14. This is money deducted from the original state aid due to the district based on the states aid formula. Sothe increase in state aid is actually just a decrease to the decrease. Costs continue to rise at an untenable rate. Teacher retirement system (TRS) contribution rates alone are increasing by 37 percent for next year. Mandates continue to increase: DASA, APPR, Common Core Learning Standards Weve eliminated 70 FTE positions and $6 million in the last three years. Reduced positions include: Teachers, administrators, librarians, support staff Class sizes have increased in many areas. Weve reduced field trips, made cuts to athletics, made cuts to operations and maintenance, and reduced the general administration budget. Weve reduced the number of days late buses are available to students, and consolidated regular bus runs.
4/8/13 Budget Update

Budget Factors & Challenges

Mandate Relief?
Governors budget included a variety of proposals aimed at mandate relief. The adopted state budget DID include a stable-rate pension option for both ERS and TRS, which could provide some relief in the SHORT TERM. ERS Option: Districts have one-time opportunity to opt in and pay a graded rate vs. the normal, actuarially-determined rate. The difference between the rates is borrowed and paid back (plus interest) over 12 years. For next year, the normal rate is 20.9% and the graded rate is 12 percent. TRS Option: Districts can opt in and pay stable rate for seven years. Beginning in year 6, the district would begin repaying all contributions that were deferred over the previous five years (the difference between the actual rates and the stable rates). For next year, the normal rate is 16.25% and the stable rate would be 14%. In future years, the stable rate COULD increase by 2 percent every 2 years. Opting for both of these proposals would save the district $844,000 in pension contributions for next year (short term). Ultimately this money would have to be paid back, with interest.
4/8/13 Budget Update

Budget Development
What were the main considerations when developing the budget?
Maintaining quality instructional programs and services for students, including foundational structures to build on in the future. So much has been cut in recent years, we looked for ways to maintain everything that we currently have. Feedback/insight from Board of Education Administrative expertise, professional judgment, experience Community feedback Throughout these difficult fiscal conditions, community members have said that maintaining as many programs for students as possible is priority #1. Other concerns: Class size, safety Consistency across the board
4/8/13 Budget Update

2013-14 Budget: Current Projection

$45,381,878: Projected Budget for 2013-14 2.94 percent increase in spending over the current year How did we get to this point? No major budgetary changes are taking place in terms of staffing and programs/ services for students. Students will have the same access to programs/services as they did this year. Some costs are being shifted to the state/federal grants. Health insurance premium and prescription rates came in lower than expected. Decrease in the amount paid to unemployment insurance.

4/8/13

Budget Update

2013-14 Budget: Current Projection

How did we get to this point? Minor reductions/changes made in certain areas: Elimination of one section of 6th grade due to enrollment. Current staffing will be maintained through grant funding (teacher on special assignment) Athletics: Reduction in dues/fees, elimination of JV golf Operations & Maintenance and Transportation: More equipment repairs and general maintenance will be done in-house with existing staff vs. outside contracts. Across-the-board reduction in equipment and technology purchases. Two expected retirements

4/8/13

Budget Update

Return on Investment: What does the budget pay for?

Projected Average Class Size for 2013-14
Grade Level Current Enrollment 2012-13 201 189 170 185 216 204 211 # of Sections 2012-13 9 8 7 8 9 8 9 Average Class Size 2012-13 22.3 23.6 24.3 23.1 24 25.5 23.4 Projected Enrollment 2013-14 200 201 190 170 185 216 210 # of Sections 2013-14 9 8 8 7 8 9 8 Average Class Size 2013-14 22.2 25.1 23.8 24.3 23.1 24 26.3

K 1 2 3 4 5 6

Class sizes in grades 7-12 will vary depending on class/subject area. 4/8/13 Budget Update

Return on Investment: What does the budget pay for?

Program by the numbers 218 teachers educate 2,907 students in grades K-12 every day. They are supported by 196 support staff members and 16 administrators. 2,250 students are transported to and from school every day by 43 bus drivers on 43 buses. 90 percent of last years seniors graduated on time. 27 career professionals presented to eighth graders at this years Career Day. 49 students in grades 4-8 participated in the districts first ever after-school STEM academy this past winter. 4 school buildings are using developmentally-appropriate frameworks, which include character education and anti-bullying programs, to promote social and emotional well-being for all students. 12 middle school students are recognized each month for demonstrating good character traits.
Budget Update

4/8/13

Return on Investment: What does the budget pay for?

Program by the numbers 6 major programmatic shifts in English and 6 major programmatic shifts in math are being implemented district wide under the new Common Core Learning Standards.
4/8/13

412 students in grades K-12 receive support through Special Education and related services. 950 computers and 18 interactive whiteboards are used district-wide to support 21st century learning. 107 Advanced Placement (AP) exams were given to students enrolled in 8 AP classes, ranging from Music Theory to Biology, last year. 2 alternative education programs are successfully supporting students in grades 6-12. 55 athletic teams, spanning modified, freshman, junior varsity and varsity levels, offer students in grades 7-12 the opportunity to compete in 23 sports. 106,219 unique users visited Mohonasens website so far this year.
Budget Update

Return on Investment: What does the budget pay for?

Program by the numbers 32 clubs and extracurricular activities other than athletics are available to students in grades 6-12. 4 Mohonasen Odyssey of the Mind teams competed at this years regional competition. 70 classroom spelling bee winners in grades 1-8 competed in one of three schoolwide spelling bees this year. 17 Principles of Engineering students recently competed in the Capital Districts Model Bridge Competition. 92 percent of students who took the English Regents last year, passed; 39 percent achieved mastery. 3,000 student writing entries have been submitted to date for Pinewoods We are Readers! We are Writers! Program.

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2013-14 Budget Worksheet: Current Projection

Rollover Budget: Projected (13-14 budget): Current (12-13) Budget: Budget Increase Revenues $47,492,512 $45,381,878 $44,082,355 $ 1,299,523 $ $ $ $ $ Revenue Increase 277,348 300,000 964,743 62,000 180,568 Starting Point As of April 8, 2013 (working budget minus grants) 2.94% spending increase TOTAL increase in state aid Debt service appropriation 4.21% tax levy increase/tax cap Decrease in other revenues (estimated) Decrease in appropriated fund balance

$ 1,299,523

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2013-14 Projected Expenditures

2012-13 Budget 2013-14 Projected Budget as of 4/8/12 $ Increase/Decrease

Instruction Employee Benefits Operations& Maintenance Transportation District Support Debt Service Total
4/8/13

$23,030,325 $10,718,706 $2,310,888 $2,089,245 $1,819,894 $4,113,296 $44,082,354

$23,246,286 $11,416,512 $2,309,053 $2,062,205 $1,843,992 $4,503,830 $45,381,878

Budget Update

$215,961 $697,806 -$1,835 -$27,040 $24,098 $390,534 $1,299,524

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2013-14 Projected Revenues

2012-13 2013-14 Projected Budget (as of 4/8/13) $ Increase/Decrease

State Aid Property Tax Levy Fund Balance Appropriation Reserve Appropriation BOCES Rental Interfund Transfer Other Revenue Total
4/8/13

$17,911,097 $22,938,507 $1,250,000 $800,000 $365,500 $533,000 $284,250 $44,082,354

$18,193,286 $23,903,250 $1,069,342 $750,000 $311,750 $803,000 $351,250 $45,381,878

Budget Update

$282,189 $964,743 -$180,658 -$50,000 -$53,750 $270,000 $67,000 $1,299,524

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(Interest, Fees, Cont. Ed., Admissions, Bldg. Use)

Tax levy numbers under the cap law

Tax Levy Limit/Maximum Allowable Tax Levy
Based on the state formula, this is the highest allowable tax levy that a district can propose and need the approval of only a simple majority of voters (more than 50 percent) to pass a budget. Tax levy limit PLUS certain exclusions Based on the states formula, Mohonasens maximum allowable limit is a 4.21 percent increase over the current years tax levy.

Proposed Tax Levy

The tax levy called for by a school districts proposed budget. This is the number we have control over. The tax levy is the total amount of money to be raised by a municipality after factoring in all other available revenues.

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Mohonasen Tax Levy Limit Calculation

Prior year tax levy Tax base growth factor (if any)* Payments in lieu of taxes (PILOTs) receivable during prior year Taxes levied for exemptions during prior year (not ERS & TRS) Adjusted Prior Year Tax Levy Allowable levy growth factor (lesser of 2% or CPI) Payments in lieu of taxes (PILOTs) receivable in coming year Available carryover (if any) Tax Levy Limit Coming School Year Exclusions** Maximum Allowable Tax Levy (requiring simple majority approval of more than 50% of voters) Maximum allowable tax levy increase (percentage) $22,938,507 X 1.0025 +0 -0 = $22,995,853 X 1.02 -0 +0 = $23,455,770 + $447,480 = $23,903,250

4.21%

*provided by NYS Tax & Finance Dept. **Increase in the state-mandated employer contribution rate for teacher pensions (TRS) that exceed two percentage points.

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ESTIMATED impact on a household*

Given current assessments/equalization rates
Town Rotterdam Guilderland Colonie Current Tax Rate (per $1,000 of
assessed value)

4.21% Tax Levy Increase +$0.67 +$0.76 +$0.97

$15.89 $18.11 $22.77

Impact on a home will a full-value of $150,000

+$100.36/year OR +8.36/month

*These numbers are only estimates. All figures assume no change in equalization rates and assessments (information that is typically finalized and made available to districts during the summer). Figures include no state or local tax exemptions, including STAR. In 2013 all residents must re-apply for the STAR exemption.

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Contingent Budget Rules

What happens if the budget is rejected by voters?
If the proposed budget is not approved by the voters, the district may resubmit the original budget or submit a revised budget to the voters on the third Tuesday in June OR adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in the tax levy). If the resubmitted/revised budget proposal is NOT approved by the required margin, the Board MUST adopt a budget that levies a tax no greater than that of the prior year (0% increase in the tax levy) AND the budget would be subject to contingent budget requirements. Under a Contingency Budget, some items would need to be cut from the budget to meet the law with respect to definition of contingency appropriations. Cuts would be to student supplies, community use of buildings and grounds, certain equipment purchases and salary increases.

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Pupil Transportation
2013-14 PROPOSED Bus Purchase Requests 4 - Full size 66 passenger buses Proposition Amount Less State Share of Trans. Aid .717% = = $460,000 ($329,820)

Est. Budget Impact District Share over 5 years = $130,180 (approx. $26,036.00 per year)

No impact to 2013-14 budget - Debt/bond payments and state aid payments begin school year following a bus purchase, in this case 2014-15.

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Board of Education Vacancies

Two (2) at large seats Three-year terms At least 40 signatures required on petition Petitions are now available in the District Office Petitions are due back to the District by Monday, April 22th at 5 p.m.

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Questions and Discussion

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Next Steps
April 23, 2013: BOE Meeting/Adoption of budget proposal 7 p.m., HS Farnsworth Technology Center All budget information will be available at www.mohonasen.org/budget. The annual budget newsletter will be mailed out in early May. May 13, 2013: Budget Hearing & Meet the Candidates Night 6 p.m., HS Farnsworth Technology Center May 21, 2013: Annual Budget Vote & BOE Election 7 a.m.-9 p.m./HS Gym

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