March 08, 2010March 08, 2010

Half Hollow Hills Central School District

2010- 2011Preliminary Budget Proposal 3/08/10

THE PURPOSE OF THE BUDGET

To meet the educational and fiscal goals of the District by…• Supporting the educational mission

• Planning for the operational needs of the District

• Maintaining financial integrity

• Safeguarding taxpayers dollars

2010/11 Budget Process

• The Business Office, together with the Superintendent, Assistant Superintendents, Building Principals, Directors and Coordinators reviewed enrollment trends and projections, staffing requirements, building and programmatic needs and proposed expenditures.

• The Board of Education sub-committee conducts an analysis of the proposed budget

2010/11 Budget Process

• Every area of the Budget is analyzed for potential cost savings.

• In-depth analysis is conducted of all programs, the impact of further tightening of schedules, resources and potential personnel reductions

• Looking back – analyzing prior year and current year expenditures

• Looking ahead – long range planning

Enrollment Trend

TOTAL ENROLLMENT 1988/89 TO 2010/117,

32

47,

215

7,0

33

7,0

69

7,0

55

7,10

77,

23

6

7,4

99

7,8

35

8,1

108

,471

8,7

17 9,1

92

9,5

83

9,9

7410

,19

6

10,0

25

7,7

41

10,0

37

10,0

98

10,1

48

10,1

68

6,000

7,000

8,000

9,000

10,000

11,000

19 8 9 - 9 0 19 9 2 - 9 3 19 9 5 - 9 6 19 9 8 - 9 9 2 0 0 1-0 2 2 0 0 4 -0 5 2 0 0 7 -0 8 2 0 10 -11

Elementary Enrollment Trend

Elementary (K-5) Enrollment

4,7 7 3 4,47 54,231

4,333

4,7 9 7 4,9064,617

3,000

3,500

4,000

4,500

5,000

5,500

2004/05

2005/06

2006/07

2007/08

2008/09

2009/ 10

20 10/11

Secondary Enrollment Trend

Secondary (6-12) Enrollment5,7945,395

5,1775,290 5,531 5,623 5,704

3,0003,5004,0004,5005,0005,5006,000

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

Continuing Challenges for 2010/11

• Run an efficient system without negatively impacting programs for our students

• New York State’s economic crisis has not improved• Governor’s Gap Elimination Plan would reduce our state

aid by a net of $2.7 million.• Proposed Mandate for Districts to fund a portion of all

Pre-school special education and transportation costs. The program is currently fully funded by NYS and Suffolk County. This proposal is not included in the current budget.

• Proposed State funding for Summer Special Education reduced from 80% to 22.5% . If enacted, this proposal would cost the district approximately $673,000. This proposal is not included in the current budget.

• The MTA Tax, implemented for the 2009/10 school year, will continue in 2010/11. This will cost HHH over $400K and is included in the current budget proposal. To date no reimbursements have been received.

2010-11 Preliminary Budget Proposal Summary

2009-10

Total Budget $201,876,771 $207,881,882

Dollar Increase $6,005,112

Percent Increase 2.97%

2010-11

Capital$27,147,975

13.06%

Program$159,847,240

76.89%

Administrative$20,886,667

10.05%

Budget-to-Budget comparison

Adopted

Budget

2009/10

Rollover Budget

2010/11

(estimated cost of rolling

forward budget as is)

Preliminary

Budget

2010/11

As of

3/8/10

Total

Savings

From

Original

Rollover

Total Budget

% Change

$201,876,771 $212,250,909

5.14%

$207,881,882

2.97%

-4,369,027

2010/11 Budget Reductions of over $4.3 million include:

• Retirement Incentive offered resulted in over 20 retirements, producing over $800K in budget savings for 2010/11

• 22.93 budgeted instructional positions• 5.0 administrative and non-instructional

staff positions • 1.0 job coach position • monitor hours district-wide • Summer transportation for regular

education summer school• Interscholastic Freshman Teams

Budget Reductions – cont’d.

Allocation reductions include…

• Equipment

• Contractual service expenditures

• Capital Project expenditures

• L.I. High School for the Performing Arts -

• no new applicants

• Reduction of Summer guidance hours -

• efficient on-line scheduling

• Curriculum Writing

• Significant reductions in professional and staff development

Preliminary Budget Proposal General Support

2009/10 2010/11 Change

Board of Education $8,887 $8,887 0%

District Clerk & District Meetings $103,921 $106,721 2.69%

Offices of Chief School Admin. Finance/Purchasing/Accounting

Auditing Svc./Legal Services

Public Information, District-wide

Administration and Records Mgmt

$3,059,946 $3,017,794 -1.38%

Operation and Maintenance, MIS, Printing and Mailing

$14,542,459 $14,664,237 .8%

Insurance/BOCES Admin. and

Special Items (including MTA tax)

$1,723,211 $2,143,437 24.38%

Total General Support*excluding MTA tax, general support would be virtually flat

$19,438,424 $19,941,076 2.58%*

Preliminary Budget Proposal Instructional Budget

2009/10 2010/11 Change

Curriculum Development & Supervision - including Principals & Clerical

In-Service Training & Pupil Personnel Services

$7,864,017 $7,703,126 -2.05%

Teaching Regular School and Students with Disabilities

$93,343,048 $96,004,482 2.85%

Adult Ed/Summer School $493,958 $476,458 -3.54%

Instructional Media & Support $4,816,297 $4,726,879 -1.86%

Pupil Services - including Health Office, Guidance, Psychologists, Social Workers, Interscholastic Athletics & Co-Curricular Activities

$10,609,379 $10,687,097 0.73%

Total Instruction $117,126,699 $119,598,042 2.11%

Preliminary Budget Proposal Other Budget Categories

2009/10 2010/11 Change

Transportation $12,514,979 $12,626,115 0.89%

Community Recreation $85,450 $90,450 5.85%

NYS Mandated Employer

Contribution to Retirement System

$8,362,775 $11,151,472 33.35%

Other Employee Benefits $33,212,630 $33,845,087 1.9%

Debt Service/TAN $10,008,167 $9,601,993 -4.06%

Transfer to Capital $882,000 $782,000 -11.34%

Transfer to Special Aid Fund $245,647 $245,647 0%

Total of Above Categories $65,311,648 $68,342,764 4.64%

Factors that may affect Expenditure Budget

The following proposed unfunded mandates are not included in the current budget proposal. We hope to receive a decision from the State on these items before budget adoption.• State reimbursement for Summer Special

Education reduced from 80% to 22.5% (+$673,000)

• Special Education Pre-School – Suffolk County’s share capped at a 2% increase over current costs. The District would be responsible for any cost increases in excess of 2%

Projected Revenues 2009/10

1 3.97%

2.06%2.39%

81 .58%

tax levy

State a id

approp .Fundbalancemisc . rev

The State Aid Guessing Game

As of this date we do not know the direction the Legislature will take in regard to the Governor’s proposal. The Governor’s proposal as is …

• Imposes a net $2.7 million Gap Elimination Adjustment

• Gap Elimination Adjustment could have been even worse:

• Administrative Efficiency Aid reduces this amount by $211,824

• Federal Restoration (ARRA funds) return $1.7 million to the District through an application process and must adhere to strict use and reporting requirements

State Aid Scenarios2009/10 State Aid

Base Year

Estimate

@ 3/31/09

2009/10

State Aid

Base Year

@ 1/19/10

2010/11 Proposed

State Aid

Governor’s Proposal

including

Federal Restoration Aid

and Administrative Efficiency Aid

2010/11

Proposed

State Aid

reduction

State Aid

$28,205,435 $28,331,615 $25,695,605 -2,636,010

State aid trend

STATE AID AS A PERCENTAGE OF TOTAL BUDGET

23.8

2%

15.0

5%

13.8

6%

12.3

6%

13.9

7%

5 %10%15 %

20%25 %

1988- 89

1998-99

2008-09

2009/ 10

20 10/11

*2009/10 State Aid estimate and 2010/11 Governor’s Proposal

Administrative Efficiency

The District may receive Administrative Efficiency Aid which offsets a portion of the GAP reduction. This aid is for districts with an Administrative Efficiency ratio (central office administration expense to total expenditures) of less than 2%. The Half Hollow Hills administrative efficiency ratio is 1.54%, the 9th lowest on Long Island. This aid could potentially return $211,824 in funding to the District for the 2010/11 school year

Safeguarding taxpayer dollars

Positive NYS Comptrollers Audit!• In 2009 only six (6) of the 200 audits conducted by

the State Comptroller’s Office contained positive findings. Half Hollow Hills was one of the six and the only Long Island District.

• The NYS auditors found our system of controls were well designed and operating effectively.

Aa2 Moody’s Bond Rating for Half Hollow Hills CSD!• Aa2 rating reflects the solid financial position and

below average debt burden of the district, prudent budgeting practices and effective management of our reserves.

Dates to Remember

Date Time Place Description

Monday, March 22, 2010 8:00 pm Vanderbilt Budget Presentation

Tuesday, March 23, 2010 7:00 pm HSE Lecture Hall

Elementary PTA

Budget Presentation

Wednesday, March 24, 2010 7:00 pm HSE Lecture Hall

Secondary PTA

Budget Presentation

Monday, April 19, 2010 8:00 pm Fran Greenspan

Admin. Ctr.

Adopt Budget

Monday, May 10, 2010 8:00 pm Fran Greenspan

Admin. Ctr.

Public Hearing

Tuesday, May 18, 2010 7:00am to 10:00pm

H.S. East Budget VOTE

More information….

• Budget information is available on our webpage http//www.hhh.k12.ny.us

• Follow the Our District link to the District Financial Information page

Voting

Tuesday: May 18, 2010

7AM to 10PM

High School East: East Gym