2013-14 Budget Recommendation

Kenmore-Town of Tonawanda UFSD

Board of Education Meeting

April 9, 2013

Major Impact Items

State Aid Uncertainty Asset Sale Reduction – Green Acres Reduction in Fund Balance/Reserve use Property Tax Cap Reduction of Tax Base Contractual increases Retirement System Contribution Increases Focus District Designation Disproportionality Designation Annual Professional Performance Review Possible sequestration legislation

Budget Review

Philosophy: No further harm to programs No educational programs are cut No extra-curricular programs are cut No athletic programs are cut Continues Multiple Pathways: Project Lead

the Way, Project Gateway, Big Picture School, Career & Technical Education and International Baccalaureate Program

Class size guidelines remain at current levels

Class Size Comparison

  Avg. Size of 5 Ken-Ton

Grade Large Districts Class Size

Level In Erie County* Guidelines

K 22.4 22-24

1 23.0 22-24

2 23.8 22-24

3 25.2 24-26

4 26.8 24-26

5 26.8 26-28

6-8 27.5 26-28

9-12 28.2 27-29

*Excludes Buffalo City Schools

Summary Results for Audit of Additional Adults in K-8 Classrooms

Percentage of Classrooms by Grade Level

K-5 6-8 K-8

At least one additional adult for a portion of the day 82.0% 72.5% 78%

At least one additional adult for 50% of the day 47.5% 24.4% 37.1%

At least two additional adults in the room for a portion of the day 17.5% 29.0% 22.7%

Developments Since 3/26/13 Budget Work Session

New York State 2013-14 budget passed Estimated school district aid runs received Notified of special aid from Assemblyman

Schimminger amounting to $50,000 Allowed for a revenue increase of $725,000

Remaining deficit eliminated Reduces the use of Unappropriated Fund

Balance Eliminates 1 of the 3-section waivers

State Aid Comparison

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14$25

$30

$35

$40

$45

$50

$55

$38.2

$42.7

$47.8

$43.7$40.2

$38.5 $38.8 $39.7

$4.3

$4.0

$4.3

$4.6

$4.8$4.9

$7.7$8.0

State Aid w/o Bldg. Aid Building Aid

In M

illio

ns

of

Do

llars

Approximately the same aid as

2006-07

State Aid Comparison

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14$25

$30

$35

$40

$45

$50

$55

$38.2

$42.7

$47.8

$43.7$40.2

$38.5 $38.8 $39.7

$4.3

$4.0

$4.3

$4.6

$4.8$4.9

$7.7$8.0

State Aid w/o Bldg. Aid Building Aid

In M

illio

ns

of

Do

llars

$8.1 Million reduction since

2008-09

Changes in Budget Since 3/26/13

Item NotesStructural

Deficit Reduction?

Amount

State Aid Adjustments      

Basic Aid   N +$800,000

BOCES Aid   N -$75,000

Other State Aid Special Aid from Assemblyman Schimminger N +$50,000

Reduce Use of Unappropriated Fund Balance   N -$150,000

Eliminate 1 of the 3-section waivers   N -$55,000

Changes in Budget Since 3/26/13

Item NotesStructural

Deficit Reduction?

Amount

Salary Reductions-TRS Benefit reduction related to salary reductions Y +$9,539

Salary Reductions-FICA Benefit reduction related to salary reductions Y +$4,551

Salary Reductions-Health Ins. Benefit reduction related to salary reductions Y +$14,000

TOTAL CHANGES SINCE 3/26/13 (Deficit Reduction) -$541,912

Current Budget Status: Deficit Reduction Progress

1/22/2013 2/5/2013 3/5/2013 3/26/2013 4/9/2013$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5$2.5

$3.10

$0.48$0.54

$0.00

Deficit

In M

illi

on

s o

f D

oll

ars

Recommended Budget Summary

Item AmountBudget $149,015,111 Budget Increase $1,238,495 Budget to Budget % Increase 0.84%Tax Levy $75,249,941 Tax Levy Increase $3,350,513Tax Levy % Increase 4.66%Tax Rate $45.20Tax Rate Increase $2.01Tax Rate % Increase 4.66%Instructional Staff Position Reductions 17Support Staff Position Reductions 24Fund Balance and Reserve Use $10,727,571 Increase on $100,000 Full-Market Value House $95

Historical Budget % Increase

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Avg. = 3.00%

Use of Fund Balance and Reserves

2010-11

2010-11

2011-12

2011-12

2012-13

2012-13

2013-14

2013-14

2014-15

2014-15

2015-16

2015-16

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

GF Avail. FB & Reserves GF Unavail. FB & Reserves

Other Considerations: TRS Pension Smoothing Option

“Stable” rate option for a period of 7 years The rate is 14% for 2013-14 May be adjusted up to 2% in Years 3 and 5 The difference between the stable rate

and the actuarial rate will be paid back with interest

The difference with interest for Years 1-5 starts to be paid back in Year 6 (for 5 years) in addition to the stable rate

Other Considerations: TRS Pension Smoothing Option

Return to the actuarial rate in Year 8 The difference with interest for Years 6-7

starts to be paid back in Year 8 (for 5 years) in addition to the actuarial rate and the continuing payments for Years 1-5

While it may save money in the first year, the total amount paid in the long run will be more due to the interest payments

In essence, it “kicks the can down the road” and is not recommended

Other Considerations: Sequestration

The effects of the federal sequestration legislation are not yet known

The general fund budget has not been increased for sequestration

If accommodations must be made, the 2014 year-end fund balance will be adjusted for the 2014-15 school year

The structure of the budget allows for dealing with this eventuality

On the Horizon: NRG-Huntley approached the County,

Town, and School District to renegotiate its PILOT (Payment In-Lieu-Of Taxes) agreement beginning in 2014-15 This could result in significant revenue

loss in the 2014-15 school year Beginning in 2014-15, our Tax Cap

percentage increase will be significantly lower

Questions?