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BOCES Sustainability 2011. Is “it” sustainable? Is “it” worth keeping? If yes, then how?. Three Defining Questions. Environmental Context. Moreover, Education PAYS!. http://www.bls.gov/emp/ep_chart_001.htm. But the Economy is Stalled. Tax Cap Comparison – NY vs. MA. - PowerPoint PPT Presentation
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Is “it” sustainable? Is “it” worth keeping? If yes, then how?
http://www.bls.gov/emp/ep_chart_001.htm
$15 billion deficit in 5 years
Even though “education pays”, caps on state and local revenue will mean schools have fewer resources and cannot sustaincurrent levels of investment.
“Prime Earners” LOST“Early Career
Earners” GAINED
The Long Island Regional
Economy
In 12 years, Long Island’s income dropped from 38% above the state average to just 11% above.
Economic Downturn:
(Other: T. Assts., T. Aides, Clerical, Custodial, Maintenance)
Note: Data for Little Flower, New Suffolk, Wainscott, not included in wealth group breakdown.
Source: LIEC Budget Impact Survey 2011-12 (preliminary results as of 9/19/11)
Source: LIEC Budget Impact Survey 2011-12 (preliminary results as of 9/19/11)
Two-year Change (Spending, not enrollment)
Teenage Parenting/Hospital Drug TutorialAlternative Schools
Long Island High School for the ArtsOutdoor & Environmental Education
Arts in EducationRegional Summer School
Career & Technical EducationSpecial Education
Graphic Arts and PrintingCommunications and Agency Planning
Personnel/Certification Svc.Transportation Services
Technology ServicesDistrict Telecommunications
Food ServicesInterscholastic Athletics
Health and Allied ServicesCurriculum Instruction and Technology
Cooperative BiddingFacilities Rental
Supplies/MaterialsTransfer Charges
Salaries/Contracted ServicesRetiree Health Benefits
Health/Pension BenefitsCapital Projects and Debt Service
Tuiti
on-B
ased
In
stru
ction
al P
rogr
ams
Supp
ort S
ervi
ces
Adm
inis
trati
on /
O
pera
tion
s
2010-11 Change
2011-12 Change
Two-year Change (Spending, not enrollment)
Teenage Parenting/Hospital Drug TutorialAlternative Schools
Long Island High School for the ArtsOutdoor & Environmental Education
Arts in EducationRegional Summer School
Career & Technical EducationSpecial Education
Graphic Arts and PrintingCommunications and Agency Planning
Personnel/Certification Svc.Transportation Services
Technology ServicesDistrict Telecommunications
Food ServicesInterscholastic Athletics
Health and Allied ServicesCurriculum Instruction and Technology
Cooperative BiddingFacilities Rental
Supplies/MaterialsTransfer Charges
Salaries/Contracted ServicesRetiree Health Benefits
Health/Pension BenefitsCapital Projects and Debt Service
Tuiti
on-B
ased
In
stru
ction
al P
rogr
ams
Supp
ort S
ervi
ces
Adm
inis
trati
on /
O
pera
tion
s
2010-11 Change
2011-12 Change
Alt. Ed.
TOP GROWING JOBS THROUGH 2018
CAREER & TECHNICAL EDUCATION (CTE)
Network Systems Personal Care Aides Home Care Aides Physical Therapy Aides Medical Scientists Pharmacy Technicians Physical Therapy
Assistants
Source: NYS Labor Department
Computer Network Technology
Nurse Assisting Medical Assisting Physical Therapy Aide Medical Lab Technician Pharmacy Technicians Physical Therapy Aide
Source: Barry Tech Catalog
35%35%
IMPACT OF THE TAX CAPSCENARIO A (FLAT AID)
Sources:
2011-12 Legislative Budget State Aid includes Building Aid
2011-12 NYSED Property Tax Report Card
Assumptions: 2.5 % rollover, same fund balance applied, 2% cap
Baseline2010-11 2011-12 2012-13 2013-14 Notes
Payroll ERS $69,392,150 $69,392,150 $69,392,150 $69,392,150 TRS $92,811,474 $92,811,474 $92,811,474 $92,811,474 Total $162,203,624 $162,203,624 $162,203,624 $162,203,624
Pension ERS Rate 11.4% 16.0% 18.7% 21.0%Estimated by ERSTRS Rate 8.6% 11.1% 12.5% 15.0%Empire Center estimates 22%
ERS $7,910,705 $11,102,744 $12,976,332 $14,572,352TRS $8,000,349 $10,311,355 $11,601,434 $13,921,721Total $15,911,054 $21,414,099 $24,577,766 $28,494,073
InsuranceHealth Insurance $31,625,000 $36,210,625 $41,461,166 $47,473,035NB Share 80.0% 80.0% 80.0% 80.0%To be negotiatedNB Cost $25,300,000 $28,968,500 $33,168,933 $37,978,428Increase 14.5% 14.5% 14.5%Estimated by NB
Ret. Ins.Health Insurance $9,150,000 $10,476,750 $11,995,879 $13,735,281NB Share 80.0% 80.0% 80.0% 80.0%To be negotiatedNB Cost $7,320,000 $8,381,400 $9,596,703 $10,988,225Increase 14.5% 14.5% 14.5%Estimated by NB
Total Insurance $32,620,000 $37,349,900 $42,765,636 $48,966,653
Total Payroll $162,203,624 $162,203,624 $162,203,624 $162,203,624
Pension 15,911,054 21,414,099 24,577,766 28,494,073 Insurance 32,620,000 37,349,900 42,765,636 48,966,653 Total $210,734,678 $220,967,623 $229,547,026 $239,664,349
Annual Increase $10,232,945 $8,579,403 $10,117,323Annual % Increase 4.9% 3.9% 4.4%
Increase over 2010-11 $10,232,945 $18,812,348 $28,929,671% Increase over 2010-11 4.9% 8.9% 13.7%
CONFIDENTIAL/SENSITIVE Please don’t release these numbers or use this slide in its current form. This is provided only as a template for you to be able to perform a similar apples—apples comparison of labor cost increases due to pension and health increases. Or it can be used to do scenario planning for negotiations.
Sample of percentages 60% - Jim L. 40% - Tom R. 50% - Chuck 60% - Mark 60% - Jackie 54% - Jessica
Sample of issues Growing faster than
inflation or 2% Can’t create reserves RICs subsidize
neighbors Other cross-
contracting issues
High graduation rates: CTE Alt Ed. Special Ed.
Strong Adult Ed. Regional admin
capacity BOCES create service
capacity equity Shared services =
cost savings
Superintendent searches
Regional school improvement capacity
Prof. Dev. Capacity Regents Reform
Agenda capacity New programs and
services
Constant existential threats: BOCES Aid District
Superintendent Co-ser regulations
Competition with schools: For students For identity For resources
Lack of understanding of what BOCES are
Rapid leadership turnover in some areas
New programming models: On-line learning Regional High Schools AP/IB/specialty
New non-instructional services: Transportation Central Business Office HR, purchasing, etc.
Opportunities to help Big 5 (CTE)
Functional consolidation
Common core as common platform
Districts would rather cut our staff than theirs.
Discretionary budget shrinking under tax cap.
Hard to coordinate regional action
No way to spread overhead costs
Appears as “cost item” in district budgets
Costs increasing faster than 2%
Co-ser process not nimble, not aligned to RTTT/RRA
OPEB will overwhelm A/O
No true “business” model
Competition with local mom/pop business
Issue Yes No
Alternative Ed. Shrinking?
CTE Shrinking?
Special Ed. Shrinking?
Adult Ed. Growing?
Admin. Services Growing?
Technology Services Growing?
Professional Dev. Svc. Growing?
Other ??
Is “it” sustainable? Is “it” worth keeping? If yes, then how?