SOUTH ORANGETOWN CENTRAL SCHOOL DISTRICT 2016-2017 Preliminary Budget

Our Mission:

"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 4/4/2016

Objectives

1. Accelerate Academic Achievement: Provide for all students by ensuring equitable access to rigorous K-12 curriculum, aligned instructional materials and assessments.

2. Developing Human Capital and Professional Capacity: Recruit, support, and retain high quality teachers and leaders.

3. Improve Communication and Deepen Community Engagement: Build effective communications through meaningful family and community engagement.

4. Ensure Safety and Wellness: Strengthen the foundation of the District culture based on high expectations for respect and good citizenship.

5. Create Quality Performance Management Systems: Develop and align instructional support infrastructure, leveraging technology, operations and business services to build culture of alignment and continuous improvement.

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GUIDING PRINCIPLES

Evaluate Needs vs. Wants

Protect & Preserve Instructional Core

Preserve Investments & Reduces Costs

Find Efficiencies and Shared Services

Reduce/Restructure, Don’t Eliminate

Delay Program Impact

4 4/4/2016

Long-Range Action Planning Updates

Fiscal Status

Demographics

Educational

Special Education and

Pupil Personnel

Technology

Facilities

5 4/4/2016

FISCAL PICTURE

6

Significant Cost Drivers

Common Core

Computerized Testing

Employee Contracts

Health Insurance

Pension Expense

7

2016-17 State Aid - Current Law How is the aid distributed?

4

(4.27%)

In millions of dollars

2015-16 2016-17 Change

Foundation Aid $15,856.39 $16,122.76 $266.37

Formula Based Aids (including Building and Community Schools Aid)

7,376.43 7,881.73 505.30

GEA (433.60) (244.19) 189.41

Grant Programs/Other 286.93 288.96 2.03

Performance Grants + 147.00 175.00 28.00

Totals $23,233.16 $24,224.27 $991.11

2016-17 Foundation Aid Increase 7

2016-17 Foundation Aid Increase +$266 million

9% 6%

2%

20%

63%

Big 4

Long Island

Lower Hudson

Rest of State

NYC

2016-17 Gap Elimination Adjustment (GEA): -$244m

10

27%

9%

42%

2015-16 GEA ($433 million) By Region

2%

20%

32%

11% 47%

2016-17 GEA ($244 million) By Region

1%

9%

+ $189 m in Restoration

SOCSD Accumulated Loss in State Aid

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) ($3,466,491)

2014-15 ($1,491,749) ($3,012,157)

2015-16 ($940,490)* ($2,394,439)

2016-17 (648,120)* ($2,148,259)

Total Loss ($11,809,948) ($28,784,758) ($40,594,706) $13,128 per student

11 *reduction dependent upon renegotiation of 3012 c & d

WHAT HAS SOCSD BEEN DOING FISCAL YEARS 2009 THROUGH 2016 Reducing Costs & Enhancing Efficiencies through planning

13

Summary of cost containment strategies and efficiencies achieved

Personnel Costs

• 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 • Retirement Incentive, saves $$ and preserves staff

• Declining enrollment saves $$

Benefits

• 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

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Summary of cost containment strategies and efficiencies achieved

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 for building checks

Debt repayment & refinancing

• Refunding $1.5 m • Paid 1998, 2008 bond issues early

• Technology IPAs paid early

• Used Debt Service Reserve to pay 1991, 2003, EPC & Pool principal & interest payments

• Saves interest expense

• Reduces cost to taxpayers, i.e. reduces tax levy

• Proposed payment of EPC Lease

Use of Capital Reserve

• Funded $10M in Capital Projects, i.e. pool, roofs, security

• Avoids the issuance of Debt

• 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 $$$

15 4/4/2016

Summary of cost containment strategies and efficiencies achieved

Energy Conservation

• Manage consumption • $4m Energy Performance Lease – upgrade to energy efficient equipment

Shared Services

• 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

Contracted Services

• Transportation • Food Service Management • Cleaning • Security • Landscaping/snow • Accounting • Test Scoring

16 4/4/2016

2016-17 PRELIMINARY BUDGET

17

Summary of the District’s Five Year Adopted Budget & Tax Levy

Adopted Adopted Adopted Adopted Preliminary

Budget Budget Budget Budget Budget

2012-2013 2013-2014 2014-2015 2015-2016 2016-17

SCHOOL DISTRICT BUDGET $ 82,385,278 $ 85,871,296 $ 86,395,154 $ 85,969,882 $ 86,653,782

3.54% 4.23% 0.61% -0.49% 0.80%

LESS:

State Aid (8,633,157) (9,685,748) (10,120,690) (10,290,614) (10,275,070)

Fund Balance (2,736,490) (2,379,189) (1,767,814) - -

Other Revenue (1,227,089) (1,604,220) (1,548,418) (1,547,000) (2,086,107)

TAX LEVY $ 69,788,542 $ 72,202,139 $ 72,958,232 $ 74,132,268 $ 74,292,605

TAX LEVY INCREASE $ 997,068 $ 2,413,597 $ 756,093 $ 1,174,036 $ 160,337

TAX LEVY PERCENTAGE INCREASE 1.45% 3.46% 1.05% 1.61% 0.22%

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2016-17 Major Sources of Revenue

19

Real Property Taxes 86%

Charges for Services 0%

Use of Money& Property 2%

State Aid & Federal Aid 12%

Tax Levy Cap

Consumer Price Index is 0.12% NOT 2%

20

Year of Tax Cap

Lesser of CPI or 2%

Not 2% = Loss in tax Revenue

2012-13 2.00% $0 2013-14 2.00% $0 2014-15 1.46% ($382,655) 2015-16 1.62% ($282,683) 2016-17 0.12% ($1,414,845) AVG. 1.44% ($2,080,183)

Tax Levy Limit 2016-17

BASIC FORMULA Prior Year Tax Levy 2015-16 $74,132,268 Tax Base Growth Factor (from Off. Real Prop. Services) x 1.0017

74,258,293 Prior Year Pilots + 80,336 Prior Year Capital Tax Levy Exclusion, Net - (676,656) Adjusted Prior Year Levy = 73,661,973

Allowable Growth Factor (Lesser of CPI or 2%) x 0.12% 73,750,368

Current Year Pilots - (82,169) Available Carryover + 0 Tax Levy Limit Before Current Year Exclusions = $73,668,198

21

Tax Levy Limit 2016-17

+ CURRENT YEAR EXCLUSIONS

Capital Tax Levy Exclusion, Net + $624,407

+ 0

TAX LEVY LIMIT WITH EXCLUSIONS = $74,292,605

TAX CAP LIMIT INCREASE $160,337

TAX CAP LEVY PERCENTAGE 0.22%

22

PENSIONS 2015-16 RATE

2016-17 RATE

Chg. Pts

> 2 pts

Teachers Retirement System 13.26% 12.00% (1.26%) No Exclusion

Employees Retirement System 18.20% 15.50% (2.70%) No Exclusion

State Aid Aid Category 2015-16 SOCSD

Projections Proposed State Executive Budget

2016-17

Preliminary 2016-17

Projections General Aids:

Foundation Aid $6,523,136 $6,558,249 $6,550,572 High Tax Aid 327,764 327,764 327,764

Expensed-Based Aids: Building 1,442,283 1,667,533 1,442,822 Transportation 1,163,575 1,215,595 1,215,595 BOCES 1,747,841 1,513,105 1,300,000 Private & Public Excess 599,972 576,504 576,504

Other Aids: textbook, library, etc. 281,969 280,097 280,097

GEA *(940,480) *(648,120) *(1,491,749) Total State Aid $11,146,060 $11,490,727 $10,201,605

23 * Dependent upon renegotiated APPR

Major Budget Areas of Expense

Salary & Benefits 71%

Equipment, Contractual, Supplies & Materials

9%

Pupil Transportation 5%

BOCES 11%

Debt Service 2%

Transfers 2%

24

Comparison

Expense 2015-16 2016-17 % chg. Salary + Benefits $61,779,912 $61,865,309 0.14%

Equipment, Contractual & Materials & Supplies

7,575,810 7,764,253 2.49%

Pupil Transportation 3,943,655 4,014,519 1.80%

BOCES Services 8,709,868 9,107,472 4.56%

Debt Service 2,125,637 2,067,229 (2.75%)

Interfund Transfers 1,835,000 1,835,000 0.00

Total $85,969,882 $86,653,782 0.80%

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ENROLLMENT TRENDS

26

4/4/2016 27

1000

1500

2000

2500

3000

3500

3,185 3,092

3,010 2,913

2,814 2,745 2,694 2,632 2,585 2,569 2,543

District-Wide Enrollment: Ten Year Projections: 2015-16 to 2025-26

Includes out-placed students

4/4/2016 28

1000

1050

1100

1150

1200

1250

1300

1,251

1,192

1,153

1,109

1,074 1,082 1,058

1,072

1,099 1,116

1,155

Elementary Ten Year Projections: 2015-16 to 2025-26

Not including out-placed students

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900 1,869 1,834

1,793 1,742

1,680

1,605 1,579

1,504

1,431 1,398

1,334

Secondary Ten Year Projections: 2015-16 to 2025-26

Not including out-placed students

Maintains Class-Size Guidelines

Grade Average Class-Size

K 22

1-2 22

3-5 23

6-12 26

AP Courses Min 15

29

SUMMARY OF STAFFING CHANGES

30

Summary of Staffing Changes:

Positions: Dept Teacher Teach

Assts. Other Total

WOS 1.75 (1.00) 1.50 2.25

CLE (3.55) (1.50) - (5.05)

SOMS 0.20 (1.17) - (0.97)

TZHS 0.40 (0.50) - (0.10)

DW 3.23 0.33 (1.00) 2.56

Total (2.03) (3.837) 0.50 (1.31)

Reason: LRP Enroll/

CSE

0.40 1.85

(0.50) (4.55)

- (0.97)

0.20 (0.30)

1.00 1.56

1.10 (2.41)

31 It is anticipated that many changes will be absorbed through attrition due to retirements and leave replacements.

Staffing:

Per LRP: WOS & CLE Psychological Support All Students .90 FTE Library Media Specialist: CLE 1.00 FTE, vacant position Student Support HS - .20 FTE DW Social Worker – 1.00 FTE

Enrollment/CSE – reduction due to enrollment (3.9166) FTE

Other Changes – reduction of vacant positions (1.05) and replenishment of 2.5634 FTE contingency positions to 3.00 FTE

Total net change in staffing (1.3032) FTE

32

Benefits/Debt Service/Capital Transfer

Benefits: Decrease in pension systems – ERS 14.83% and TRS 9.50% Retirement Incentive ended June 30, 2016 – decrease $391,776 Health Insurance – January 2016 increase was approximately 4.16% and per NYSHIP it is estimated

that premium rates will increase 8% in January 2017

Debt Service – Includes savings from the 2015-16 advance refunding of the 2005 and 2006 bond issues and the use of Debt Service Reserve

Transfer to Capital Fund - Minor Capital Projects $1.75m

33

ADMINISTRATIVE, PROGRAM, & CAPITAL BUDGETS (APC) Preliminary Budget by State determined Components

34

APC Budget Components: % of Total Budget

2015-2016 Adopted Budget

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

11.72%

78.93%

9.34%

Capital Program Administrative

2016-17 Preliminary Budget

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

1

11.69%

78.73%

9.58%

Capital Program Administrative

35

APC Budget Components

Total Budget

Administrative Program Capital

$86,653,782 $8,302,924 $68,218,696 $10,132,162 100% 9.58% 78.73% 11.69%

Board of Ed. District Clerk/Meeting

Superintendent Business Operations

Legal Services Personnel

Public Information Central Services

Insurance/Assessments BOCES Admin/Capital

Curriculum Admin Building/Dept Sup. Associated Benefits

Teaching & Instruct. Special Education Special Schools Transportation

Staff Development School Library

Computer Instruction Guidance

Health Services Psychological Services

Co-Curricular Athletics

Associated Benefits

Operations & Maintenance

Capital Projects Bonded Debt

Short-term Debt Associated Benefits

36

CONTINGENCY BUDGET

Potential Impact on District Programs

37

Contingent Budget

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

38

Contingency Budget

2016-17 Tax Levy is LIMITED TO 2015-16 TAX LEVY ZERO INCREASE $74,132,268

Add: State Aid 10,275,070

Other Revenue 2,086,107

Total Revenue = Allowable Appropriations Budget = Maximum Contingency Budget Allowed $86,493,445

Preliminary 2016-17 Budget $86,653,782

Difference to be reduced from 2016-17 Preliminary Budget ($160,337)

39

UPCOMING BUDGET DISCUSSIONS

MARCH 31, 2016- Budget Workshop

April 5, 2016 – Adoption of 2016-17 Budget

May 10, 2016 – Public Budget Hearing

May 17, 2016 - Annual District Budget Meeting & Board Election

42

QUESTIONS??

43