Angela M. Nagle, Ph.D. Superintendent of Schools April 6, 2016 - - PowerPoint PPT Presentation

Angela M. Nagle, Ph.D. Superintendent of Schools April 6, 2016 Board Workshop #3: 2016-2017 Budget EAST GREENBUSH CENTRAL SCHOOL DISTRICT 1

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QUESTION #1 How Does The School District Control Costs? Several Ways……

CONTROLLING COSTS - EXAMPLES

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 Restructuring Of Health & Prescription Insurance

Cost & Employee Contributions ($1.5 Million)

 Participate In RCG Health Insurance Trust  Energy Conservation ($3.1 Million)  Self-Insurance: Dental & Workers Compensation  Bus Purchase Reserve  Early Payment Of Retirement Incentives ($210K)  Bell Times & Day Care Transportation ($115K)  Cooperative Purchasing: US Communities

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QUESTION #2 How Does The School District Maximize Revenues? Several Ways……

MAXIMIZING REVENUES - EXAMPLES

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 Grants ($1.2 Million)  E-Rate ($30,788)  Energy Conservation ($81,102)  Excess Room Rental ($126,500)  Tuition Students ($727,906)  Verify PILOT Revenues ($4 Million)  BOCES Cooperative Services ($1.1 Million)  Medicaid Applications ($161,235)  National Grid Rebates ($93,759)

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QUESTION #3 Has East Greenbush School District Been Under The Property Tax Cap In The Last 3 Years? Yes……

YEAR Proposed Tax Levy Increase Property Tax Cap 2015-2016 0.00% 0.08% 2014-2015 1.17% 1.21% 2013-2014 0.32% 4.15%

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TAX LEVY INCREASE VS. PROPERTY TAX CAP

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QUESTION #4 Why Is Next Year’s Tax Cap Calculation Higher Than In The Past? Next Slides……

TAX CAP RECAP

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$50,327,256 Tax Levy From 2015-2016 X 1.0047 Tax Base Growth Factor $50,563,794 Subtotal #1 + 3,782,620 PILOTS Receivable 2015-2016 $54,346,414 Subtotal #2 X 1.0012 One Plus Lower of 2% or CPI $54,411,630 Subtotal #3

• 3,735,283 PILOTS Expected 2016-2017

+ 538,159 Available Carryover from 2015-2016 $51,214,506 Tax Levy Limit Before Exclusions + 800,563 Exclusions (Retirement & Capital) $52,015,069 Tax Levy Limit Plus Exclusions 3.35% Limit (Increase Over 2015-2016 Tax Levy)

TAX CAP COMPONENTS

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$236,538 Expected Growth in Full Property Value 65,216 Consumer Price Index Allowable Growth 47,337 Change in PILOTS Due to District 538,159 Carryover from 2015-2016 800,563 Exclusion for Capital Spending $1,687,813 Total Growth Allowed for Tax Levy $50,327,256 Divide by Tax Levy for 2015-2016 3.35% Tax Levy Cap for 2016-2017

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QUESTION #5 Which Suburban Council School District Had The Lowest 3 Year Average Tax Levy Increase? East Greenbush CSD……

SUBURBAN COUNCIL SCHOOLS THREE-YEAR AVERAGE TAX LEVY INCREASE

East Greenbush 0.17% Scotia-Glenville 1.57% Shenendehowa 2.12% Niskayuna 2.13% Bethlehem 2.39% Saratoga 2.40% Burnt Hills 2.42% Averill Park 2.48% Guilderland 2.77% South Colonie 3.19% Mohonasen 3.27% Ballston Spa 3.32% North Colonie 3.78%

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Source: 2012-13 & 2015-16 SED Property Tax Report Cards

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QUESTION #6 Does East Greenbush CSD Have The Lowest Full Value Tax Rate Among Suburban Council Schools? No……

SUBURBAN COUNCIL SCHOOLS FULL VALUE TAX RATES

Saratoga $11.76 North Colonie $16.94 Mohonasen $17.25 Shenendehowa $17.54 South Colonie $18.39 Ballston Spa $18.42 East Greenbush $18.67 Averill Park $19.18 Guilderland $19.57 Scotia-Glenville $20.57 Bethlehem $20.86 Burnt Hills $21.12 Niskayuna $21.17

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Source: Guilderland CSD Survey of Suburban Council Schools

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QUESTION #7 Is The Proposed Tax Levy Increase For The Preliminary Budget The Same For The Final Budget? No……

YEAR Final Budget Preliminary Budget 2015-2016 0.00% 3.59% 2014-2015 1.17% 3.51% 2013-2014 0.32% 3.17% 2012-2013 2.39% 2.75% 2011-2012 2.80% 3.05%

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TAX LEVY INCREASES PRELIMINARY VS. FINAL BUDGET

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QUESTION #8 Will Student Enrollment Decrease Next Year? Probably……

CDRPC ENROLLMENT PROJECTION

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Year K-5 6-8 9-12 Total 2015-2016 1,786 970 1,250 4,006 2016-2017 1,770 980 1,226 3,976 2017-2018 1,746 935 1,250 3,931 2018-2019 1,736 916 1,265 3,917 2019-2020 1,721 924 1,276 3,921 2020-2021 1,715 931 1,275 3,921

RECAP: 2016-2017 BUDGET GOALS

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 Preserve Programs, Clubs & Activities  Promote Student Academic Achievement  Advocate for GEA Restoration & State Aid  Adjust Staffing Based On Enrollment  Achieve Cost Savings Where Possible  Be Fiscally Responsible With School Funds  Tax Levy Increase: Below Tax Cap Amount

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2016-2017 BUDGET UPDATE

March 4 Preliminary Budget April 6 Proposed Budget

Total Budget

$90.3 M $90.1 M

Budget Increase

+2.47% +2.21%

Tax Levy

$53.9 M $51.3 M

Tax Levy Increase

+7.15% +1.92%

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2016-2017 BUDGET UPDATE TAX LEVY CHANGES - EXPENSES

Amount Category +$122,787 Staffing Adjustments

• 407,861

Health Insurance Final Rate Adjustments +16,000 Sewer & Water Charges +20,000 Extra Day Transportation Late Run +19,866 Other Expense Adjustments (Net)

• $229,208

Expense Adjustments (Subtotal)

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2016-2017 BUDGET UPDATE TAX LEVY CHANGES - REVENUES

Amount Category

• $1,231,680

Gap Elimination Adjustment Restoration

Foundation Aid Adjustment +5,855 Other State Aid Adjustments (Net)

• 547,497

PILOT Revenue Adjustments

• 629,115

Revise Fund Balance Estimate

• $2,402,437

Revenue Adjustments (Subtotal)

• $229,208

Expense Adjustments (Subtotal)

• $2,631,645

Total Decrease to Preliminary Tax Levy

CONTINGENT BUDGET

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 OPTIONAL If Budget Defeated on May 17

 Other Option Is Second Budget Vote

 MANDATORY If Budget Defeated on June 21  No Exclusions Allowed  Remove Non-Contingent Items Such as Equipment,

School Food Service Transfer, Unreimbursed Use of Facilities

 Total Contingent Reduction = $967,677

CONTINGENT BUDGET EXAMPLES - POSSIBLE REDUCTIONS

 Administrators  Advanced Placement  Art  CAP, OG, Jump Start  Community Use of

Schools

 Equipment  Honors Courses  Full Day Kindergarten  Library  Monitors  Music  Nursing Services  Regents Review  School Food Service Subsidy  School Resource Officer  Security Supervisors  Small Class Sizes  Social Workers  Student Assistance

Counselor

 Student Clubs & Sports  Technology Support  Transportation Special Runs 24

WHY SHOULD BUSES BE REPLACED? PROPOSITIONS #2 & #3

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 Benefits Of Newer Buses: Fuel Efficiency, Lower Emissions,

Engine Control, Child & Driver Safety Features

 Older Buses Wear & Tear: Body Condition, Mileage, Repair

Cost, Breakdowns, Potential To Fail DOT Inspection

 Bus Life Expectancy: 8-10 Years Smaller Bus, 12-15 Years

Larger Bus

 State Incentives For Replacement: 59.6% State Aid Of

Eligible Costs Over A 5 Year Period

 Cost Reduction: Standardization Of Fleet Means Economical

Maintenance And Purchase Of Parts

SCHOOL BUS REPLACEMENTS PROPOSITION # 2 – BUS PURCHASE RESERVE

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Bus Type Quantity Estimated Cost 66 Passenger 4 $459,240 28 Passenger With Four-Wheel Drive 2 $143,594 Total 6 $602,834

WHY IS A BUS PURCHASE RESERVE USED?

27  Specific: Only Used For Bus Purchases  Controlled: Voter Approval For Withdrawals  Flexible: Board of Education Optional Annual Funding Of $200,000  State Aid: 59.6% Of Eligible Cost In 5 Years, All State Aid On All

Buses Deposited In The Reserve For Future Purchases

 Cost Reduction: Borrowing Costs Avoided, Trade-Ins Reduce

Amount Actually Spent From The Reserve

 Time Defined: 15 Years Or $5 Million In Deposits Over Time,

Whichever Comes First

SCHOOL BUS REPLACEMENTS PROPOSITION #3 – BORROWING

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Bus Type Quantity Estimated Cost 66 Passenger 2 $229,620 28 Passenger 2 $110,228 Total 4 $339,848

WHY BORROW FOR BUS PURCHASES?

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 Reserve Balance Is Limited  Estimate Of $634,975 At July 1, 2016  Only Spend Available Funds As Of Beginning Of Year  Voter Authorization  State Aid Available: 59.6% Of Eligible Cost In 5 Years,

All State Aid Deposited In The Reserve For Future Purchases

 Cost Reduction: Trade-Ins Reduce Amount Actually

Needed To Be Borrowed

IMPORTANT DATES TO REMEMBER

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 Board Petitions

 Available: Monday, March 28  Due Back: Monday, April 18  Location: District Clerk’s Office

Citizen Genet Elementary School

 Meet The Candidates Night

 Wednesday, May 11 At 7:00 p.m.  Location: Goff Middle School Cafeteria