budget prep 1713

HALF HOLLOW HILLS SCHOOL DISTRICTof Huntington and Babylon

First Community Meetingin preparation for the

2013‐14 Budget

January 7, 2013

Community Meeting on the 2013‐14 Budget – January 7, 2013

Agenda• Welcome/Introductions• Meeting Purpose/Objectives• Challenges in Developing the 2013‐14 Budget• State of the 2013‐14 Budget• Additional Information Regarding Budget Survey Reference Guide

• Survey • Questions and Answers

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2012‐13 Budget Basics ‐ Expenses

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Salaries & Benefits

Vendor Contracts & Other*

Equipment & Supplies

80%

18%

2%

$222million

* Includes contract transportation, outside service providers, TAN, debt service, transfer to capital and BOCES


Salaries & Benefits

2012‐13 Budget Basics ‐ Expenses

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Of this 80% of the budget:0.88% Superintendent & Assistant Superintendents5.82% Administrators70.94% Teachers13.67% Clerical/Paras/Monitors3.02% Transportation5.66% Custodial/Maintenance/Grounds

80%


2012‐13 Budget Basics ‐ Revenues

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$222million

Tax Levy

State Aid

Other*

82%

11%

7%

* Other includes PILOTs and use of fund balance and reserves


What is the Property Tax Levy Cap?

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State Aid

Legislation in effect for the 2012‐13 budget year and forward whose goal was to address rising property taxes across

New York State.Requires districts to complete a State

formula for calculating the allowable tax levy and imposes severe

constraints to maintain local control.


BEFORE the Property Tax Levy Cap

Educational Priorities

ProposedBudget

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Key Budget Development Considerations:Educational priorities drive the process

Local control over a large portion of revenuesSimple majority (50% +1) means an approved budget

Implications of a failed budget create unique challenges


Property Tax Levy Cap

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What we heard

• 2% cap on growth of property taxes

• Mandate relief is coming

• Districts should use their “rainy day” funds

• Legislation is fair and equitable since everyone follows the same formula

What we know

• 2% is not 2%• There is no cap, just a voting threshold

• Simple majority versus super majority

• New rules for Contingent Budgets will devastate programs

• There was no pertinent mandate relief

• Further separation of communities across Long Island: “haves” versus “have‐nots”

How we responded

• We used more of our “rainy day” funds

• We communicated early and often

• We reduced our 2012‐13 budget by over $9 million

• We began planning for the 2013‐14 budget even earlier


What Did “2%” Really Mean?

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%The “2%” Calculation for Western Suffolk Districts in 2012‐13

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The State formula allowed a 2.33% property tax levy increase for HHH by achieving a simple majority at

budget vote time.


Using More of Our “Rainy Day” Fund

$‐

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

2008‐09 2009‐10 2010‐11 2011‐12 2012‐13

Use of Reserves Use of Fund Balance

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Pros and Cons of “Rainy Day” Fund Use

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Minimize program reductions

Reduce burden on taxpayers

Budget gap in

subsequent years

Increased borrowing

costs

Respond to State and local input

Limited purpose use

Comptroller & External Auditors

Local control


2013‐14 Budget Development

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Employment Contract

Obligations

Benefits Costs

Vendor Contracts

Equipment & Supplies

Utilizing projections and known increases or decreases to expenses, the preliminary estimated cost to keep all programs and services in place as they exist today would

mean the following for 2013‐14:

7.1% estimated budget to budget increase

8.5% estimated property tax levy increase


2013‐14 Budget Development

$9.5 million of reductions needed in 2013‐14 budget

State Aid

Use of “Rainy Day” Fund

Tax Levy Increase of 2.8%

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• Assumptions: State Aid remains constant

Use of fund balance and reserves remains constant

No piercing of the property tax levy “cap”

Simple majority means an approved budget


Which Brings Us to Tonight…

Engage & Educate

Utilize more reserves and/or fund balance?

Reduce which services?

Eliminate which programs?

Close a building?

Pierce the “Cap”?

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Budget Survey Reference Guide• Responding to additional information on: Controlling Administrative Costs Closing Fran Greenspan Administrative Center Transportation Option to close Chestnut Hill Elementary School Option to close Candlewood Middle School Option to close High School West Middle School 8‐Period Day

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Controlling Administrative Costs

School Year# of

AdministratorsAdministrator Salaries

as a % of the Overall Budget

Increase or (Decrease) from

Prior Year

2009‐10 56 3.9% ‐

2010‐11 54 3.8% $58,341

2011‐12 52 3.6% ($312,976)

2012‐13 50 3.4% ($127,586)

Total Administrator salary expense has decreased by $382,221 since 2009‐10


Controlling Administrative Costs• Reduction of Administrative Positions Assistant Superintendent for Research, Assessment and Special Services Chief Information Officer Coordinator of FACS and Instructional Computing Elementary Assistant Principal High School Dean of Students Special Education Literacy Specialist


Controlling Administrative Costs• Elimination of SBAs and Liaison stipends• Reduction in eight administrative support positions

• Reassignment to Building Level from Central Office: School Psychologist Social Worker


Controlling Administrative Costs• Contractual Negotiations for Administrators’ Association 2011‐12: 0% Increase 2012‐13 & 2013‐14: 0% Increase & Step FreezeTwo‐year savings of over $1.2 million

• Since 2009‐10, Superintendent and Assistant Superintendent salary expenses have decreased by $287,108


Center for American Progress• January 2011 independent evaluation of 611 New York State School Districts ranked Half Hollow Hills: In the 92nd Percentile in Student Achievement50th out of 611 NYS School Districts

In the 6th Percentile in Administrative Costs as a percentage of the overall budget573rd out of 611 NYS School Districts

In the 23rd Percentile in Administrator to Pupil Ratio470th out of 611 NYS School Districts


Center for American ProgressReturn on Investment: An Independent District‐by‐District Evaluation of

Educational Productivity: “Doing What Works” (January 2011)

Half Hollow Hills has the highest State Achievement Index of any school of its diversity!


Fran Greenspan Administrative Center• Why not close the Fran Greenspan Administrative Center?

Houses 107 employees and Reach/CYA staffContains offices of Superintendent and Assistant Superintendents, Human Resources, Special Education, Curriculum, Payroll, Accounting, Technology Infrastructure, Board Room, District Clerk, Facilities, Central Mailroom, Central Registration, School Lunch and Reach/CYA

If close building, savings are three custodians and one hall monitorConsiderations

– Cost of relocating and redistribution of employees spread among 11 buildings– Relocation and recreation of technology infrastructure– Reduced efficiency due to loss of centralized personnel/services– Loss of public meeting spaces

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Transportation • Can we eliminate 100% busing? Changes to universal busing can only be accomplished through a public vote Universal busing is in place due to:Wide expanse of District’s boundariesMain roads surrounding many of our buildings Lack of sidewalks for student walkers

• Currently the District contracts out approximately 100 buses

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Option to Close an Elementary School• Why is this an option? Decreasing enrollment at elementary level 2013‐14 budget reductions needed

2,000

2,500

3,000

3,500

4,000

4,500

June 2011 June 2012 December 2012 2013‐14 2014‐15

Total K‐5 Elementary Enrollments


Option to Close Chestnut Hill• In choosing which elementary school to close, the considerations are to: Create optimal feeder patterns for students transitioning to the middle and high schools Achieve enrollment balance in all schools Chestnut Hill’s location on the south service road of the Long Island Expressway provides potential for leasing


Option to Close Chestnut Hill

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Candlewood Middle School

Forest Park Elementary

Otsego Elementary

Vanderbilt Elementary

West Hollow Middle School

Signal Hill Elementary

PaumanokElementary

SunquamElementary

Chestnut Hill

Elementary

For 2013‐14 and beyond, Candlewood enrollment will be substantially lower than West Hollow.

To achieve enrollment balance between buildings, more students will need to transition into

Candlewood versus West Hollow.


Option to Close Chestnut Hill• The least disruptive option is to close a school with students who transition to West Hollow and distribute the majority of those students to schools which transition to Candlewood Of the schools which transition to West Hollow, Chestnut Hill has the lowest enrollment, therefore effecting the least number of students Chestnut Hill busing patterns are most conducive to a redistricting for only the effected school


Option to Close Chestnut Hill• Chestnut Hill student relocation plan achieves: Average class size of 22.5 students throughout the District Balanced enrollment among remaining six elementary schools

• Relocation of 437 regular education Chestnut Hill students to five elementary buildings

Forest Park

Vanderbilt

Signal Hill

Otsego

Sunquam


Option to Close Chestnut Hill• 2013‐14 regular education projected enrollments by elementary building achieve balance as a result of the proposed student distribution under the closing of Chestnut Hill option

Forest Park568

Paumanok530

Otsego560

Signal Hill569

Vanderbilt554

Sunquam538

Candlewood West Hollow


Option to Close Chestnut Hill• The closing of Chestnut Hill option as proposed ensures better balancing over time of fifth graders transitioning to both middle schools

2013‐14275 students






Projected number of 5th Graders transitioning to West Hollow

Projected number of 5th Graders transitioning to Candlewood


Option to Close a Middle School• Why is this an option? Decreasing enrollment at middle school level 2013‐14 budget reductions needed Over $3 million in potential savings from reductions in:

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CustodialClericalMonitors/ParaprofessionalsSecurity

Building AdministratorsTeachersProgram ModificationsSupport ServicesNurse


Option to Close Candlewood• How is this achieved? Sixth grade students would remain at their present elementary school

All seventh and eighth grade students would attend West Hollow Middle School

• If Candlewood were to close, enrollment at West Hollow would be:

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1,423 1,607 1,3982012‐13Actual

(Grades 6‐8)

2013‐14Projected

(Grades 7‐8)

2014‐15Projected

(Grades 7‐8)


Option to Close High School West• What does it mean? Sixth grade students would remain at the elementary level Ninth grade students would remain at the middle school level All tenth, eleventh, and twelfth grade students would attend High School East

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Option to Close High School West• Projected middle school enrollments:

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West Hollow(Grades 7‐9)2013‐14

1,420 students

Candlewood(Grades 7‐9)2013‐14

1,039 students

Current1,852

2013‐142,483

2014‐152,531

Combined high school enrollment (Grades 10‐12)

(Grades 9‐12)

• Projected High School East enrollment:


Option of Middle School 8‐Period Day• What does it mean? Elimination of the following courses:Computers ‐ Grade 6Seminar in Math ‐ Grade 7Seminar in Social Studies ‐ Grade 8

Modification of the following courses:Exploration of World Languages ‐ Grade 6Music (opposite Physical Education) ‐ Grade 6Health ‐ Grade 6

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budget prep 1713

Documents

equipmentsupplies8 january7

otherincludespil january7

budgetbasics revenues6