mohonasen proposed budget

7/28/2019 Mohonasen Proposed Budget

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2013-2014 Budget Update

April 8, 2013Board of Education Presentation

Working Budget Topics:Instruction, revenue & budget recap


2/22

The GOOD news:State aid IS increasing for next year. While its NOT the $656,139 increase thats beenreported overall aid (operating & expense driven) is going up by about 1.5 percent fornext year. This is higher than was projected in the Governors budget.

Through the recent fiscal downturn, weve taken many steps to stay efficient, save money

and save programs.Things would look VERY different without the following:

NYS Performance Improvement & Strengthening Teacher/Leader grants

Federal PEP Grant

Bargaining Units teachers, administrators & support staff have givenconcessions, saving money and positions.

Consolidated some services and adopted efficient business practices liketransportation and purchasing through BOCES; locking into pricing for gas,electricity and general liability insurance; and our energy curtailment program.

ALSO: Weve applied for a DOS Efficiency Grant funding with Schalmont to studypossible merger/shared services.

Budget Factors & Challenges

4/8/13 1Budget Update


3/22

The BAD news:The fiscal storm certainly isnt over. Weve lost $9.37 million to the Gap Elimination Adjustment in three years and are

set to lose $2.6 million more in 2013-14. This is money deducted from the originalstate aid due to the district based on the states aid formula. Sothe increase in

state aid is actually just a decrease to the decrease.

Costs continue to rise at an untenable rate. Teacher retirement system (TRS)contribution rates alone are increasing by 37 percent for next year.

Mandates continue to increase: DASA, APPR, Common Core Learning Standards

Weve eliminated 70 FTE positions and $6 million in the last three years.

Reduced positions include: Teachers, administrators, librarians, support staff

Class sizes have increased in many areas.

Weve reduced field trips, made cuts to athletics, made cuts to operations andmaintenance, and reduced the general administration budget.

Weve reduced the number of days late buses are available to students, andconsolidated regular bus runs.




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4/8/13 3


Budget Update

Mandate Relief? Governors budget included a variety of proposals aimed at mandate relief.

The adopted state budget DID include a stable-rate pension option for both ERSand TRS, which could provide some relief in the SHORT TERM.

ERS Option: Districts have one-time opportunity to opt in and pay a graded rate vs.

the normal, actuarially-determined rate. The difference between the rates isborrowed and paid back (plus interest) over 12 years.

For next year, the normal rate is 20.9% and the graded rate is 12 percent.

TRS Option: Districts can opt in and pay stable rate for seven years. Beginning inyear 6, the district would begin repaying all contributions that were deferred over theprevious five years (the difference between the actual rates and the stable rates).

For next year, the normal rate is 16.25% and the stable rate would be 14%. Infuture years, the stable rate COULD increase by 2 percent every 2 years.

Opting for both of these proposals would save the district $844,000 in pensioncontributions for next year (short term). Ultimately this money would have to be paidback, with interest.


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What were the main considerations when developing the budget? Maintaining quality instructional programs and services for students, including

foundational structures to build on in the future.

So much has been cut in recent years, we looked for ways to maintain everythingthat we currently have.

Feedback/insight from Board of Education

Administrative expertise, professional judgment, experience

Community feedback

Throughout these difficult fiscal conditions, community members have said thatmaintaining as many programs for students as possible is priority #1.

Other concerns: Class size, safety

Consistency across the board

Budget Development



6/22

$45,381,878:Projected Budget for 2013-14 2.94 percent increase in spending over the current year

How did we get to this point?

No major budgetary changes are taking place in terms of staffing andprograms/ services for students. Students will have the same access toprograms/services as they did this year.

Some costs are being shifted to the state/federal grants.

Health insurance premium and prescription rates came in lower than expected.

Decrease in the amount paid to unemployment insurance.

2013-14 Budget: Current Projection



7/22

How did we get to this point? Minor reductions/changes made in certain areas:

Elimination of one section of 6th grade due to enrollment. Current staffing will bemaintained through grant funding (teacher on special assignment)

Athletics: Reduction in dues/fees, elimination of J V golf

Operations & Maintenance and Transportation: More equipment repairs and generalmaintenance will be done in-house with existing staff vs. outside contracts.

Across-the-board reduction in equipment and technology purchases.

Two expected retirements

2013-14 Budget: Current Projection



8/22

Return on Investment: What does the budget pay for?


Grade Level CurrentEnrollment2012-13

# of Sections2012-13

AverageClass Size2012-13

ProjectedEnrollment2013-14

# of Sections2013-14

AverageClass Size2013-14

K 201 9 22.3 200 9 22.2

1 189 8 23.6 201 8 25.1

2 170 7 24.3 190 8 23.8

3 185 8 23.1 170 7 24.3

4 216 9 24 185 8 23.1

5 204 8 25.5 216 9 24

6 211 9 23.4 210 8 26.3

Class sizes in grades 7-12 will vary depending on class/subject area.

Projected Average Class Size for 2013-14


9/22

Program by the numbers 218 teachers educate 2,907 students in grades K-12 every day. They are supported

by 196 support staff members and 16 administrators.

2,250 students are transported to and from school every day by 43 bus drivers on

43 buses.

90 percent of last years seniors graduated on time.

27 career professionals presented to eighth graders at this years Career Day.

49 students in grades 4-8 participated in the districts first ever after-school STEMacademy this past winter.

4 school buildings are using developmentally-appropriate frameworks, which includecharacter education and anti-bullying programs, to promote social and emotionalwell-being for all students.

12 middle school students are recognized each month for demonstrating goodcharacter traits.




10/22

Program by the numbers 6 major programmatic shifts in English and 6 major programmatic shifts in math are

being implemented district wide under the new Common Core Learning Standards.

412 students in grades K-12 receive support through Special Education and

related services.

950 computers and 18 interactive whiteboards are used district-wide to support21st century learning.

107 Advanced Placement (AP) exams were given to students enrolled in 8 APclasses, ranging from Music Theory to Biology, last year.

2 alternative education programs are successfully supporting students ingrades 6-12.

55 athletic teams, spanning modified, freshman, junior varsity and varsity levels, offerstudents in grades 7-12 the opportunity to compete in 23 sports.

106,219 unique users visited Mohonasens website so far this year.




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Program by the numbers 32 clubs and extracurricular activities other than athletics are available to

students in grades 6-12.

4 Mohonasen Odyssey of the Mind teams competed at this years regionalcompetition.

70 classroom spelling bee winners in grades 1-8 competed in one of three school-wide spelling bees this year.

17 Principles of Engineering students recently competed in the Capital DistrictsModel Bridge Competition.

92 percent of students who took the English Regents last year, passed; 39 percent

achieved mastery.

3,000 student writing entries have been submitted to date for Pinewoods We areReaders! We are Writers! Program.




12/22

Rollover Budget: $47,492,512 Starting Point

Projected (13-14 budget): $45,381,878 As of April 8, 2013 (working budget minus grants)Current (12-13) Budget: $44,082,355

Budget Increase $ 1,299,523 2.94% spending increase

Revenues $ 277,348 TOTAL increase in state aid

$ 300,000 Debt service appropriation

$ 964,743 4.21% tax levy increase/tax cap

$ 62,000 Decrease in other revenues (estimated)

$ 180,568 Decrease in appropriated fund balance

Revenue Increase $ 1,299,523


2013-14 Budget Worksheet: Current Projection


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2013-14 Projected Expenditures


2012-13 Budget 2013-14 Projected

Budget as of 4/8/12

$ Increase/Decrease

Instruction $23,030,325 $23,246,286 $215,961

EmployeeBenefits $10,718,706 $11,416,512 $697,806

Operations&

Maintenance

$2,310,888 $2,309,053 -$1,835

Transportation $2,089,245 $2,062,205 -$27,040

District Support $1,819,894 $1,843,992 $24,098

Debt Service $4,113,296 $4,503,830 $390,534

Total $44,082,354 $45,381,878 $1,299,524


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2013-14 Projected Revenues


2012-13 2013-14 Projected

Budget (as of 4/8/13)

$ Increase/Decrease

State Aid $17,911,097 $18,193,286 $282,189

Property Tax Levy $22,938,507 $23,903,250 $964,743

Fund Balance

Appropriation

$1,250,000 $1,069,342 -$180,658

Reserve

Appropriation

$800,000 $750,000 -$50,000

BOCES Rental $365,500 $311,750 -$53,750

Interfund Transfer $533,000 $803,000 $270,000

Other Revenue(Interest, Fees, Cont. Ed.,

Admissions, Bldg. Use)

$284,250 $351,250 $67,000

Total $44,082,354 $45,381,878 $1,299,524


15/22

Tax Levy Limit/Maximum Allowable Tax Levy Based on the state formula, this is the highest allowable tax levy that a

district can propose and need the approval of only a simple majority ofvoters (more than 50 percent) to pass a budget.

Tax levy limit PLUS certain exclusions Based on the states formula, Mohonasens maximum allowable limit is a

4.21 percent increase over the current years tax levy.

Proposed Tax Levy

The tax levy called for by a school districts proposed budget.

This is the number we have control over.

The tax levy is the total amount of money to be raised by a municipality afterfactoring in all other available revenues.

Tax levy numbers under the cap law



16/22


Mohonasen Tax Levy Limit CalculationPrior year tax levy $22,938,507

Tax base growth factor (if any)* X 1.0025

Payments in lieu of taxes (PILOTs) receivable during prior year +0

Taxes levied for exemptions dur ing prior year (not ERS & TRS) - 0

Adjusted Prior Year Tax Levy =$22,995,853

Allowab le levy growth factor (lesser of 2% or CPI) X 1.02

Payments in l ieu of taxes (PILOTs) receivable in coming year - 0

Available car ryover (i f any) +0

Tax Levy Limit = $23,455,770

Coming School Year Exclusions** +$447,480

Maximum Allowable Tax Levy(requiring simple majority approval of more than 50% of voters)

= $23,903,250

Maximum allowable tax levy increase (percentage) 4.21%

*provided by NYS Tax & Finance Dept. **Increase in the state-mandated employer contribution rate for teacher pensions (TRS) that exceed two percentage points.


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ESTIMATED impact on a household*Given current assessments/equalization rates


Town Current Tax Rate (per $1,000 ofassessed value)

4.21%Tax Levy Increase

Rotterdam $15.89 +$0.67

Guilderland $18.11 +$0.76

Colonie $22.77 +$0.97

Impact on a home will a full-value of $150,000 +$100.36/yearOR

+8.36/month

*These numbers are only estimates.All figures assume no change in equalization rates and assessments (informationthat is typically finalized and made available to districts during the summer). Figures include no state or local tax

exemptions, including STAR. In 2013 all residents must re-apply for the STAR exemption.


18/22

What happens if the budget is rejected by voters?

If the proposed budget is not approved by the voters, the district may resubmit theoriginal budget or submit a revised budget to the voters on the third Tuesday in J uneOR adopt a contingency budget that levies a tax no greater than that of the prior

year (0% increase in the tax levy).

If the resubmitted/revised budget proposal is NOT approved by the required margin, theBoard MUST adopt a budget that levies a tax no greater than that of the prior year(0% increase in the tax levy) AND the budget would be subject to contingent budgetrequirements. Under a Contingency Budget, some items would need to be cut from thebudget to meet the law with respect to definition of contingency appropriations. Cuts

would be to student supplies, community use of buildings and grounds, certainequipment purchases and salary increases.

Contingent Budget Rules



19/22


2013-14 PROPOSED Bus Purchase Requests

4 - Full size 66 passenger buses

Proposition Amount = $460,000

Less State Share of Trans. Aid .717% = ($329,820)

Est. Budget Impact District Share over 5 years = $130,180(approx. $26,036.00 per year)

No impact to 2013-14 budget - Debt/bond payments and stateaid payments begin school year following a bus purchase, inthis case 2014-15.

Pupil Transportation


20/22

Board of Education Vacancies Two (2) at large seats

Three-year terms

At least 40 signatures required on petition

Petitions are now available in the District Office Petitions are due back to the District by Monday, April 22th at 5 p.m.



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Questions and Discussion



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April 23, 2013: BOE Meeting/Adoption of budget proposal7 p.m., HS Farnsworth Technology Center

All budget information will be avai lable at

www.mohonasen.org/budget. The annual budget newsletter will be mailed out in early May.

May 13, 2013: Budget Hearing & Meet the Candidates Night6 p.m., HS Farnsworth Technology Center

May 21, 2013: Annual Budget Vote & BOE Election7 a.m.-9 p.m./HS Gym

Next Steps

http://www.mohonasen.org/budgethttp://www.mohonasen.org/budget

mohonasen proposed budget

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