IMPACT DATA FROM TEN SCHOOL DISTRICTS

ANNUAL LEGISLATIVE BREAKFAST

TUSCARORA INN, LOCKPORT, NY

JANUARY 25, 2014

A Data Tour Around Our Counties

STARPOINT CENTRAL SCHOOL DISTRICT

Without any further cuts or increases in state aid, the District will need to use $2,428,506 in reserves to balance the 2014-15 and 2015-16 budget. The District has not used reserves in the past two years (2012-13, 2013-14) to balance the budget. Since July 2012, the District has not filled 11 FTE of positions that have retired/resigned.

Instruction in critical thinking skills has been scaled way back.

STARPOINT CENTRAL SCHOOL DISTRICT

IN SUMMARY...Since 2007-08, we have not filled 29 FTE vacated positions

PROJECTED STRUCTURAL OPERATING DEFICITS: $765,681 for 2014-15 $1,662,825 for 2015-16 $2,625,516 for 2016-17 $3,719,121 for 2017-18

North Tonawanda City Schools

Actual Reserve Reductions: $912,539 for 2011-12 $832,611 for 2012-13Anticipated Reserve Reductions:$1,964,990 for 2013-2014$1,757,385 for 2014-2015

North Tonawanda City SchoolsSince 2010 we have reduced:teaching staff by 38support staff by 27administrative staff by 2

Programs affected:Reading Recovery Foreign Language Librarians Gifted and Talented Remedial MathElementary Art Remedial Reading Elementary Music General Increase in Class Sizes

North Tonawanda City Schools

Projection for the future…Additional consolidation of servicesPossible sale of district buildings (one school

building has already been closed)

Niagara Falls City School District

Description July 1, 2012Actual

July 1, 2013Actual

July 1, 2014Estimated

July 1, 2015Estimated

July 1, 2016Estimated

Unassigned Fund Balance

$3,084,525 $2,499,636 $200,000 $0 $0

Assigned Fund Balance

$2,700,000 $2,300,000 $2,300,000 $200,000 $0

Progression of District Reserve Fund Depletion

Niagara Falls City School District2013-2014 Budget Gap Scenarios PLAN B $3,388,177 GapA. Utilities 50,000

B. Alternative Ed Program- BOCES Contract 675,000

C. Worker's Compensation 100,000

D. Instructional Staff cuts (10.0) 650,602

E. Classified Support Staff (3.0) 156,934

F. Tax Levy Increase 587,924

G. BOCES (Special Ed Class brought back in-house) 428,000

H. Workers' Compensation 357,377

I. Modified Sports 42,000

J. Savings on RAN interest costs 55,000

K. Medical Insurance Increase (Reduction) 220,000

L. Unemployment Insurance 65,340   

Niagara Falls City School District

Impact of Dramatic Increase in Pension Costs

We have been forced to spread out annual payments.

We did this through amortization and leveling provisions of State law. This has helped avoid budget shock so far.

Note: in the last four years, pension costs have increased over $4 million annually. If it were not for this dramatic increase, we would have a structurally balanced budget.

Lewiston-Porter Central SchoolsDistrict Reserve Funds

We have tried to retain the same level of programming available to our students throughout the past 4 years.  Subsequently, we have purposely used up nearly all of our appropriated fund balance and reserves:

$1,800,000 appropriated fund balance was reduced over the past several years to only $275,000 by the end of the 2012 School Year.

$1,145,000 in a debt reserve account has been depleted over the past several years as well. We have used it for retirement incentives.

$926,247 in our Employee Benefit and Liability Reserve has been reduced to $432,973 for retiree benefits...$493,274 has been used so far.

$3,163,274 to "weather" the impact of the GEA and Tax Threshold Legislation. Before the GEA we had a safety net of $3,871,247. We currently estimate $275,000 in fund balance and $432,973 in an Employee Benefit & Liability Reserve.

Lewiston-Porter Central SchoolsBudget Reduction Trend

This past year we have budgeted less and less, as we have since 2009:

2012-13 Budget $40,472,775 2013-14 Budget $39,647,771 …down $825,004 (about 2%)

In 2009-10 our budget was $41,989,493...from 2009 to this year a reduction of $2,341,722!

We have still been unable to keep up with the loss in State Aid.

Year Aid Aid difference due to GEA 2009-10 $13,032,994 2010-11 $11,284,471 $1,748,523 2011-12 $10,403,193 $2,629,901 2012-13 $10,297,135 $2,735,859 2013-14 $10,741,770 $2,291,224 $9,405,407 less in accumulated aid than we had in the year 2009-10!

Lewiston-Porter Central Schools

Year Teachers Aides Other Support Administrators 2010-11 5 1 2011-12 4 4 2 2012-13 12 8 2 2013-14 12+ 5 PT 19 6 1 Total 33 32 10 1 Since 2010-11, 76 FT and 5 PT positions have been eliminatedAdditional Elimination and Program Reduction:

Program Impact

Air Force Jr. ROTC-- impacted 55 students 7th grade 2nd Lang Program Half of the tech/engineer courses After School Assistance Program Limited PD $$$ for Curriculum Writing & Common Core In-Service training Athletic after practice buses 1 VARSITY and 2 modified sports teams Night security patrol Police security at the HS Limited overtime Equipment purchases District & Bldg Newsletters sent electronically Fewer subs for some positions Psychologists and Counselor summer work reduced Field Trips reduced 4 different bus runs were combined

Lewiston-Porter Central Schools

Additional Information

All contract salary increases ranged between 1%-2%.Each bargaining unit made numerous concessions and "give backs.” All have gone to a new Health Insurance provider.All contribute up to 10% for health insurance.

Prior to the GEA and Tax Threshold we had been very conservative and reduced the tax levy: 2007-08 1.25% increase 2007-08 0% increase 2009-10 minus 2.74% 2010-11 minus 0.51% We currently have a 2 day a week per diem interim business manager and a superintendent—that is it.

Either our revenues come in as expected, or we will not have funds to pay for budgeted expenditures…in essence we do not have any extra money.

Wilson Central School District

 Fund Depletion: $2,000,000.00 Elimination of 20 staff members Elimination of all modified sports We have declining enrollment at present Early literacy intervention is needed but funds are lacking

Newfane Central School District

Reserves expected to be depleted in the next 5 years

16 staff have been cut

45 more staff to be cut in the next 5 years

There are no expansion plans at present

Barker Central School District$2,500,000 will be pulled from the reserves in 2013-14 $4,000,000 to be pulled from the reserves In 2014-15 4.8 less teachers in 2013-14 (since 2008-09…20.2 less teachers)

6 less staff members (since 2008-09…12 less staff members)

1 less administrator (a shared superintendent and a part-time Business Official)

The PILOT Agreement with the power plant will end in 2015

No plans to expand or develop at this time

Lyndonville Central School District

Reserves are not yet depleted due to several cost control measures:

Closing our elementary building Changing to a single bus run Retirement incentiveReissuing a bond $700,000 in payroll reductions over the last 3 years

Staff Reductions include: 7 teaching positions 1 administrative position 7 support staff positions

The Lyndonville District has aggressively pursued NYS competitive grants and has received some funding. However, these grants are typically for a limited period of time, creating a "funding cliff” that merely postpones program cuts.

Roy-Hart Central School DistrictPrograms and Positions cut since 2007:

18 teaching positions, 1 administrative, 1 clerical, 10 support staff positions, content facilitators, BOCES summer school, BOCES GED slots, BOCES OSS slots, Reading Recovery Program, Career Counseling, Social Worker, Business program, French program, Field trips, Conferences, Equipment, Modified Sports, Late Transportation, Pre-K mid day transportation

Roy-Hart Central School District

Our district has lost just about everything we had except basic required courses.

We are 97th in WNY in academic performance.

Lockport City District Meeting the Past Fiscal Challenges

 Area General Fund Savings

2010-11 2011-12 2012-13

Personnel Position Reductions2010-11: Retirements: 14 Layoffs: 19 Attrition: 3 2011-12: Retirements: 7 Layoffs: 22 Attrition: 02012-13: Retirements: 17 Layoffs: 0 Attrition:2

$1,890,486 $1,364,121 $862,469

Materials and Supplies2010-11: Original district wide 10% reduction Additional buildings only, 20% reduction2011-12: Additional district wide 30% reduction2012-13: Remained flat

$120,806$54,592

$221,457 Remained flat

Administration2010-11: Did not fill elementary principal position2011-12 Did not fill Asst. Supt. of Learning & Assess. position2012-13: Administrative retirement & subsequent restructuring

$95,222 $107,091 $76,068

ProgramsReturned Students with Disabilities (SWD) to district (2008-09)Returned Students with Disabilities (SWD) to district (2009-10)Eliminate grades 6-12 Summer Reading ProgramDecrease Academic Intervention Services (AIS)Cut high school summer school programCut elementary and middle level summer school programEliminated Career Credit Program per contract negotiationsCut GED adult age program (2009-10)

$730,703 (2008-09)$620,588 (2009-10)

$5,000$112,000$128,910$50,000

$0$14,870 (2009-10)

$0$0$0$0$0$0

$468,000$0

No changes

FacilitiesElementary building leased/sold

Over $4500 saved annually as building would require insurance &

baseline maintenance

2013-14 is next anticipated

building closure

Lockport City School District Outlook for Fiscal Stability During the Tax Levy Limit Years

LCSD Strategic Outlook for Fiscal Stability During the Tax Levy Limit Years

Approved Approved Approved Approved Estimated Estimated Estimated

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Reserves: 6/30/13 bal used used used used Projected fund balance usage Reserve Balance

Emp Benefits $5,012,808 $563,796 $493,251 $435,372 $831,670 $831,670 $831,670 $831,670 $1,686,128

Debt Service $186,892 $568,050 $875,550 $473,130 $83,880 $103,012 $0 $0 $0

Wkrs Comp $527,070 $259,401 $260,996 $297,128 $263,490 $263,580 $0 $0 $0

Approved Approved Approved Approved Estimated Estimated Estimated

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Reserves: 6/30/13 bal used used used used Projected fund balance usageReserve Balance

Emp Benfts $5,012,808 $563,796 $493,251 $435,372 $831,670 $831,670 $831,670 $831,670 $1,686,128

Debt Svc $186,892 $568,050 $875,550 $473,130 $83,880 $103,012 $0 $0 $0Wkrs Comp $527,070 $259,401 $260,996 $297,128 $263,490 $263,580 $0 $0 $0Unemplymt $0 $123,900 $154,598 $418,421 $0 $0 $0 $0 $0Tax Cert $223,414 $0 $1,070,085 $473,611 $222,729 $685 $0 $0 $0Ins Reserve $0 $0 $0 $74,229 $0 $0 $0 $0 $0ERS Reserve $4,957,400 $0 $264,469 $1,018,064 $1,239,350 $1,279,488 $1,239,350 $1,199,212 $0

$10,907,584 $1,515,147 $3,118,949 $3,189,955 $2,641,119 $2,478,435 $2,071,020 $2,030,882

“ We tried the political advocacy route for about three years, when the state was gutting our budget to the tune of $2 million per year.  Our efforts fell on deaf ears.”

Prediction: “I estimate that every district will require an increase that exceeds the tax cap within the next 5-7 years…and additional program cuts will most likely be required.”

“We have been forced to push a portion of these pension costs into the future and unless the rates begin to come back to a reasonable level in the next year, we will be forced to cut programs and personnel levels to balance our budgets.”

“Either our revenues come in as expected, or we will not have funds to pay for budgeted expenditures…in essence, we do not have any extra money.”

Questions for our legislators…

1. How does the Gap Elimination Adjustment work and what is its value to local districts?

2. How would you strategize for the future if you were a school district leader?

3. What can you tell us about the Commissioner’s suggestion that regionalization is on the horizon?

4. How will you use the information we have presented this morning to represent us in Albany?