Board Workshop #3: 2016-2017 Budget 1 EAST GREENBUSH CENTRAL SCHOOL DISTRICT Angela M. Nagle, Ph.D. Superintendent of Schools April 6, 2016
QUESTION #1 2 How Does The School District Control Costs? Several Ways……
CONTROLLING COSTS - EXAMPLES 3 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
QUESTION #2 4 How Does The School District Maximize Revenues? Several Ways……
MAXIMIZING REVENUES - EXAMPLES 5 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)
QUESTION #3 6 Has East Greenbush School District Been Under The Property Tax Cap In The Last 3 Years? Yes……
TAX LEVY INCREASE VS. PROPERTY TAX CAP 7 Proposed Property YEAR Tax Levy Tax Cap Increase 2015-2016 0.00% 0.08% 1.17% 2014-2015 1.21% 0.32% 2013-2014 4.15%
QUESTION #4 8 Why Is Next Year’s Tax Cap Calculation Higher Than In The Past? Next Slides……
TAX CAP RECAP 9 $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 10 $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
QUESTION #5 11 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 12 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% Source: 2012-13 & 2015-16 SED Property Tax Report Cards
QUESTION #6 13 Does East Greenbush CSD Have The Lowest Full Value Tax Rate Among Suburban Council Schools? No……
SUBURBAN COUNCIL SCHOOLS FULL VALUE TAX RATES 14 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 Source: Guilderland CSD Survey of Suburban Council Schools
QUESTION #7 15 Is The Proposed Tax Levy Increase For The Preliminary Budget The Same For The Final Budget? No……
TAX LEVY INCREASES PRELIMINARY VS. FINAL BUDGET 16 Final Preliminary YEAR Budget 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%
QUESTION #8 17 Will Student Enrollment Decrease Next Year? Probably……
CDRPC ENROLLMENT PROJECTION 18 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 19 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
2016-2017 BUDGET UPDATE 20 March 4 April 6 Preliminary Proposed Budget 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%
2016-2017 BUDGET UPDATE TAX LEVY CHANGES - EXPENSES 21 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)
2016-2017 BUDGET UPDATE TAX LEVY CHANGES - REVENUES 22 Amount Category -$1,231,680 Gap Elimination Adjustment Restoration -0 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 23 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 24 Administrators Nursing Services Advanced Placement Regents Review Art School Food Service Subsidy CAP, OG, Jump Start School Resource Officer Community Use of Security Supervisors Schools Small Class Sizes Equipment Social Workers Honors Courses Student Assistance Full Day Kindergarten Counselor Library Student Clubs & Sports Monitors Technology Support Music Transportation Special Runs
WHY SHOULD BUSES BE REPLACED? PROPOSITIONS #2 & #3 25 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 26 Estimated Bus Type Quantity 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 28 Estimated Bus Type Quantity Cost 66 Passenger 2 $229,620 28 Passenger 2 $110,228 Total 4 $339,848
WHY BORROW FOR BUS PURCHASES? 29 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 30 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
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