Jeffrey P. Simons Superintendent of Schools March 21, 2018 - PowerPoint PPT Presentation

Board Workshop #2: 2018-2019 Budget 1 EAST GREENBUSH CENTRAL SCHOOL DISTRICT Jeffrey P. Simons Superintendent of Schools March 21, 2018

QUESTIONS 2 ฀ Why Is The District Contribution for the Teachers’ Retirement System Increasing When Stock Market Performance is High? ฀ The Retirement System is Funded by Investment Returns and Employer/Employee Contributions ฀ The Rate of Return on Assets Decreased From 7.5% to 7.25% by Action of the TRS Board on October 26, 2017 ฀ Other Factors: Rate of Salary Growth, Mortality Rates for Active & Retired Members, Rates of Retirement, Disability and Withdrawal

INVESTMENT PERFORMANCE TEACHERS’ RETIREMENT SYSTEM 3 25.00% 23.20% 20.00% 18.20% 13.70% 15.00% 12.50% 12.10% 10.00% 5.20% 5.00% 2.80% 2.30% 0.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -5.00% -6.30% -10.00% -15.00% -20.00% -20.50% -25.00% Source: TRS Comprehensive Annual Financial Report FYE June 30, 2017

EMPLOYER CONTRIBUTION RATES FOR TEACHERS RETIREMENT SYSTEM 4 18.00% 17.53% 16.00% 16.25% 14.00% 13.26% 12.00% 11.84% 11.72% 11.11% 10.63% 10.00% 9.80% 8.62% 8.00% 6.00% 6.19% 4.00% 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

QUESTIONS 5 ฀ Why and How Does the District Share Services and Resources? ฀ Foster Collaborative and Cooperative Relationships With Neighbors ฀ Efficiency ฀ Eliminate Duplication of Effort ฀ Cost Savings ฀ Maximization of Revenues ฀ Benefits from Standard and Best Practices

QUESTIONS 6 ฀ Why and How Does the District Share Services and Resources? (Samples) ฀ Questar III and Other BOCES Purchases ฀ Tuition Students from Wynantskill and North Greenbush ฀ Shared Programs with Rensselaer City Schools ฀ Special Education Program Placements ฀ Rensselaer County Substance Abuse Counselor ฀ School Resource Officer from Town of East Greenbush ฀ Rensselaer County Printing of Tax Bills ฀ Health Insurance Consortium Participation ฀ OMNI as Administrator for 403(b) Retirement Savings Plan

MARCH 21 DISCUSSION AREAS 7 Transportation Operations & Maintenance Board of Education Central Administration Employee Benefits Debt Service BOCES Services Estimated Revenues

PRELIMINARY BUDGET ESTIMATE 8 ฀ Preliminary Budget Estimate: $96,436,010 ฀ Increase in Budget: $4,278,853, +4.64% ฀ Required Tax Levy: $5,376,518,+10.11% Will Change ฀ 5.55% Tax Cap Yields $2,950,114 in Revenue ฀ Gap Between Preliminary Budget Estimate and Projected Revenues: $2,426,404 ฀ Contingent Budget Rule: $5,376,518 in Reductions

MAY 15, 2018 VOTE 9 Purchase of Proposed Purchase of Buses, Budget Buses, Reserve Borrowing Establishment Election of of Bus Purchase Board Members Reserve (4)

MAY 15, 2018 VOTE BUDGET PASSED OR DEFEATED 10  Enact Proposed Budget Effective July 1, 2018  Resubmit Budget for Second Vote OR ➢ Revise Budget for Presentation to Voters OR ➢ Adopt Contingent Budget Effective July 1, 2018

CONTINGENT BUDGET RULE 11 Contingent Budget Calculation Estimated As Of March 21, 2018 Reduction 2018-19 Proposed Tax Levy $58,567,495 $53,190,977 Less: 2017-18 Actual Tax Levy Required Budget Reduction $5,376,518 No Exceptions

CONTINGENT BUDGET EXAMPLES - POSSIBLE REDUCTIONS 12 ฀ Administrators ฀ Regents Review ฀ Advanced Placement ฀ School Food Service ฀ Art Subsidy ฀ CAP, OG, Jump Start ฀ School Resource Officer ฀ Community Use of Schools ฀ Security Supervisors ฀ Equipment ฀ Small Class Sizes ฀ Honors Courses ฀ Social Workers ฀ Full Day Kindergarten ฀ Student Assistance Counselor ฀ Library ฀ Student Clubs & Sports ฀ Monitors ฀ Technology Support ฀ Music ฀ Transportation Special ฀ Nursing Services Runs

BUS VIDEO PRESENTATION 13

SCHOOL BUS PURCHASES PROPOSITIONS # 2 & 3 14 Reserve Borrowing Bus Type Qty Qty (Prop #2) (Prop #3) Sixty-Six Passenger 2 $227,484 1 $113,742 Twenty-Eight Passenger 4 $237,588 0 $0 Twenty-Two Passenger 2 $116,452 0 $0 Wheelchair Bus 1 $70,974 0 $0 Total 9 $652,498 1 $113,742

SCHOOL BUS REPLACEMENT DECISION FACTORS 15 Operating & Maintenance Costs Mileage Safety School Bus Replacement State Aid Fuel Funding at 62.5% Efficiency Estimated Life

BUS PURCHASE RESERVE PROPOSITION #4 16 OR End of 15 Years $5 Million Reserve in Deposits

BUS PURCHASE RESERVE PROPOSITION #4 17 State Aid (+) • From Previous Bus Purchases Optional • At Discretion of the Board Funding (+) Bus • Approved by the Voters Purchases (-) Current Balance (=)

BUS PURCHASE RESERVE BENFITS OF A RESERVE 18 Specific • Only Used for Bus Purchases Controlled • Voter Approval for Withdrawals • Board of Education Optional Annual Flexible Funding • 62.5% of Eligible Cost Paid Over 5 State Aid Years Cost Reduction • Borrowing Cost Avoided Time Defined • 15 Years or $5 Million in Deposit s

IMPORTANT DATES TO REMEMBER 19 ฀ Board Petitions ฀ Available: Monday, March 26 ฀ Due Back: Monday, April 16 ฀ Location: District Clerk’s Office Citizen Genet Elementary School ฀ Meet The Candidates Night ฀ Wednesday, May 9 At 7:00 p.m. ฀ Location: Howard L. Goff Middle School Cafeteria