2012-2013 Budget Proposal

MISSION STATEMENTWe will support student achievement by

developing and sustaining exemplary educational experiences; creating and

maintaining an environment that supports learning and embraces individuality;

engaging in professional development that drives good instruction; and connecting

with our larger community to present opportunities for adult involvement in the

educational process.

MEXICO ACADEMY & CENTRAL SCHOOL

CSD

Preserve all Academic Programs;

Ensure a high-quality education that prepares our students for the 21st Century;

Maintain our Fine Arts and Interscholastic Programs;

Ensure the health and safety of students and staff ;

Ensure long-term fiscal stability (via five-year financial plan);

Provide a responsible, stable tax increase to our community.

BUDGETARY GOALS

Unfunded/Underfunded Mandates: While mandates increase accountability and in many cases improve

educational quality, they can also limit flexibility and impact how districts spend money. Essentially, increasing the cost of operating a school district in New York State;

Examples: Retirement system contributions are State-mandated;

Salaries & benefits are legally-binding contractual obligations;

Special Education Costs (i.e. Individualized Education Plans) Common Core Standards adoption, implementation and realignment of

existing curriculum. Annual Professional Performance Reviews for teachers and principals,

including the creation of a district APPR plan Transportation Costs (i.e. students with disabilities, private and parochial) Numerous plans and reporting requirements (approximately 150 per year) And Many, Many More…View the list at

www.p12.nysed.gov/fmis/mandaterelief

CHALLENGES

Rising prices of commodities (energy, supplies and materials)

Implementation of the NEW Property Tax Cap Legislation

Elimination of Federal Grant Opportunities for 2012-2013 school year(ARRA)

IMPACT OF CURRENT ECONOMIC CLIMATE

Mandated Budget Items

+Contractual Obligations

=Majority of Budget Spending

ABOUT THE COST…

$6,464,61613.73%

$23,699,573 50.52%

$2,647,9145.62%

$82,000.17%

$14,205,897 30.16%

Expenditures

General SupportInstructionalPupil Transporta-tionCommunity ServicesUndistributed

BUDGET $47,100,000

CATEGORY 2012-2013 Proposed

Percent of Budget

GENERAL $6,464,616 13.73%

INSTRUCTIONAL $23,699,573 50.32%

PUPIL TRANSPORTATION

$2,647,914 5.62%

COMMUNITY SERVICE $82,000 .17%

UNDISTRIBUTED $14,205,897 30.16%

PROPOSED EXPENDITURES BY CATEGORY

Category 2011-2012 Proposed Budget

2012-2013Proposed Budget

% Change

General Support $5,777,556 $6,464,616 11.89%

Instructional $22,168,017 $23,699,573 6.91%

Pupil Transportation

$2,482,655 $2,647,914 6.66%

Community Services

$39,260 $82,000 108.86%

Undistributed $13,032,512 $14,205,897 9.00%

TOTAL: $43,500,000 $47,100,000 8.28%

CURRENT YEAR VS. PROPOSED BUDGET

Reduced staffi ng totaling approximately $650,000 in savings

8.7 FTE Instructional 2.0 FTE Non-Instructional Second-Year effort to right-size staffing requirements to match enrollment

trends and course elective needs

Co-curricular stipends remain at 2011-2012 levels;Continue to fund high school Nova Net summer

program and ASAP middle school program;Funding to support NEW Community Recreation

Program; Utilize cost-savings initiatives to contain costs:

Competitive bidding for insurances and professional services Transportation re-routing efficiencies Securing cost effective interest rates on borrowing

EXPENDITURE HIGHLIGHTS

The State legislation which requires the state’s school districts to have a public budget vote, includes the requirement that the

budget be divided up into three components: program, capital, and administration.

  Program Budget: This portion covers teacher salaries, school

supplies, and all related educational costs.  Capital Budget: Refers to all facil it ies costs such as leases, annual

debt service, custodial salaries and benefi ts, service contracts, custodial supplies, maintenance and repair of facil it ies, and uti l ities.

  Administration Budget: This section includes central administration

and school offi ces, along with clerical support, salaries and benefi ts, and related expenses of all school administrators, board of education expenses for planning, and other administrative activities.

THREE-COMPONENT BUDGET

70%

9%

21%

Program

Administra-tive

Capital

THREE- COMPONENT BUDGET

Program Administrative Capital

FY 2011-2012 $31,277,391 3,952,774 8,269,835

As a Percent 71.90% 9.09% 19.01%

FY 2012-2013 $32,812,923 4,167,787 10,119,290

As a Percent 69.67% 8.85% 21.48%

CURRENT YEAR VS. PROPOSED BUDGET

Where does our money come from?

REVENUE SOURCES

$22,314,95147%

$866,0002%

$23,719,04950%

$200,0001% 2012-2013 REVENUE

State Aid

Local Non-Tax

Tax Levy

Fund Balance

REVENUE SOURCES

           

  Actual at Warrant Issuance    

       

State Aid FY 2011-2012 Budget FY 2012-2013 Budget  

General Aids $16,050,693.00 $16,556,642.00    

Transportation $1,561,263.00 $2,372,776.00  

BOCES $1,257,177.00 $1,809,533.00  

Building Aid $937,210.00 $1,576,000.00  

TOTAL: $19,806,343.00 $22,314,951.00  

FMAP Deduction -$189,343.00    

  $19,617,000.00 $22,314,951.00  

TOTAL expected  12-13 Aid: $19,617,000.00 $22,314,951.00  

           

      % Change $$ Change

         

Appropriated Fund Balance   $200,000.00   $200,000.00

         

Employee Benefit Reserve  $300,000.00   -100.0% -$300,000.00

         

ERS Contribution Reserve   $305,000.00   $305,000.00

         

Debt Service Fund   $100,000.00   $100,000.00

         

Tax Stabilization        

         

PILOT        

         

Miscellaneous Revenues $483,000.00 $461,000.00 -4.6% -$22,000.00

        $283,000.00

Local Tax Levy $23,100,000.00 $23,719,049.00 2.68% Change in Levy  

         

TOTAL REVENUE: $43,500,000.00 $47,100,000.00 8.28% Change in Revenue/Expenditure

           

         

What is this NEW Property Tax Cap Law all about?

PROPERTY TAX CAP

TAX LEVY LIMIT

+

Coming School Year Exclusions

=MAXIUMUM ALLOWABLE TAX LEVY

(requiring a simple majority vote 50% +1)

TOTAL LEVY TO SUPPORT PROPOSED BUDGET

TAX LEVY LIMIT

Tax Levy LimitPrior Year Tax Levy

XTax Base Growth Factor

+PILOTs (Prior Year)

- Prior Year Exemptions (Not ERS & TRS)

=Adjusted Prior Year Tax Levy

XAllowable Levy Growth Factor (lesser of 2% or CPI)

-PILOTs (receivable in coming year)

+Allowable Carryover

=TAX LEVY LIMIT

The pension cost exemption applies only when ERS and/or TRS employer contribution rates increase by more than 2 percentage points over the prior year.

ERS Costs = Tax levy necessary for expenditures for coming school year for employer contributions caused by growth in the system average actuarial contribution rate, minus two percentage points. (2.6% increase, .6% excludable portion=.006 X $5,073,666.67 = $30,442 (Exempt Amount)

TRS Costs = Tax levy necessary for expenditures for coming school year for employer contributions caused by growth in the normal contribution rate, minus two percentage points (No exemption for 2012-2013)

Exemption = % over 2% X Salary Base = Exempt Amount

COMING SCHOOL YEAR EXCLUSIONS

Capital Tax Levy = Tax levy necessary to support capital local expenditures

Capital Local Expenditures = The tax levy associated with budgeted expenditures resulting from the construction, acquisition, reconstruction, rehabilitation or improvement of school district capital facilities or capital equipment, including debt service and lease expenditures, and transportation capital debt service.

Exemption: Aid – Expense = ExemptionFor 2012-2013: $3,397,058 - $3,443,132 = $46,074

Exemption★

COMING SCHOOL YEAR EXCLUSIONS

MAXIMUM ALLOWABLE LEVY

Tax Levy Limit

+ Coming Year Exclusions

Prior Year Tax Levy X

$23,100,000

Tax Base Growth Factor+

1.0037

Prior Year PILOT (2011-2012)-

0

Prior Year Exclusions+

0

ADJUSTED PRIOR YEAR LEVY $23,185,470

XAllowable Growth Factor (lesser of CPI or 2%)

1.02

-PILOTs for Coming Year (2012-2013)

0

+Allowable Carry Over (N/A for this year)

0

=TAX LEVY LIMIT

$23,649,179

+Coming School Year Exclusions

$76,516

=MAXIMUM ALLOWABLE LEVY $23,725,695

2.71%

2012-2013 Proposed Levy

2012-13 Proposed Budget less Estimated State Aid less Appropriated Fund Balance & Reserves less Other Revenues_______________________________

2012-13 Proposed Tax Levy

2012-2013 Maximum Allowable Levy

2012-2013 Tax Levy Limit+

Coming Year Exclusions

_______________________________

2012-2013 Maximum Allowable Levy

WHAT WILL THE VOTER THRESHOLD BE?

$47,100,000 Proposed 2012-2013 Budget- $22,314,951 Estimated State Aid- $ 605,000 Appropriated Fund Balance &

Reserves- $ 461,000 Other Revenue________________________________________________$23,719,049 PROPOSED LEVY for 2012-2013

2.68%

$23,649,179 Tax Levy Limit

+$76,516

Coming Year Exclusions______________________

$23,725,695 2.71%Maximum Allowable

Levy

The Proposed 2012-2013 Levy is BELOW the Maximum Allowable Levy (2.68% vs. 2.71%)

Voter Approval Requires a Simple Majority Vote (50% +1)

RE-CAP

Supports all Music & Art Programs

Maintains all Sports Teams & Events

Maintains all Extra-Curricular Activities & Clubs

Provides Free Community Use of Buildings

Supports Professional Development for staff

Maintains all academic programs (UPK, AP Courses, Boces courses, Nova Net, ASAP)

Allows for the Upkeep and Maintenance of our Facilities

Our School District continues to be a GREAT place for our children to learn!

WHAT DOES THE BUDGET SUPPORT?

Please remember to VOTE on Tuesday, May 15, 2012;

Budget Information can be found on the District website under the Business Office page at www.mexico.cnyric.org

Thank you!

THANK YOU!