2014-2015 Budget Presentation April 7, 2014

Elmira Heights Central School District

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Budget Development 2014-15

Expenditures

Revenue

Fund Balance & Reserves

Next Steps

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Budget Development 2014-15

Expenditures

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Three-Part Budget

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Function 2013‐14 2014‐15 $ Change % Change

Administrative $1,986,214 $2,016,762 $30,547 1.54%

Capital $4,426,201 $3,874,176 $(552,025) (12.47)%

Program $13,642,110 $14,165,049 $522,939 3.83%

Total Budget $20,054,526 $20,055,987 $1,461 0.01%

Personnel Changes Refelcted in the Budget

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Replace current open Special Education teacher position

Replace two teacher positions due to retirements (1. 0 Family & Consumer Science; 1.0 Elementary Classroom).

Shift one teacher position currently assigned in Reading to an Elementary Classroom (increase in section to maintain appropriate class sizes).

Net positions lost in 2014-15 = 1.0 FTE

Changes to 3-Part Budget from 3/24 Presentation

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Decrease Unemployment budget since no lay-offs ($7,000) Retirement of 2 teachers:

Estimated savings Salary ($31,900) Benefits ($24,967) Retiree Benefits (health ins only

$14,170 Net Savings

($42,697) Fill open Special Ed teaching position at the high school to eliminate 4 BOCES Special

Ed slots. Estimated savings

4 Elsmere students @ $22,332 each $89,328 Salary 1 Special Ed teacher ($45,000) Benefits for teacher ($26,025) Savings ($18,603)

Total Savings $68,300

Changes to 3-Part Budget from 3/24 Presentation

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Increased District Professional Development budget by $7,667 to allow for additional summer work on: K-2 development of English Language Arts curriculum. 1 day per teacher for Common Core curriculum

development. Increased BOCES Curriculum Mentor budget by

$1,630 for additional substitute reimbursement. Increased BOCES Computer Services budget by

$6,000 for additional technology equipment purchases.

Total Increases $15,297

Administrative Budget

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Function 2013‐14 2014‐15 $ Change % Change

Board of Education $12,336 $16,333 $3,997 32.4%

Central Admin 219,538 227,983 8,445 3.8

Business Admin 446,545 439,911 (6,634) (3.8)

Legal 6,500 5,250 (1,250) (19.2)

Personnel 31,620 29,098 (2,522) (8.0)

Public Information 7,600 4,200 (3,400) (44.7)

Printing/Mailing 12,040 12,345 305 2.5

Central Data Process 173,978 197,152 23,174 13.3

Other Central Services 31,588 26,085 (5,503) (17.4)

Insurance 55,098 61,361 6,263 11.4

BOCES Admin 299,951 317,160 17,209 5.7

Supervision/Reg School 315,252 327,506 12,254 3.9

Planning/Evaluation 41,941 5,906 (36,035) (85.9)

Employee Benefits 332,228 346,472 14,244 4.3

Total Admin Budget $1,986,214 $2,016,762 $30,547 1.54%

Capital Budget

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Function 2013‐14 2014‐15 $ Change % Change

Operation of Plant $734,601 $679,493 $(55,108) (7.5)%

Maintenance of Plant 328,630 311,761 (16,869) (5.1)

Judgments/Claims 450 450 0 0.0

Debt Service 2,903,369 2,286,963 (616,406) (21.2)

Transfer to Capital 22,000 153,000 131,000 595.5

Employee Benefits 437,151 442,509 5,358 1.2

Total Capital Budget $4,426,201 $3,874,176 $(552,025) (12.47)%

Program Budget

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Function 2013‐14 2014‐15 $ Change % Change

In‐Service Training $45,388 $63,062 17,674 16.5%

Instruction‐Regular School 5,225,655 5,349,153 123,498 3.0

Special Education 2,967,919 3,247,391 279,472 9.4

Occupational Education 660,076 807,604 147,528 22.4

Instruction‐Special Schools 119,065 114,970 (4,095) (3.4)

Library/Media 87,422 90,397 2,975 3.4

Computer Assist Instruction 35,507 32,713 (2,794) (7.9)

Guidance 110,658 109,928 (730) (0.7)

Health Services 107,546 120,667 13,121 12.2

Co‐Curricular Activities 25,275 25,775 500 2.0

Interscholastic Athletics 188,540 193,941 5,401 2.9

Transportation 471,494 452,648 (18,846) (4.0)

Transfers to other funds 45,000 50,000 5,000 11.1

Employee Benefits 3,552,565 3,506,800 (45,765) (1.3)

Total Program Budget $13,642,110 $14,165,049 $522,939 3.83%

Administrative Budget Cap Calculation

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Is that percentage which the administrative component had comprised in the prior year’s budget (2013-14 );

Administrative budget = $1,986,214 Administrative + Program budget $15,628,324

Cap 12.709%***

***2014-15 Contingent budget must be below this %

2014-15 Administrative Budget %

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Administrative budget = $2,016,762Administrative + Program budget $16,181,811

Cap 12.47%

Budget Development 2014-15

Revenue

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Revenue Description 2013‐14 2014‐15 $ Change % Change

Real Property Tax (incl STAR) $7,375,592 $7,440,666 $65,074 0.88%

Other Tax Items 137,910 140,000 2,090 1.52

Charges for Services 109,400 107,800 (1,600) (1.46)

State Aid 10,627,788 10,902,782 274,994 2.59

Federal Aid 125,000 50,000 (75,000) (60.00)

Other 345,400 300,450 (44,950) (13.01)

Inter‐fund Transfer Debt Service

0 135,000 135,000 0.00

Appropriated Reserves 733,436 375,830 (357,606) (48.76)

Appropriated Fund Balance 600,000 600,000 0 0.00

Total Revenue $20,054,526 $20,055,987 $1,461 0.01%

Revenue Projection

Final State Budget

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Increases Foundation Aid by $92,762 over 2013-14 and over the Governor’s original Foundation Aid proposal (Governor proposed no increase).

Increases the Gap Elimination Adjustment (GEA) Restoration an additional $195,428 over the Governor’s original GEA Restoration proposal (Governor proposed $155,806 restoration). Total restoration over 2013-14 is $351,324.

Allows for a decreased use of Reserves to balance the budget in the amount of $288,190.

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Aid Category 2013-14 Budget

2014-15 ExecutiveProposal

2014-15 Legislative

Budget$ Change %

Change

Foundation Aid $6,737,513 $6,737,513 $6,830,275 $92,762 1.38%

GEA (1,087,952) (1,087,952) (1,087,952) 0 0.0

GEA Restoration 155,806 351,234 351,234

Excess Cost Aid 306,215 353,393 353,150 46,935 15.33

Tuition for SWD 200,000 400,000 400,000 200,000 100.00

BOCES Aid 1,444,511 1,599,931 1,599,931 155,420 10.76

Transportation 506,965 541,742 533,106 26,141 5.16

Building Aid 2,410,917 1,815,483 1,815,483 (595,434) (24.70)

InstructionalMaterials 109,619 110,771 107,555 2,064 (1.89)

Total General Aids $10,627,788 $10,626,687 $10,902,782 $274,994 2.59%

Proposed State Aid Revenue

Gap Elimination Assessment Losses

The District continues to receive less in 2014-15 than it did in 2007-08.17

Fiscal Year Foundation Aid GEA Net Aid

2007-08 $6,344,846 $-0- $6,344,846

2008-09 $6,677,298 $-0- $6,677,298

2009-10 $6,677,298 $-0- $6,677,298

2010-11 $6,677,298 ($1,394,911) $5,282,387

2011-12 $6,677,298 ($1,779,127) $4,898,171

2012-13 $6,717,361 ($1,499,989) $5,217,372

2013-14 $6,737,513 ($1,087,952) $5,649,561

2014-15 $6,830,275 ($736,718) $6,093,557

Cumulative GEA ($6,498,697)

Changes to Property Tax Cap Calculation

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Decreases local share of the Tax Levy by $25,015 Lowers increase in Allowable Levy from $89,089

to $65,074 Lowers Allowable Levy increase from 1.21% to

0.88%

2014-15 Allowable Tax Levy = $7,440,666

Property Tax Cap (slide 1 of 2)

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** As determined by the NYS Office of Real Property Tax Services (ORPTS) *** As determined by the NYS Office of the State Comptroller

Tax Levy Limit (Cap) Before Exclusions

Tax Levy Fiscal Year Ending (FYE) 06/30/2014 $7,375,592 Total Tax Cap Reserve Amount from FYE 06/30/2014 $0 Tax Base Growth Factor** 1.0040 PILOTS receivable FYE 06/30/2014 (pre-populated by OSC) $122,910 Capital Tax Levy for FYE 06/30/2014 (pre-populated by OSC) $399,267Allowable levy growth factor*** 1.0146 PILOTS receivable FYI 06/30/2015 $132,301 Available Carryover from FYE 06/30/2014 $0 Total Levy Limit Before Exclusions $7,100,516

Property Tax Cap (slide 2 of 2)

20 Tax levy increase allowed under cap is $65,074.

Exclusions:Tax levy necessary for expenditures resulting from tort orders/judgments over 5% FYE 06/30/2014 tax levy

$0

Capital Tax Levy for FYE 06/30/2015 $340,150

Tax levy necessary for pension contribution expenditures caused by growth in the system average actuarial contribution rate (ERS) or normal contribution rate (TRS) in excess of 2 percentage points:

ERS $0 TRS $0 Total Exclusions $ 340,150Tax Levy Limit Plus Exclusions $ 7,440,666 0.88%

Change to Property Tax Cap Calculation

Final State budget did not include a 10-year adjustment to the assumed amortization rate applied to District debt. This would have resulted in a deduction of building aid in 2014-15 of $24, 015. This was an exclusion in the tax cap calculation. It now must be added back in. Results in $24,015 less in allowable exclusions when calculating the Building aid local share for 2014-15.

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Change to Property Tax Cap Calculation

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Reduces the Allowable levy by $24,015 and from 1.21% to 0.88%

Budget Development 2014-15

Fund Balance & Reserves

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Unassigned Fund Balance & Reserve Summary

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Reserve/Fund BalanceCurrent Balance

EstimatedTransfer to

2014-15 Budget

Remaining Funds

Capital Reserve $808,163 $0 $808,163

Repair Reserve $203,957 $0 $203,957

Workers’ Compensation $87,414 $43,707 $43,707

Unemployment $25,000 $18,000 $7,000

Tax Certiorari $2,796 $2,796 $0

EBALR (excess as allowed by law)

$257,743 $109,866 $147,877

ERS Reserve $462,478 $201,461 $261,017

Unassigned Fund Balance $767,074 $0 $767,074

Total Unassigned FB/Reserves $2,614,625 $375,830 $2,238,795

Impact of Proposed Tax Levy on a $100,000 HouseThis chart estimates the possible 2014-15 tax increases on a property with a $100,000 value with a 0.88% tax levy increase. THIS CHART DOES NOT TAKE INTO ACCOUNT ANY CHANGES IN YOUR TOWN EQUALIZATION RATES AND ASSESSMENTS.

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** Maximum STAR increase per law is 2% over prior year.

2013-14 Actual

2014-15Proposed

BudgetProperty Value $100,000Tax rate per $1000 of assessed value $22.66 $22.86Average School Tax Bill $2,266 $2,286Annual $ tax increase (before STAR) $20Monthly $ tax increase (before STAR) $1.67

Basic STAR Exemption $669 $682**Average tax due after STAR $1,597 $1,604Annual $ tax increase (after STAR) $7Monthly $ tax increase (after STAR) $0.59

State Budget Tax Relief

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Tax relief allows for rebates to be mailed to homeowners over the next two fiscal years beginning this fall: Year 1 – credit will be based on whether the school district

stays at or under the tax cap limit. Year Two – district must have a state approved

government efficiency plan that achieves 3 years of savings and efficiencies of 1% per year of 2014 school tax levy in each of 3 years starting in 2016-17.

Rebate checks will be mailed to taxpayers. Substantial costs to generate & mail large numbers of checks for small $$$ amounts upstate (downstate has higher property taxes/property wealth so they will receive greater rebates).

District taxpayers will receive more than the District is allowed to increase the levy by (Levy increase = 0.88%; tax rebates = 1.46% of 2013-14 taxes).

State Budget Tax Relief

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(1) $1,597 (2013-14 taxes paid) x 1.46% = $23.32

(2) Increase in 2014-15 over 2013-14

$1,604 - $1,597 = $7.00

Tax relief would be the greater of the calculations = $23.32

Tax Freeze Credit on a house with an assessed value of $100,000 is the greater of:

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Budget did not provide any mandate relief. The budget rejected the Governor’s plan to allow special education waivers for flexibility from certain special education requirements.

Statewide Universal Full-Day Pre-K Program - $40 million provided upstate ($300 million to NYC) to incentivize and fund innovative full-day pre-k programs and to encourage program creativity through competition for 2014-15 & 2015-16 school years, with the same dollar amount for each year. Funding is meant to supplement and not supplant programs.

State Budget Tax Relief

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Smart Schools Allocation for Elmira Heights = $936,641 General obligation bond act that must be approved by voters

in November. Districts would have to develop a Smart School investment

plan to outline projects to be undertaken with the allocation which may include: Expansion of instructional space for prekindergarten Expansion of broadband or wireless connectivity School Safety and Security technology Classroom technology projects to acquire learning

technology hardware including but not limited to whiteboards, computer servers, computers and tablets.

State Budget Initiatives

Budget Development 2014-15

Next Steps

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Next Meetings

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Tuesday, April 8th – GST BOCES Annual Meeting.

Wednesday, April 23rd – BOCES Administrative vote

Monday, May 12th – Public Hearing 2015-16 Budget

Tuesday, May 20th – Budget Vote & BOE Elections