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ACADEMICS, ATHLETICS ARTSPerfectly blending and the

A Guide to Understanding

the BudgetProcess

A Guide to Understanding

the BudgetProcess

Dear Community Members,

We are pleased to be able to provide you with this

budget handbook, which was designed to answer

some of the questions that have been asked about

the budget process at various school venues. It is the intention of the

Board of Education and District Administration to continue

our policy of openness and transparency with all constituents in

our schools and community. We hope you will find this

handbook informative.

Sincerely,

Superintendent’s MessageSuperintendent’s Message

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Inside this handbook...

About Half Hollow Hills ..... 4-5

What’s the purpose of the budget? ...................... 6

What are the budget goals? ....................... 6

What are the challenges for 2009/10? ......................... 6

What’s a contingency budget? ................................. 7

What will happen if the budget doesn’t pass? ........... 7

How is the proposed budget developed? ............... 8

What does the District do to safeguard taxpayers? .......... 9

Impact of State aid cuts ........................ 10 -11

2009/10 voting information .......................... 12

District bond rating ............ 12

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About Half Hollow Hills…The District maintains 14 buildings occupyingapproximately1.5 million square feet, covering over 300 acres of property, including over 35 athletic fields.

Universal transportation for District students requiresover 90 buses. (We make approximately 510 tripsdaily – 255 twice a day.) Special needs routes requirean additional 38 mini buses, and transportation to

out-of-district, private and parochial schools necessitates the use of anadditional 48 buses. The District also transports students for technicalschools, cultural and educational events and athletics, and providesafter-school activity buses for all grade levels. We use 25 buses forregular summer school and 15 for special needs students.

The District employs 52 administrators (Central Officeand all buildings); 854 full-time teachers; 18 parttime-teachers; and 821 non-certificated employees –including clerical, custodians, maintenance, monitors,

paraprofessionals, food service, bus drivers and technology staff.

High School East and High School West haveapproximately 60 clubs, including an Internet Club, Literary Magazine and Environmental Club.

Opportunities in art include a full range of electives,clubs and art service clubs. Music opportunities include marching band,jazz band, orchestra, chorus and theater performances for grades 5-12.

The high schools and middle schools each present fall and springproductions, and the fifth graders present a joint production under the title Hills on Stage.

A wide variety of interscholastic sports teams are fielded. There are 135different teams throughout the District, representing 28 different sportsat the high school level and 17 at the middle school level. Many teamsare recognized by New York State as Scholar-Athlete teams.

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"Triple A" District: Our students andour schools excel on every level – inAcademics, Athletics and the Arts.

• Standard & Poor’s Outperforming School District

• New York Excelsior Award

• Commissioner’s List of High-Achieving Gap-Closing Schools:

High School East, High School West, Candlewood, West Hollow

• Our high schools offer 25 AP courses with 130 available electives

• Model Program for Children with Autism

• Rising Star Program: Ensuring a High Level of Success for

Socio-Economically Disadvantaged and Minority Students

• Highly Regarded Research Program

• Triple A District: Perfectly Blending Academics, Athletics

and the Arts

• World-Class Theatre Programs for Elementary, Middle School

and High School Students

• Multi-Award Winners of the Prestigious Long Island Arts

Alliance Scholar-Artist Awards

• Suffolk County Championships in Basketball, Soccer,

Swimming/Diving, Track and Wrestling

• 2008 SCMEA All-County Concerts: Highest Number of

Participants in Grades 5 through 10

Half Hollow Hills’ student achievement levels are among

the highest on Long Island,while our per-pupil spending

is among the lowest on Long Island.5

To meet the educational and fiscal goals of the District by supporting theeducational mission, planning for the operational needs of the Districtand maintaining financial integrity.

What is the purpose of the budget?

• To maximize the achievement of all students by strengtheningour Districtwide Professional Learning Community

• To continue to develop, deliver and implement a budget thatstrengthens and maximizes all of our resources while diminishing thefinancial impact on taxpayers

• To ensure equitable opportunities and equitable outcomes for allstudents and continue to review programs to ensure consonance withlatest research on educational excellence

• To continue to address demographics and space needs to ensureappropriate learning environments for all students

• To continue to support the physical & mental health and wellbeing of all District students and staff

• To continue to improve and upgrade the appearance, safety andfunctionality of all District buildings and grounds

• To embrace technology to strengthen teaching, learning and manage data

• To improve communication between and among all stakeholders

What are the budget goals?

• To run an efficient system without negatively impacting programs for our students

• New York State’s economic crisis• The Governor’s Deficit Reduction Plan, if approved, would reduce

our State aid by $2,932,698• A proposed mandate for districts to fund 15 percent of preschool

special education and transportation, currently funded by NYS andSuffolk County. This new mandate would cost Half Hollow Hills an additional $1 million. This proposal is not included in our current budget.

• A proposed mandate to implement an employer payroll tax onbusinesses, municipalities, not-for-profits and school districts,to bail out MTA. This would cost Half Hollow Hills over $400,000.

What are the challenges for 2009/10?

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Under State law, school boards can submit a budget to voters amaximum of two times. If the proposed budget is defeated twice,the Board must adopt a contingency budget. The Board also has theoption of going directly to a contingency budget immediately after afirst budget defeat. Under a contingency budget, the District may notincrease spending by more than 120 percent of the Consumer PriceIndex or 4.0 percent, whichever is lower. The contingent budget formula cap for 2009/10 is 4.0 percent, as per the New York StateEducation Department.

The 2009/10 budget currently being prepared is already below the State's formula cap.

What is a contingency budget?

Required cuts from the proposed budget would, at a minimum, includestudent supplies, community use of buildings and grounds, andequipment, buses and capital projects.

What will happen if the 2009/10 budgetdoesn't pass due to NYS regulations?

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Throughout the year, the Board of Education Sub-Committee meetsand performs a line-by-line analysis of the entire budget.

From July through September, the Business Office works diligently to close the financials from the previous fiscal year. The District’sexternal auditors independently review the financials from the previous fiscal year, and a review and analysis begins for the current year’s fiscal responsibilities.

On a monthly basis beginning in September, the PTA BudgetCommittee reviews the current year’s budget. The Committee includescommunity members representing the various schools throughout theDistrict, Board of Education members and Central Administration. This is a line-by-line analysis of every budgeted dollar in the District.

In October preparations for the following year’s budget begins. TheBoard of Education adopts a budget calendar providing a timeline forCentral Administration and the Board to meet. The Business Office also disseminates budget development packets to all necessary staff. InNovember, proposals for equipment purchases, plant and capital projectrequests are provided to the Business Office. In December, equipment,plant, and capital project requests are reviewed with building principals.In January, projections for the next school year’s staffing are analyzedalong with enrollment projections. In February, Central Office reviewsa first draft of the budget. Detailed analyses of all projections take placeand necessary revisions are made.

The Budget is then presented to the Board of Education by March 1.

Budget work sessions with the Board of Education and community are held beginning in March. The Board of Education and CentralAdministration continue an in-depth analysis of the proposed budget.The PTA Budget Committee also provides input at the monthly meeting.

The Board of Education officially adopts a budget in April.Details of the projected budget are presented during April and May.Information regarding the proposed budget is disseminated to the entirecommunity during the weeks preceding the budget vote in May.

How is the proposed budget developed?

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The Half Hollow Hills School District recognizes and understandsthat we have a responsibility to ensure that tax money is spentefficiently and effectively. Our primary objective is to provide thebest education for our children in keeping with our commitment tohonesty, integrity and transparency. These are some of the internalcontrols that are in place to safeguard taxpayer and State aid dollars:

What does the District do to safeguard taxpayer dollars?

• The Board of Education exercises careful oversight concerningall of the District’s financial transactions.

• The Board of Education, as well as the administrative staff hasattended numerous workshops that focused on internal controls.

• The Board of Education has adopted additional policiesgoverning the financial management and operation of the District.

• The District maintains strict segregation of duties. This is toensure that the assets of the District are safeguarded.

• Three individuals (minimum) are required to process checks.

• Two individuals (minimum) are required to authorize wire transfers.

• Bank reconciliations are performed monthly by an individualoutside of the cash receipts and cash disbursements functions.

• Payroll audits are performed for every biweekly payroll.

• Two approvals (minimum)are required to process all purchaseorder requests.

• The District follows all NYS regulations, which include thehiring of an independent claims auditor, internal auditor, andexternal auditor.

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Over the past months, the District hastaken an active role in opposing bothcuts to State aid for our schools andthe implementation of any newunfunded mandates, which place a financial burden on taxpayers.

Governor's Proposal Would HaveCost HHH $4.4 Million*

“A good education may be okay in somedistricts, but ourstandards are muchhigher. How can we maintain the resources to hire the best and brightest teachers,to provide universitylevel professionaldevelopment, affordstudents and staff with the opportunity to work with state-of-the-art technologies and maintain qualityfacilities and fieldswhen annual cutscontinually jeopardizeour budget?”

- Superintendent Dr. Sheldon Karnilow

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• Governor’s proposed deficitreduction assessment to Half Hollow Hills:$3.0 million restored

• Governor’s proposed shift ofpreschool special educationcosts from the State/County to Half Hollow Hills:$1.0 million eliminated

• Governor’s proposal to imposeemployer tax on all businessesincluding school districts to fill MTA payroll tax: $400,000not yet decided

• Total cost of Governor’s originalproposal to Half Hollow Hills:$4.4 million

* As indicated above, our lobbyingefforts helped to significantly reducethe potential tax burden facing ourcommunity by the Governor.

A recent letter to Governor Paterson from Superintendent Dr. Sheldon Karnilow

In addition to the Deficit Reduction Assessment (DRA), the Half Hollow Hills Central School District strongly opposes any new unfunded mandates. Every report issued acknowledges that mandates are a significant factor in the growth of school district expenses, and thereports call for no unfunded mandates. Your own proposal has indicated a reduction in unfunded mandates. Yet, also in your budget is a proposalto shift 15% of pre-school special education expenses (currently fundedthrough the State and Counties) to school districts. This contradictoryproposal would cost taxpayers in the Half Hollow Hills Central SchoolDistrict an additional $1 million. This proposal would allow the State and Counties to lower their costs, while significantly increasing schooldistrict expenses.

A second new unfunded mandate proposal that is problematic for us isthe MTA payroll tax on all employers, including school districts, withinthe MTA region. This new 0.33% payroll tax would create an additionalexpenditure to the Half Hollow Hills Central School District ofapproximately $400,000. We respectfully request that our DRA bereinstated, any new unfunded mandates be removed from your budget,and unfunded mandates already in place be reprieved.

Thank you for your consideration.

Sincerely,

Dr. Sheldon KarnilowSuperintendent of Schools

March 4, 2009

Governor David A. Paterson State CapitolAlbany, NY 12224

Dear Governor Paterson:

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Bond rating is an independent evaluation of a bond issuer. It is based onan analysis of the issuer's financial condition and asset base. Bond ratingservices are provided by, among others, Standard & Poor's and Moody'sInvestors Service.

Moody's Investors Service has assigned a Aa2 rating to the Half Hollow Hills Central School Districts. This rating is given to bondsthat are judged to be of high quality by all standards. The Aa2 ratingreflects the District's substantial Suffolk County tax base, solid financialposition and below average debt burden. Moody's believes the District'ssubstantial $13.6 billion tax base will remain stable, and expects that theDistrict's financial position will remain strong, given our prudentbudgeting practices and effective management of our reserve.

Our District Bond Rating

Tuesday, May 19High School East

7am-10pm

If you are not registered to vote,you may do so on any school day at the District Clerk’s office.

Special Voter RegistrationSaturday, May 2, 10am-1pm

Wednesday, May 13, 9am-8pm

Last Day to RegisterMay 14

District Clerk’s office

Absentee BallotsApplications must be received by May 12 if the ballot is to be

mailed to the voter, or by May 18 if ballot is to be picked up in person.Absentee ballots must be cast by 5 pm on Tuesday, May 19.

Half Hollow Hills 2009/2010 Budget Vote