R.E.A.D.The Cost of

Underfunded Mandates

May 2011

READ School Districts: Brewster, Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

R.E.A.D.Meeting GoalsMeeting Goals

Explain our analysis of underfunded mandates.

Illustrate the need for legislation which requires calculating local costs associated with bills before they are enacted.

Illustrate the need to review current mandates to see if there are alternatives to reduce costs.

There are ‘low-hanging’, less politically driven mandates that can be adjusted to reduce tax payer costs immediately.

Illustrate the need to slow down APPR implementation, which could be one of the largest underfunded mandate to date.

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R.E.A.D.R.E.A.D.R.E.A.D.Specific Focus Rolling back underfunded mandates, by making

lawmakers aware of their actual costs

Sharing cost saving ideas among the R.E.A.D. districts

TRS and ERS pension fund shortfalls

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R.E.A.D.Underfunded MandatesUnderfunded Mandates

Be informed: We need to understand where and how funding is spent.

Responsible leadership: We represent taxpayers. These mandates are paid for by local

property taxes.

Accountability and transparency: School districts must show how they spend money.

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R.E.A.D.Underfunded MandatesUnderfunded Mandates

R.E.A.D. created a template that itemizes and presents information on estimating the cost of Underfunded mandates.

Over 90 mandates are included, segmented into categories:

Special Education & Special Services

NCLB Requirements/ Academic Intervention Services AIS/RTI

Transportation

Health & Safety Buildings & Grounds Finance

Professional Development

R.E.A.D. Presentation, Fall 2010 NYSBBA Conference

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R.E.A.D.Underfunded MandatesUnderfunded Mandates

State, Federal and SED mandates are included.

Does not include mandates which R.E.A.D. feels are necessary district obligations.

Does not include costs associated with Benefits (retirement system, health, etc.), Wick’s Law (over the life of the loan), Triborough and other major benefit, negotiation or construction costs.

The compilation is an objective view of mandate costs. Each mandate has cost consequences whether or not they are

beneficial.The list is continuously updated and revised to be a more accurate

representation of mandate obligations. The most recent revision is an update developed in December

2009.R.E.A.D. Presentation, Fall 2010 NYSBBA Conference 6

R.E.A.D.Mandate Cost CalculationMandate Cost Calculation

Each district compiles their own data. NYSBBA and Westchester Putnam School Board Association

(WPSBA) are helping to coordinate the effort.

Definitions for mandate have been developed so that districts are consistent in identifying costs associated with mandates.

Methods for estimating personnel hours and other costs, ST3 locations, etc. are provided to make cost calculations easier.

Templates for estimating testing costs and Wick’s law costs are provided.

R.E.A.D. Presentation, Fall 2010 NYSBBA Conference

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R.E.A.D.Underfunded MandatesUnderfunded Mandates

Categories, descriptions, and account codes are provided. School districts provide actual amounts.

Aid is subtracted from total costs.

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As per SED ST3/Descriptions

R.E.A.D.The Cost of The Cost of Underfunded MandatesUnderfunded Mandates In FY ‘08-09, the total cost for these Underfunded mandates for

seven districts was $94.4 million, or an average of 20% of the entire school budget.

Total School District Budgets: $464.8 million

Source: Underfunded Mandate spreadsheet, 8 districts, FY ’08-’09: Brewster, Carmel, Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

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R.E.A.D.The Cost of The Cost of Underfunded MandatesUnderfunded Mandates

Source: Underfunded Mandate spreadsheet, 8 districts FY ’08-’09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

*Other = Health & Safety (1.4%), Finance (.4%), Buildings and Grounds and other (category not specified) mandates (<1%)

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R.E.A.D.Statewide CostsStatewide Costs

Statewide Costs for Underfunded Mandates 675 Districts

Total FY '08-09 budget for 675 districts $30,805,193,773

% of budget that is due to Underfunded mandates 20%Total Statewide Cost of Underfunded Mandates (extrapolated) $6,161,038,755

* Not including big 5 cities and special act districts.

Source: Underfunded Mandate spreadsheet, 8 districts FY ’08-’09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

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R.E.A.D.The Cost of The Cost of Underfunded MandatesUnderfunded Mandates

The numbers add up quickly for eight school districts...

Over $587,881 in testing costs.

Over $151,460 in internal audit costs.

Over $541,093 in data warehousing costs.

Over $287,338 in special education legal costs.

Over $66,185 in Special Education (STAC) reporting.

Over $118,000 in clerical costs associated with professional development & monitoring highly qualified teacher requirements.

Over $209,779 in inspections, monitoring, and compliance (OSHA, DEC, elevators, fire safety, extinguishers).

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Source: Underfunded Mandate spreadsheet, 8 districts FY ’08-’09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

R.E.A.D.The True Cost Of Underfunded Mandates

Total Costs for Seven Districts

Average Cost Per District

Extrapolated Over 675 Districts*

Testing $587,881 $73,485 $49,602,459

Internal audit and risk assessment $151,460 $18,933 $12,779,438

Data warehousing $541,093 $67,637 $45,654,722

Special Education legal costs $287,338 $35,917 $24,244,144

Special Education (STAC) reporting. $66,185 $8,273 $5,584,359 Clerical costs associated with professional development & monitoring highly qualified teacher requirements. $118,000 $14,750 $9,956,250 Inspections, monitoring, and compliance (OSHA, DEC, elevators, fire safety, extinguishers $209,779 $26,222 $17,700,103

Total Costs for Select Mandates $1,961,736 $245,217 $165,521,475

* Not including big 5 cities and special act districts.

Source: Underfunded Mandate spreadsheet, 8 districts FY ’08-’09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

The Cost of The Cost of Underfunded MandatesUnderfunded Mandates

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R.E.A.D.Legislation Initial RequestsLegislation Initial RequestsMay 2011May 2011

Underfunded mandate reduction act, following the lines of the federal paperwork reduction act. Requires a cost estimate for each new mandate from the legislature or the education

department. These costs would be calculated for the different types of local districts and accumulated for a statewide total mandate cost.

Legislation to reduce the cost of the new comptroller’s audits, which have cost taxpayers more to conduct than they have saved. Reduce the frequency to every two years

Streamline the requirements on districts who have had clean records for two cycles, to a half-cost audit.

Support for the bill allowing amortization of TRS payments (Member Abbate’s Bill Number A06309 - Same as State Senate Number S 4067).

Delay introduction of APPR until costs associated with implementation such as data collection, reporting, training, etc. are known and mechanisms for paying for these costs are implemented. Estimated costs for 6 Rockland districts are $2.7 million per year. Extrapolated to 675

school districts the cost per year could be over $306 million per year.

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R.E.A.D.Brewster Central School District30 Farm to Market RoadBrewster, NY 10509SuperintendentDr. Jane Sandbankjsandbank@brewsterschools.org845-279-8000President of Board of EducationDr. Stephen Jamboroehan@aol.com

Haldane Central School District15 Craigside DriveCold Spring, NY 10516SuperintendentDr. Mark Villantimvillanti@haldane.lhric.org845-265-9254President of Board of EducationDavid Merandydmerandy@haldane.lhric.org

Hendrick Hudson Central School District61 Trolley RoadMontrose, NY 10548SuperintendentDr. Daniel McCannDaniel.McCann@henhudschools.orgPhone: 914-257-5112President of Board of EducationMarion WalshMarion.Walsh@henhudschools.org

R.E.A.D.

R.E.A.D.Highland Falls-Fort Montgomery School District PO Box 287Highland Falls, NY 10928 SuperintendentDr. Debra Jacksondjackson@hffmcsd.orgPhone (845) 446-9575President of the Board of EducationKevin D'Onofriokdonofrio@hffmcsd.org

Lakeland Central School District1086 East Main StreetShrub Oak, NY 10588SuperintendentDr. George Stonegstone@lakelandschools.org914-245-1700, ext. 222President of Board of EducationElizabeth Kogler

R.E.A.D.

R.E.A.D.Croton-Harmon Union Free School District10 Gerstein StreetCroton-On-Hudson, NY 10520SuperintendentDr. Edward R. Fuhrman Jr.*Edward.fuhrman@chufsd.org914-271-4793President of Board of EducationKaren ZevinKaren.zevin@chufsd.org

Garrison Union Free School District1100 Route 9DGarrison, NY 10524SuperintendentGloria J. Colucci*gcolucci@gufs.org845-424-3689President of Board of EducationCarol McCulloughcmccullough@gufs.org

* R.E.A.D. Co-Chairs for 2010-2011

Website: http://www.READ1.Org

R.E.A.D.