Budget Presentation - Corning - Painted Post School District

BUDGET
PRESENTATION
to the
BOARD OF EDUCATION
Mike Ginalski, Superintendent
Jeff Delorme, Asst. Supt. ‐ Adm. Services
Paul Webster, School Business Official
Michelle Caulfield, Director of Secondary Education
Kerry Hochreiter, Director of Elementary Education
March 13, 2013

This presentation will provide the Board
with the following information:
Review of District Budget Status
Update on Tax Cap Law and Use of
Propositions
Potential Budget Reductions
Impact of Potential Budget Reductions
2

CPP Preliminary Budget Estimates
3/6/2013
CURRENT YEAR
Preliminary
Estimates Percent of WHAT IF
12-13 13-14 Expenditures INCREASE CHANGE
DEBT SERVICE $ 5,454,995 $ 6,219,294 6% 14.01% $ 764,299
SALARIES $ 41,538,326 $ 42,159,205 44% 1.49% $ 620,879
FRINGE BENEFITS $ 27,521,443 $ 28,880,989 30% 4.94% $ 1,359,546
TRANSPORTATION $ 3,922,035 $ 3,746,117 4% -4.49% $ (175,918)
UTILITIES $ 2,113,364 $ 1,713,000 2% -18.94% $ (400,364)
BOCES $ 7,678,698 $ 8,550,367 9% 11.35% $ 871,669
OTHER EXPENDITURES $ 4,724,823 $ 4,770,858 5% 0.97% $
46,035
TOTAL COSTS $ 92,953,684 $ 96,039,830 100% 3.32% $ 3,086,146
ADDITIONAL IDENTIFIED NEEDS $ 1,329,375
NEW TOTAL COSTS $ 97,369,205
STATE OPERATING AID (FOUNDATION AID) $ 27,303,157 $ 27,302,499
Percent of
Revenues
30% 0.00% $
(658)
STATE AID TRANS, BOCES, BLG $ 12,486,336 $ 12,465,465 14% -0.17% $
(20,871)
OTHER REVENUES $ 4,514,886 $ 4,650,332 5% 3.00% $ 135,446
FUND BALANCE APPROPRIATION $ 1,100,036 $ 1,100,036 1% 0.00% $
-
TRANSFER FROM DEBT SERVICE $ - $ 842,100 1% 0.00% $ 842,100
TRANSFER FROM ERS RESERVE $ 700,000 $ 700,000 LESS THAN 1% 0.00% $
-
TRANSFER FROM UNEMPLOYMENT RESERVE $ 300,000 $ 100,000 LESS THAN 1% -66.67% $ (200,000)
TRANSFER FROM LIABILITY RESERVE $ - $ - 0% 0.00% $
-
GAP ELIMINATION ADJUSTMENT $ (6,403,878) $ (5,801,281) -6% -9.41% $ 602,597
CORNING INC. FOUNDATION GRANT 5,300,000 0 0% -100.00% $ (5,300,000)
SUB TOTAL OF REVENUE $ 45,300,537 $ 41,359,151 46% -8.70% $
(3,941,386)
3

CPP Preliminary Budget Estimates
3/6/2013
CURRENT YEAR
Preliminary
Estimates Percent of WHAT IF
12-13 13-14 Expenditures INCREASE CHANGE
TOTAL COSTS $ 92,953,684 $ 96,039,830 100% 3.32% $ 3,086,146
ADDITIONAL IDENTIFIED NEEDS $ 1,329,375
NEW TOTAL COSTS $ 97,369,205
Percent of
Revenues
SUB TOTAL OF REVENUE $ 45,300,537 $ 41,359,151 46% -8.70% $ (3,941,386)
TAX LEVY $ 47,653,147 $ 49,376,421 54% 3.62% $ 1,723,274
TOTAL REVENUE $ 92,953,684 $ 90,735,572 100% -2.39% $ (2,218,112)
ESTIMATED SURPLUS OR (DEFICIT) $ - $ (6,633,633)
ESTIMATED BUDGET FOR VOTER APPROVAL $ 87,653,684 $ 90,735,572
3.52%
4

2012-13 Tax Levy $ 47,653,147
IF 2013-14 Cumulative
2013-14 Total Proposed Incremental Increase in 2013-14
Tax Levy Tax Levy Increase in Tax Revenue Projected
Increase Is Would Be Tax Revenue from 2012-13 Budget Deficit
3.62% $49,376,421 $1,723,274 $1,723,274 ($6,633,633)
4.62% $49,854,722 $478,301 $2,201,575 ($6,155,332)
5.62% $50,331,254 $476,532 $2,678,107 ($5,678,800)
6.00% $50,512,336 $181,082 $2,859,189 ($5,497,718)
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QUESTION –WHAT IS THE “STATUTORY TAX LEVY INCREASE
LIMIT”?
ANSWER – THE STATUTORY TAX LEVY INCREASE REFERS TO
THE PERCENTAGE INCREASE IN THE TAX LEVY ALLOWABLE
UNDER THE CAP FROM THE PREVIOUS YEAR THAT REQUIRES
APPROVAL OF ONLY THE MAJORITY OF VOTES CAST IN THE
ANNUAL SCHOOL DISTRICT BUDGET VOTE
2013‐14 TAX LEVY LIMIT FOR C‐PP = 3.62%
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QUESTION –ARE VOTERS VOTING ON THE TAX LEVY
INCREASE OR A SPENDING PLAN?
ANSWER – VOTERS VOTE ON THE BUDGET/SPENDING
PLAN HOWEVER, IF THE BUDGET REQUIRES A LEVY
(NOT INCLUDING PERMISSIBLE EXCLUSIONS) IN
EXCESS OF THE LEVY LIMIT, VOTERS MUST APPROVE
THE BUDGET BY A 60 PERCENT OR GREATER MARGIN
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QUESTION – WHAT ARE THE DIFFERENT KINDS OF
SCHOOL DISTRICT PROPOSITIONS?
ANSWER –
• Proposition for additional transportation service
• Proposition for educational programs
• Proposition for capital expenditure
• Proposition for transportation capital expenditure
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QUESTION –IFA SCHOOL DISTRICT BUDGET IS PRESENTED UNDER THE
CAP AND THE ADDITION OF A PROPOSITION CREATES A BUDGET OVER
THE CAP, WHAT LEVEL OF VOTER APPROVAL IS REQUIRED?
ANSWER –
• Proposition for additional transportation service –60% required for
budget and proposition
• Proposition for educational programs –60% required for budget and
proposition
• Proposition for capital expenditure –simple majority (50% plus one
vote) required
• Proposition for transportation capital expenditure –simple majority
(50% plus one vote required)
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QUESTION –IFA SCHOOL DISTRICT BUDGET IS PRESENTED UNDER THE CAP AND THE ADDITION
OF A PROPOSITION CREATES A BUDGET OVER THE CAP, AND THE PROPOSITION PASSES AND THE
BUDGET FAILS WHAT IS THE OBLIGATION OF THE DISTRICT?
ANSWER –
• Proposition for additional transportation service – district must provide
additional transportation service within contingency budget ( zero levy
increase)
• Proposition for educational programs – district may have the authority to
provide the educational program, within the contingency budget (zero levy
increase)
• Proposition for capital expenditure – district may make the capital expenditure
within the contingency budget (zero levy increase)
• Proposition for transportation capital expenditure – district may make the
expenditure within the contingency budget (zero levy increase)
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QUESTION –IFA SCHOOL DISTRICT BUDGET IS PRESENTED UNDER THE CAP AND THE ADDITION
OF A PROPOSITION CREATES A BUDGET OVER THE CAP, AND THE PROPOSITION FAILS AND THE
BUDGET PASSES WHAT IS THE OBLIGATION OF THE DISTRICT?
ANSWER –
• Proposition for additional transportation service –no authority to provide
additional transportation service, budget can be implemented as approved
• Proposition for educational programs – no authority to make the expenditure,
budget can be implemented only as approved
• Proposition for capital expenditure –no authority to make the capital
expenditure, budget can be implemented as approved
• Proposition for transportation capital expenditure –no authority to make the
transportation capital expenditure, budget can be implemented as approved
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QUESTION –WHAT HAPPENS IF THE BUDGET IS NOT APPROVED BY
THE PUBLIC?
ANSWER –
• The district may resubmit the original budget or submit a revised budget
to the voters on the third Tuesday in June OR
• Adopt a contingency budget that levies a tax not greater than that of
the prior year (0% increase in tax levy)
• If the resubmitted/revised budget proposal is not approved by the required
margin:
- The Board of Education must adopt a budget that levies a tax no greater than that of the
prior year (0% increase tax levy) and the budget would be subject to contingent budget
requirements.
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If the budget is defeated twice:
Tax levy increase = O %
• No exemptions in calculating tax levy
• Result: Need to reduce the budget by an additional
$ 1.723 million
Previous contingent budget rules apply
• Administrative cap is in effect
• Non‐contingent expenses removed (ex. no equipment purchases)
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Group 1
Reduction Item Amount Positions Impact
Vision for Elementary Education 610,728 14.00 Reduces support for management
of students, small group instruction,
DASA implementation,
parental/community communication
and support.
Vision for Secondary Education 718,647 11.00 Reduces support for management
of students and parent
communication and support, DASA
implementation, opportunities for
Advanced Regents through elective
opportunities.
Total 1,329,375
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Group 2
Reduction Item Amount Positions Impact
Reduce Utilities 50,000 Eliminates Kent Phillips budget,
eliminates current phone support
BOCES Budget 100,000 Reduces summer school and
curriculum development support
Additional Use of
Reserves
300,000 Additional Use of ERS Reserves
Total 450,000 1,779,375
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Group 3
Reduction Item Amount Positions Impact
Athletics/Co-Curricular
Activities
1,290,713 4.00 Eliminates all programs and
opportunities outside of the
classroom.
Total 1,290,713 3,070,088
16

Group 4
Reduction Item Amount Positions Impact
Secondary Curriculum
Expenses
350,576 Eliminates all Middle and High
School expenses and fees for
curriculum instruction and
assessment.
Total 350,576 3,420,664
17

Group 5
Reduction Item Amount Positions Impact
Business 120,640 2.00 Eliminates the MYP program,
all non-mandated state
Foreign Language Chinese 46,232 1.00
courses, elective opportunities
for middle school students.
Foreign Language French 180,960 3.00 Reduces support for
Foreign Language Spanish 241,281 4.00
curriculum development and
implementation of state
mandates.
Helping Teacher Staff
Development
60,320 1.00
Music 120,640 2.00
Total 770,074 4,190,738
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Group 6
Reduction Item Amount Positions Impact
Business 120,640 2.00 Reduces any opportunities for the
Advanced Regents diploma,
impacts the opportunity for the fourth
English 60,320 1.00 year of math for all students.
Math
Social Studies
60,320
60,320
1.00
1.00
Eliminates all elective opportunities
for students in business and
technology. Reduces support for
Technology 180,960 3.00 curriculum development and
implementation of state mandates.
Helping Teacher Staff
Development
120,640 2.00
Total 603,202 4,793,939
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Group 7
Reduction Item Amount Positions Impact
Teaching Assistants 109,067 11.00 Reduces support for the students
Reading
in need of academic intervention
Teaching Assistants
Grade 2
Teaching Assistants
Grade 1
114,420
121,960
18.00
18.00
services. Reduces opportunity for
small group and individual
instruction in core subject areas.
Reduces support in the
management of students.
Teaching Assistants
Kindergarten
141,643 20.00
Total 487,090 5,281,029
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Group 8
Reduction Item Amount Positions Impact
Art (Elementary) 251,259 4.00 Eliminates all related arts
opportunities for every student
Library (Elementary) 251,259 4.00 at this level. Requires
Music (Elementary) 376,889 6.00
classroom teachers to meet the
Physical Education mandates.
Physical Education
(Elementary)
502,518 8.00
Total 1,381,925 6,662,954
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Total budget reduction =
$6,662,954
Current Positions directly impacted = 116
Total Positions =141
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• Board direction and further discussion
• Final NYS budget – final state aid figures
• Final District budget adoption on April 17, 2013
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