HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon
2012‐13 Adopted Budget PTA Presentations
The 2012‐13 Budget Journey Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
2
Property Tax Levy “Cap”
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
• Governor Cuomo imposed a formula for districts to use in an effort to “cap” the growth of property taxes • The “cap” is not a cap; it’s a voter threshold • Formula is flawed since the result of it will be further separating the “haves” and “have‐nots” amongst Long Island school districts • The Governor’s “2% cap” isn’t 2%! • A “cap” on the tax levy does not mean a cap on an individual homeowner’s property taxes – these are two very different concepts! Prioritizing budget reductions
2012‐13 Adopted Budget – PTA Presentations
3
Presenting the proposed 2012‐13 budget
Property Tax Levy “Cap”
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
• HHH Board of Education made a decision to present a 2012‐13 budget which requires a “simple majority” • The District’s calculated Property Tax Levy “Cap” as a result is 2.33% Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Put differently: the 2011‐12 total property tax levy of $178 million can increase by 2.33% for the 2012‐13 school year
2012‐13 Adopted Budget – PTA Presentations
4
The 2012‐13 Budget Journey Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
5
Expenses
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
• Budget development process began in November 2011 to calculate the cost of providing the same level of programs and support services for 2012‐13 as we do in 2011‐12
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Person‐by‐person Budget code‐by‐budget code
• Approximately 80% of budget represents salary and contractually required benefits: 41% for New York State certified staff (teachers/administrators) 14% for Civil Service staff (clerical, custodians, etc) 25% for employee benefits including healthcare, Social Security, Workers’ Compensation, and pension 2012‐13 Adopted Budget – PTA Presentations
6
Expenses
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
• Remaining 20% of budget represents equipment, textbooks, supplies, BOCES, transfers to other funds (capital, debt service, special aid) and borrowing costs for cash flow • Providing the same level of programs and support services next year (2012‐13) as we have this year (2011‐12) would cost us approximately 7% more (over $15 million) than it does today Prioritizing budget reductions
2012‐13 Adopted Budget – PTA Presentations
7
Presenting the proposed 2012‐13 budget
The 2012‐13 Budget Journey Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
8
Revenues • Total expenses must equal total revenue • Revenue comes from three sources: Property taxes State aid “Other”, including use of reserved and unreserved fund balance
2012‐13 Adopted Budget – PTA Presentations
State Aid 11.34%
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
"Other" 6.51%
Property Taxes 82.15%
9
Revenues • Property Taxes
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Total property tax levy is now a fixed amount based on the Property Tax Levy formula For HHH, the 2012‐13 total property tax levy is 2.33% more than prior year $178,147,658
$182,306,191
2011‐12 total property tax levy
2012‐13 estimated total property tax levy
Increase of 2.33% or $4,158,533 2012‐13 Adopted Budget – PTA Presentations
10
Revenues • State Aid
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
New York State passed an on‐time budget HHH State Aid rose by approximately $900,000 from State Aid budgeted in 2011‐12 Aid in many individual categories changed slightly To interpret State Aid, must also understand: Deduct for Local Share of Education for Certain Students Universal Pre‐Kindergarten Aid is NOT general fund money Gap Elimination Adjustment (GEA)
STATE BUDGET 2012‐13 Adopted Budget – PTA Presentations
11
Revenues • State Aid
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
18,000,000 2011‐12
16,000,000
4,790,769
4,554,254
3,259,002
2,882,289
848,574
851,493
946,635
920,989
2,000,000
1,220,310
4,000,000
1,089,746
6,000,000
1,355,779
8,000,000
Expense Driven Aids
1,355,779
10,000,000
17,695,337
12,000,000
17,887,040
2012‐13
14,000,000
‐ Foundation
High Tax
2012‐13 Adopted Budget – PTA Presentations
BOCES
Special Ed
Categorical
Transportation
12
Building
Revenues • Total “other” revenue expected to increase as a direct result of:
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
PILOTs Incremental use of appropriated unreserved fund balance Incremental use of reserved fund balance 6,000,000
2011‐12
5,000,000
2012‐13
4,000,000 3,000,000 2,000,000 1,000,000 ‐ PILOTs
Use of Reserves
2012‐13 Adopted Budget – PTA Presentations
Appropriated Fund Balance
"All Other"
13
• Interest earnings • Adult Ed • Medicare Part D reimbursement • Foster tuition from other districts • Use of facility charges • Health Services from other districts
The 2012‐13 Budget Journey Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
14
Fiscal and Educational Balance • Property Tax Levy “Cap” mandate has shifted the District’s attention from building a budget focused on programs/services first to one which puts expenses and revenues first.
2012‐13 Adopted Budget – PTA Presentations
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
15
Fiscal and Educational Balance • 2012‐13 budget must maintain: • • • • • • • • • • • •
Universal Pre‐K Full‐Day Kindergarten Elementary Class Size Middle School Teaming 27 Advanced Placement Courses 9‐Period MS / HS School Day 6th Grade Foreign Language Special Education / ESL AHAP / Enrichment Research Program Elementary Summer School Elementary Academic Intervention Services in reading and math
2012‐13 Adopted Budget – PTA Presentations
• • • • • • • • • • • •
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Discovery Center / Planetarium Universal Busing Field Trips 131 Athletic Teams Extracurricular Clubs K‐12 Band, Orchestra & Chorus in Grades 4‐12 MS / HS Musicals Hills on Stage LIHSPA for Seniors Participation in SCMEA, NYSSMA and LISFA Technology replacements Drivers’ Education 16
The 2012‐13 Budget Journey Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
17
Prioritizing Budget Reductions
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
• Address budget reductions resulting from enrollment declines first • Equitably distribute reductions across all buildings/areas • Maintain as much of the blending of “AAA” (Academics, Arts and Athletics) as possible • Over $9 million in reductions were required to be made across all areas
Prioritizing budget reductions
2012‐13 Adopted Budget – PTA Presentations
18
Presenting the proposed 2012‐13 budget
The 2012‐13 Budget Journey Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2012‐13 Adopted Budget – PTA Presentations
19
Proposed 2012‐13 Budget • $221,918,299
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
2.75% increase from 2011‐12 budget Lowest budget‐to‐budget increase in 15 years Stays within the Property Tax Levy “Cap”
2012‐13 Adopted Budget – PTA Presentations
20
Proposed 2012‐13 Budget General Support • Expenses supportive of the entire district management effort • Includes legal, BOE, elections, auditors, facilities, BOCES admin charges, and insurance • Includes expenses within the Superintendent, Human Resources, and Business Offices Instruction • K‐12 instructional programs of regular and special ed students • Principals, assistant principals, teachers, guidance counselors, psychologists, attendance, librarians, health services, etc • Also included is summer school, the interscholastic sports program, co‐ curricular activities (clubs) as well as textbooks 2012‐13 Adopted Budget – PTA Presentations
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Transportation • All costs for transporting pupils to and from public, private and parochial schools Undistributed • Employee benefits (including retirement, Medicare, Social Security, Workers' Compensation, unemployment insurance, health insurance, life insurance, etc.) • Debt service (principal and interest payments on outstanding bonds and tax anticipation notes) • Local share for the cost of offering a summer school special education program Community Services • Costs related to community use of District pool
21
Proposed 2012‐13 Budget
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
General Support 19,978,960 9% Community Service 77,751 0%
Undistributed 65,732,992 30%
Instruction 122,013,160 55%
Transportation 14,115,436 6% 2012‐13 Adopted Budget – PTA Presentations
22
Budget Failure • Scenarios: Budget is defeated after two presentations to the voters OR After one defeat where the Board decides not to resubmit a budget to voters
• Requirements: 1. District must adopt a budget with a tax levy less than or equal to the prior year (i.e. 0% growth) 2. Maintain the administrative cap 3. Eliminate all non‐contingent expenses
• Statewide uniform revote date: third Tuesday in June
2012‐13 Adopted Budget – PTA Presentations
23
Budget Failure 1. District must adopt a budget with a tax levy less than or equal to the prior year Overall contingent budget calculation stricken from law
No longer is the contingent budget an increase of the prior year’s budget which represents the lesser of 120% of CPI or 4% No longer does the contingent budget calculation include provisions for exceptions and allowances
0% growth in tax levy For HHH, a contingent budget means an additional over $4 million in cuts $182,306,191
$178,147,658
2012‐13 Proposed Tax Levy
2011‐12 Tax Levy
2012‐13 Adopted Budget – PTA Presentations
$4,158,533 Additional Budget Cuts Required under a Contingent Budget
24
Budget Failure • Scenarios: Budget is defeated after two presentations to the voters OR After one defeat where the District decides not to resubmit a budget to voters
• Requirements: 1. District must adopt a budget with a tax levy less than or equal to the prior year (i.e. 0% growth) 2. Maintain the administrative cap 3. Eliminate all non‐contingent expenses
• Statewide uniform revote date: third Tuesday in June
2012‐13 Adopted Budget – PTA Presentations
25
Budget Failure 2. Maintain the administrative cap
Stay at or below the same proportion of “Admin” to “Program” as existed in prior year Districts are required to report their budget in three parts…
PROGRAM
ADMINISTRATIVE
CAPITAL
78.3% of budget
8.9% of budget
12.8% of budget
• Special Ed and Regular Ed Teacher salaries & benefits • Instructional Technology • Clubs & Sports • Student busing
• The “people and stuff” working to put all the pieces together • Board of Education • Auditors & Attorney fees • Property & Liability insurances • Administrators & Support Staff districtwide • Curriculum Development • BOCES admin charges
2012‐13 Adopted Budget – PTA Presentations
• Custodians, Maintenance and Grounds salaries & benefits • Debt Service • Transfer to Capital
26
Budget Failure • Scenarios: Budget is defeated after two presentations to the voters OR After one defeat where the District decides not to resubmit a budget to voters
• Requirements: 1. District must adopt a budget with a tax levy less than or equal to the prior year (i.e. 0% growth) 2. Maintain the administrative cap 3. Eliminate all non‐contingent expenses
• Statewide uniform revote date: third Tuesday in June
2012‐13 Adopted Budget – PTA Presentations
27
Budget Failure 3. Eliminate all non‐contingent expenses Equipment Student supplies Community use of buildings and grounds Board can elect one of the following two options 1. Eliminate ALL community use of buildings and grounds for the entire year 2. Allow community use of buildings and grounds but charge every single group a fee for such use so that all direct and indirect expenses are 100% covered: » Field use: painting fields, irrigation system fees, water fees, grounds staff salaries/benefits, etc. » Building use: heat/AC, toilet paper, paper towels, maintenance of septic systems, custodial staff salaries/benefits, etc.
2012‐13 Adopted Budget – PTA Presentations
28
Budget Failure • What would a contingent budget look like? Reduction Item
Approximate $
Eliminate all equipment
$ 1,000,000
Eliminate all community use of buildings and grounds Eliminate Planetarium and Discovery Science Center Eliminate Elementary Enrichment program and AHAP Eliminate regular education elementary summer school Eliminate 7th and 8th grade interscholastic teams
$ 100,000 $ 200,000 $ 400,000 $ 200,000
Reduction Item Reduce to half‐day kindergarten Eliminate all extracurricular activity clubs Eliminate remainder of intramurals Elminate 4th and 5th grade orchestra/band Eliminate 8th grade teaming
Approximate $ $ 1,200,000 $ 600,000 $ 75,000 $ 200,000 $ 125,000
$ 100,000
$4,158,533 Additional Budget Cuts Required under a Contingent Budget
2012‐13 Adopted Budget – PTA Presentations
29
Important Dates • Remaining PTA presentations of proposed 2012‐13 budget: Wednesday May 2nd 9:30 am ‐ Chestnut Hill 10:15 am – Vanderbilt 7:30 pm – Sunquam 8:15 pm – Otsego
Tuesday May 8th – 9:30 am – Paumanok Wednesday May 9th 9:30 am – Candlewood 10:15 am – West Hollow
• Tuesday May 15th: Budget Vote and Board of Ed elections 2012‐13 Adopted Budget – PTA Presentations
30