HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon
Board of Education Meeting March 19, 2012 Update on the 2012‐13 Proposed 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
March 19, 2012 Board Meeting
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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
March 19, 2012 Board Meeting
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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
March 19, 2012 Board Meeting
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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
March 19, 2012 Board Meeting
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Expenses
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
• Just completed the process which 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 March 19, 2012 Board Meeting
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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
March 19, 2012 Board Meeting
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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
March 19, 2012 Board Meeting
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Revenues • Total expenses must equal total revenue • Revenue comes from three sources:
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
Property taxes (about 83% of total revenue) State aid (about 11% of total revenue) “Other”, including use of reserved and unreserved fund balance (about 6% of total revenue)
• Total property tax levy is now a fixed amount based on the Property Tax Levy formula • State aid expected to rise by approximately $600,000 Final State budget due out on April 1st…more to come
March 19, 2012 Board Meeting
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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
March 19, 2012 Board Meeting
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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
March 19, 2012 Board Meeting
11
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.
March 19, 2012 Board Meeting
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
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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
March 19, 2012 Board Meeting
• • • • • • • • • • •
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 Participation in SCMEA, NYSSMA and LISFA Technology replacements Drivers’ Education 13
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
March 19, 2012 Board Meeting
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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
Prioritizing budget reductions
March 19, 2012 Board Meeting
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Presenting the proposed 2012‐13 budget
Prioritizing Budget Reductions • Over $9 million in reductions were required to be made across all areas • Handout describes each of these reductions
March 19, 2012 Board Meeting
Property Tax Levy “Cap”
Expenses
Balancing fiscal responsibility and excellence in education
Revenues
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
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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
March 19, 2012 Board Meeting
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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”
• Public presentations to continue after the Board adopts the proposed budget
March 19, 2012 Board Meeting
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Important Dates • Thursday, April 19th: 2012‐13 Proposed Budget adopted by Board of Education • April 20th through May 11th: Various public presentations regarding the budget – dates/locations to be posted on the website • Tuesday, May 15th: Budget Vote and Board of Education elections
March 19, 2012 Board Meeting
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