HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon
2015-16 Proposed Budget March 23, 2015 Budget Workshop Updated as of March 20, 2015
2015-16 Proposed Budget – Discussion Areas Student Enrollments
Staffing
Property Tax Levy Cap
Employee Benefits
State Aid
Transfer to Capital
March 23, 2015 Board Meeting
2
2015-16 Proposed Budget – Discussion Areas Student Enrollments
Staffing
Property Tax Levy Cap
Employee Benefits
State Aid
Transfer to Capital
March 23, 2015 Board Meeting
3
Kindergarten Enrollments 800 Blue bar represents actual kindergarten registrations as of March 20, 2015
700 600 500
466
475 418
421
446
435
408
373
400 300
200 100 0 2013-14
2014-15
2015-16
Demographic projection
March 23, 2015 Board Meeting
2016-17
2017-18
Actual/Estimated
4
Twelfth Grade Enrollments Blue bar is estimated and represents 2014-15 school year eleventh graders
1,100 1,000 900
889 832
877
815
896 840
851 806
800 700
600 500 400
300 200 100 0 2013-14
2014-15
2015-16
Demographic projection
March 23, 2015 Board Meeting
2016-17
2017-18
Actual/Estimated 5
Declining Enrollment Trend 1,000 900 800 700 600 500 400 300
200 100 0 2013-14
2014-15
2015-16
Seniors
2016-17
2017-18
Kindergarteners
Figures used are actuals for 2013-14 and 2014-15 and demographic projections for 2015-16 and forward.
March 23, 2015 Board Meeting
6
Total Enrollments – 1954 through 2014 14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
March 23, 2015 Board Meeting
7
2015-16 Proposed Budget – Discussion Areas Student Enrollments
Staffing
Property Tax Levy Cap
Employee Benefits
State Aid
Transfer to Capital
March 23, 2015 Board Meeting
8
Elementary Staffing Projections 2014-15 ACTUAL
2015-16 PROJECTION
140 Total Sections Grades K-5
137 Projected Total Sections Grades K-5
Actual kindergarten enrollment as of 3/20/2015 = 421
Kindergarten registration still in process Kindergarten enrollments: Demographer projection = 446 Actual as of 3/20/2015 = 373
March 23, 2015 Board Meeting
9
Secondary Staffing Projections GENERAL EDUCATION
Net reduction of one sixth grade class due to smaller enrollments moving up from elementary level. Scheduling of students in Grades 7 through 12 adequately met by existing staff.
March 23, 2015 Board Meeting
SPECIAL EDUCATION
Addition of 6.2 full time equivalent special education teachers as a result of: • Meeting requirements set forth in Individualized Educational Plans • Scheduling of special education classes
10
2015-16 Proposed Budget – Discussion Areas Student Enrollments
Staffing
Property Tax Levy Cap
Employee Benefits
State Aid
Transfer to Capital
March 23, 2015 Board Meeting
11
Healthcare Expenses • Unlike most other districts, HHH employees contribute to the cost of healthcare commensurate with their salary • Most employees follow this contribution schedule: Under $60,000 = 15% of premium Between $60,000 and $100,000 = 20% of premium Over $100,000 = 25% of premium March 23, 2015 Board Meeting
12
Healthcare Expenses • Districts required to meet the mandates of the Affordable Care Act, the full financial impact of which is still yet to be determined • Affordable Care Act key concepts:
Individual healthcare plan only Minimal essential coverage Affordability Full time status (30+ hours of service/week)
March 23, 2015 Board Meeting
13
Healthcare Expenses • District offers two different healthcare programs: New York State Health Insurance Program (NYSHIP)/Empire Plan Approximately 1,900 participants (actives and retirees)
HIP/Emblem Health Approximately 65 participants (actives and retirees)
March 23, 2015 Board Meeting
14
Healthcare Expenses • NYSHIP/Empire 2015 plan year represents second year of the Empire Plan’s full conversion to a self-funded plan. Department of Civil Service governs the Plan and develops “premium equivalent” rates Plan year = traditional calendar year District required to estimate projected rate increases for last six months of following school year March 23, 2015 Board Meeting
15
Healthcare Expenses • HIP/Emblem Health Lower out-of-pocket costs with each use, but higher overall premiums Plan year = traditional calendar year District required to estimate projected rate increases for last six months of following school year
March 23, 2015 Board Meeting
16
Budgeting for the Healthcare “Unknown” 2015
2016
These healthcare premiums we DON’T know… Healthcare School district budgets cross two premiums set for a calendar year calendar years These healthcare premiums we know…
March 23, 2015 Board Meeting
17
EMPLOYEE BENEFITS Healthcare budgeting unpredictability is caused by‌
Known vs unknown premium increases
Individual vs family plan mix
New vs exiting participants
Empire/NYSHIP vs HIP/Emblem Health mix
March 23, 2015 Board Meeting
18
Healthcare Expenses NYSHIP/Empire Healthcare Premium Increases 16% 14% 12% 10%
Year 1 of selffunded plan
8%
6%
Year 2 of selffunded plan
4% 2% 0% 2009
2010
2011 Family Plan
March 23, 2015 Board Meeting
2012
2013
2014
Individual Plan 19
2015
Healthcare Expenses HIP/Emblem Health Healthcare Premium Increases 16%
About 30% of participants migrated to lower cost NYSHIP/Empire Plan
14% 12% 10% 8%
6% 4% 2% 0% 2009
2010
2011 Family Plan
March 23, 2015 Board Meeting
2012
2013
2014
Individual Plan 20
2015
EMPLOYEE BENEFITS HISTORY OF HEALTHCARE EXPENSES 28,000,000
10% 23,000,000
10%
-1%
2%
5%
7%
18,000,000
13,000,000
8,000,000
3,000,000
(2,000,000)
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
21
2015-16 EST
Pension Expenses - TRS • The New York State Teachers’ Retirement System (TRS) is charged with administering the plan as provided by law • Membership in this System is mandatory and automatic for all full-time teachers and administrators • Contribution rates as a percent of salary are established by TRS and automatically deducted from a District’s State Aid • One contribution rate is set each year for all districts March 23, 2015 Board Meeting
22
History of TRS Contribution Rates 25%
20%
1978-79 21.4% 15%
10%
5%
2015-16 13.5%
2002-03 0.4%
0%
March 23, 2015 Board Meeting
23
History of TRS Rates - Increases/Decreases 125%
2003-04 123% year-over-year rate increase
105% 85%
2004-05 year-over-year rate increase was actually 600%
65% 45%
2014-15 2013-14 8% 38% 2015-16 year-over-year rate year-over-year rate -23% increase increase year-over-year rate decrease
25% 5% -15% -35%
1979-80 5% year-over-year rate increase
-55% -75% March 23, 2015 Board Meeting
2002-03 -70% year-over-year rate decrease 24
EMPLOYEE BENEFITS HISTORY OF TRS EXPENSES 18,000,000 16,000,000
8%
-16%
14,000,000
36% 12,000,000
8% 10,000,000
28%
8,000,000
48% 6,000,000 4,000,000 2,000,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
25
2015-16 EST
Pension Expenses - ERS • New York State and Local Retirement System comprises two different retirement systems: Employees’ Retirement System (ERS) & Police and Fire Retirement System • Membership in ERS must be offered to employees in nonteaching positions (clerical, custodial, bus drivers, paras, etc.) • The New York State Comptroller is the administrative head of the System • Contribution rates as a percent of salary are established by ERS and vary based on when the employee joined the retirement system (i.e. which retirement tier the employee is in) • ERS fiscal year is April 1st through March 31st March 23, 2015 Board Meeting
26
History of ERS Contribution Rates 22% 20%
18%
1978 19.8%
16%
2016 18.2%
14% 12%
10% 8% 6% 4%
1991 0.3%
2% 0%
March 23, 2015 Board Meeting
27
History of ERS Rates - Increases/Decreases 300% 250% 200% 150%
100% 50% 0% -50% -100% March 23, 2015 Board Meeting
28
EMPLOYEE BENEFITS HISTORY OF ERS EXPENSES 6,000,000
4%
5,000,000
9%
1%
12% 4,000,000
43%
3,000,000
54% 2,000,000
1,000,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
29
2015-16 EST
EMPLOYEE BENEFITS HISTORY OF SOCIAL SECURITY EXPENSES 10,000,000
9,000,000
-2%
4%
2%
8%
4%
0%
8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
30
2015-16 EST
EMPLOYEE BENEFITS HISTORY OF WORKERS’ COMPENSATION EXPENSES 1,200,000
8%
-14%
31%
1,000,000
-10% 50%
800,000
-10%
600,000
400,000
200,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
31
2015-16 EST
EMPLOYEE BENEFITS HISTORY OF LIFE INSURANCE EXPENSES 600,000
500,000
3%
-1%
-3%
-2%
8%
1%
400,000
300,000
200,000
100,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
32
2015-16 EST
EMPLOYEE BENEFITS HISTORY OF UNEMPLOYMENT EXPENSES 400,000 350,000 300,000
-60%
104% 250,000
-8%
200,000
127%
33% 150,000
-26%
100,000 50,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
33
2015-16 EST
EMPLOYEE BENEFITS HISTORY OF DENTAL EXPENSES 1,000,000
8%
800,000
6%
3%
2%
4%
2%
600,000
400,000
200,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
34
2015-16 EST
EMPLOYEE BENEFITS HISTORY OF OPTICAL EXPENSES 35,000
30,000
-1% -10% -5%
25,000
20%
-5%
10%
20,000
15,000
10,000
5,000
2009-10
2010-11
March 23, 2015 Board Meeting
2011-12
2012-13
2013-14
2014-15 EST
35
2015-16 EST
2015-16 Proposed Budget – Discussion Areas Student Enrollments
Staffing
Property Tax Levy Cap
Employee Benefits
State Aid
Transfer to Capital
March 23, 2015 Board Meeting
36
Understanding the PTLC
March 23, 2015 Board Meeting
37
Understanding the PTLC Sample School District HHH Merrick
Reported PTLC %*
PTL as a % of Total Budget
2.42% 2.40%
2014-15 Tax Levy 2015-16 Tax Levy Total $ increase Total Budget $ 190,898,714 $ 195,518,463 $ 4,619,749 $ 234,216,849 $ 37,726,907 $ 38,632,353 $ 905,446 $ 45,801,563
William Floyd Three Village
2.95% 2.93%
$ $
93,886,348 $ 139,633,941 $
96,655,995 $ 143,725,215 $
2,769,647 $ 223,943,389 4,091,274 $ 188,060,556
42% 74%
Commack Center Moriches
1.30% 1.30%
$ $
130,689,787 $ 21,357,417 $
132,388,754 $ 21,635,063 $
1,698,967 $ 183,223,817 277,646 $ 40,486,398
71% 53%
Longwood Elwood
4.08% 4.08%
$ $
127,312,951 $ 42,669,999 $
132,507,319 $ 44,410,935 $
5,194,368 $ 222,500,000 1,740,936 $ 58,634,724
57% 73%
East Northport Deer Park Jericho
1.62% 1.69% 1.69%
$ $ $
138,623,167 $ 66,524,186 $ 106,811,992 $
140,868,862 $ 67,648,445 $ 108,617,115 $
2,245,695 $ 159,109,341 1,124,259 $ 105,929,364 1,805,123 $ 119,572,384
87% 63% 89%
Hauppauge Valley Stream 30
0.37% 0.34%
$ $
81,191,357 $ 26,591,233 $
81,491,765 $ 26,681,643 $
300,408 $ 104,437,521 90,410 $ 33,348,021
78% 80%
* PTLC = Property Tax Levy Cap March 23, 2015 Board Meeting
38
82% 82%
Understanding the PTLC Sample School District HHH Merrick
Reported PTLC %*
PTL as a % of Total Budget
2.42% 2.40%
2014-15 Tax Levy 2015-16 Tax Levy Total $ increase Total Budget $ 190,898,714 $ 195,518,463 $ 4,619,749 $ 234,216,849 $ 37,726,907 $ 38,632,353 $ 905,446 $ 45,801,563
William Floyd Three Village
2.95% 2.93%
$ $
93,886,348 $ 139,633,941 $
96,655,995 $ 143,725,215 $
2,769,647 $ 223,943,389 4,091,274 $ 188,060,556
42% 74%
Commack Center Moriches
1.30% 1.30%
$ $
130,689,787 $ 21,357,417 $
132,388,754 $ 21,635,063 $
1,698,967 $ 183,223,817 277,646 $ 40,486,398
71% 53%
Longwood Elwood
4.08% 4.08%
$ $
127,312,951 $ 42,669,999 $
132,507,319 $ 44,410,935 $
5,194,368 $ 222,500,000 1,740,936 $ 58,634,724
57% 73%
East Northport Deer Park Jericho
1.62% 1.69% 1.69%
$ $ $
138,623,167 $ 66,524,186 $ 106,811,992 $
140,868,862 $ 67,648,445 $ 108,617,115 $
2,245,695 $ 159,109,341 1,124,259 $ 105,929,364 1,805,123 $ 119,572,384
87% 63% 89%
Hauppauge Valley Stream 30
0.37% 0.34%
$ $
81,191,357 $ 26,591,233 $
81,491,765 $ 26,681,643 $
300,408 $ 104,437,521 90,410 $ 33,348,021
78% 80%
* PTLC = Property Tax Levy Cap March 23, 2015 Board Meeting
39
82% 82%
Understanding the PTLC Sample School District HHH Merrick
Reported PTLC %*
PTL as a % of Total Budget
2.42% 2.40%
2014-15 Tax Levy 2015-16 Tax Levy Total $ increase Total Budget $ 190,898,714 $ 195,518,463 $ 4,619,749 $ 234,216,849 $ 37,726,907 $ 38,632,353 $ 905,446 $ 45,801,563
William Floyd Three Village
2.95% 2.93%
$ $
93,886,348 $ 139,633,941 $
96,655,995 $ 143,725,215 $
2,769,647 $ 223,943,389 4,091,274 $ 188,060,556
42% 74%
Commack Center Moriches
1.30% 1.30%
$ $
130,689,787 $ 21,357,417 $
132,388,754 $ 21,635,063 $
1,698,967 $ 183,223,817 277,646 $ 40,486,398
71% 53%
Longwood Elwood
4.08% 4.08%
$ $
127,312,951 $ 42,669,999 $
132,507,319 $ 44,410,935 $
5,194,368 $ 222,500,000 1,740,936 $ 58,634,724
57% 73%
East Northport Deer Park Jericho
1.62% 1.69% 1.69%
$ $ $
138,623,167 $ 66,524,186 $ 106,811,992 $
140,868,862 $ 67,648,445 $ 108,617,115 $
2,245,695 $ 159,109,341 1,124,259 $ 105,929,364 1,805,123 $ 119,572,384
87% 63% 89%
Hauppauge Valley Stream 30
0.37% 0.34%
$ $
81,191,357 $ 26,591,233 $
81,491,765 $ 26,681,643 $
300,408 $ 104,437,521 90,410 $ 33,348,021
78% 80%
* PTLC = Property Tax Levy Cap March 23, 2015 Board Meeting
40
82% 82%
Understanding the PTLC Sample School District HHH Merrick
Reported PTLC %*
PTL as a % of Total Budget
2.42% 2.40%
2014-15 Tax Levy 2015-16 Tax Levy Total $ increase Total Budget $ 190,898,714 $ 195,518,463 $ 4,619,749 $ 234,216,849 $ 37,726,907 $ 38,632,353 $ 905,446 $ 45,801,563
William Floyd Three Village
2.95% 2.93%
$ $
93,886,348 $ 139,633,941 $
96,655,995 $ 143,725,215 $
2,769,647 $ 223,943,389 4,091,274 $ 188,060,556
42% 74%
Commack Center Moriches
1.30% 1.30%
$ $
130,689,787 $ 21,357,417 $
132,388,754 $ 21,635,063 $
1,698,967 $ 183,223,817 277,646 $ 40,486,398
71% 53%
Longwood Elwood
4.08% 4.08%
$ $
127,312,951 $ 42,669,999 $
132,507,319 $ 44,410,935 $
5,194,368 $ 222,500,000 1,740,936 $ 58,634,724
57% 73%
East Northport Deer Park Jericho
1.62% 1.69% 1.69%
$ $ $
138,623,167 $ 66,524,186 $ 106,811,992 $
140,868,862 $ 67,648,445 $ 108,617,115 $
2,245,695 $ 159,109,341 1,124,259 $ 105,929,364 1,805,123 $ 119,572,384
87% 63% 89%
Hauppauge Valley Stream 30
0.37% 0.34%
$ $
81,191,357 $ 26,591,233 $
81,491,765 $ 26,681,643 $
300,408 $ 104,437,521 90,410 $ 33,348,021
78% 80%
* PTLC = Property Tax Levy Cap March 23, 2015 Board Meeting
41
82% 82%
2015-16 Proposed Budget – Discussion Areas Student Enrollments
Staffing
Property Tax Levy Cap
Employee Benefits
State Aid
Transfer to Capital
March 23, 2015 Board Meeting
42
State Aid Update • Assembly released their one-house proposal:
Good Idea
Impact to HHH
Foundation Aid formula which actually “runs” as originally intended
Focus only on low wealth districts
Full restoration to the GEA
Focus on high needs students (low graduation rates, high free/reduced meal percentages, high ENL populations, low combined wealth ratios) and growing enrollment
Fund ENL mandates
Focus on high needs/low wealth districts
March 23, 2015 Board Meeting
43
2015-16 Proposed Budget – Discussion Areas Student Enrollments
Staffing
Property Tax Levy Cap
Employee Benefits
State Aid
Transfer to Capital
March 23, 2015 Board Meeting
44
1
High School West Tennis Courts
2
High School West Auditorium Partition Doors
3
High School East Chiller and Cooling Tower
March 23, 2015 Board Meeting
Projected “Transfer to Capital” budget line of $1.4 million
2015-16 Capital Projects
45
2015-16 Capital Projects • High School East Chiller and Cooling Tower Existing system… Provides for air conditioning seven months out of the year (April through October) Consists of two chiller units (one which has been abandoned and the other which runs inefficiently) and an inefficient cooling tower (which serves to expel heat from the system) which is beyond its useful life and requires excessive maintenance
New system includes… Replacing one antiquated and non-functioning chiller Refurbishing second chiller Replacing cooling tower
March 23, 2015 Board Meeting
46