HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon
2017-18 Budget Development Board of Education Workshop March 6, 2017
Revenue Overview 4%
Tax Levy 13%
PILOTs Miscellaneous
1% 1%
State Aid Reserves & Fund Balance
2017-18 Budget Development – March 6, 2017
81%
Revenues: Tax Levy FORMULA RESULT OR PIERCE CAP
SIMPLE MAJORITY VS. SUPER MAJORITY
Property Tax Levy Cap Formula
THE “2%”
MARCH 1ST
SAME FORMULA…
SUBMISSION
VASTLY DIFFERENT RESULTS
2017-18 Budget Development – March 6, 2017
Revenues: Tax Levy Year-over-Year Property Tax Levy % Increase since inception of Property Tax Levy Cap Formula
3.50% 3.00%
2.50% 2.00%
1.50% 1.00%
0.50% 0.00% 2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2017-18 data point is estimated
2017-18 Budget Development – March 6, 2017
4
Millions
Revenues: Tax Levy 220
Total Property Tax Levy $
200 180 160 140 120 100 80 60 40
20 2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2017-18 data point is estimated
2017-18 Budget Development – March 6, 2017
5
Revenues: Tax Levy 1 Total Assessed Value
2 ToH vs. ToB proportional share
3 Equalization rate
2017-18 Budget Development – March 6, 2017
Revenues: State Aid State Aid as % of Total Budget 15%
14%
13%
12%
11%
2016-17 and 2017-18 data points are estimated
2017-18 Budget Development – March 6, 2017
7
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
10%
Revenues: State Aid State Aid as % of Total Budget 15%
From 2007 through today, NYS continues to keep its main State Aid formula (Foundation Aid) generally frozen. This has caused HHH to not receive over $70 million in Aid originally calculated for it to receive over this period of time.
14%
13%
12%
11%
2016-17 and 2017-18 data points are estimated
2017-18 Budget Development – March 6, 2017
8
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
10%
Revenues: State Aid State Aid as % of Total Budget 15%
From 2010 to 2016, NYS balanced their budget with the Gap Elimination Adjustment. HHH lost $24.3 million in Aid as a result.
14%
13%
12%
11%
2016-17 and 2017-18 data points are estimated
2017-18 Budget Development – March 6, 2017
9
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
10%
Revenues: PILOTs Suffolk County IDA PILOTs
Babylon IDA PILOTs 3,000,000
1,800,000
Suffolk County IDA Projection
1,600,000
Suffolk County IDA Actual
2,500,000
1,400,000 2,000,000
1,200,000 1,000,000
1,500,000
800,000 1,000,000
600,000 400,000
Babylon IDA Projection
500,000
Babylon IDA Actual 200,000
2016-17 actuals and 2017-18 projections are estimated
2017-18 Budget Development – March 6, 2017
10
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2009-10
0
0
Millions
Revenues: Reserves & Fund Balance 12 USE OF RESERVES
APPROPRIATED FUND BALANCE
10
8
6
4
2
2010-11
2011-12
2012-13
2017-18 Budget Development – March 6, 2017
2013-14
2014-15
2015-16
2016-17
11
2017-18
Revenue: Miscellaneous Interest Income Drivers’ Education and Aquatics programs Both run as “self- sustaining” programs
Adult Education program and Misc. fees
Use of facility charges
Examples of Miscellaneous Revenues
{$1.8 million}
Prior year refunds (BOCES & CPSE) 2017-18 Budget Development – March 6, 2017
Health services and foster tuition receivables
Includes revenue generated from Chestnut Hill lease arrangement
Expense Reductions: Retirees 29 Salary & benefits
teachers
44 Total # retirees
$2.2
million total savings
6
admins
8 support staff
2017-18 Budget Development – March 6, 2017
Expenses: Transfer to Capital Candlewood Middle School roof
HSE Auditorium orchestra pit
Signal Hill Elementary School roof
HSE gym ventilation/ fan replacements Paumanok Elementary School roof
Otsego Elementary School fuel oil tank
Natatorium infrastructure Fran Greenspan Admin Center roof
2017-18 Budget Development – March 6, 2017
HSE Chiller and Cooling Tower
Expenses: Employee Benefits
25% of budget covering 1,700 employees 2017-18 Budget Development – March 6, 2017
15
Expenses: Employee Benefits OPTICAL 0.06% ERS 8.46%
TRS 16.33%
HEALTHCARE 54.42% SOCIAL SECURITY 15.94%
WORKERS' COMP 1.88%
Total of $60 million 2017-18 Budget Development – March 6, 2017
DENTAL 1.81%
LIFE INSURANCE 0.84% UNEMPLOYMENT 0.26% 16
Healthcare Expenses – Key Drivers Affordable Care Act requirements
Medicare Part B premium reimbursements
New versus exiting participants
2017-18 Budget Development – March 6, 2017
Employee contribution rates & known versus projected premium increases
HIP/Emblem Health versus NYSHIP/Empire participant mix
Individual versus Family plan mix
17
Healthcare Expenses NYSHIP/Empire Healthcare Premium Increases 16%
Year 3 Year 2 of selfof self- funded funded plan plan Year 1 of selffunded plan
14% 12% 10% 8%
6% 4% 2% 0% 2009
2010 Family Plan
2011
2012
2013
2014
2015
2016
Individual Plan
2017-18 Budget Development – March 6, 2017
18
2017
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
2012 Family Plan
2017-18 Budget Development – March 6, 2017
2013
2014
2015
2016
Individual Plan 19
2017
Healthcare Expenses HIP/EMBLEM & NYSHIP/EMPIRE $35,000,000
$30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2009-10
2010-11
2011-12
2017-18 Budget Development – March 6, 2017
2012-13
2013-14
2014-15
2015-16
20
2016-17 BUDGET
2017-18 ESTIMATE
Pension Expenses NYSTRS
NYSERS
Mandatory for teachers & administrators
Offered to noncertificated employees
Contribution rate = % of salary
Contribution rate = % of salary
Tier determines benefits
Tier determines benefits
One rate set each year
Rates set by tier yearly
2017-18 Budget Development – March 6, 2017
21
1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
History of TRS Contribution Rates
25%
20%
15%
1978-79 21.4%
10%
5%
2002-03 0.4%
2017-18 Budget Development – March 6, 2017
2017-18 10.5% est.
0%
22
-10%
-25% 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
History of TRS Rates – Yearly Spikes
140%
125%
110%
95%
80%
65%
50%
35%
20%
5%
-40%
-55%
-70%
2017-18 Budget Development – March 6, 2017 23
TRS Expenses 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000
8,000,000 6,000,000
4,000,000 2,000,000 2009-10
2010-11
2011-12
2017-18 Budget Development – March 6, 2017
2012-13
2013-14
2014-15
2015-16
24
2016-17 BUDGET
2017-18 ESTIMATE
History of ERS Contribution Rates 22% 20%
1978 19.8%
18% 16% 14% 12%
2018 AVG EST 15.9%
10% 8%
1991 0.3%
6% 4% 2%
0% 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
2017-18 Budget Development – March 6, 2017
25
0% 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
History of ERS Rates – Yearly Spikes
300%
250%
200%
150%
100%
50%
-50%
-100%
2017-18 Budget Development – March 6, 2017 26
ERS Expenses 6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2009-10
2010-11
2011-12
2017-18 Budget Development – March 6, 2017
2012-13
2013-14
2014-15
2015-16
2016-17 BUDGET
27
2017-18 ESTIMATE
Social Security Expenses 10,000,000 9,000,000 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
2011-12
2017-18 Budget Development – March 6, 2017
2012-13
2013-14
2014-15
2015-16
28
2016-17 BUDGET
2017-18 ESTIMATE
Unemployment Expenses 400,000 350,000
300,000 250,000 200,000 150,000 100,000 50,000 2009-10
2010-11
2011-12
2017-18 Budget Development – March 6, 2017
2012-13
2013-14
2014-15
2015-16
2016-17 BUDGET
29
2017-18 ESTIMATE
Dental Expenses 1,200,000
1,000,000
800,000
600,000
400,000
200,000
2009-10
2010-11
2011-12
2017-18 Budget Development – March 6, 2017
2012-13
2013-14
2014-15
2015-16
2016-17 BUDGET
30
2017-18 ESTIMATE
Workers’ Compensation Expenses 1,200,000
1,000,000
800,000
600,000
400,000
200,000
2009-10
2010-11
2011-12
2017-18 Budget Development – March 6, 2017
2012-13
2013-14
2014-15
2015-16
2016-17 BUDGET
31
2017-18 ESTIMATE
Life Insurance Expenses 600,000
500,000
400,000
300,000
200,000
100,000
2009-10
2010-11
2011-12
2012-13
2017-18 Budget Development – March 6, 2017
2013-14
2014-15
2015-16
2016-17 BUDGET
32
2017-18 ESTIMATE
Optical Expenses 40,000
35,000 30,000 25,000 20,000 15,000 10,000
5,000 2009-10
2010-11
2011-12
2012-13
2017-18 Budget Development – March 6, 2017
2013-14
2014-15
2015-16
2016-17 BUDGET
33
2017-18 ESTIMATE
What’s to come… Continuation…
State Budget
Community Outreach
Budget Vote
2017/18 school year budget development work continues with the finalization of all revenues and expenditures
Anticipated release of the State budget which would shed light on the final anticipated level of aid to be received by HHH for 2017-18
PTA will host one morning and one evening session at which Central Office Administrators will present the 2017-18 budget.
The third Tuesday in May represents the uniform vote day for school district budgets and Board of Education trustee elections.
March 20, 2017 March - May 2017
May 8, 2017
April 18, 2017 April 1, 2017
May 16, 2017
May 2017 AM/PM
Budget Workshop
Budget Adoption
Budget Hearing
Second Board of Education budget workshop to be held at Fran Greenspan Administration Center
As required by law, Board of Education must adopt the proposed 2017-18 budget before it can be presented to residents for a vote
As required by law, approximately one week before the budget vote, a presentation will be provided at a Board Meeting to share a summary of the 2017-18 proposed budget.
2017-18 Budget Development – March 6, 2017