Proposed Budget. Budget Workshop Overview

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1 Proposed Budget Budget Workshop Overview April 9, 2013

2 Proposed Budget Today s presentation is the fourth in a series of comprehensive community discussions regarding the budget review process The budget will be adopted by the Board on April 18, 2013 and presented to the community for vote on May 21, This budget includes input from Administration, Community and the Board of Education

3 Tonight s Agenda Budget Goals and Parameters Budget Calendar Tough Times for School Budgets Current/Future Political Climate Federal, State, County Mandates The Budget Equation Property Tax Cap Proposed Revenue Tax Levy, State Aid, Other Revenue Budget Highlights Budget Overview Budget Reductions Q&A

4 Budget Goals and Parameters Budget Goal To maintain and enhance Wantagh s status as a high achieving school district as evidenced by outstanding levels of student achievement through rich and rigorous curricular and co-curricular programs Budget Parameters Build the budget within the calculated tax levy limit Utilize a multi-year planning approach for student resources, textbooks, technology, facilities Maintain focus of district goals and state requirements (APPR, Core Curriculum) Explore addition of Full Day Kindergarten Maintain wide range of Elementary, Middle School and High School course offerings Address technology mandates for on-line testing and accountability

5 Budget Calendar Wantagh School District s Budget Calendar Budget Workshop WHS 7:00pm March 11, 2013 Budget Workshop WHS 7:00pm Budget Workshop WHS 7:00pm March 18, 2013 April 3, 2013 Budget Workshop Public Library10:00 am April 9, 2013 Board of Education Meeting/Adopt Budget for Voter Approval April 18, 2013 Board of Education Meeting/Public Hearing May 8, 2013 Budget Vote & Election Tuesday, May 21, 2013

6 Tough Times for School District Budgets White House: Budget cuts to pinch NY kids, teachers, air travelers Newsday, February 24, 2013 New York School Districts Face Financial, Educational Insolvency: Superintendents Survey Smithtown school district says it's running out of ways to cut budget Newsday, March 8, 2013 Half Hollow Hills weighs options for cuts - Newsday, February 4, 2013 Nassau BOCES plans to close special ed preschool Newsday, January 17, 2013

7 Current/Future Political Climate Increased Mandates from the Federal Government Patient Protection and Affordable Care Act March 2010 New healthcare reform signed into law January 2011 Health insurance costs increase tied to insurance premiums and broader coverage definitions January 2014 Universal availability for health insurance coverage Regulation outlining universal availability not yet defined Sequestration Reduction in federal funds of approximately $35,000 annually All IDEA* and Title funds will be affected * IDEA (Individuals with Disabilities in Education Act)

8 Current/Future Political Climate Increased Mandates from New York State Property Tax Cap March New York State enacts Property Tax Cap with a promise of mandate relief Race to the Top (RTTT) Fall New York State issues additional evaluation and testing mandates September New York State enacts new Teacher Evaluation System with increased costs for student testing, professional development requirements and data management September Increased costs associated with electronic testing due to the state s anticipated adoption of the PARCC* assessments * PARCC (Partnership for Assessment of Readiness for College and Careers)

9 Current/Future Political Climate Tax Certiorari Increased Mandates from Nassau County May 2012 Wantagh budgeted for anticipated tax grievance expenses Increased legal costs as district intervenes in settlement process ***Update*** Recent ruling from the courts overturned the County s repeal of the County Guarantee - providing districts with temporary relief from tax certioraris *County to appeal the court s decision* Sewer Tax May 2011 Nassau County imposes school districts with an annual sewer tax Increase to the budget Issue continues to be unresolved

10 The Budget Equation and Beyond Program Expenditure Revenue

11 Property Tax Cap Chapter 97 of the Laws of 2011 Not exactly a cap Instead, requires a higher level of voter approval ( supermajority ) if the proposed tax levy increase goes beyond the Tax Levy Limit Supermajority = 60% of voters must approve There is an 8 step formula for determining the Tax Levy Limit

12 What is Exempt from the Tax Levy Limit? Capital project expenditures and debt service payments on bonds Pension contribution rate increases above 2% ( TRS rate increase is 4.41 percentage points and ERS rate increase is 2 percentage points. 2.41% of the TRS increase is exempt) Legal settlements that meet a specific threshold Wantagh has no such settlements

13 What is Exempt from the Tax Levy Limit? There are also 2 adjustments that can be made to the district tax base calculation: Tax base growth factor: adjustment increases in brick and mortar development. Wantagh s tax base growth factor for is % Costs and/or savings from the transfer of function(s) from one local government to another, to be determined by the Office of the State Comptroller. Wantagh has not been advised of any transfer of function changes. This does not include the tax certiorari process

14 Tax Levy Limit Calculation 2012/13 Tax Levy $54,269,259 Tax Base Growth Factor x $54,301, /13 Estimated PILOT + 42,341 $54,344, /13 Capital Levy (Net of Building Aid) - (1,265,955) Adjusted 2012/13 Tax Levy $53,078,206 Allowable Growth Factor (Lesser of 2% or CPI) x 2.00% $54,139, /14 Estimated PILOT - (50,017) $54,089,754 Available Carryover from 2012/ Tax Levy Limit Before Exclusions $54,089, /14 Pension Exemptions + $ 775, /14 Capital Levy (Net of Building Aid) +$1,417,772 $56,282, Tax Levy Limit = 3.71%

15 Understanding the Tax Cap When is 2% Not Really 2%? The tax cap calculation is dictated by New York State Law and has very little to do with an actual 2% increase. Wantagh School District s tax levy limit is currently 3.71% for these primary reasons: An allowance for new construction within the school district boundaries The capital exclusion, which includes debt service and capital construction The pension exclusion, which includes a portion of the retirement system bill Only the tax levy is capped, the towns calculate the tax rates which can be above or below the projected levy

16 The Tax Levy Cap is Not a limit on the tax increase in dollars that an individual property owner might pay Not a limit on assessment changes Not a control of the tax rate Not an end to school budget votes Not an effective way to control costs Even under a 2% increase, not all taxpayers will see the same impact on the bills (differences in property assessments)

17 Revenue Budget Wantagh UFSD / Revenue Budget / /14 Budget Budget Amount Change Percent Change STATE AID: BASIC / FOUNDATION AID 12,779,802 13,154, , % BOCES AID 733, , , % FULL DAY K CONVERSION AID 0 554, , % TOTAL STATE AID 13,513,052 14,556,612 1,043, % OTHER REVENUE: STUDENT FEES 212, ,000 (21,500) % TUITION OTHER DISTRICTS 75,622 51,756 (23,866) % SERV OTHER GOVT 1,900 1, % INTEREST & EARNING 75,000 50,000 (25,000) % RENT: PROPERTY/EQUIPMENT 199, ,571 (5,165) -2.59% MISCELLANEOUS 114, ,017 11, % MEDICARE PART D 155,000 0 (155,000) % TOTAL OTHER REVENUE 833, ,244 (219,514) % INTERFUND REVENUE 93,000 93, % APPROP. FB/RESERVES APPROPRIATED FUND BALANCE 2,460,000 2,460, % EMP BENEFITS RESERVE 65,000 65, % EMP RETIRE RESERVE 500, , , % TOTAL APPROP. FB/RESERVES 3,025,000 3,125, , % REAL PROPERTY TAX 54,269,259 55,785,769 1,516, % TOTAL Budget 71,734,069 74,174,625 2,440, %

18 Foundation Aid & High Tax Aid Foundation Aid Began in Had been frozen since Slight increase $10,546,013 High Tax Aid Restored under the Legislative budget $872,758

19 Reimbursable Aid Categories Aid Categories Transportation Aid Public Excess High Cost Aid Private Excess Cost Aid BOCES Aid Software, Library, Textbook Aid Computer Hardware & Technology Aid Total Reimbursable Aid Amount $1,000, , , , ,919 35,968 $3,129,301

20 Categorical & Grants Full Day Kindergarten Conversion Aid $554,580 Title Grants IDEA 611 & 619 Nassau County Grants Special Legislative Projects Federal Grant funding has been reduced in the last three years We have received some state and legislative grants

21 Gap Elimination Adjustment & Restoration Gap Elimination Adjustment: (-$2,128,237) Used to balance the state budget The Gap Elimination Adjustment is based on wealth factors (free & reduced price lunch and foundation aid combined wealth ratio) Gap Elimination Restoration: $178,482 Used to begin the restoration of aid already taken as part of the Gap Elimination Adjustment

22 State Aid (Legislative Budget) State Aid Unrestricted Reimbursement/Expense Driven Categorical/Grants Building Aid State Aid Entitlement Gap Elimination (State Budget Deficit) Gap Restoration Total $11,418,771 3,129, ,580 1,403,715 16,506,367 (2,128,237) 178,482 $14,556,612

23 Miscellaneous Revenue Miscellaneous Revenue Categories Inter-fund Revenue Rental of Property/Reimbursements Drivers Ed/Student Fees PILOT Refunds of Prior Year Expenses Interest & Earnings Tuitions Other Total Miscellaneous Revenue $93, , ,000 50,017 15,000 50,000 51,756 61,900 $707,244

24 Revenue Budget Wantagh UFSD / Revenue Budget / /14 Budget Budget Amount Change Percent Change STATE AID: BASIC / FOUNDATION AID 12,779,802 13,154, , % BOCES AID 733, , , % FULL DAY K CONVERSION AID 0 554, , % TOTAL STATE AID 13,513,052 14,556,612 1,043, % OTHER REVENUE: STUDENT FEES 212, ,000 (21,500) % TUITION OTHER DISTRICTS 75,622 51,756 (23,866) % SERV OTHER GOVT 1,900 1, % INTEREST & EARNING 75,000 50,000 (25,000) % RENT: PROPERTY/EQUIPMENT 199, ,571 (5,165) -2.59% MISCELLANEOUS 114, ,017 11, % MEDICARE PART D 155,000 0 (155,000) % TOTAL OTHER REVENUE 833, ,244 (219,514) % INTERFUND REVENUE 93,000 93, % APPROP. FB/RESERVES APPROPRIATED FUND BALANCE 2,460,000 2,460, % EMP BENEFITS RESERVE 65,000 65, % EMP RETIRE RESERVE 500, , , % TOTAL APPROP. FB/RESERVES 3,025,000 3,125, , % REAL PROPERTY TAX 54,269,259 55,785,769 1,516, % TOTAL Budget 71,734,069 74,174,625 2,440, %

25 Budget Highlights Proposed Budget: $74,174,625 Budget to Budget Increase $2,440, % Proposed Tax Levy: $55,785,769 Levy to Levy Increase $1,516, % This Budget is under the calculated tax Levy Limit of 3.71%

26 Budget Maintains Class size guidelines All athletic teams All co-curricular activities K-12 AP and CL (college level) course offerings Elementary Foreign Language Horizons Program Security guards at elementary schools Maintenance and small building projects

27 New in Budget Expansion of technology initiative for assessments and infrastructure Expansion of Writers Workshop to 5th grade AP and CL (college level) textbook resources Full Day Kindergarten New High School courses/electives Math 11, Choral Ensemble, Speaking for Broadcast, Adolescent Experience in Literature, Sports Literature Non- Fiction, Horror and Science Fiction Middle School Club The Upstanders Digital instructional resources Castle Learning

28 Budget Reductions Declining Enrollment Staffing Reductions

29 Budget Vote & Election Tuesday, May 21, :00 AM 9:00 PM All Elementary Schools

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