Beyond The Numbers


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Beyond The Numbers

  1. 1. The impact of the current fiscal proposal on a small, rural school district. Beyond the Numbers
  2. 2. <ul><li>What we are doing tonight is giving you a look at where we are and what we will be struggling with over the weeks to come. We only know the Governor’s Proposal. Any additional funding from state or federal sources will shift the equation presented here. </li></ul><ul><li>We are hoping things change……………….. </li></ul>Thank you to Brocton Central School for sharing their budget PowerPoint.
  3. 3. The Governor’s Proposal <ul><li>Effect on Foundation Aid: </li></ul><ul><ul><li>Level Funds for Groton Central School in the 2009-10 school year and 2010-11 school year. </li></ul></ul><ul><ul><li>This means that our current year’s state aid will not increase for the next two years. </li></ul></ul><ul><li>Expense Aid will be formula driven – Building Aid will remain stable. </li></ul><ul><li>Calls for a one-time Deficit Reduction Assessment in 2009-10 only – Resulting in a loss of $472,464. </li></ul><ul><li>To just cover the Deficit Reduction Assessment the local tax levy would need to increase by over 10%. </li></ul>
  4. 4. 2009-10 State Aid Projections
  5. 5. Effects of Governor’s Proposal <ul><li>Like households, costs increase each year. </li></ul><ul><li>Costs for Groton are estimated to increase approximately $1.1 million next year with a flat budget. </li></ul><ul><li>Provided assessed values do not change in the district and equalization rates remain constant………… </li></ul><ul><ul><li>A $1.1 million increase and no increase in the budget in aid equates to approximately a 24% tax increase to Local Taxpayers. </li></ul></ul><ul><ul><li>A $1.1 million increase in the budget and the Deficit Reduction Assessment equates to approximately a 34% tax increase to Local Taxpayers. </li></ul></ul>
  6. 6. Effects of Governor’s Proposal <ul><li>In addition: </li></ul><ul><ul><li>The Governor proposed a cut to our Teacher Center Funding of $131,000. </li></ul></ul><ul><ul><li>The Governor proposed the School District Taxpayer should pay 15% of special education costs for preschoolers ($60,000 annually). </li></ul></ul>
  7. 7. Groton State Aid <ul><li>Like most rural schools we receive </li></ul><ul><ul><ul><ul><ul><li>% of our funding from the state </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>% from the tax levy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>% from other sources </li></ul></ul></ul></ul></ul>
  8. 8. Major School Aid Proposals
  9. 9. Levy to State Aid
  10. 10. Uncontrolled Increases Examples of costs to school districts that continually increase each year:
  11. 11. Basic Increased Costs <ul><li>Negotiated contractual salary obligations </li></ul><ul><li>Health Insurance Premiums </li></ul><ul><li>Teachers’ Retirement System (TRS contributions) </li></ul><ul><li>Employees’ Retirement System (ERS contributions) </li></ul><ul><li>Employers share of Social Security (FICA) & Medicare Benefits </li></ul><ul><li>Workers Compensation </li></ul><ul><li>Special Education Costs </li></ul><ul><li>Unemployment (if staff reductions are necessary) </li></ul><ul><li>Fuel and Energy Costs </li></ul><ul><li>Water and Sewer Costs </li></ul><ul><li>TST BOCES Administration and Service Costs </li></ul><ul><li>Required Legal and Financial Auditing Services </li></ul><ul><li>Required state testing and data warehouse </li></ul>
  12. 12. The future with the Governor’s Proposal <ul><li>How will school districts balance their budget? </li></ul><ul><ul><ul><ul><li>The only other significant revenue source available is property taxes. </li></ul></ul></ul></ul>
  13. 13. 4% Tax Cap Proposal <ul><li>What if the taxes were capped at 4% </li></ul><ul><li>Tax Revenue Raised 2008-09: $4,623,131 </li></ul><ul><li>Tax Cap Limit: $184,925 </li></ul><ul><li>Now Public Education’s only other major source of funding is also threatened </li></ul>
  14. 14. Potential Impact of Governor’s Proposal <ul><li>The only thing school districts can do is make cuts to programs ---directly impacting students. </li></ul><ul><li>How can we maintain educational programs? </li></ul><ul><li>Why should our children’s education take the hit for increased costs and the current National and State financial crisis that has led to this recession? </li></ul>
  15. 15. Downward spiral affect of Governor’s Proposal <ul><li>Education cuts </li></ul><ul><li>Unemployment of people </li></ul><ul><li>Movement to other states by NYS residents </li></ul><ul><li>Increased costs to NYS businesses i.e. unemployment, decreased sales </li></ul><ul><li>Fewer property taxpayers </li></ul><ul><li>Fewer educational opportunities in rural areas encouraging out-migration thereby continuing increased costs </li></ul><ul><li>Increased costs of health insurance and more families without coverage </li></ul><ul><li>Increase pressure to consolidate schools </li></ul>
  16. 16. <ul><li>Unfortunately, cutting $1.1 million from our budget will have a major impact on the students and families of our community and our faculty and staff. </li></ul>
  17. 17. What cuts may need to be considered: <ul><li>Professional teaching staff-larger class sizes </li></ul><ul><li>Program and extra-curricular (including sports) </li></ul><ul><li>Student support services </li></ul><ul><li>Administration </li></ul><ul><li>Loss of non-mandated courses, opportunities for students, and field trips </li></ul><ul><li>Supplies, textbooks, reduction in technology support </li></ul><ul><li>Cuts to professional development equipment </li></ul><ul><li>Cuts in support services, custodians, clerical, and food service </li></ul>
  18. 18. What have we done already? <ul><li>Reduced positions by attrition in response to decreasing enrollment </li></ul><ul><li>Partnered with area agencies and colleges to provide extra support for students at no cost to the District </li></ul><ul><li>Partner with Town and Village Recreation Departments and Cornell Cooperative Extension to provide programs for youth including summer camp and summer youth employment </li></ul><ul><li>Provide professional development locally with teacher leaders </li></ul><ul><li>Participate in Energy Cooperatives and Cooperative bidding Agreements to keep costs down </li></ul><ul><li>Provide Special Education services in our District </li></ul>
  19. 19. Emergency measures taken this year: <ul><li>Restricted purchasing. </li></ul><ul><li>Limited travel to local BOCES region. </li></ul><ul><li>Hiring freeze on all positions. </li></ul><ul><li>Reduce energy consumption and upgrade HVAC system for efficiency. </li></ul><ul><li>Maximize BOCES services to increase aid (i.e. copying, technology services, public information, professional development…). </li></ul><ul><li>Maximize Capital Aid to maintain facilities. </li></ul><ul><li>Consistently pursue grants and donations to provide programs and opportunities. </li></ul><ul><li>Meet with area superintendents to build opportunities for cost sharing. </li></ul>
  20. 20. Looking at Groton <ul><li>Declining enrollment - 1250 to 1050 over ten years. </li></ul><ul><li>Increasing student needs: </li></ul><ul><ul><li>Free and reduced lunch participation – 42% </li></ul></ul><ul><ul><li>Special education classification rate – 18% </li></ul></ul><ul><ul><li>Increasing mental health needs with 1 in 5 children needing counseling or support. </li></ul></ul><ul><ul><li>Largest % of children living in foster care in Tompkins County. </li></ul></ul><ul><li>Increasing demand for performance on state exams and graduation requirements. </li></ul>
  21. 21. Financial Health <ul><li>Groton Central School is a conservative district. </li></ul><ul><li>Reserves: 4% unrestricted, unappropriated fund balance allowed by state law - $664,339. </li></ul><ul><li>Capital reserve: $426,000 to offset cost to repair track. </li></ul><ul><li>Each year over $400,000 used to offset tax impact on residents. </li></ul>
  22. 22. Budget and Unreserved Fund Balance History
  23. 23. Tax Rates 2001-02 17.57 2002-03 18.03 2003-04 18.78 2004-05 20.14 2005-06 19.85 2006-07 20.40 2007-08 20.57 2008-09 18.55 Tax rates have been held fairly steady the past few years by making annual cuts in expenditures:
  24. 24. Changes in Legislation – all come with a price tag <ul><li>GASB 45 – Accounting of Other Post Employment Benefits – Services of an Actuary </li></ul><ul><li>GASB 34 – Reports on Financial Health and Infrastructure of the District </li></ul><ul><li>NCLB – No Child Left Behind </li></ul><ul><li>AIS – Academic Intervention Services </li></ul><ul><li>RTL – Response to Intervention (for ALL students) </li></ul><ul><li>New York State Learning Standards </li></ul><ul><li>Reporting Requirements </li></ul><ul><li>Special Education Mandates </li></ul><ul><li>Increased legal fees </li></ul><ul><li>Additional safety requirement and changes to facility codes </li></ul>
  25. 25. What might happen in 2010-11? <ul><li>The effects of level funding will produce a compounded deficit in 2010-11 </li></ul><ul><li>The district will have to come up with an estimated additional $1.1 million with no additional state aid funding for two years. </li></ul><ul><li>Double digit increases to health insurance, workers compensation, and retirement system contributions. </li></ul><ul><li>Major budget cuts have already been made. </li></ul><ul><li>The district’s hands are tied because of mandates. </li></ul><ul><li>A possible tax cap in place. </li></ul><ul><li>How are we going to fund PUBLIC Education? </li></ul>
  26. 26. Unknowns <ul><li>Possible Federal Stimulus Package. </li></ul><ul><li>Legislative changes and issues. </li></ul><ul><li>April 22 nd is our deadline for the budget to be finalized. (Regulated by the state) Will we know what our state aid will be by then? </li></ul>
  27. 27. How are proposals for cost reductions determined? <ul><li>First – Keeping the promise for the 21 st Century: </li></ul><ul><ul><ul><ul><ul><li>Academics </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Athletics </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Arts </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Attitude </li></ul></ul></ul></ul></ul>
  28. 28. How are proposals for cost reductions determined? <ul><li>Second – Laws and regulations: </li></ul><ul><ul><ul><ul><li>Students: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Required courses and graduation requirements. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Required services (IDEA) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Required support (NCLB) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Required Assessments </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Staff: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Required professional development programs </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Contractual requirements </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Access to technology </li></ul></ul></ul></ul></ul>
  29. 29. How are proposals for cost reductions determined? <ul><li>Third – Maximize Aid </li></ul><ul><ul><ul><ul><ul><li>Capital Construction </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Transportation Aid </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>BOCES Aid </li></ul></ul></ul></ul></ul>
  30. 30. Current Status – March 2009
  31. 31. How will proposed cuts be done? <ul><li>~ Process for Budget Cuts & Timeline ~ </li></ul><ul><li>October – December 2008 </li></ul><ul><ul><li>Set priorities </li></ul></ul><ul><ul><li>Review revenue and expenditure projection </li></ul></ul><ul><ul><li>Generate ideas for savings/program improvement </li></ul></ul><ul><ul><ul><li>Leadership Team </li></ul></ul></ul><ul><ul><ul><li>Board of Education </li></ul></ul></ul><ul><ul><ul><li>Staff – letter to all staff </li></ul></ul></ul><ul><ul><ul><li>Newspaper articles to the community </li></ul></ul></ul><ul><li>January </li></ul><ul><ul><li>Research impact of proposals </li></ul></ul><ul><ul><li>Investigate the impact </li></ul></ul><ul><ul><li>Calculate the savings </li></ul></ul><ul><ul><li>Align with priorities </li></ul></ul><ul><li>February </li></ul><ul><ul><li>Meet with unions to review the process </li></ul></ul><ul><li>February - March </li></ul><ul><ul><li>Meet with impacted staff to explain what we are considering for budget cuts </li></ul></ul><ul><ul><li>Explain each proposal to the Board of Education with impact and costs </li></ul></ul><ul><li>April </li></ul><ul><ul><li>Make decision – what is in budget (Deadline: April 22nd) </li></ul></ul><ul><ul><li>Public Vote – May 19th </li></ul></ul><ul><li>If the budget passes… </li></ul><ul><li>May - June </li></ul><ul><ul><li>Notify impacted staff </li></ul></ul><ul><ul><li>Board of Education actions to reduce positions </li></ul></ul><ul><li>July - September </li></ul><ul><ul><li>Leadership Team – implementation of changes </li></ul></ul>
  32. 33. <ul><li>This presentation is about much more than explaining our financial position. </li></ul><ul><li>The weeks ahead will determine how the future evolves for the students and community of Groton Central School. </li></ul>