The document summarizes the Half Hollow Hills Central School District's 2009-2010 preliminary budget proposal. It outlines proposed budget increases of 3.14% for a total budget of $202,345,358. It also discusses uncertainties around potential state aid amounts and new unfunded mandates that could impact the budget. Budget reductions and cost saving initiatives proposed total around $3 million.

1. Half Hollow Hills Central School District 2009- 2010 Preliminary Budget Proposal 3/23/2009 Update

2. Highest Achieving Among the lowest per pupil expenditure

3. Enrollment trend

4. Enrollment Trend

5. Class Sizes Board of Education Policy for Class Sizes Kindergarten and First Grade – 22 Second Grade – 24 Third, Fourth and Fifth Grades – 26 Grades Six through Twelve - 28

6. 2009-10 Preliminary Budget Proposal Summary Update 2008-09 Total Budget $196,188,300 $202,345,358 Dollar Increase $6,157,058 Percent Increase 3.14% 2009-10 Capital $27,633,914 13.66% Program $155,072,357 76.64% Administrative $19,639,087 9.70%

7. Budget-to-Budget comparison NYS Contingency Formula Budget Cap is 120% of CPI or 4% whichever is lower Contingent budget formula cap for 2009/10 is 4.0% per NYSED 2009/10 Proposed Budget is already below the NYS formula cap $202,345,358 3.14% $202,949,762 3.45% $204,035,832 4.0% $205,310,849 4.65% $196,188,300 Total Budget % Change Preliminary Budget 2009/10 As of 3/23/09 Preliminary Budget 2009/10 As of 3/9/09 NYS Contingency Formula Budget Cap 2009/10 Rollover Budget 2009/10 (estimated cost of rolling forward budget as is) Adopted Budget 2008/09

8. The Unfunded Mandate Guessing Game MTA payroll tax currently being proposed by the Governor could cost the District between $300,000 and $400,000 depending on the percent levied. This tax would be assessed on all employers in Nassau and Suffolk including school districts. The proposed mandate for Districts to fund 15% of Pre-school special education and transportation (currently funded by NYS and Suffolk County). This new mandate would cost HHH an additional $1 million.

9. The Unfunded Mandate Guessing Game Funding for the proposed mandates on previous slide are not included in the current budget. What happened to “no new unfunded mandates” and a reprieve from existing ones?

10. 2009/10 Budget Reductions totaling close to $3 million Reductions Include: 19.9 budgeted instructional positions 1.2 instructional position moved to Grant 2 paraprofessional positions Restructured non-instructional staffing to eliminate 2 part-time positions Part-time position at the Bus Garage 2.0 budgeted transportation positions Officials Fees due to Section XI changes

11. Budget Reductions – cont’d. District-wide reductions in equipment, supplies and material allocations Contractual service expenditures Plant Projects Curriculum Writing and Scoring Clubs and Activities In-Service Training/Staff Development 5 th & 7 th Grade Swimming Assessment Certain Special Education expenditures moved to Grant due to Federal Stimulus

12. Other Cost Reductions Restructured the District’s Security Program enhancing security coverage while keeping costs level Joint effort with other municipalities for cost savings Recycling - TOH Security Alarm Services – So. Huntington UFSD Cooperative Purchasing – NYS, BOCES, County, Educational Data Services Chaperone assignments reviewed and capped at current allocations

13. Cost reduction initiatives Transportation Efficiency Analysis to produce at least two fewer routes District-wide energy conservation communication to all buildings to reduce usage

14. Preliminary Budget Proposal Update General Support 2.1% $19,438,424 $19,038,832 Total General Support 2.3% $1,723,211 $1,683,823 Insurance/BOCES Admin. and Special Items 2.0% $14,542,459 $14,252,862 Operation and Maintenance 2.4% $3,059,946 $2,989,317 Offices of Chief School Admin. Finance/Purchasing/Accounting Auditing Svc./Legal Services Public Information, District-wide Administration and Records Mgmt 1.33% $103,921 $102,561 District Clerk & District Meeting -13.5% $8,887 $10,269 Board of Education Change 2009/10 2008/09

15. Preliminary Budget Proposal Update Instructional Budget 3.0% $117,320,971 $113,939,336 Total Instruction 2.5% $10,609,379 $10,350,523 Pupil Services -1.4% $4,836,297 $4,905,358 Instructional Media & Support 2.8% $493,958 $480,727 Adult Ed/Summer School 3.2% $93,517,321 $90,628,925 Teaching Regular School 3.8% $7,864,017 $7,573,803 Curriculum Development & Supervision, Principals & Clerical In-Service Training, Research, Pupil Personnel Change 2009/10 2008/09

16. Preliminary Budget Proposal Update Other Budget Categories 3.76% $65,585,963 $63,210,133 Total of Above Categories 18.9% $245,647 $206,608 Transfer to Special Aid Fund 0% $882,000 $882,000 Transfer to Capital .85% $10,008,167 $9,924,047 Debt Service/TAN 4.3% $41,580,259 $39,871,373 Employee Benefits 13.2% $85,450 $75,500 Community Recreation 4.4% $12,784,440 $12,250,605 Transportation Change 2009/10 2008/09

17. Factors that may effect Expenditure Budget The following proposed unfunded mandates are not included in the current budget proposal. We hope to receive a decision from the State on these items before budget adoption. MTA tax on all payroll ($400,000) 15% of Pre-school special education ($1,000,000) Contract Transportation budget subject to revision upon completion of RFP analysis.

18. Revenues – 2008/09

19. The State Aid Guessing Game As of this date we do not know the direction the Governor will take in utilizing the funds from the Federal Government Three possible scenarios are: Governor’s proposal as is…which imposes a $2.9 million deficit reduction assessment Restore aid to 2008/09 level which would return $1,903,626 in aid to the district Reversal of the deficit reduction which would return $2,932,698 in aid to Half Hollow Hills Point of Reference: Returning the state aid calculation to current law would return $4,231,218 in aid

20. State Aid Scenarios $28,228,044 3.78% $27,198,972 0% $25,295,346 -7.0% $29,526,564 8.56% $27,198,972 State Aid % Change 2009/10 Proposed State Aid Assumes DRA removed 2009/10 Proposed State Aid Assumes State Aid returned to 2008/09 level 2009/10 Proposed State Aid Governor’s Proposal 2009/10 State Aid if current law had remained in effect 2008/09 State Aid Base Year

21. State aid trend *2009/10 State Aid represented = Governor’s Proposal

22. Revenues other than State Aid and Tax Levy $1,000,000 0 Use of Reserves $8,108,000 $6,992,449 Total Other Revenues: $3,650,000 $ 3,639,949 Appropriated Fund Balance $1,500,000 $1,100,000 P.I.L.O.T $400,000 $ 800,000 Interest on Investment $1,558,000 $1,452,500 Miscellaneous 2009/10 Proposed 2008/09 Budgeted

23. Interest on Investments 2003/04 to 2009/10

24. Tax Levy Comparison using different state aid scenarios 3,650,000 .28% 3,650,000 .28% 3,650,000 .28% $3,639,949 Appropriated Fund Balance % Change $3,458,000 3.15% $3,458,000 3.15% $3,458,000 3.15% $3,352,500 Other Revenue % Change $167,038,386 3.11% $166,009,314 2.48% $168,942,012 4.29% $161,996,879 Tax Levy % Change $1,000,000 100% $1,000,000 100% $1,000,000 100% 0 Use of Reserves % Change $27,198,972 0% $28,228,044 3.78% $25,295,346 -7.0% $27,198,972 State Aid % Change $202,345,358 3.14% $202,345,358 3.14% $202,345,358 3.14% $196,188,300 Total Budget % Change Proposed Budget Assumes State Aid returned to 2008/09 level Proposed Budget Assumes DRA removed Proposed Budget Governor’s Proposal 2008/09 Budget Base Year

25. Tax Levy increases 2006/07 to 2008/09

26. Tax Rate Comparison to School Districts in Towns of Huntington and Babylon

27. Dates to Remember Budget Presentation Vanderbilt 8:00 pm Monday, March 23, 2009 Elementary PTA Budget Presentation Manasquan 10:00 am Thursday, March 26, 2009 Public Hearing Manasquan 8:00 pm Monday, May 11, 2009 Budget VOTE H.S. East 7:00am to 10:00pm Tuesday, May 19, 2009 Adopt Budget Manasquan 8:00 pm Monday, April 20, 2009 Secondary PTA Budget Presentation Manasquan 8:00 pm Monday, March 30, 2009 Description Place Time Date

28. More information…. Budget information is available on our webpage http://www.hhh.12.ny.us Follow the Our District link to the District Financial Information page

29. Voting Tuesday: May 19, 2009 7AM to 10PM High School East: East Gym