Addressing School Budget Challenges in Brunswick Central School District

BRUNSWICK CENTRAL SCHOOL DISTRICT 2015-16 Budget Presentation May 7, 2015

Budget Challenges Preserving programs Special education needs Maintaining district facilities Delayed state aid information Property tax levy cap Declining federal aid Health insurance increases

Budget Development 2015-16 estimated state aid $635,000 less than 7 years ago. GAP elimination adjustment of $535,290 for 2015-16; cumulative loss $6.7 million since inception in 2010-11. Federal funding continues to decrease.

How can school budget gaps be eliminated? Given the state s new local property tax cap, schools need a steady, stable and reliable funding stream from the state in order to keep tax levy increases to a minimum and meet student performance expectations. Schools need more stability and predictability in pension costs. ERS rates went from 1.5% in 2002- 03 to 20.9% in 2013-14 (2015-16 rate 18.2%). TRS rates went from .36% in 2001-02 to 17.53% in 2014- 15 (2015-16 rate is 13.26%). Mandate relief

Mandates NYS has about 200 mandates that go above and beyond federal requirements. Study by Regional Educational Advocacy Districts group determined the cost of 94 unfunded state and federal mandates comprise 17 to 20 percent of school district spending - $5 to $6 billion statewide. Mandate Relief Design Team (legislators, school administrators, teachers, municipal governments) progress has been slow since consensus among different stakeholders is difficult.

District Cost Saving Measures Solar panels installed on roofs generate electricity to reduce district s dependence on the grid as well as our carbon foot print. Annual savings approximately $10,000. Products and services are purchased through New York State contracts and cooperative arrangements with BOCES whenever possible to obtain the best prices. Bond refinancing resulting in savings of $872,753 or approximately $87,000 per year over 10 years. 2002 bonds paid off early saving $96,020 in interest.

District Cost Saving Measures Participation in a health insurance trust with 22 other districts significantly reduces costs on premiums. Participation in Rensselaer-Columbia-Greene County Workers Compensation Consortium results in cost savings. Reconfiguration of bus routes has resulted in transportation cost savings over past several years. Grants are pursued whenever possible to supplement district expenditures.

District Cost Saving Measures Automated consumption. temperature controls reduce energy Conversion to energy efficient lighting and high efficiency motors on fans and blowers further reduces energy consumption. District reduces energy costs by joining more than 170 schools in the NY School and Municipal Consortium which uses competitive bidding to obtain reduced natural gas and electricity rates. Lower insurance cost due to issuing RFP.

Budget History 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 $22,517,718 $21,370,821 $20,443,609 $20,432,126 $21,174,018 $21,730,716 $22,425,975 -$1,146,897 -$ 927,212 -$ 11,483 +$ 741,892 +$ 556,698 +$ 695,259 Net Reduction -$ 91,743

Budget History $23,000,000 1st year of GEA $22,517,718 $22,425,975 $22,500,000 $22,000,000 $21,730,716 $21,370,821 $21,500,000 $21,174,018 $20,443,609 $21,000,000 $20,432,126 $20,500,000 $20,000,000 $19,500,000 $19,000,000 2009- 10 2010- 11 2011- 12 2012- 13 2013- 14 2014- 15 2015- 16

2015-16 Budget Summary Total Proposed Budget $22,425,975 Budget Increase 3.2% Tax Levy $12,008,066 Tax Levy Increase 1.96% Property Tax Cap 1.96% Amount Below Cap $2

Property Tax Freeze Credit Eligibility residential property owners that are eligible for STAR exemptions on primary residence with total household income $500,000 or less School district must be in compliance with tax levy limit 2015 rebates will cover the increase from 2013-14 to 2015-16 In 2015 districts must have an approved efficiency plan demonstrating 3 years of savings and efficiencies equivalent to 1% per year of the 2014 school tax levy ($117,777)

Budget Additions 2015-16 Literacy coach $67,000 Reinstatement of field trips for all grades $13,000 Additional athletic opportunities $8,000

Proposed New Course Offerings 2015-16 English 12 Financial Accounting Advanced Photography

Proposed Budget 2014-15 2015-16 Difference $10,700,366 Instruction $10,172,767 $527,599 $2,761,822 General Support $2,804,350 -$42,528 $1,290,706 Transportation $1,136,538 $154,168 $74,520 Youth Programs (Child Care) $82,500 -$7,980 $5,846,000 Employee Benefits $5,784,000 $62,000 $1,752,561 Interfund Transfers $1,750,561 $2,000 $22,425,975 Total $21,730,716 $695,259

Categories of Expense Employee Benefits 26.1% Interfund Transfers 7.8% General Support 12.3% Community Services 0.3% Transportation 5.8% Instruction 47.7%

Three Part Budget 2014-15 $15,511,804 $2,454,507 $3,764,405 $21,730,716 2015-16 $15,988,614 $2,612,501 $3,824,860 $22,425,975 % of Total 71% 12% 17% 100% Program Administrative Capital Total

Three Part Budget Adminstrative 12.0% Program 71.0% Capital 17.0%

2012-13 Expenditures Per Pupil Brunswick CSD Similar Districts All NYS Schools General Education $8,406 $10,266 $11,260 Special Education $26,906 $29,257 $29,922 Source: NYS School Report Card Fiscal Accountability Supplement

Revenues 2014-15 2015-16 Difference 12,008,066 Property Taxes 11,777,730 230,336 8,951,909 State Aid 8,495,586 456,323 816,000 Other Revenues 807,400 8,600 650,000 Fund Balance 650,000 0 $21,730,716 $22,425,975 Total $695,259

Revenues Property Taxes 53.5% Fund Balance 2.9% Other Revenues 3.6% State Aid 40.0%

State Aid History 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 $9,584,485 $8,519,210 $7,896,307 $7,890,514 $8,269,029 $8,495,586 -$1,065,275 -$ 622,903 -$ 5,793 +$ 378,515 +$ 226,557 Net Reduction -$1,088,899

State Aid History $9,584,485 $10,000,000 $8,519,210 $8,495,586 $9,000,000 $7,896,307$7,890,514$8,269,029 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

State Aid as a Percent of Budget 47.8% 50.0% 43.1% 45.0% 38.4%39.1% 39.5% 38.8% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Tax Levy 2015-16 tax levy increase 2014-15 tax levy increase 2013-14 tax levy increase 2012-13 tax levy increase 2011-12 tax levy increase 2010-11 tax levy increase 2009-10 tax levy increase 1.96% 1.82% 4.49% 2.49% 2.00% 2.92% 0%

Fund Balance June 30, 2014 $869,229* Percent of Following Year s Budget 4% *After designating $650,000 towards following year s budget

Reserves June 30, 2014 Capital Projects $390,420 Employee Benefits and Accrued Liabilities $719,569 Employees Retirement System $996,713 Unemployment $524,257 Workers Compensation $76,990 Total Reserves $2,707,949 2015-16 Budget Allocation $200,000

What happens if the budget is not approved by the public? If the proposed budget is not approved by the required margin: The district may resubmit the original budget or submit a revised budget to the voters on the third Tuesday in June OR Adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in tax levy). If the resubmitted/revised budget proposal is not approved by the required margin: The Board of Education must adopt a budget that levies a tax no greater than that of the prior year (0% increase in tax levy) and the budget would be subject to contingent budget requirements. Districts will not be allowed to increase the tax levy to the extent necessary to fund items of expenditure excluded from the tax cap No growth factor No capital, court order/judgments or pension exemptions.

More About Contingency Under a contingency budget, the tax levy can be no greater than the prior year tax levy. No increase in the tax levy is allowed. All non-contingent items, such as certain equipment and supply purchases, must be removed from the budget. Administrative expenditure caps wouldapply.

Budget Vote Tuesday, May 19th 8 a.m. to 8 p.m. Multipurpose Gym Detailed budget available on District website www.brittonkill.k12.ny.us