March 12, 2013 2013-14 Budget First Draft

District Guiding Principles

 The FCSD Shall Create a Safe, Secure and Positive Learning Environment Fostering Effective Relationships among Students, Parents and Staff.

District Guiding Principles

 The FCSD Shall Communicate Effectively and Intentionally Throughout the District and with All Communities of Which it is Part of.

 The FCSD Shall Provide Quality Educational Experiences which Meet the Needs of All Learners.

District Guiding Principles

 The FCSD Shall Be Fiscally Responsible Through Using Sound and Efficient Practices in All Matters.

Recent History NYS Education Aid

 Constrained Revenues Due to NYS & National Economy – 2008 Recession  NYS Limited Education Funding to Public Education from 2009-10 through 2012-13 School Years  NYS Froze Foundation Aid at 2008-09 Levels 2009 2012. Imposed a Gap Elimination Adjustment on School Districts in 2010-11, 11-12 & 12-13 School Years  Index Increases in Education Aid Based on Personal Income Tax Receipts (Capped at 4% in 2012-13 and 3% in 2013-14)

History of Budget Revenues

 FCSD is a High Need/Low Wealth District – CWR .355

 FCSD is Highly Dependent NYS for Revenue  Approximately 61% of Revenues from NYS  Five Years ago 65% of Revenue Was NYS Aid  Historically Approximately 32% from Local Tax levy  Remainder Other Sources

Why We Face This Problem

 Revenue Problem  Not a Spending Problem  NYS Has Limits on Financial Resources  Minimal Increases in State Aid  FCSD Continues to Face a Gap Elimination Adjustment of $1.9 Million with Governor’s Proposed Budget in 2013-14 Gov. Budget

Recent History of State Aid Reductions  2009-10 State Aid Frozen at 2008-09 Levels  2010-11 State Aid Reduced $1.7 Million  2011-12 State Aid Reduction $3.6 Million  2012-13 Increase of $1.2 Million  FCSD Faced a $2.7 Million Gap Elimination Adjustment in 2012-13  Governor Proposal 2013-14 Lowers GEA by $822,000

2009-10 through 2012-13 Budget Impact  Impact of the Funding Cliff  Eliminated 48.6 FTE Positions - Teaching, Clerical, Teacher Aides, Teachers on Assignment, Administration  Realigned Programs and Services to Cut Costs  Reduced Projected Spending by $5.6 Million

Long Term Strategies

 In 2010 Renegotiated Transportation Contract at 0% increase for 3 Years  Transportation Contract 2013-14, 14-15, 15-16 Yearly Increase 1.5% or Less  Program/Service Analysis  Continue to Explore Options for Areas that Drive Costs

Multi Year Staff Reductions

3 Years of FTE Reductions

12.2

2009-10 2010-11 2011-12 3 Yr Total 0 10 20 18 20.4

30

# of FTEs

40 50 50.6

60

Budget Comparison 2008-09 to 2012-13  2008-09  2009-10 $57,238,244 $58,434,475  2010-11  w/0 Debt Svc.

$60,696,994 *Includes $2,050,000 in New Debt  2011-12  2012-13 $60,240,095 $62, 398,511 * Includes $500,000  Total Change $ 5,160,267 Debt BOCES Proj.

$2,610,267

Long Term Strategies

 Energy Performance Contracts 1 and 2  Sustainability Study in 2011-12  Energy Consortium Purchasing  Review of Insurances and Health Insurance Plans

2009-10 Per Pupil Expenditures

Fulton Similar Districts All NYS Schools

General Education

$8,752 $10,770 $11,105

Special Education

$26,028 $27,862 $26,888

Shifting Funding of Public Education

 State Aid?

 Local Tax Levy?

 Other Revenues?

Budget Committee’s Focus  Aligning of District’s Staffing, Services and Operations with Enrollments and Changing State and Local Fiscal Capacity  Maintain All Programs, Services and Opportunities for Students  Maintain Quality Educational Programs & Services  Provide for High Achieving and At Risk Students  Implement College and Career Readiness Approach

2013-14 FCSD Proposed Budget

 Proposed Budget Approx. $65,386,000  Budget to Budget Increase of Approx. $3.0 Million

District Revenue Budget

 Spending Plan (Budget) =  State Aid (Including Building Aid) +  Local Tax Levy +  (Miscellaneous) Other Revenue +  Assigned Fund Balance (Use of Reserves)

2013-14 Budget Status

 State Aid per Gov. Proposal $ 40,285,952  Other Revenues $ 2,250,000  Local Tax Levy  Planned Use of Reserves:  ERS Reserve  Assigned Fund Balance  Total Revenues $ 19,746,500 no increase $ $ 500,000 $ 62,782,452  Total Budget  Shortfall $ 65,386,000 $ (2,603,548)

2013-14 Budget Status

 State Aid per Gov. Proposal $40,285,952  Other Revenues $ 2,250,000  Local Tax Levy  Planned Use of Reserves:  ERS Reserve  Assigned Fund Balance  Total Revenues $20,042,698 1.5% incr.

$ 500,000 $ 1,500,000 $ 64,578,650  Total Budget  Shortfall $ 65,386,000 $ (807,350)

Budget Status – Plan

 Awaiting Actions of the NYS Legislature  Legislature’s Intent to Redistribute Over $300 Million to School Districts  Impact Would Reduce Size of Current Shortfall  Mitigate Use of Further Reserves, Increase in Local Levy or Reductions of Positions, Programs, Services and/or Opportunities

Current Budget Costs

 All Staff Salaries & Benefits  Transportation of Students  BOCES Services, Expenses & Charges  Supplies, Materials & Equipment  Custodial & Maintenance  Energy  Debt Service

Questions: