Transcript Fulton City School District

NYS FINANCIAL PROBLEM
Constrained Current Revenues – Economy
NYS has Changed Education Policy in Funding Public Education
NYS Continues to Freeze Foundation Aid at 2008-09 Levels,
Continues to Impose a Gap Elimination Adjustment on School
Districts and Index Increases in Education Aid Based on Personal
Income Tax Receipts (Capped at 4%)
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
Approximately 32% from Local Tax levy
Remainder Other Sources
WHY WE FACE THIS PROBLEM
Revenue Problem
Not a Spending Problem
NYS Distribution of Aid is Not Equitable
FCSD is Not Able to Make Up Locally the Funding Cuts from NYS
FCSD Has Had to and Needs to Continue to Live within its Means
FCSD BUDGET PROCESS TO DATE
BOE Parameters Workshop 12/3/11
Budget Committee Meetings January 17 & 31/2012
Review of District Programs, Services, Operations and Financials
Review District Spending , Anticipated Revenue, Student
Enrollment, Personnel, Prior Years’ Spending and Staff
Reductions, and Projected Costs for the Budget Moving Forward
ITEMS DRIVING BUDGET COSTS
Staff Salaries & Benefits
Transportation of Students
BOCES Services, Expenses & Charges
Information Technology - Software, Hardware and Connectivity
Supplies, Materials & Equipment
Custodial & Maintenance
Energy
Debt Service
DISTRICT BUDGET COMPONENTS
(PROJECTED)
Instructional Staff, Program and
Services 74.1%
Administrative Components 9.4%
Capital Component 9.2%
Debt Service 7.3%
THE GOVERNOR’S 2012-13 PROPOSAL
Increases State Aid to FCSD for 2012-13 by $1.2 Million
Shifts 15% of Preschool Special Education Costs from the County to
School Districts
2012-13 YR. GOV.’S BUDGET IMPACT
Governor’s Proposed Budget Increase of $1.2 Million in Aid to FCSD
Where will this money go?
Federal Jobs Bill Ends in June 2012 - $404,000 in Staffing to
Continue
Governor’s Proposed Budget –$427,000 of the Increase in Aid is
Directly Tied to the District’s New Cost for the Oswego County
BOCES Capital Project beginning this Year.
Increases in District Operations, Energy Costs, Retirement System
Costs, Health Care and Salaries
Increase in BOCES Administrative Costs of $100,000
IMPACT OF GOVERNOR’S PROPOSAL
State Aid Impact Increases Funding by $1.2 Million
Cost to Maintain Current 2011-12 Programs, Services and
Operations Including $404,000 Funded Positions in the Federal
Jobs Bills Results in a $2..8 Million Budget Gap
Combined Initial Impact on Local
Tax Levy = 14.4% Increase
Unrealistic and Not Sustainable to District and Tax Payers
DISTRICT REVENUE BUDGET
Revenue Budget =
State Aid (Including Building Aid)+
Local Tax Levy +
Miscellaneous Income +
Designated Fund Balance (Use of Reserves)
CURRENT CONSIDERATIONS
If:
$2,800,000 Budget Gap
$387,568 (2% Tax Levy Impact)
$2,412,432 Gap
*Budget Gap Closing Options are further tax levy increases, use of
Reserve Funds and/or staff and program reductions.
CURRENT CONSIDERATIONS
Use of District Reserves – The implications for the Future
Reserves are Established for Specific Legal Purposes
To Address potential District Financial Obligations and
Liabilities
To plan for and protect the Long Term Fiscal Health of the
School District
LOCAL TAX LEVY OPTIONS
2% Levy Threshold or CPI Which Ever is Lower
2% Levy Threshold , Not Including Exclusions, Requires Basic
Majority for Voter Approval
Exclusions included Pension Costs Rate Increases Above, 2%,
Local Share of Debt Service, large Tort Judgments
Levy Increase Greater than 2% ,Not Including the Exclusions,
Requires a Super Majority of 60% of Voter Approval
* District Must Notify NYS Agencies on March 1st
PROPOSED BUDGET EQUATION 2012-13
State Aid $37,969,596 (Gov.’s Proposal)
+ Spending Reductions $
+ Local Levy Increase $
+/- Miscellaneous Revenue $
+ Use of District Reserves $
= Total $
TOTAL BUDGET
Total Budget $61,936,414
$1,696,319 Increase
2.8% Budget to Budget Increase
BUDGET COMMITTEE’S FOCUS
2012-13 Budget & Multi Year Budget Approach
Address the Loss in June 2012 of the $404,000 in Federal Jobs Bill
District Budget Reductions Enacted in 2009-10, 2010-11 &2011-12 have
Raised Class Sizes, have Reduced and placed strain on RTI and AIS for
Students in Need, has Reduced Administrative Support and Supervision
for Schools, Alternative Education, Program Support and Development
Regents Reform Agenda is Leading in Redesign of District Instructional,
Assessment and Support Models- District Faces Many New Costs
Long Term Picture - Based on Inequitable Aid Distribution
Building Budget in Alignment with Tax Levy Threshold Law for Majority or
Super Majority Voter Approval
BUDGET COMMITTEE’S FOCUS
Aligning of District’s Staffing, Services and Operations with
Enrollments
Maintaining Quality Educational Programs & Services
District Sustainability Study Long Term Cost and Analysis of District
Operations and Configuration
Program, Service and Operations Review to Assess and
Consolidations for 2012-13 and Beyond
NEXT STEPS
Wait for Legislative Action in Albany
First Draft of Budget March 13rth
Tentative Budget April 10h
Joint Site Based Meeting April 30h
Public Hearing May 2nd
Community Vote May 15h
ON GOING ACTIONS
● Informing All District Staff
● Communications with the Community – Media Articles,
Letters to Media, Budget Newsletter
● Communications with Legislators & Governor’s Office
● Lobbying Through Central New York and New York
State School Boards Assoc. and Small Cities School
Districts Assoc.
QUESTIONS?