may 7 2012 budget hearing

HALF HOLLOW HILLS SCHOOL DISTRICTof Huntington and Babylon

2012‐13 Adopted BudgetBUDGET HEARING

May 7, 2012

2012‐13 Adopted Budget – May 7, 2012 Budget Hearing

The 2012‐13 Budget Journey

Property Tax Levy “Cap” Expenses

RevenuesBalancing fiscal responsibility and

excellence in education

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

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Property Tax Levy “Cap”• Governor Cuomo imposed a formula for districts to use in an effort to “cap” the growth of property taxes

• The “cap” is not a cap; it’s a voter threshold• Formula is flawed since the result of it will be further separating the “haves” and “have‐nots” amongst Long Island school districts

• The Governor’s “2% cap” isn’t 2%!• A “cap” on the tax levy does not mean a cap on an individual homeowner’s property taxes – these are two very different concepts!

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Property Tax Levy “Cap”• HHH Board of Education made a decision to present a 2012‐13 budgetwhich requires a “simple majority”

• The District’s calculated Property Tax Levy “Cap” as a result is 2.33% Put differently: the 2011‐12 total property tax levy of $178 million

can increase by 2.33% for the 2012‐13 school year

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Expenses• Budget development process began in

November 2011 to calculate the cost of providing the same level of programs and support services for 2012‐13 as we do in 2011‐12 Person‐by‐person Budget code‐by‐budget code

• Approximately 80% of budget represents salary and contractually required benefits: 41% for New York State certified staff (teachers/administrators) 14% for Civil Service staff (clerical, custodians, etc) 25% for employee benefits including healthcare, Social

Security, Workers’ Compensation, and pension

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Expenses• Remaining 20% of budget representsequipment, textbooks, supplies, BOCES, transfers to other funds (capital, debt service, special aid) and borrowing costs for cash flow

• Providing the same level of programs and support services next year (2012‐13) as we have this year (2011‐12) would cost us approximately 7% more (over $15 million) than it does today

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Revenues• Total expenses must equal total revenue• Revenue comes from three sources: Property taxes State aid “Other”, including use of reserved and unreserved fund balance

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Property Taxes82.15%

State Aid11.34%

"Other"6.51%


Increase of2.33% or$4,158,533

Revenues• Property Taxes Total property tax levy is now a fixedamount based on the Property Tax Levy formula For HHH, the 2012‐13 total property tax levy is 2.33% more than prior year

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$178,147,6582011‐12

total property tax levy

$182,306,1912012‐13

estimated total property tax levy


Revenues• State Aid New York State passed an on‐time budget HHH State Aid rose by approximately $900,000 from State Aid budgeted in 2011‐12

Aid in many individual categories changed slightly To interpret State Aid, must also understand:

Deduct for Local Share of Education for Certain StudentsUniversal Pre‐Kindergarten Aid is NOT general fund moneyGap Elimination Adjustment (GEA)

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STATE BUDGET


Revenues• State Aid

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17,695,337

1,355,779

1,089,746

920,989

851,493

2,882,289

4,554,254 17,887,040

1,355,779

1,220,310

946,635

848,574 3,259,002

4,790,769

‐

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Foundation High Tax BOCES Special Ed Categorical Transportation Building

2011‐12

2012‐13

Expense Driven Aids


Revenues• Total “other” revenue expected to

increase as a direct result of: PILOTs Incremental use of appropriated unreserved fund balance Incremental use of reserved fund balance

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‐

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

PILOTs Use of Reserves Appropriated FundBalance

"All Other"

2011‐12

2012‐13

• Interest earnings• Adult Ed• Medicare Part D

reimbursement• Foster tuition from

other districts• Use of facility charges• Health Services from

other districts








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Fiscal and Educational Balance

• Property Tax Levy “Cap” mandatehas shifted the District’s attention from building a budget focused on programs/services first to one which puts expenses and revenues first.

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• 2012‐13 budget must maintain:

Fiscal and Educational Balance

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• Universal Pre‐K• Full‐Day Kindergarten• Elementary Class Size• Middle School Teaming• 27 Advanced Placement Courses• 9‐Period MS / HS School Day• 6th Grade Foreign Language• Special Education / ESL• AHAP / Enrichment• Research Program• Elementary Summer School• Elementary Academic Intervention

Services in reading and math

• Discovery Center / Planetarium• Universal Busing• Field Trips• 131 Athletic Teams• Extracurricular Clubs K‐12• Band, Orchestra & Chorus in

Grades 4‐12 • MS / HS Musicals• Hills on Stage• LIHSPA for Seniors• Participation in SCMEA, NYSSMA

and LISFA• Technology replacements• Drivers’ Education








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Prioritizing Budget Reductions

• Address budget reductions resulting from enrollment declines first

• Equitably distribute reductions across all buildings/areas

• Maintain as much of the blending of “AAA” (Academics, Arts and Athletics) as possible

• Over $9 million in reductions were required to be made across all areas

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Proposed 2012‐13 Budget

• $221,918,299 2.75% increase from 2011‐12 budget Lowest budget‐to‐budget increase in 15 years Stays within the Property Tax Levy “Cap”

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Undistributed• Employee benefits (including retirement,

Medicare, Social Security, Workers' Compensation, unemployment insurance, health insurance, life insurance, etc.)

• Debt service (principal and interest payments on outstanding bonds and tax anticipation notes)

• Local share for the cost of offering a summer school special education program

General Support• Expenses supportive of the entire district

management effort• Includes legal, BOE, elections, auditors,

facilities, BOCES admin charges, and insurance

• Includes expenses within the Superintendent, Human Resources, and Business Offices

Instruction• K‐12 instructional programs of

regular and special ed students• Principals, assistant principals,

teachers, guidance counselors, psychologists, attendance, librarians, health services, etc

• Also included is summer school, the interscholastic sports program, co‐curricular activities (clubs) as well as textbooks

Community Services• Costs related to community use of

District pool

Transportation• All costs for transporting pupils to and

from public, private and parochial schools



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General Support19,978,960

9%

Instruction122,013,160

55%

Transportation14,115,436

6%

Community Service77,751 0%

Undistributed65,732,992

30%

2012‐13 Adopted Budget – May 7, 2012 Budget Hearing 23

Budget Failure• Scenarios: Budget is defeated after two presentations to the voters OR

After one defeat where the Board decides not to resubmit a budget to voters

• Requirements:1. District must adopt a budget with a tax levy less than or

equal to the prior year (i.e. 0% growth)2. Maintain the administrative cap 3. Eliminate all non‐contingent expenses

• Statewide uniform revote date: third Tuesday in June


Budget Failure1. District must adopt a budget with a tax levy less

than or equal to the prior year Overall contingent budget calculation stricken from law No longer is the contingent budget an increase of the prior

year’s budget which represents the lesser of 120% of CPI or 4% No longer does the contingent budget calculation include

provisions for exceptions and allowances 0% growth in tax levy For HHH, a contingent budget means an additional

over $4 million in cuts

$182,306,191 $178,147,658 $4,158,533

2012‐13 Proposed Tax Levy

2011‐12Tax Levy

Additional Budget Cuts Required under a Contingent Budget



After one defeat where the District decides not to resubmit a budget to voters





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Budget Failure2. Maintain the administrative cap Stay at or below the same proportion of “Admin” to “Program”

as existed in prior year Districts are required to report their budget in three parts…

PROGRAM78.3% of budget

• Special Ed and Regular Ed Teacher salaries & benefits

• Instructional Technology• Clubs & Sports• Student busing

ADMINISTRATIVE8.9% of budget

• The “people and stuff” working to put all the pieces together

• Board of Education• Auditors & Attorney fees• Property & Liability insurances• Administrators & Support Staff

districtwide• Curriculum Development• BOCES admin charges

CAPITAL12.8% of budget

• Custodians, Maintenance and Grounds salaries & benefits

• Debt Service• Transfer to Capital



After one defeat where the District decides not to resubmit a budget to voters





Budget Failure3. Eliminate all non‐contingent expenses Equipment Student supplies Community use of buildings and grounds Board can elect one of the following two options

1. Eliminate ALL community use of buildings and grounds for the entire year

2. Allow community use of buildings and grounds but charge every single group a fee for such use so that all direct and indirect expenses are 100% covered:» Field use: painting fields, irrigation system fees, water fees,

grounds staff salaries/benefits, etc.» Building use: heat/AC, toilet paper, paper towels, maintenance

of septic systems, custodial staff salaries/benefits, etc.


Budget Failure• What would a contingent budget look like?

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Reduction Item Approximate $ Reduction Item Approximate $

Eliminate all equipment 1,000,000$ Reduce to half‐day kindergarten

1,200,000$

Eliminate all community use of buildings and grounds

100,000$ Eliminate all extracurricular activity clubs

600,000$

Eliminate Planetarium and Discovery Science Center

200,000$ Eliminate remainder of intramurals

75,000$

Eliminate Elementary Enrichment program and AHAP

400,000$ Elminate 4th and 5th grade orchestra/band

200,000$

Eliminate regular education elementary summer school

200,000$ Eliminate 8th grade teaming 125,000$

Eliminate 7th and 8th grade interscholastic teams

100,000$

$4,158,533

Additional Budget Cuts Required under a Contingent Budget


Important Dates• Remaining PTA presentations of proposed 2012‐13 budget: Tuesday May 8th – 9:30 am – Paumanok Wednesday May 9th

9:30 am – Candlewood 10:15 am – West Hollow

• Tuesday May 15th: Budget Vote and Board of Education election High School East 7am to 10pm

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Exercise your right and

responsibility… VOTE!

may 7 2012 budget hearing

Documents

propertytaxes stateaid