2014 15 budget presentation preliminary overview february 10 2014 board meeting

HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon

2014-15 Budget Preliminary Overview February 10, 2014 Budget Workshop

Budget Overview - Preliminary $228,254,916

$234,400,000*

* Estimated as of February 7, 2014; final proposed budget figure will differ.

$6 million year-over year $ increase* 2.7% year-over year % increase* 2.63% property tax levy cap increase*

2

2014-15 Budget – Preliminary Overview as of February 10, 2014

2014-15 Expenditure Drivers BUILDING CLOSURES SALARIES PROPERTY & LIABILITY INSURANCE BENEFITS TRANSPORTATION EQUIPMENT

2014-15 Budget – Preliminary Overview as of February 10, 2014

3

Key Expenditure Drivers BUILDING CLOSURES SALARIES PROPERTY & LIABILITY INSURANCE BENEFITS TRANSPORTATION EQUIPMENT

• Closing two elementary buildings will save $3 million in salaries, as follows:

▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Clerical (4) Food Service (6) Monitors (18) Paraprofessionals (10) Custodians (6) Security (2) Nurses (2) Librarians (2) Math Specialists (2) Reading Specialists (2) Physical Education Teachers (1.5) Art Teachers (1.5) Music Teachers (2) Psychologist (1)

2014-15 Budget – Preliminary Overview as of February 10, 2014

4

Key Expenditure Drivers BUILDING CLOSURES

• Salaries comprise over 50% of the total

• SALARIES PROPERTY & LIABILITY INSURANCE BENEFITS

•

•

budget Budget projections based off of employee contracts Employee contracts expiring as of June 30, 2014: ▪ Teachers ▪ Administrators When an expired contract exists, budget projection for that bargaining unit is based on status of negotiations and remains confidential

TRANSPORTATION EQUIPMENT

2014-15 Budget – Preliminary Overview as of February 10, 2014

5

Key Expenditure Drivers BUILDING CLOSURES SALARIES PROPERTY & LIABILITY INSURANCE

• Insurance policies carried by the District: ▪ General Liability ▪ Property ▪ Vehicle ▪ Crime ▪ Boiler/Machinery ▪ Excess ▪ Student Accident - optional • Most policies through the New York

BENEFITS

•

TRANSPORTATION

•

Schools Insurance Reciprocal (NYSIR) Projected increase of 5% on all policies other than Student Accident Student Accident policy projected increase of 15% (actual increase of approximately $15,000)

EQUIPMENT

2014-15 Budget – Preliminary Overview as of February 10, 2014

6

Key Expenditure Drivers BUILDING CLOSURES SALARIES PROPERTY & LIABILITY INSURANCE BENEFITS

• ERS (for civil service employees) ▪ Employee Retirement System ▪ Mandated by law ▪ ERS provided an anticipated blended ▪ ▪

• TRS (for NYS certified employees)

▪ Teachers Retirement System ▪ Mandated by law ▪ TRS provided an anticipated employer

TRANSPORTATION EQUIPMENT

rate of 20.1% of salaries Rate decrease of 3.8% 25% of total payroll made up of ERSeligible employees

▪ ▪

contribution rate range of 17.25% to 17.75% of salaries Rate increase of over 9% 75% of total payroll made up of TRS-eligible employees

2014-15 Budget – Preliminary Overview as of February 10, 2014

7

Key Expenditure Drivers • Health Insurance ▪ Empire/NYSHIP rate increases

BUILDING CLOSURES 14%

Family

12%

Individual

10%

SALARIES

8% 6% 4%

PROPERTY & LIABILITY INSURANCE

2% 0%

2010

2011

2012

2013

2014

2013

2014

▪ HIP rate increases BENEFITS

12% 10%

8%

TRANSPORTATION

6% 4% 2%

EQUIPMENT

0%

2010

2014-15 Budget – Preliminary Overview as of February 10, 2014

2011

2012

8

Key Expenditure Drivers BUILDING CLOSURES

• Two types of transportation, same level of

SALARIES PROPERTY & LIABILITY INSURANCE

•

BENEFITS TRANSPORTATION

• EQUIPMENT

service and expectations: ▪ District-owned/operated buses ▪ Contracted buses ▪ 66 and 72 passenger buses ▪ 3 and 4 hour regular and wheelchair vans ▪ Matrons Contracted buses through Educational Bus Transportation ▪ Board-approved three-year contract extension ▪ Increase of 3.0% or CPI, whichever is lower Budget projection provides for flexibility in routing related to building closures

2014-15 Budget – Preliminary Overview as of February 10, 2014

9

Key Expenditure Drivers BUILDING CLOSURES

• Equipment budgeted for 2014-15 at same SALARIES

•

PROPERTY & LIABILITY INSURANCE

infrastructure

BENEFITS TRANSPORTATION EQUIPMENT

dollar level as current year Main areas where equipment is needed: ▪ Technology – instructional and

•

▪ ▪ ▪ ▪ ▪

Fine Arts Athletics Physical Education Special Education Facilities 2014-15 budget includes the purchase of three new 72-passenger buses

2014-15 Budget – Preliminary Overview as of February 10, 2014

10

Key Revenue Drivers STATE AID PILOTs

PROPERTY TAX LEVY

2014-15 Budget – Preliminary Overview as of February 10, 2014

11

Key Revenue Drivers • Governor’s Executive Budget released January 21st

STATE AID

▪ General operating aid (Foundation Aid) ▪ ▪ ▪

remains flat BOCES aid higher due to additional expenses in this area Building aid – misstated in Governor’s budget due to exclusion of interest rate recalibration being conducted by the State Gap Elimination Adjustment (GEA) “shrunk”

PILOTs

PROPERTY TAX LEVY

• Governor’s Executive Budget provides •

for $26.38 million in Aid for HHH (1.6% increase) Anticipate Legislative approved budget

by April 1st

2014-15 Budget – Preliminary Overview as of February 10, 2014

12

Key Revenue Drivers • Payments In Lieu Of Taxes negotiated through two entities: ▪ Town of Babylon Industrial Development Agency (IDA) ▪ Suffolk County Industrial Development Agency (IDA) • District has no authority in approving or denying an IDA agreements  Town of Babylon IDA: 30+ agreements  Suffolk County IDA: 3 agreements  Awaiting information from both IDAs on their projections for 2014-15

2014-15 Budget – Preliminary Overview as of February 10, 2014

STATE AID PILOTs

PROPERTY TAX LEVY

13

Key Revenue Drivers • Property Tax Levy Cap formula • HHH projected calculation = 2.63% •

STATE AID

increase Formula components finalized:

   

Tax base growth factor (1.0031) CPI (1.46%) No TRS exclusion No ERS exclusion

PILOTs

PROPERTY TAX LEVY

• Formula components tentative:  PILOTs  Capital expenditures

2014-15 Budget – Preliminary Overview as of February 10, 2014

14

Where We Stand Now… 2014-15 Projected Revenue* Property Tax Levy State Aid Use of Fund Balance & Reserves PILOTs

$ 192,653,926 $ 26,380,000 $ 9,500,000 $ 3,125,831

2.63% increase estimated 1.6% increase flat to current year flat to current year

Miscellaneous

$

flat to current year

Total projected revenue

$ 233,401,757

2014-15 Projected Budget*

$ 234,400,000

1,742,000

* Estimated as of February 7, 2014

2014-15 Budget – Preliminary Overview as of February 10, 2014

15