2014 2015 budget updates from prior workshop 02 24 14

HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon

2014‐15 Budget Updates from Prior Workshop February 24, 2014 Budget Workshop #2

Budget Overview – Update $228,254,916

$232,900,000* * Assumes no increase to State Aid, no changes to PTLC figures, not “piercing the cap”, consistent use of reserves and applied fund balance and a slight overall increase to “miscellaneous revenue”

$4.6 million year‐over year $ increase* 2.03% year‐over year % increase* 2.28% property tax levy cap increase*

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2014‐15 Budget – Board Workshop February 24, 2014

Tonight’s Discussion Property Tax Levy “Cap” Formula

What Lies Ahead

Potential Budget Additions

2014‐15 Budget – Board Workshop February 24, 2014

Revenues

Elementary Staffing

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Tonight’s Discussion Property Tax Levy “Cap” Formula

What Lies Ahead

Potential Budget Additions

2014‐15 Budget – Board Workshop February 24, 2014

Revenues

Elementary Staffing

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Property Tax Levy “Cap” OSC Tax Cap Advisory

PILOTs

2014‐15 Budget – Board Workshop February 24, 2014

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Property Tax Levy “Cap” OSC Tax Cap Advisory • Directive from the State Comptroller’s Division of Budget and SED • “Capital Levy Exclusion for Prior School Year” must be the same as what was submitted a year ago • Ignores the fact that updated, more accurate information is available • “Official updated guidance will be released in the coming weeks” • Formula inputs required to the State Comptroller’s Office by this Friday

PILOTs • Payments In Lieu Of Taxes • 2013‐14 anticipated receipts increased by $300,000 from original budget • 2014‐15 projected receipts anticipated to be flat to 2013‐14 anticipated receipts

2014‐15 Budget – Board Workshop February 24, 2014

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Property Tax Levy “Cap” Formula Each year, in completing the Property Tax Levy “Cap” Formula, school districts are required to enter in “base year” (aka “prior year” or “current year”) projected figures as well as “coming year” (aka “future year”) projected figures

Naturally, when we have more accurate and up‐to‐date information, we utilize it for preparing the following year’s formula…however…

2014‐15 Budget – Board Workshop February 24, 2014

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Property Tax Levy “Cap” Formula …MUST now be placed here as we submit our 2014‐15 Property Tax Levy “Cap” formula

What we estimated here a year ago and submitted as our Property Tax Levy “Cap” formula for the 2013‐14 budget…

2014‐15 Budget – Board Workshop February 24, 2014

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Property Tax Levy “Cap” Formula Requiring that school districts use the same “Capital Levy Exclusion for Prior School Year” figure for both the 2013‐14 formula and the 2014‐15 formula presents two issues:

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Ignores the fact that HHH refinanced its debt after submission of the 2013‐14 Property Tax Levy Cap Formula

Ignores the fact that capital project approvals were delayed at the SED which prevented projects from being completed during the summer and on breaks

2014‐15 Budget – Board Workshop February 24, 2014

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Property Tax Levy “Cap” OSC Tax Cap Advisory • Directive from the State Comptroller’s Division of Budget and SED • “Capital Levy Exclusion for Prior School Year” must be the same as what was submitted a year ago • Ignores the fact that updated, more accurate information is available • “Official updated guidance will be released in the coming weeks” • Formula inputs required to the State Comptroller’s Office by this Friday

PILOTs • Payments In Lieu Of Taxes • 2013‐14 anticipated receipts increased by $300,000 from original budget • 2014‐15 projected receipts anticipated to be flat to 2013‐14 anticipated receipts

2014‐15 Budget – Board Workshop February 24, 2014

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Property Tax Levy “Cap” Impact

2.28% increase from 2013‐14 property tax levy

2014‐15 Budget – Board Workshop February 24, 2014

$4.3 million increase from 2013‐14 property tax levy

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Tonight’s Discussion Property Tax Levy “Cap” Formula

What Lies Ahead

Potential Budget Additions

2014‐15 Budget – Board Workshop February 24, 2014

Revenues

Elementary Staffing

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Revenues 2014‐15 Projected Revenue*

Property Tax Levy

$ 191,991,209

State Aid

$ 26,381,067

Use of Fund Balance & Reserves

$ 9,500,000

PILOTs

$ 3,415,888

Miscellaneous

$ 1,602,000

Total projected revenue

$ 232,890,164

* Estimated as of February 21, 2014

2014‐15 Budget – Board Workshop February 24, 2014

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Revenues 2014‐15 Projected Revenue* Property Tax Levy State Aid Use of Fund Balance & Reserves PILOTs Miscellaneous

$ 191,991,209 $ 26,381,067 $ 9,500,000 $ 3,415,888 $ 1,602,000

Total projected revenue

$ 232,890,164

Assumes updated Property Tax Levy “Cap” calculation of 2.28% increase from 2013‐14 property tax levy

* Estimated as of February 21, 2014

2014‐15 Budget – Board Workshop February 24, 2014

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Revenues Assumes the following:

2014‐15 Projected Revenue* Property Tax Levy State Aid Use of Fund Balance & Reserves PILOTs Miscellaneous

$ 191,991,209 $ 26,381,067 $ 9,500,000 $ 3,415,888 $ 1,602,000

Total projected revenue

$ 232,890,164

* Estimated as of February 21, 2014

2014‐15 Budget – Board Workshop February 24, 2014

1. Governor’s State Aid projections 2. Removal of UPK grant funding from General Fund State Aid figures 3. Adjustment for State Aid deduction for cost of educating certain students 4. Building Aid Rate Recalibration reduction (although efforts are underway to obtain a waiver from this loss of aid)

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Revenues 2014‐15 Projected Revenue* Property Tax Levy State Aid Use of Fund Balance & Reserves PILOTs Miscellaneous

$ 191,991,209 $ 26,381,067 $ 9,500,000 $ 3,415,888 $ 1,602,000

Total projected revenue

$ 232,890,164

Assumes consistent use of fund balance and reserves from 2013‐14 levels

* Estimated as of February 21, 2014

2014‐15 Budget – Board Workshop February 24, 2014

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Revenues 2014‐15 Projected Revenue* Property Tax Levy State Aid Use of Fund Balance & Reserves PILOTs Miscellaneous

$ 191,991,209 $ 26,381,067 $ 9,500,000 $ 3,415,888 $ 1,602,000

Total projected revenue

$ 232,890,164

Assumes flat to 2013‐14 projected receipts based on information from Suffolk County IDA and Town of Babylon IDA

* Estimated as of February 21, 2014

2014‐15 Budget – Board Workshop February 24, 2014

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Revenues 2014‐15 Projected Revenue* Property Tax Levy State Aid Use of Fund Balance & Reserves PILOTs Miscellaneous

$ 191,991,209 $ 26,381,067 $ 9,500,000 $ 3,415,888 $ 1,602,000

Total projected revenue

$ 232,890,164

* Estimated as of February 21, 2014

2014‐15 Budget – Board Workshop February 24, 2014

Assumes slight overall increase from 2013‐14 primarily based on drivers’ education fees (this revenue off‐sets an equal level of expense for the drivers’ education program on the expenditure side of the budget)

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Tonight’s Discussion Property Tax Levy “Cap” Formula

What Lies Ahead

Potential Budget Additions

2014‐15 Budget – Board Workshop February 24, 2014

Revenues

Elementary Staffing

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Elementary Staffing Projections 2013‐14 ACTUAL

149 Total Sections Grades K‐5 Seven Elementary Buildings

2014‐15 PROJECTION

137 Projected Total Sections Grades K‐5 Five Elementary Buildings Kindergarten registration still in process Kindergarten enrollments: Demographer projection = 418 Actual as of 2/21/2014 = 375

2014‐15 Budget – Board Workshop February 24, 2014

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Tonight’s Discussion Property Tax Levy “Cap” Formula

What Lies Ahead

Potential Budget Additions

2014‐15 Budget – Board Workshop February 24, 2014

Revenues

Elementary Staffing

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Potential Budget Additions • Full‐time reading teacher to be shared between two largest elementary schools ($160,000 inclusive of salary and benefits) • Psychologist to be shared between Candlewood Middle School and out‐of‐district placements ($140,000 inclusive of salary and benefits)

• Restore job coach position ($60,000 inclusive of salary and benefits) • Full‐time assistant principals in each elementary school ($250,000 inclusive of salary and benefits)

• Restore the second drama production at the middle schools ($15,000) • Restore assistant coaches as well as extended season intramurals ($150,000) 2014‐15 Budget – Board Workshop February 24, 2014

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Tonight’s Discussion Property Tax Levy “Cap” Formula

What Lies Ahead

Potential Budget Additions

2014‐15 Budget – Board Workshop February 24, 2014

Revenues

Elementary Staffing

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What Lies Ahead • Submit figures for Property Tax Levy “Cap” Formula to Comptroller by Friday, March 1st • Continue refining budget projections • Continue analyses on staffing requirements grades K‐12 • Present updates at future Budget Workshops • Board to adopt proposed budget on April 10th • Budget vote on May 20th 2014‐15 Budget – Board Workshop February 24, 2014

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