2015 16 budget development presentation boe meeting march 9 2015

HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon

2015-16 Proposed Budget Updated as of Friday, March 6, 2015

2015-16 Proposed Budget REVENUES

EXPENDITURES

• Property Tax Levy “Cap” • State Aid • PILOTs • Use of reserves & appropriated fund balance • “Other” revenue

• Restorations • Curriculum updates • Program enhancements • Mandates • Equipment • Capital

2015-16 Proposed Budget – Updated as of March 6, 2015

NEW INITIATIVES • Smart Schools Bond Act • Property Tax Freeze Credit • Next Steps

2

REVENUES

Revenue Overview

EXPENDITURES NEW INITIATIVES

Property Tax Levy Appropriated Fund Balance PILOTs

2015-16 Proposed Budget – Updated as of March 6, 2015

State Aid Use of Reserves Other

REVENUES

Property Tax Levy “Cap”

EXPENDITURES NEW INITIATIVES

• Year four of the formula to calculate the allowable growth of the property tax levy • Reminders:

 A “cap” on the tax levy does not mean a cap on an individual homeowner’s property taxes

Tax Levy Increase ≠ Tax Rate Increase Total amount of money District needs to collect in property taxes

Total Assessed Values

2015-16 Proposed Budget – Updated as of March 6, 2015

Town of Huntington versus Town of Babylon proportional share

Equalization Rates

4

REVENUES

Property Tax Levy “Cap”

EXPENDITURES NEW INITIATIVES

• Reminders:  Districts can legally “pierce” the cap…however that requires a super majority vote  The formula rarely yields the “2%” increase which the “2% Property Tax Levy Cap” implies  All districts follow the same formula but arrive at different allowable percent increases to their levy based on their specific data input factors  State Aid projections for 2015-16 not released from Governor’s office, thereby impacting accuracy of tax levy calculation 2015-16 Proposed Budget – Updated as of March 6, 2015

5

REVENUES

Property Tax Levy “Cap”

EXPENDITURES NEW INITIATIVES

• HHH Board of Education will present a 2015-16 proposed budget which requires a “simple majority” vote (i.e. not “piercing the cap”) • The District’s calculated Property Tax Levy “Cap” is 2.42% as of March 6, 2015 $190.9 million 2014-15 property tax levy

2.42% increase $4.6 million

2015-16 Proposed Budget – Updated as of March 6, 2015

$195.5 million Estimated 2015-16 property tax levy

6

REVENUES

3.50%

Year-over-Year Property Tax Levy % Increase

Millions

Property Tax Levy “Cap”

EXPENDITURES NEW INITIATIVES

260 240 220

Total Property Tax Levy $

200

3.00%

180 160 2.50%

140 120 100

2.00%

80 60 1.50%

40 20 -

1.00% 2012-13

2013-14

2014-15

2015-16

2012-13

2013-14

2014-15

2015-16 data points are estimated

2015-16 Proposed Budget – Updated as of March 6, 2015

7

2015-16

REVENUES

State Aid

EXPENDITURES NEW INITIATIVES

• Governor released his “State of Opportunity” address and budget presentation in January 2015 • School districts left to complete Property Tax Levy Cap formula and submit budgets for Board adoption without key data from the State on projected aid levels for 2015-16

2015-16 Proposed Budget – Updated as of March 6, 2015

8

REVENUES

State Aid

EXPENDITURES NEW INITIATIVES

Known: $1.1 billion or 4.8% increase in aid to schools Unknown: What does this exactly mean to HHH?

If AGREED TO

by Legislature

Governor’s Proposed Educational Reforms

2015-16 Proposed Budget – Updated as of March 6, 2015

Overall statewide increase of 1.7% in aid BUT no increase in aid over 2014-15…and potentially a decrease based on enrollment, wealth, expenditures, and other factors.

If REJECTED

by Legislature

9

REVENUES

State Aid

EXPENDITURES NEW INITIATIVES

2015-16 Proposed Budget – Updated as of March 6, 2015

10

REVENUES

State Aid

EXPENDITURES NEW INITIATIVES

State Aid as % of Total Budget 15%

14%

13%

12%

11%

2014-15 and 2015-16 data points are estimated

2015-16 Proposed Budget – Updated as of March 6, 2015

11

2015-16

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

10%

REVENUES

Payments In Lieu of Taxes Suffolk County IDA PILOTs

EXPENDITURES

Babylon IDA PILOTs

NEW INITIATIVES

3,000,000

2,200,000

Suffolk County IDA Projection

2,000,000

Suffolk County IDA Actual

2,500,000

1,800,000 1,600,000

2,000,000

1,400,000 1,200,000

1,500,000

1,000,000 1,000,000

800,000 600,000

Babylon IDA Projection

500,000

400,000

Babylon IDA Actual

200,000

2014-15 actuals and 2015-16 projections are estimated

2015-16 Proposed Budget – Updated as of March 6, 2015

12

2015-16

2014-15

2013-14

2012-13

2011-12

2010-11

2015-16

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2009-10

0

0

REVENUES

Use of Reserves & Fund Balance

EXPENDITURES NEW INITIATIVES

• Proposed 2015-16 budget includes use of reserves at same level as 2014-15 • Proposed 2015-16 budget includes slow planned reduction to use of appropriated fund balance 2015-16 Proposed Budget – Updated as of March 6, 2015

13

REVENUES

“Other” Revenue

EXPENDITURES NEW INITIATIVES

Interest Income Drivers’ Education and Aquatics programs

Includes anticipated increase to Drivers’ Education revenue due to popularity of the program

Adult Education program and Misc. fees

Use of facility charges

Examples of “Other” Revenues {$1.8 million}

Prior year refunds (BOCES & CPSE)

2015-16 Proposed Budget – Updated as of March 6, 2015

Health services and foster tuition receivables

Includes revenue generated from Chestnut Hill lease arrangement

REVENUES

Proposed Budget

EXPENDITURES NEW INITIATIVES

• 2015-16 Proposed Budget*:  $239 million (assumes 2.42% Property Tax Levy Cap increase)  $ increase from 2014-15: $4.8 million  % increase from 2014-15: 2.1%

*estimated as of March 6, 2015

2015-16 Proposed Budget – Updated as of March 6, 2015

Restoration of some prior year reductions

Existing instructional programs and services

Curriculum updates, Enhanced services, and Operational efficiencies

15

REVENUES

History of Budget Increases

EXPENDITURES NEW INITIATIVES

11.00% 10.00% 9.00% 8.00%

7.00% 6.00% 5.00% 4.00% 3.00% 2.00%

1.00%

2015-16 budget estimated as of March 6, 2015

2015-16 Proposed Budget – Updated as of March 6, 2015

16

2015-16

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

1998-99

1997-98

1996-97

1995-96

1994-95

1993-94

0.00%

REVENUES

Restorations

EXPENDITURES NEW INITIATIVES

• Proposed restorations of reductions made in prior year budgets:  Elementary health teacher (1.0 FTE)  Elementary clubs  Reading specialists for Academic Intervention Services support (2.0 FTE)  Teacher professional development

2015-16 Proposed Budget – Updated as of March 6, 2015

17

REVENUES

Curriculum Updates

EXPENDITURES NEW INITIATIVES

• Proposed enhancements and updates to curriculum:  Mathematics: Computer programming sequence  Fine Arts course and curriculum updates: Digital design and digital game design courses Filmmaking Photography Stagecraft/Lighting Clubs @ High Schools

2015-16 Proposed Budget – Updated as of March 6, 2015

18

REVENUES

Curriculum Updates

EXPENDITURES

• Proposed enhancements and updates to curriculum:

NEW INITIATIVES

 Physical Education: introduction of multiple activity strands: Individual (tennis, yoga, dance, badminton, etc.) Group (flag football, wiffle ball, etc.) Outdoor education (mountain biking, fishing, orienteering, etc.)

 Social Studies: curriculum, strategy and skill development in support of new standards 2015-16 Proposed Budget – Updated as of March 6, 2015

19

Student Programs & Services

REVENUES EXPENDITURES NEW INITIATIVES

• Proposed enhancements to existing student services and programs:  ELA reading initiative: MyON online personalized digital library literacy program  STEM/Lego Engineering Clubs @ Middle Schools  Elementary after-school support program for at-risk students to further close the achievement gap

2015-16 Proposed Budget – Updated as of March 6, 2015

20

Student Programs & Services

REVENUES EXPENDITURES NEW INITIATIVES

• Proposed enhancements to existing student services and programs:  Technology professional development to ensure new technology is fully integrated with teachers and students  At secondary level, provide for 21st century study spaces for students to utilize technology and work collaboratively  Cheerleading start-up program costs 2015-16 Proposed Budget – Updated as of March 6, 2015

21

REVENUES

Meeting Mandates

EXPENDITURES NEW INITIATIVES

• English Language Learners (ELL) mandates  Education Law §3204 and Part 154 of Commissioner’s Regulations set forth standards for educational services which must be provided to ELL students in NYS  ELL students have a right to have a “meaningful opportunity to participate in the educational program”  “Equal access”

 To meet the mandates, the 2015-16 proposed budget will need to include funding for four to six additional ELL teachers

2015-16 Proposed Budget – Updated as of March 6, 2015

22

REVENUES

Meeting Mandates

EXPENDITURES NEW INITIATIVES

• English Language Learners (ELL) mandates

 In September and October 2014, Board of Regents approved amendments to Part 154 of Commissioner’s Regulations which seek to enhance the State Education Department’s efforts to improve instruction and programming for ELL students to ensure stronger outcomes for this student population.

IDENTIFY Districts must identify and place ELL students

PROGRAMS Districts must make bilingual education programs available

CREDIT

STAFF

Districts must provide units of study and credit for English as a new language

Districts must adhere to personnel qualifications and provide professional development

PARENTS Districts must conduct parent orientations and student progress meetings

23

2015-16 Proposed Budget – Updated as of March 6, 2015

DATA Districts are required to maintain and submit record keeping, assurances and reports

REVENUES

Operational Efficiencies

EXPENDITURES NEW INITIATIVES

• Proposed programs to create enhanced operational efficiencies:  Automated substitute calling service  Automated timekeeping and attendance system

2015-16 Proposed Budget – Updated as of March 6, 2015

24

REVENUES

Equipment

EXPENDITURES NEW INITIATIVES

• Proposed budget includes $4 million in equipment, including these highlighted items:  Reinvestment in instructional technology

Continuation of “refresh” cycles for existing computers Additional computers district-wide to enable teachers to proactively plan for technology integration into lessons

 Planetarium digital projection system

2015-16 Proposed Budget – Updated as of March 6, 2015

25

REVENUES

Equipment

EXPENDITURES NEW INITIATIVES

• Proposed budget includes $4 million in equipment, including these highlighted items:

 Upgrade to aging district-wide telephone system  Facilities Multi-function grounds tractor Replacement mail van

2015-16 Proposed Budget – Updated as of March 6, 2015

26

REVENUES

Equipment

EXPENDITURES NEW INITIATIVES

• Proposed budget includes $4 million in equipment, including these highlighted items:  Security/Residency/Truancy Patrol sedan

 Security Camera/digital recorder upgrades & additions

 Transportation Three new buses

2015-16 Proposed Budget – Updated as of March 6, 2015

27

REVENUES

Equipment

EXPENDITURES NEW INITIATIVES

2015-16 Proposed Budget – Updated as of March 6, 2015

28

REVENUES

2015-16 Capital Projects

EXPENDITURES

1

High School West Tennis Courts

2

High School West Auditorium Partition Doors

3

To Be Determined…

2015-16 Proposed Budget – Updated as of March 6, 2015

Projected “Transfer to Capital” budget line of $1.4 million

NEW INITIATIVES

29

REVENUES

New Initiatives

EXPENDITURES

NEW INITIATIVES • Smart Schools Bond Act authorized the issuance of $2 billion of State borrowing to “improve learning and opportunity for public and non-public students”.

• State established the “Smart Schools Review Board” which is tasked with issuing guidance

Timeline

Parameters

Payment

• • • •

• What items are specifically excluded?

• Who specifically must be part of the plan development?

• Are there requirements on what portion of the funding is spent on technology versus security?

• Must districts budget for the money and then await reimbursement?

• How will these expenditures be handled with the Tax Levy formula?

• Will districts be allocated their full funding level up-front in “grant” form?

When must plans be submitted?

How long will plan approvals take?

When must money be spent?

Can funding be carried forward to future years?

2015-16 Proposed Budget – Updated as of March 6, 2015

30

REVENUES

New Initiatives

EXPENDITURES Acquire learning technology or facilities

Install hightech security features

$2.7 million Smart Schools Bond Act allotment for HHH

NEW INITIATIVES

Install highspeed internet connectivity for schools & communities

Construct, enhance, modernize facilities for pre-k programs 2015-16 Proposed Budget – Updated as of March 6, 2015

31

REVENUES

New Initiatives

EXPENDITURES NEW INITIATIVES

• Multi-year Tax Freeze Credit

 Homeowners who are eligible for the STAR property tax exemption and who live in taxing jurisdictions which meet the program requirements will be eligible for the greater of:  Actual increase in their homeowner’s tax bill, or  Previous year’s tax bill multiplied by an inflation factor (for 2014 this factor was 1.46%)

2015-16 Proposed Budget – Updated as of March 6, 2015

32

REVENUES

New Initiatives

EXPENDITURES

• Multi-year Tax Freeze Credit

NEW INITIATIVES

 Year one (2014)  Homeowners will receive the Freeze Credit if school district stays within the property tax levy cap (i.e. not piercing the cap)

 Year two (2015)  Homeowners will receive the Freeze Credit if school district stays within the property tax levy cap and puts forward a plan determined to be compliant by the State’s Division of Budget to save at least 1% of the taxes levied in each of the following three years – For HHH, 1% of the taxes levied is almost $2 million per year

2015-16 Proposed Budget – Updated as of March 6, 2015

33

REVENUES

New Initiatives

EXPENDITURES

• Multi-year Tax Freeze Credit

NEW INITIATIVES

 Specific detailed plans must be submitted by June 1, 2015  Online application system and updated guidance documents still in development  Statute requires savings of at least 1% in each of the three years covered by the Government Efficiency Plan (2016-17, 2017-18 and 2018-19)  Districts permitted to demonstrate that annual savings from a past efficiency from a fiscal year beginning in or after 2012 continues into 2017, 2018 and 2019

2015-16 Proposed Budget – Updated as of March 6, 2015

34

REVENUES

Next Steps

EXPENDITURES NEW INITIATIVES

• March 23rd: Next budget presentation • April 20th: Board adopts proposed budget • April 21st through May 19th: Budget presentations to PTAs and staff • May 11th: Official Budget Hearing • May 19th: Budget Vote and Trustee Election

2015-16 Proposed Budget – Updated as of March 6, 2015

35