Budget Update March 19 2012

HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon

Board of Education Meeting March 19, 2012 Update on the 2012‐13 Proposed Budget

The 2012‐13 Budget Journey Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

March 19, 2012 Board Meeting

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Property Tax Levy “Cap”

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

• 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!

Prioritizing budget reductions

March 19, 2012 Board Meeting

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Presenting the proposed 2012‐13 budget

Property Tax Levy “Cap”

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

• HHH Board of Education made a decision to present a 2012‐13 budget which requires a “simple majority” • The District’s calculated Property Tax Levy “Cap” as a result is 2.33% Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

 Put differently: the 2011‐12 total property tax levy of $178 million can increase by 2.33% for the 2012‐13 school year

March 19, 2012 Board Meeting

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The 2012‐13 Budget Journey Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

March 19, 2012 Board Meeting

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Expenses

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

• Just completed the process which 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 Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

 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 March 19, 2012 Board Meeting

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Expenses

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

• Remaining 20% of budget represents equipment, 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 Prioritizing budget reductions

March 19, 2012 Board Meeting

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Presenting the proposed 2012‐13 budget

The 2012‐13 Budget Journey Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

March 19, 2012 Board Meeting

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Revenues • Total expenses must equal total revenue • Revenue comes from three sources:

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

 Property taxes (about 83% of total revenue)  State aid (about 11% of total revenue)  “Other”, including use of reserved and unreserved fund balance (about 6% of total revenue)

• Total property tax levy is now a fixed amount based on the Property Tax Levy formula • State aid expected to rise by approximately $600,000  Final State budget due out on April 1st…more to come

March 19, 2012 Board Meeting

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Revenues • Total “other” revenue expected to increase as a direct result of:

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

 PILOTs  Incremental use of appropriated unreserved fund balance  Incremental use of reserved fund balance

March 19, 2012 Board Meeting

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The 2012‐13 Budget Journey Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

March 19, 2012 Board Meeting

11

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

March 19, 2012 Board Meeting

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

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Fiscal and Educational Balance • 2012‐13 budget must maintain: • • • • • • • • • • • •

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

March 19, 2012 Board Meeting

• • • • • • • • • • •

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

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 Participation in SCMEA, NYSSMA and LISFA Technology replacements Drivers’ Education 13

The 2012‐13 Budget Journey Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

March 19, 2012 Board Meeting

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Prioritizing Budget Reductions

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

• 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

Prioritizing budget reductions

March 19, 2012 Board Meeting

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Presenting the proposed 2012‐13 budget

Prioritizing Budget Reductions • Over $9 million in reductions were required to be made across all areas • Handout describes each of these reductions

March 19, 2012 Board Meeting

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

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The 2012‐13 Budget Journey Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

March 19, 2012 Board Meeting

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Proposed 2012‐13 Budget • $221,918,299

Property Tax Levy “Cap”

Expenses

Balancing fiscal responsibility and excellence in education

Revenues

Prioritizing budget reductions

Presenting the proposed 2012‐13 budget

 2.75% increase from 2011‐12 budget  Lowest budget‐to‐budget increase in 15 years  Stays within the Property Tax Levy “Cap”

• Public presentations to continue after the Board adopts the proposed budget

March 19, 2012 Board Meeting

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Important Dates • Thursday, April 19th: 2012‐13 Proposed Budget adopted by Board of Education • April 20th through May 11th: Various public presentations regarding the budget – dates/locations to be posted on the website • Tuesday, May 15th: Budget Vote and Board of Education elections

March 19, 2012 Board Meeting

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