lansing central school district budget update april 11, 2011 dr. stephen l. grimm, superintendent...

Lansing Central School DistrictBudget UpdateApril 11, 2011

Dr. Stephen L. Grimm, Superintendent Ms. Mary June King, Business Administrator

HISTORICAL BUDGET CHANGES08/09 – 10/11 (3 budget years)

2008-2009 2010-2011 $ change % change

General Support $ 2,984,620 $ 2,909,334 $ - 75,286 - 2.5 %

Instruction $ 11,981,900 $ 12,494,429 $ 512,529 4.3 %

Pupil Transportation $ 1,072,849 $ 1,037,615 $ - 35,232 - 3.28 %

Undistributed Benefits $ 6,798,910 $ 7,936,529 $ 1,137,619 16.73 %

TOTALS $ 22,838,279 $ 24,377,907 $ 1,539,630 6.74 %

HISTORICAL BUDGET REDUCTIONS08/09 – 10/11 (3 budget years)

• Administrative staff reduced 25%• Teaching staff reduced 13%• Support staff reduced 14%• Instructional M&S reduced 52%• Instructional contractual reduced 22%• Instructional equipment reduced 12%• Central Services reduced 7.65%• Transportation dept reduced 3.3%

HISTORICAL BUDGET INCREASES08/09 – 10/11 (3 budget years)

• Teaching Regular School increased 3.4%• Programs for SPED increased 13.3%

– BOCES portion increased 71%• BOCES Occupational Ed increased 24.8%• BOCES Comp-Assist Instruct increased 60%• Retirement benefits increased 8.58%• Health insurance increased 20.17%• Debt service increased 22%

– Most of this increase has matching offsetting revenue

TAX LEVY, RATE AND BUDGET HISTORY

• Tax-related calculation for 2008-2009 uses AES as PILOT.

2008-2009 2009-2010 % CHG 2010-2011 % CHG

AVG % CHG

BUDGET 22,838,912 23,944,315 4.8 % 24,377,907 1.8 % 3.4 %

COMB. LEVY 15,175,929 15,785,633 4.0 % 16,028,471 1.5 % 2.8 %

TAX RATE 17.76 17.60 - 0.01 % 18.48 4.9 % 2.0 %

TAX HISTORY CONSIDERATIONS

2008-2009 2009-2010 2010-2011

PROJECTED TAX RATE $17.96 $17.76 $18.64

ACTUAL TAX RATE $17.76 $17.60 $18.48

ROLLOVER v. PROJECTED2011-2012

ROLLOVER PROJECTED DIFFERENCE

GENERAL SUPPORT $ 3,058,547 $ 3,005,547 $ - 53,000

INSTRUCTION $ 12,839,185 $ 12,434,185 $ - 405,000

PUPIL TRANSPORTATION $ 1,056,960 $ 996,960 $ - 60,000

UNDISTRIBUTED EXPENDITURES $ 8,838,810 $ 8,838,810 $ 0

TOTALS $ 25,793,502 $ 25,275,502 $ - 518,000

BUDGET CUTS BUILT IN2011-2012

BUDGET CODE ITEM DECREASE IN $$ CAVEATS

1310-490 School Lunch Super 53,000 Offset revenue

2110-120/130/150 Teach Regular Sal 210,000 Grade 1/Science

2110-160 Teach Regular Sal 20,000 TA

2250-150 SPED Instruct Sal 55,000 1 FTE

2250-490 SPED BOCES 110,000 Decreased RFS

2340-490 Inc Youth/BOCES 10,000 Decreased costs

5510-160 Transportation Sal 60,000 Adj. for current exp

TOTALS $ 518,000

2011-2012 PROPOSED BUDGET STAFFING REDUCTIONS

• 0.4FTE, HS Science position• 1FTE, 7-12 Math position• 1FTE, Sp Ed teaching position• 1FTE, Teaching Assistant position• 1FTE, K-12 teaching position

BUDGET STATE AREA TOTALS, 11/12

UNDISTRIBUTED EXPENDITURES2010-2011 2011-2012 % CHANGE

Employee Benefits $ 5,785,403 $ 6,535,412 12.96 %Debt Services $ 2,151,125 $ 2,303,398 7.08 %

Debt Service is offset by matching revenues (state aid)

2010-2011 2011-2012 $ CHANGE % CHANGEIN 11/12, AS

% OF BUDGET

General Support $ 2,909,334 $ 3,005,547 $ 96,213 3.31 % 11.89 %

Instruction $ 12,494,428 $ 12,434,185 $ - 60,243 - 0.48 % 49.19 %

Pupil Transportation $ 1,037,616 $ 996,960 $ - 40,656 - 3.92 % 3.94 %

Undistributed Expenditures $ 7,936,529 $ 8,838,810 $ 902,281 11.37 % 34.97 %

TOTAL: $24,377,907 $ 25,275,503 $ 897,595 3.68 %

COMPARATIVE BREAK-DOWN:Budget Expenses

GEN SUP12%

INSTR52%TRAN

4%

UNDIS EXP32%

2010-11

GEN SUP12%

INSTR49%

TRAN4%

UNDIS EXP35%

2011-12

3.68% INCREASE BY CATEGORY

• GENERAL SUPPORT = 0.39%

• INSTRUCTION = (0.25)%

• PUPIL TRANSPORTATION = (0.17)%

• UNDISTRIBUTED EXP = 3.71%

BUDGET, 11/12(another, but familiar, perspective)

2010-2011 2011-2012 $ CHANGE % CHANGE

IN 11/12, AS % OF

BUDGET

SALARIES $ 10,869,287 $ 10,673,464 $ - 195,823 - 1.8 % 42.23 %

NON-SALARIES $ 2,318,596 $ 2,424,468 $ 105,872 4.57 % 9.59 %

BOCES $ 3,253,495 $ 3,338,759 $ 85,264 2.62 % 13.21 %

BENEFITS $ 5,785,403 $ 6,535,412 $ 750,009 12.96 % 25.86 %

DEBT SERVICE $ 2,151,125 $ 2,303,398 $ 152,273 7.08 % 9.11 %

TOTALS $ 24,377,907 $ 25,275,503 $ 897,595 3.68 %

COMPARATIVE BREAK-DOWNBudget Expenses

SAL45%

NON-SAL10%

BOCE13%

BENE24%

DEBT8%

2010-11

SAL42%

NON-SAL10%

BOCE12%

BENE26%

DEBT9%

2011-12

3.68% INCREASE BY CATEGORY

• SALARIES = (0.8)%• NON-SALARIES w/o BOCES = 0.43%• BOCES = 0.34%• BENEFITS = 3.07%• DEBT SERVICE = 0.62%

BUDGET INCREASE SPECIFICS2011-2012

• Total proposed budget increase = $ 897,595• ERS/TRS increase = - 306,764

(with cuts)

• Debt Service increase = - 207,344(with matching revenue)

• Funding Cliff = - 149,290(ARRA-related costs re-added to budget)

• Remaining budget increase = $ 234,197

$ 234,197 = 0.93 %Budget increase for all other costs of doing the

business of providing education

REVENUE TRENDS• Tax-related calculation for 2008-2009 uses AES as PILOT. • Calculations for 2011-12 assume levy increase of 2.6%.

2008-2009(actual)

2009-2010(actual)

% CHG

2010-2011 (anticipated)

% CHG 2011-2012 %

CHG

STATE AID 7,176,026 6,383,245 -11.1 6,412,246 0.5 6,471,311 0.9

FEDERAL AID 17,727 1,051,482 5931 455,847 -56.7 30,000 -93.2

MISCELLANEOUS 2,705,802 784,800 -71.0 802,329 2.23 499,446 -37.8

APPROPRIATED 0 368,000 1,371,000 372.6 1,830,535 33.5

PILOTS 2,803,784 3,014,745 7.5 2,677,315 -11.2 2,393,907 -10.6

TAXES 12,372,145 12,770,888 3.2 13,351,156 4.5 14,050,304 5.2

25,075,484 24,373,160 25,069,893 25,275,503

FUND BALANCE PROJECTION

2008-2009 2009-2010 2010-2011 (est)

REVENUES $ 991,649 $ 798,523 $ 691,987

EXPENSES $ 925,778 $ 1,094,055 $ 478,708

FUND BALANCE $ 1,917,427 $ 1,892,578 $ 1,170,695

REVENUE PROJECTIONS2011-2012

(assumes 2.6% combined levy increase)

2010-2011(anticipated) 2011-2012 $ CHANGE % CHANGE IN 11/12, AS

% OF BUDGET

STATE AID $ 6,412,246 $ 6,471,311 $ 59,065 0.92 % 25.60 %

FEDERAL AID $ 455,847 $ 30,000 $ -425,847 - 93.42 % 0.12 %

MISCELLANEOUS $ 802,329 $ 499,466 $ -302,863 20.40 % 1.98 %

APPROPRIATED FB $ 1,371,000 $ 1,170,695 $ -200,305 -14.61 % 4.63 %

APPROP RESERVES 0 $ 660,535 $ 660,535 2.60 %

PILOT $ 2,677,315 $ 2,393,907 $ -283,408 -10.59 % 9.45 %

TAXES $13,351,156 $14,060,304 $ 709,148 5.31 % 55.62 %

TOTALS $25,069,893 $25,275,503 $ 216,325 0.82 % 100.00

COMPARATIVE REVENUEBREAK-DOWN

STATE25.6%

FED2%

MISC7.7%COMB

LEVY64.7%

2010-11

STATE25.6%

FED.10%

MISC9.3%COMB

LEVY65%

2011-12

THE AES STORY• At the current tax rate (18.48), every $5 million decrease in AES is a

‘loss’ of $92,400 in tax levy for the District.• To maintain the tax levy, the tax rate must increase to make up for

the decrease in AES value. • Projection assumes: 1% taxable value increase, 0% levy increase.• Lansing budget is similar to similar-sized schools.

Combined Levy

% chg levy Tax Rate Tax Rate

Chg

Chg for 100000 home

Proposed Combined

Levy

16,028,471 0.00% $18.742 1.42% $ 26 $16,028,471

IMPACT OF AES VALUE DECREASES

2010-2011

2011-2012

COMPARATIVE COMBINED LEVY BREAK-DOWN

TAX83.3%

PILOT1.7%

AES15%

2010-11

TAX85.4%

PILOT1.4%

AES13.2%

2011-12

Multi-Year Financial Projections* Assumes a 2% PTCap

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2011 - 2012 2012-2013Budget 25,275,500 26,800,000

Revenue 23,500,000 24,000,000Budget Gap

(Deficit) 1,775,500 2,800,000

Additional Tax Levy 465,000 330,000 Appropriated FB 1,170,000 1,000,000

Reserves 605,500 600,000CUTS ($520,000 embedded) 870,000

Remaining Gap ($0) ($0)

Multi-Year Financial Projections

25

2012-2013 2013-2014Budget 26,800,000 27,100,000

Revenue 24,000,000 24,330,000Budget Gap

(Deficit) 2,800,000 2,770,000

Additional Tax Levy 330,00 340,000

Appropriated FB 1,000,000 1,000,000

Reserves 600,000 600,000

CUTS 870,000 830,000

Remaining Gap ($0) ($0)

Reduction Scenarios(List is in alphabetical order)

26

Athletics - Non- Varsity (.3) $ 100,000Class Size at Elementary School (25) 5 Teachers $ 300,000Class Size High School (27) 4 Teachers $ 240,000Class Size Middle School (25) 4 Teachers $ 240,000Co-curricular Offering (.5) $ 75,000Encore/Electives $ 60,000Enrichment (1.5) $ 90,000Library Staff $ 75,000Nursing $ 40,000Other $ 100,000SPED Teacher 1.0 FTE District Wide $ 50,000Support Staff - Cleaning & Grounds $ 120,000Teacher Leadership Stipends/Positions $ 40,000Teaching Assts (13) $ 520,000Technology Staff $ 60,000Transportation $ 100,000

 Total $ 2,210,000

Key Questions• What quality of education are we

responsible to deliver to this generation of children in Lansing?

• What quality of education are we willing to support in Lansing?

27

Key Questions• What is an appropriate class size at

each of the schools?

• How much transportation should the district provide?

28

Key Questions• Should we support a comprehensive

educational and social experience in our schools?

• Can the Town provide “pay to play” extracurricular and encore opportunities? If so, which ones?

29

Key Questions

• Are we willing to sacrifice the general conditions of our buildings and grounds? If so, by how much?

• Can we provide programs for our most needy students on campus instead of paying BOCES tuition?

30

Next Steps• Community Engagement Advisory Team

– Community Members– Board Members– Professors– Teachers– Staff– Administrators– Parents– Students– Other Experts– Other 31

Next Steps• Advisory Team Goals

– Answer the key questions– Explore other cost savings opportunities– Explore other ways to deliver education– Recommend and/affirm the scope of

educational opportunity our schools should provide

– Recommend a level of financial support the community may be willing to provide

32

Next Steps• July – Organize Advisory Team• August – Organizational Meeting• Sept – Meeting/Research/Analysis• October – Meeting/Research/Analysis• November – Meeting/Research/Analysis• December – Produce Recommendations• January – First Draft Budget Projections

33

Area Tax Levy RatesApproximate and Unofficial

34

Candor 6 to 9%Dryden 6%Groton 4 to 6%Ithaca 2.9%Newfield 6% South Seneca 2.8%Spencer Van Etten 11%

Recommended Budget Summary

Approved 2010-2011 Budget $ 24,377,906

Proposed 2011-2012 Budget $ 25,275,503

Proposed 2011-2012 Increase $ 897,597

Proposed % Increase 3.68 %

35

REVENUES w/ $2,247,250 APPROP and $0 ADDITIONAL LEVY

Proposed Budget

Budget to Budget Change

Proposed Combined Tax Levy

% Chg CombinedTax Levy

TaxRate

Tax Rate Chg

Chg for $100,000

Home

25,275,503 3.68% 16,028,471 0% 18.74 1.43% $ 26

BUILT-IN CUTS TO BUDGET = $ 518,000

USE OF PROJECTED FUND BALANCE = $1,170,000

USE OF RESERVES TO FILL GAP = $1,077,250

REMAINING RESERVES = $ 1,567,172

PROPOSED BUDGET FINANCED WITH NO LEVY INCREASE

REVENUES w/ $1,942,728 APPROP and $304,522 ADDITIONAL LEVY

Proposed Budget

Budget to Budget Change

Proposed Combined Tax Levy

% Chg CombinedTax Levy

TaxRate

Tax Rate Chg

Chg for $100,000

Home

25,275,503 3.68% 16,332,018 1.9% 19.10 3.34% $ 62

BUILT-IN CUTS TO BUDGET = $ 518,000

USE OF PROJECTED FUND BALANCE = $ 1,170,000

USE OF RESERVES TO FILL GAP = $ 772,728

REMAINING RESERVES = $ 1,871,674

PROPOSED BUDGET FINANCED WITH 1.9% LEVY INCREASE

REVENUES w/ $1,830,535 APPROP and $416,715 ADDITIONAL LEVY

Proposed Budget

Budget to Budget Change

Proposed Combined Tax Levy

% Chg CombinedTax Levy

TaxRate

Tax Rate Chg

Chg for $100,000

Home

25,275,503 3.68% 16,444,211 2.6% 19.23 4.05% $ 75

BUILT-IN CUTS TO BUDGET = $ 518,000

USE OF PROJECTED FUND BALANCE = $1,170,000

USE OF RESERVES TO FILL GAP = $ 660,535

REMAINING RESERVES = $1,983,887

PROPOSED BUDGET FINANCED WITH 2.6% LEVY INCREASE

SUMMARY• FACTS & TRUST:

– We have focused on significant cost cutting for past 3 years

• FACTS & TRUST: – We have appropriated fund balance back to

taxpayers each year• FACTS & TRUST:

– Projected tax rate has been reduced from projected rate at annual vote every year once final assessments are received.

BOE DECISIONS, 4/11/11• We are asking tonight for:

– Approval of the proposed budget at $25,275,503– Approval of a proposed funding plan (only for publication

purposes, these are all estimates at this time):

(remaining reserves amounts include 4% undesignated fund)

0% COMBINED LEVY INCREASE

1.9% COMBINED LEVY INCREASE

2.6% COMBINED LEVY INCREASE

CUTS $ 518,000 $ 518,000 $ 518,000

RESERVES $ 1,077,250 $ 772,728 $ 660,535

ADDITIONAL LEVY $ 0 $ 304,522 $ 416,715

REMAINING RESERVES $ 1,567,172 $ 1,871,674 $ 1,983,887