duanesburg school district budget presentation

7/29/2019 Duanesburg School District Budget Presentation

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2013-14 Budget and Future of DCS Forum

February 28, 2013


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Outline of Tonights Presentation

Financial, academic highlights and comparisons

Financial challenges

Financial history at DCSReview statewide tax levy cap

Possible budget balancing tools

Long-range financial plan, future of DCS

Community involvement, input

Public survey


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Academic, Financial and OtherHighlights & Comparisons


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Highlights & Comparisons

Did you know DCS has a high ROI?One of the highest graduation rates in region

In 2012, nearly 80 percent of graduates pursued

a post-secondary education

Consistently ranked as a high-performing district

Good academic standing, NYS Report Card

Preparing college-ready students by offering a varietyof AP and UHS courses

21st-century elective courses


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$0

$5,000

$10,000

$15,000

$20,000$25,000

$30,000

$35,000

$40,000

$45,000

Middleburgh

Schohar

ie

BKW

Schalmon

t

RCS

Tacon

icHills

Cohoes

Schodac

k

Voorheesv

ille

Cob

lesk

ill

Sco

tia

BH-B

L

Duanesburg

Schenec

tady

DCS has a lower than average per pupil cost:

$16,227 vs. state average $20,145

Middleburg $23,974Schoharie $23,491BKW $22,387Shalmont $21,698Duanesburg $16,227


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$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Albany

SouthColonie

Ravena-Coeymans-Selkirk

Berkshire

Greenville

Johnsburg

EastGreenbush

Schalmont

Niskayuna

NorthColonie

Johnstown

FortPlain

Hudson

Chatham

BurntHills-BallstonLake

Shenendehowa

Middleburgh

Germantown

Coxsackie-Athens

Greenwich

Warrensburg

Bethlehem

Fonda-Fultonville

AverillPark

HoosickFalls

BallstonSpa

Canajoharie

Schodack

Guilderland

SouthGlensFalls

Scotia-Glenville

Schoharie

Berlin

Windham-Ashland-Jewett

Troy

SaratogaSprings

Catskill

GlensFalls

Schuylerville

Mayfield

NorthGreenbush(Williams)

SaintJohnsville

Galway

Kinderhook(IchabodCrane)

Schenectady

Rensselaer

Voorheesville

Rotterdam-Mohonasen

Gloversville

SharonSprings

Mechanicville

Menands

Bolton

Broadalbin-Perth

Cambridge

Amsterdam

Wynantskill

LakeGeorge

Salem

FortEdward

Berne-Knox-Westerlo

Hadley-Luzerne

Corinth

Argyle

NorthWarren

Cohoes

Cairo-Durham

Hunter-Tannersville

Waterford-Halfmoon

Queensbury

Cobleskill-Richmondville

Northville

NewLebanon

Jefferson

HoosicValley

Brunswick(Brittonkill)

Duanesburg

HudsonFalls

Gilboa-Conesville

Whitehall

GreenIsland

Granville

FortAnn

Stillwater

Lansingburgh

Hartford

Watervliet

Oppenheim-Ephratah

GlensFallsCommon

Wheelerville

TaconicHills

Putnam

Median DCS Teacher Salary: $50,436


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DCS has had minimal spending increases,even some decreases.

Budget Year Total Budget Spending Increase2008-09 $14,821,497 +5.8%

2009-10 $14,864,913 +0.3%

2010-11 $14,616,629 -1.4%

2011-12 $14,069,135 -3.75%

2012-13 $14,196,703 0.91%

2013-14 (projected) $14,435,344 1.68%


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Proposed budget

2013-14 budget changes Based on enrollment figures and student needs

Reduce 2 FTE elementary teacher positions

Reduce 1 FTE foreign language teacher position

Reduce 0.5 FTE MS/HS library media position

Based on district needs Increase communication services by 0.1 FTE

Increase technology teacher 0.2 FTE

Total projected savings: $219,012


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Financial Challenges at DCS


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Financial Challenges

State aid: Declining or relatively stagnant

Health insurance costs: Nearly doubled

in the last 10 yearsTRS contribution costs: Risen from0.36% in the 2002-03 school year to

16.25% in the 2013-14 school yearAdditional unfunded mandates (APPR)


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DCS has a $1 million hole in budget left by

the decrease in state aid over the years

School Year Total State Aid % Change

2009-10 $7.2 million -5.5%

2010-11 $6.8 million -5.6%

2011-12 $5.9 million -13.5%

2012-13 $5.8 million -1%

2013-14* $5.9 million 0.98%

In 2008-09, state aid was 52 percent of revenues.In 2012-13, state aid was 41 percent of revenues.* This is an estimate based on Gov.s 2013-14 state budget proposal.


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1.111.216

1.333 1.354 1.3851.434 1.455 1.438

05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13

Health Insurance Costs

Millions


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Financial ChallengesERS: Employees Retirement System

TRS: Teachers Retirement System

Mandatory employer participation cannot be

negotiated between district and bargaining unitsALL full-time local government employees areMANDATED to participate

Required by the NYS Constitution to be fully funded


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118,299

169,018

130,888111,943

130,887

174,890

222,880

336,000

0

50,000100,000

150,000

200,000

250,000

300,000

350,000

400,000

05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13

Employees Retirement Contr ibutions


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326,838401,260 423,601 392,417

314,572

416,090

529,172

719,000

0

100,000200,000

300,000

400,000

500,000

600,000

700,000

800,000

05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13

Teachers Retirement Contributions


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Financial History


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Financial History

Made substantial cuts over the years Reduced nearly a dozen staff positions (instructional and

non-instructional)

Reduced many full-time positions to part-time

Eliminated non-aidable software, equipment, textbooks

Eliminated summer programs

Reduced out-of-district tuition costs

Reduced field trips, clubs, summer services

Reduced transportation costs, cut scrimmage travel

Reduced all department supply budgets

Reduced administration positions and froze salaries

New mandate requirements shifted to existing staff,

no new hires


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Financial History

Cost savingsParticipate in consortiums (healthcare, energy,

purchasing, workers compensation)

Share transportation services

Run in-district programsRetirement incentives

Restructured employee healthcare benefits

Special education audit to better align appropriateservices with student needs

Use BOCES to acquire aidable goods and services (i.e.,equipment, technology, printing, etc.)


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States Tax Levy Limit or Tax Cap


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Tax Levy Cap Review

It is NOT a 2% tax cap575 school districts had a capgreaterthan 2%.

91 districts had a cap less than 2%.

Only 5 districts actually had a 2% cap.


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Tax Levy Cap Review

Limits a districts levy (total amount it cancollect), NOT individual tax bills

8-step formula determines a districts

individual tax levy limitTax levy cap sets a higher threshold forvoter approval IF districts exceed tax levylimit60 vs. 50 percent


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Maximum Allowable Tax Levy

DCSs maximum allowable tax levyincrease is 4.47percent.

This would allow for an estimated revenueincrease of close to $330,000.


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Possible Budget Balancing Tools


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We need to be realistic:

Small cuts here and there do NOT impact ourbudget enough to keep it financially solvent.

Already operate on a bare-bones budget.

No indication of additional aid, revenue.

We could be financially insolvent by 2017-18.


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What are our options:

Further reduce the budget, cut programsand staff.

Spend down Fund Balance Reserves.

Propose a tax levy increase.

A combination of the three.


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Reduce budget by cutting non-mandatedprograms, services and staff, such as:

Kindergarten

Sports, extracurricular clubs

K-6 music and arts program and reduce music, artand technology offerings in grades 7-12

Advanced Placement, UHS, elective classes

Library and social services(These are not being recommended. Its just a list of programs,

services that are NOT mandated in a school district.)


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Spend down the fund balanceBoard has appropriated $800,000 annually over the

years to balance budget, save additional cuts.

Cant replenish fund balance, its dwindling.

Without using other budget balancing tools, fundbalance will be gone by 2016-17.

Based on budget projections, more fund balanceneeds to be used in the future.

Without a fund balance (savings account)

unexpected costs cant be funded, have to borrow.


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Dwindling fund balance

$4.024

$3.086

$2.085

$0.922

($0.335)

($1.0)

$0.0

$1.0

$2.0

$3.0

$4.0

12-13 13-14 14-15 15-16 16-17Fundba

lancein$millio

ns

School Year


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Possible Budget Balancing ToolsFive-year budget projection

2012-13 2013-14 2014-15 2015-16 2016-17

Expenditures $14,531K $14,876K $15,327K $15,717K $16,203K

Revenue

Tax Levy $7,389K $7,612K $7,840K $8,075K $8,317KState Aid $5,859K $5,915K $5,971K $6,028K $6,085K

Misc $200K $200K $200K $200K $200K

Total Rev. $13,449K $13,726K $14,011K $14,303K $14,602K

Exp.over Rev. (-$1,083K) (-$1,150K) (-$1,317K) (-$1,414K) (-$1,601K)


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Tax levy increase now and for the future

Propose maximum allowable tax levy increase of 4.47%

Board can use less fund balance, $743,897.

Keep academic programs intact.

Within 5 years, board will likely be able to plug $1 million hole inbudget left by years of decreasing state aid, keep district solvent.

Propose a tax levy increase of 3.71%

Board would need to continue to use fund balance, $800,000.

No additional budget cuts. Keep district financially solvent onlyuntil 2017-18 school year.


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Possible Budget Balancing ToolsPropose a tax levy increase of 3%

Board must continue to use fund balance, $800,000.

Cut an additional $52,000 from budget.

Run out of fund balance, become financially insolvent by 2016-17.

Propose a tax levy increase of 2.5%

Board must continue to use fund balance, $800,000. Cut an additional $89,000 from budget.


Propose a tax levy increase of 2%

Board must continue to use fund balance, $800,000.

Cut an additional $126,000 from budget.



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Long-Range PlanFuture of DCS


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Long-Range PlanFuture of DCS

District was not awarded consolidation study grants.

Board passed resolution in October to keep DCSfinancially solvent, refrain from a merger.

We need to ask our community members:

What matters most to them?

Whats best for the future of Duanesburg?

Do they want a Duanesburg School District in the future?

Will they financially support DCS and keep it fromfinancial insolvency?


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Long-Range PlanPlan B

When the district becomes financially insolvent,what are our options?:

Pay tuition to send our students in grades 9-12 to other

districts high schools.Merge our district with a neighboring district.This requires a public vote.

Become annexed (absorbed) by another district.

Become a school district that is essentially financiallyinsolvent, too much of a liability to borrow money.


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Community InvolvementFuture of DCS and Tax Levy Increase Survey

The districts survival rate depends on theDuanesburg community, not on the state.

What can and will the community support?

Take an online survey and let us know what you

would support.


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Community Involvement

Thank you for getting involved and learningabout the budget and the future of DCS, please:

Attend future forums, budget development meetings

Stay informed by reading updates on our website,www.duanesburg.org, and our Facebook page

Spread the word about what youve learned today,encourage others to get informed


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Thank youPlease complete the paper or

online survey and encourage communitymembers to get involved now!

www.surveymonkey.com/s/DCSbudgetsurvey

duanesburg school district budget presentation

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