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