Maintaining Balance in Times of Stress

Nassau PTA Legislation RoundtableHofstra University March 3, 2013

Joseph C. DragoneAssistant Superintendent for Business

Roslyn Public Schools

Part I: State Aid

The Governor’s Proposal on School Aid for 2013-14 (Exec Runs)$550 million in “formula” aid changes including:

Foundation Aid (no change), Gap Elimination Adjustment Restoration ($321.5 million), High Tax Aid (-$50 million)

Expense Based Aids ($278.8 million)

$203 million in one-time “stress relief” (pensions, etc.)$125 million in grant programs (extended day, performance,

etc.)

(mill ions) 2012-13 2013-14 % DiffNYS $19,854 $20,404 2.77%LI $2,413 $2,481 2.81%Nassau $815 $835 2.49%Suffolk $1,599 $1,646 2.98%

Devil in the details?Foundation Aid and High Tax are flexible forms of aidGEA reduces the amount of flexible aid availableExpense aid is reimbursement for textbooks, debt

service, special education excess costs, transportation, etc.

74% of statewide reduction in High Tax Aid is on LI!

(in millions) 2012-13 2013-14 $ DiffGEA -$2,156.3 -$1,834.7 321.55High Tax $204.8 $154.7 -50.03Expense $6,799.7 $7,078.5 278.80GEA -$328.0 -$297.8 30.19High Tax $139.3 $102.3 -36.96Expense $790.1 $864.7 74.63

NYS

LI

Differences across Counties

Nassau lost $9.2 million more in High Tax Aid than it received in Gap Elimination Adjustment Restoration

94.9% of the increase in Suffolk County aid is explained by expense reimbursements

(in millions) 2012-13 2013-14 $ Diff % DiffGEA -$119.12 -$108.77 $10.35 8.69%High Tax $55.91 $36.35 -$19.56 -34.98%Expense $273.15 $302.64 $29.49 10.80%GEA -$208.87 -$189.03 $19.84 9.50%High Tax $83.39 $65.99 -$17.40 -20.87%Expense $516.95 $56.21 $45.14 8.73%

Nassau

Suffolk

A little bit of history…

When aid is increasing, LI receives only “its share”When aid is decreasing, LI pays back more than “its

share”

(in millions) Nassau Suffolk NYC Rest of NYS NYS2008-09 Total Aid 927.42$ 1,795.54$ 8,623.61$ 10,434.31$ 21,780.89$ 2012-13 Total Aid 814.53$ 1,598.57$ 7,896.92$ 9,543.53$ 19,853.55$ 2013-14 Total Aid 834.81$ 1,646.15$ 8,120.91$ 9,801.99$ 20,403.86$

2012-13 to 2013-14% Increase 2.49% 2.98% 2.84% 2.71% 2.77%

Share of Total 40.702% 46.966% 100.000%

2008-09 to 2012-13% Decrease -12.17% -10.97% -8.43% -8.54% -8.85%

Share of Total 37.705% 46.218% 100.000%16.077%

12.332%

Island Wide Data (117 Districts)

15%

17%

19%

21%

23%

25%

27%

LI State Aid as % of Budget

State Aid

Impact on LI Property Taxes

2007-08

2008-09

2009-10

2010-11

2011-12

2012-1367.5%

68.0%

68.5%

69.0%

69.5%

70.0%

70.5%

71.0%

71.5%

72.0%

LI Tax Levy as % of Budget (117 Districts)

Levy

Are LI Budgets out of control?Measured in 1990 dollars

LI aid per pupil declined by 14%!LI expense per pupil increased by only 1.3%

per year! 1990-91 2010-11( $ in millions) State Aid Enrolled Expense State Aid Enrolled ExpenseLong Island Districts 1,292.6 369,662 4,056.8 2,230.8 453,473 10,264.5Rest of New York State 7,783.3 2,188,812 17,037.2 17,707.1 2,331,569 46,583.2

Consumer Price Index 134.6 220.2Measured in 1990 Dollars State Aid Expense State Aid ExpenseLI Per Pupil $3,496.66 $10,974.42 $3,007.01 $13,836.16NYS Per Pupil $3,555.93 $7,783.75 $4,642.23 $12,212.61LI % Change -14.00% 26.08%NYS % Change 30.55% 56.90%

State Aid by County since 08-09The loss in aid over the past 5 years (Public

SAMS)(in millions) Nassau Suffolk Long Island 2008-09 893.39 1,744.86 2,638.252009-10 798.84 1,569.10 2,367.942010-11 787.54 1,569.86 2,357.392011-12 786.66 1,559.03 2,345.692012-13 819.27 1,595.40 2,414.67

Cum Loss -381.25 -686.05 -1,067.30

ARRA – EJF – Exec ProposalTo be fair – we did get some relief in 2010-11

and the proposal for 2013-14 does increase aid to Long Island

(in millions) Nassau Suffolk Long Island Cum Loss -381.25 -686.05 -1,067.30ARRA/EJF 72.44 122.99 195.43

2013-14 Prop 11.47 50.75 62.22Net Loss -297.34 -512.31 -809.65

Part II: Fund Balance

A Tale of Two DistrictsRoslyn is lucky to have significant

resources, does not depend upon state aid, and a current budget that is sufficient to meet the needs of its pupils

Sachem has limited resources outside of state aid which has been cut drastically and a budget which has already been trimmed in response to taxpayer demands

2007-08

2008-09

2009-10

2010-11

2011-12

2012-1380,000,000

82,000,000

84,000,000

86,000,000

88,000,000

90,000,000

92,000,000

94,000,000

96,000,000

98,000,000

100,000,000

Roslyn UFSD

BudgetLevy

2007-08

2008-09

2009-10

2010-11

2011-12

2012-130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Roslyn Fund Balances

RestrictedAssignedUnassigned

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13125,000,000

175,000,000

225,000,000

275,000,000

325,000,000

Sachem CSD

BudgetLevy

2007-08

2008-09

2009-10

2010-11

2011-12

2012-130

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Sachem Fund Balances

RestrictedAssignedUnassigned

Where did the fund balance go?(percent changes from prior year)

Did State Aid have any impact?Data taken directly from Public SAMS

2008-09 2009-10 2010-11 2011-12 2012-13 280403 ROSLYN UFSD State Aid 4,474,386 3,748,701 3,631,886 3,710,692 3,914,306

Lost State Aid compared to 2008-09 -725,685 -842,500 -763,694 -560,080Total Lost by 2012-13 -2,891,959

2008-09 2009-10 2010-11 2011-12 2012-13 580205 SACHEM CSD State Aid 118,982,899 104,853,738 105,294,555 101,843,867 107,438,471

Lost State Aid compared to 2008-09 -14,129,161 -13,688,344 -17,139,032 -11,544,428Total Lost by 2012-13 -56,500,965

Percentage Increases

2008-09

2009-10

2010-11

2011-12

2012-130%

1%

2%

3%

4%

5%

6%

Nassau Budget and Levy Increases

BudgetTax Levy

2008-09

2009-10

2010-11

2011-12

2012-130%

1%

2%

3%

4%

5%

6%

Suffolk Budget and Levy Increases

BudgetTax Levy

Fund Balance Impacts

2007-08

2008-09

2009-10

2010-11

2011-12

2012-130

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Nassau County Fund Balances

RestrictedAssignedUnassigned

2007-08

2008-09

2009-10

2010-11

2011-12

2012-130

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

Suffolk County Fund Balances

RestrictedAssignedUnassigned

Island Wide Data

2007-08

2008-09

2009-10

2010-11

2011-12

2012-130%

2%

4%

6%

8%

10%

12%

LI Fund Balance as % of Budget (117 Districts)

RestrictedAssignedUnassigned

Reserve ManagementAssumptions

State Aid will continue to grow and be 12% of our budget even if our budgets increase

Assigned fund balance in year 1 is 2% of our budget

Unassigned fund balance in year 1 is 4% of budget

Budget - Expense = AssignedExpense @ 98% of Budget

BudgetLevyExpense

Impact on Fund Balance

RestrictedAssignedUnassigned

Budget - Expense > AssignedExpense @ 97% of Budget

BudgetLevyExpense

Impact on Fund Balances

RestrictedAssignedUnassigned

CQ zone

Budget - Expense < AssignedExpense @ 99.5% of Budget

BudgetLevyExpense

Impact on Fund Balances

RestrictedAssignedUnassigned

RP zone

Can Nassau be far behind?

Questions?Please remember that the real expert in your district is your

business official and your superintendentIf I could be of assistance, I would be happy to talk to them. I

can be reached atJoseph C. Dragone

Assistant Superintendent for BusinessRoslyn Union Free School District

300 Harbor Hill Road – Post Office Box 367Roslyn, New York 11576

e: jdragone@roslynschools.org v:  (516) 801-5030f:   (516) 801-5037c:  (631) 512-1948