budget update march 19 2012
DESCRIPTION
Budget Update March 19 2012TRANSCRIPT
HALF HOLLOW HILLS SCHOOL DISTRICTof Huntington and Babylon
Board of Education MeetingMarch 19, 2012
Update on the2012‐13 Proposed Budget
March 19, 2012 Board Meeting
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
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March 19, 2012 Board Meeting
Property Tax Levy “Cap”• 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!
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
Property Tax Levy “Cap”• HHH Board of Education made a decision to present a 2012‐13 budgetwhich requires a “simple majority”
• The District’s calculated Property Tax Levy “Cap” as a result is 2.33% Put differently: the 2011‐12 total property tax levy of $178 million
can increase by 2.33% for the 2012‐13 school year
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
5
March 19, 2012 Board Meeting
Expenses• Just completed the process which beganin 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 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
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
Expenses• Remaining 20% of budget representsequipment, 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
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
8
March 19, 2012 Board Meeting
Revenues• Total expenses must equal total revenue• Revenue comes from three sources: 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
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
Revenues• Total “other” revenue expected to increase as a direct result of: PILOTs Incremental use of appropriated unreserved fund balance Incremental use of reserved fund balance
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
11
March 19, 2012 Board Meeting
Fiscal and Educational Balance
• Property Tax Levy “Cap” mandatehas shifted the District’s attention from building a budget focused on programs/services first to one which puts expenses and revenues first.
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
• 2012‐13 budget must maintain:
Fiscal and Educational Balance
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
• 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
• 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
March 19, 2012 Board Meeting
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
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March 19, 2012 Board Meeting
Prioritizing Budget Reductions
• 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
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
Prioritizing Budget Reductions
• Over $9 million in reductions were required to be made across all areas
• Handout describes each of these reductions
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
The 2012‐13 Budget Journey
Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
17
March 19, 2012 Board Meeting
Proposed 2012‐13 Budget
• $221,918,299 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
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Property Tax Levy “Cap” Expenses
RevenuesBalancing fiscal responsibility and
excellence in education
Prioritizing budget reductions
Presenting the proposed 2012‐13 budget
March 19, 2012 Board Meeting
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
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