HARPURSVILLE CENTRAL SCHOOL Budget Development for 2018-2019 Based on the Executive Proposal March 14, 2018

Tonight’s topics Budget goals Review of current year’s budget performance Projected expenditures Changes Projected revenues Update on tax levy State aid – based on Executive proposal Information on aid ratios Summary – comparison of projected revenues and expenditures Next steps and closing the gap

Budget goals Provide an instructional program that meets the educational needs of all students Many significant student successes this year Work to eliminate structural deficits in our budgets Significantly reduced in 2017-2018! Reduce or eliminate use of reserves Promote the fiscal health and stability of the school district

SUMMARY… (where we were on 2.14.18) Revenues Expenditures Budget Gap $19,520,645 $20,295,132 ($774,487) We have a budget that accurately reflects the anticipated revenues and expenditures of our district as evidenced by the 2017-2018 budget performance. The only direct control we have over revenues is with the tax levy. Even though we have controlled our expenses to about 2% growth from year to year, we are still left to wrestle with the expenditure side of the budget as a means of balancing the budget.

Projected expenditures (2.14.18) Developed using: Current staff of record Known benefit rate changes Known contractual costs/estimated contractual increases Known debt service payments Estimated BOCES services based on current year projections Historical and market trends; current year projections

Projected expenditures (updated 3.14.18) 2017-2018 ORIGINAL BUDGET 2018-2019 DRAFT BUDGET 2/14/18 % INCREASE BUDGET TO BUDGET $ INCREASE BUDGET TO BUDGET INSTRUCTIONAL SALARIES $ 5,071,475.00 $ 5,050,289.00 -0.42% $ (21,186.00) NON-INSTRUCTIONAL SALARIES $ 1,596,193.00 $ 1,651,699.00 3.48% $ 55,506.00 EQUIPMENT $ 32,150.00 $ 27,150.00 -15.55% $ (5,000.00) CONTRACTUAL EXPENSES $ 1,491,615.00 $ 1,645,050.00 10.29% $ 153,435.00 MATERIALS AND SUPPLIES $ 469,581.00 $ 483,060.00 2.87% $ 13,479.00 BOCES $ 4,350,656.00 $ 4,481,176.00 3.00% $ 130,520.00 DEBT SERVICE $ 1,936,099.00 $1,825,957.00 -5.69% $(110,142.00) BENEFITS $ 4,891,199.00 $ 5,091,405.00 4.09% $ 200,206.00 TRANSFERS $ 45,000.00 $ 43,000.00 -4.44% $ (2,000.00) TOTAL $19,883,968.00 $ 20,298,786.00 2.09% $ 414,818.00

Projected expenditures (benefits…2.14.18)) 2017-2018 ORIGINAL BUDGET 2018-2019 DRAFT BUDGET % INCREASE BUDGET TO BUDGET $ INCREASE BUDGET TO BUDGET STATE RETIREMENT--ERS $232,000 $212,700 -8.32% ($19,300) TEACHER'S RETIREMENT--TRS $482,274 $548,144 13.66% $65,870 SOCIAL SECURITY $510,492 $516,731 1.22% $6,239 WORKERS COMPENSATION $110,000 0.00% $0 UNEMPLOYMENT INSURANCE $70,000 HEALTH & DENTAL INS $3,478,683 $3,617,830 4.00% $139,147 OTHER BENEFITS $7,750 $16,000 106.45% $8,250 TOTAL $4,891,199 $5,091,405 4.09% $200,206

PROJECTED REVENUES Developed using: Tax levy limit calculation Executive proposal of state aid Prior year trends/data for other revenues

PROJECTED REVENUES (updated 3.14.18) 2017-2018 ORIGINAL BUDGET 2018-2019 DRAFT BUDGET % INCREASE BUDGET TO BUDGET $ INCREASE BUDGET TO BUDGET TAX LEVY $3,939,554 $4,060,911 3.08% $121,357 OTHER REVENUE $836,851 $677,471 -19.05% ($159,380) STATE AID $14,349,184 $14,215,917 -0.93% ($133,267) APPROPRIATED RESERVES $258,379 $70,000 -72.91% ($188,379) APPROPRIATED FUND BALANCE $500,000 0.00% $0 TOTAL REVENUE BUDGET $19,883,968 $19,524,299 -1.81% ($359,669)

PROJECTED REVENUES (2.14.18) Tax Levy 2017-2018 ORIGINAL BUDGET 2018-2019 DRAFT BUDGET % INCREASE BUDGET TO BUDGET $ INCREASE BUDGET TO BUDGET TAX LEVY $3,939,554 $4,059,965 3.06% $120,411 NOTES: 3.06% is the maximum allowable limit under the tax cap law The district would remain compliant under the law with this levy 1% change to the tax levy is approx. $39,396

PROJECTED REVENUES (updated 3.14.18) Tax Levy 2017-2018 ORIGINAL BUDGET 2018-2019 DRAFT BUDGET Updated 3/6/18 % INCREASE BUDGET TO BUDGET $ INCREASE BUDGET TO BUDGET TAX LEVY $3,939,554 $4,060,911 3.08% $121,357 NOTES: 3.08% is the maximum allowable limit under the tax cap law The district would remain compliant under the law with this levy 1% change to the tax levy is approx. $39,396 Sale of the BAN for the purchase of the new buses on 3/1/18 impacted the Tax Levy limit slightly.

Tax levy cost ($) Tax Increase True Value Tax Rate Tax on $50,000 Home Change from 2017-2018 Current 17-18 $15.1240 $756.20 3.08% $15.5899 $779.50 $23.30 True Value Tax Rate Yearly Difference 2018-19 $15.5899 $0.47 2017-18 $15.1240 $0.29 2016-17 $14.8364 $0.48 2015-16 $14.3602 $0.37 2014-15 $13.9901 $0.33 2013-14 $13.6590 2012-13 $13.3681 $0.59

PROJECTED REVENUES - “Other” Revenue (updated 3.14.18) 2017-2018 2018-2019 Payments in lieu of taxes (PILOT) $9,012 $9,453 Interest & Penalties on Real Prop Taxes $13,000 Day school tuition from other districts $15,000 Interest and earnings $2,000 $5,000 Rental of real property (SUNY Broome) $29,000 Sale of scrap $1,000 Medicare D Reimbursement $0 Refund of prior year exp--BOCES $350,000 $190,000 Refunds of prior years expenditures (Health Ins. & CPSE) $12,000 Other unclassified revenues Other unclassified revenues-BOCES (after-school/enrich./sub reimburse) $263,050 $240,000 Medicaid Assistance $20,000 $25,000 Inter-fund Transfer from Debt Service (premium to offset debt) $117,789 $133,018 TOTAL OTHER REVENUE $836,851 $677,471

PROJECTED REVENUES (no change) “State Aid” Type of Aid 2017-2018 2018-2019 Foundation Aid $9,948,196 $10,089,198 includes $89,804 of community schools aid Excess Cost Aid $372,000 $366,000 Building Aid $1,506,751 $1,309,404 Transportation Aid $1,029,607 $1,088,713 BOCES Aid $1,412,007 $1,284,968 Tuition Aid Handicapped $0 Instructional Materials Aid $80,623 $77,634 TOTAL STATE AID $14,349,184 $14,215,917

Why the change in the ratios? Aid ratios 2017-2018 2018-2019 Gain/(Loss) of Aid Transportation Aid Ratio 90.0% No change BOCES Aid Ratio 78.1% 79.3% $20,000 Tier 3 & 4 Building Aid Ratio 88.1% Tier 3 92.0% Tier 4 89.3% Tier 3 93.2% Tier 4 $17,000 High Cost Aid Ratio 78.3% 78.6% $1,000 based on current estimate Why the change in the ratios?

Potential expense reductions (these are NOT decisions - just quantifying possible changes!) 4 teacher resignations due to retirement $319,764 (salary & benefits, excluding health ins.) 1 administrator $114,818 (salary & benefits, including health ins.) 2017-2018 personnel changes included with initial projections 1 teacher - $76,942 (salary & benefits, including health ins.) 1 support staff - $49,445 (salary & benefits, including health ins.) BOCES reductions (anticipated changes to student placements, related services, minimal changes to shared services) $139,599 TOTAL: $700,568

SUMMARY… (assuming 3.14.18 changes reflected above and possible savings/staff changes) Revenues Expenditures Budget Gap $19,524,299 $19,598,217 ($73,918)

April 11th – Budget Workshop Next steps Anticipate the Legislative proposal for school funding Usually a little more aid; really hard to know this year Evaluate enrollment trends and staffing patterns Identify other areas of potential expense reduction Program changes and/or changes to student placements Savings realized through contract settlements Continue to “scrub” the budget April 11th – Budget Workshop

THANK YOU!