MASSENA CENTRAL SCHOOL DISTRICT PUBLIC FORUM ON 2018-19 BUDGET

FACTORS IMPACTING 2018-19 SCHOOL BUDGET Governor Cuomo’s Budget Proposal State Budget Deficit Foundation Aid Formula Tax Cap Law Lack of Mandate Relief

GOVERNOR CUOMO’S BUDGET PROPOSAL Governor Cuomo proposed a $769 million or 3% increase to school aid for 2018-19 which is connected to the growth in personal income tax. This includes: $64M for Fiscal Stabilization Fund $15M for Prekindergarten expansion $317M is owed to districts based on expense based aids such as BOCES and transportation. $35M for other grants such as Early College High Schools and Breakfast After the Bell Foundation Aid would increase by $338M but includes $50M increase for Community Schools programs

GOVERNOR CUOMO’S BUDGET PROPOSAL The total aid increase is well below the $2 billion the Educational Conference Board projected would be needed to maintain current school services. The Board of Regents requested an increase of $1.6 billion in school aid. This would include $1.25M in Foundation Aid and $314M in expense based aids.

FOUNDATION AID Foundation Aid was enacted in 2007 to resolve the Campaign for Fiscal Equity’s challenge to the constitutionality of the state’s school finance system.  Reforms were to be fully phased-in by 2010-11, increasing aid to all districts by a total of $5.5 billion. However, the Foundation formula was largely frozen during the Great Recession and funding is now $4.2 billion below the level promised for 2010-11, without taking into account the general aid reduction imposed by the GEA. MCS receives $8,800,478 less in 2018-19 Budget due to the freeze in Foundation Aid.

Foundation Aid (Cont..) The Educational Conference Board and Board of Regents recommends that the state increase and restart the formula: Commit to a 3-year phase-in of Foundation Aid. Conduct a new study to determine the actual per pupil cost of assuring the opportunity for success. Revisit the weightings in the formula that are assigned to poverty, disabilities, English language learners, enrollment growth and geographic sparsity.

Expense Based Aid Cap Proposal The Governor’s proposed 2018-19 state budget would cap increases in certain expense-based aids. Caps would first be applied to 2019-20 state aid. Increases in Transportation and BOCES Aid would be capped at 2% for each district – districts would lose any increase over 2 percent. In effect, districts would receive the lesser of calculated aid or 2017-18 aid plus 2%.

Expense Based Aid Cap Proposal Increases in Building Aid would be capped at 2% statewide, excluding New York City (initially). If the statewide total increase in Building Aid exceeded 2%, each district would have its Building Aid pro-rated down. New York City would be exempt from this adjustment for projects approved prior to 7/1/2018.

*Aids appearing on School Aid run SOURCE: Council analysis of NYSED School Aid data.

Expense Based Aid Cap Proposal (cont.) If the Governor’s expense based cap is initiated in 2019- 20: BOCES Aid would be reduced statewide by approximately $51M; Massena $36,707 loss. Transportation Aid would be reduced statewide by approximately $80M; Massena $140,724 loss. Building Aid be reduced statewide by approximately $70M; Districts would lose approximately 4% of their Aid; Massena $147,439 loss.

STATE AID FOR MASSENA Foundation Aid: $21,993,227; Increase of $324,862; 1.50% Expense Based Aids: $7,754,833; Increase of $284,020; 3.80% Building Aid: $3,685,971; Decrease of $14,847; 0.40% Total State Aid: $33,641,037; Increase of $594,035: 1.80% Community Schools Aid – Included in Foundation Aid: $227,985; No change

NYS Assembly budget proposal The NYS Assembly proposes a $1.5 billion increase (5.9%) to school aid for 2018-19; up from the Governor’s proposal of $651 million Foundation Aid would increase by $1.2 billion; up from the Governor’s proposal of $337 million Current law funding for Expense-based and other categorical aids Accepts $50 million increase in Community Schools set-aside Accepts funding for Breakfast after the bell; $12 million Accepts funding for Farm Fresh, locally grown food; $10 million

NYS senate budget proposal The NYS Assembly proposes a $957 million increase (3.8%) to school aid for 2018-19; up from the Governor’s proposal of $651 million Foundation Aid would increase by $717.2 million; up from the Governor’s proposal of $337 million Current law funding for Expense-based and other categorical aids Accepts $50 million increase in Community Schools set-aside with flexibility Accepts meal reimbursement funding for Breakfast after the bell; $5 million Accepts funding for Farm Fresh, locally grown food; $10 million

The District is recommending a 1.5% Tax Levy increase PROPERTY TAX CAP The Property Tax Cap is NOT a flat 2%. It is either 2% or the Consumer Price Index (CPI), whichever is lower. CPI in last three budget years: 2015-16—1.62% 2016-17—0.12% 2017-18—1.26% For 2017 CPI was 2%, which will be used in the formula to determine Massena’s tax cap. Massena’s Cap is 3.01% for 2018-19 The District is recommending a 1.5% Tax Levy increase

CHANGE IN TOTAL STATE AID (EXCLUDES BUILDING AID)

CHANGE IN TRS AND ERS

HEALTH INSURANCE COSTS

EMPLOYEE BENEFITS Employee Retirement System (ERS)—Budget increase of $6,394 or 1.0% Teacher Retirement System (TRS)— Budget increase of $218,624; 12.9% Workers’ Compensation—Budget increase of 9,304 or 3.7% Social Security—Budget increase of $62,539 or 4.1% Health Insurance—Budget increase of $790,687; 7.0% Total Benefits—Budget increase of $1,077,548; 7.0%

PROJECTED REVENUES – PROJECTED EXPENSES = 2017-18 Budgeted Revenues $50,257,205 Change in Revenue Tax Revenue 215,198 State Aid 998,250 BOCES Refund 50,000 Interest Income 125,000 Misc 20,500 2018-19 Budgeted Revenues $51,666,153 2017-18 Budgeted Expenses $52,640,975 Change in Expenses Salaries 438,895 Health Insurance 790,687 NYS Retirement 225,017 Social Security 62,539 Private School Tuition (150,000) Buses/Truck (102,133) BOCES 80,153 Contractual 60,160 3,629 2018-19 Budgeted Expenses $54,049,923 GAP $2,383,770

STAFF BREAKDOWN 2017-18 Position # of Employees % Teachers 208.5 49% Guidance Counselors 10.0 2% Teacher Aides 48.0 11% Bus Drivers 32.0 8% Custodial 23.0 5% Food Service 26.0 6% Administration 14.8 3% Clerical 16.0 4% Monitors 19.0 Teacher Assistants 15.0 Nurses 8.0 Mechanics 5.0 1% Community Schools Coordinator 1.0 0% Total 426.3

APPROPRIATED FUND BALANCE

TAX LEVY HISTORY

BUDGET CHANGES/REQUESTS Salaries - $438,895; 2.2% budget increase High School Increase bus hours for college and career visits Junior High Special Education Teacher (included in budget) Increased supplies Three Elementary Schools Increase supplies Literacy Intern per building Curriculum Extra day of BOCES Instructional Tech Coach

BUDGET REQUESTS (Cont.) Technology IT Support Specialist Transportation (7) Passenger Van Community Schools Contractual & Supplies Budget Total: $267,500

Top Three Recommendations: SCHOOL ADVOCACY Top Three Recommendations: Foundation Aid Reform Sensible Property Tax Cap Increase School Aid Meeting with State Legislators Assemblyman Marc Butler—3/9/18 Assemblywoman Addie Jenne—3/2/18 Assemblyman Ken Blankenbush—3/2/18 Senator Joe Griffo—3/9/18 Senator Patty Ritchie—3/9/18

STATE REPRESENTATIVES’ CONTACTS Regional Representatives Senator Joseph Griffo Senator Betty Little Senator Patricia Ritchie Assemblyman Ken Blankenbush Assemblyman Marc Butler Assemblywoman Addie Jenne Links to Legislature Contacts http://assembly.state.ny.us/mem/ http://www.nysenate.gov/senators

Budget propositions Proposition # 1 2017-18 Proposed Budget Vote: Yes or No Shall the Board of Education of Massena Central School District be authorized to expend the sum of $54,049,923 as General Fund appropriations for the school year 2018-19 & levy the necessary tax therefore Proposition # 2 School Board Candidates Vote for any (1) 5 year term Proposition # 3 Student Ex Officio

Budget proposition Proposition #1 includes: School Buses Cost of buses not to exceed $419,268 to be purchased through general funds. No bonds, notes, or renewal notes to raise funds for the purchase (4) – 66 Passenger conventional buses May increase if (7) passenger van is included Capital Outlay Project Cost of project not to exceed $100,001 to be expended through general funds. No bonds, notes or renewal notes to raise funds for the project.

At the Community Center from Noon – 8:00PM IMPORTANT DATES 3/15/18—Second Public Forum on 2018-19 Draft Budget-7:00 p.m. in HS Room 314 4/16/18—Board of Education Meeting—7:00 p.m. Adoption of Proposed 2018-2019 MCS Budget; Approval of BOCES Administrative Budget 5/3/18—Board of Education Meeting—7:00 p.m. Public Budget Hearing Come vote on May 15th, 2018 At the Community Center from Noon – 8:00PM 61 Beach Street