ROCKVILLE CENTRE UFSD 2010/2011 BUDGET Discussion Issues February 2, 2010

Agenda Process Financial Condition External Issues Budget Issues Revenue Issues Discussion Topics What’s Next

Process Timeline Administrator budgets developed Nov-Jan Public budget workshops Feb-Apr Presentations, budget hearing Apr-May Budget Vote May Re-Vote, if necessary June If budget fails => contingency budget

Process Changes Change in budget detail - reduced supply line descriptions Items necessary in classrooms and to run buildings Building budgets have not really changed in many years reduce extra time for teachers, administrators and data entry clerks reduce paper, print and copying costs Change in presentation – budget line summary reports will now include 08/09 budget and actual expenses, 09/10 budget and expenses to date, and 10/11 proposed budget figures

Financial Condition Reserves - District was able to increase reserves by $840,000 through cutbacks and cost savings measures throughout 2008/09 school year – but still only have about 3% in unreserved funds where most districts are at the 4% state maximum Fully accrued for employee benefits and accrued liabilities

Financial Condition Return to taxpayers – the District has continued its commitment to return $2.8M from each budget to the taxpayer to reduce sharp changes in taxes Reserves to assist with insurance, employees retirement system contributions, debt service Reserve Levels maintained to address large, unexpected changes in expense or revenue projections

External Issues Contingent Budget Cap – 0.0% A budget that is voted down will mean that it cannot increase over the prior year’s budget with a few exceptions This is a large difference in the contingency cap compared to prior year caps Enrollment Changes – Increases in special education needs children Unfunded Mandates

External Issues Economy Utility rate increases – electric, water, oil Retirement System Contributions Lower interest rates on cash balances Utility rate increases – electric, water, oil IRS – FICA max increases SED proposed changes to Summer School Special Education Costs

Budget Issues Legal costs – Increases due to parental placement of students in private schools and requesting the District pay for them Staff Add-ons – Staff added during year due to IEP’s, 504’s, ESL enrollments Contingencies – nothing added for 09/10 budget, what about 10/11? Cost of elections

Budget Issues Garbage removal – added to budget Private/Public/BOCES Special Ed Placement Tuitions and Contract Services (Nursing)

Budget Proposal Increases Contractual Salaries - $1,450,000 09/10 Add-ons - $400,000 TRS Contributions - $700,000 ($1,100,000) ERS Contributions - $350,000 ($500,000) Special Ed Tuitions - $633,000 Transportation - $250,000 Social Security - $300,000 State Funding Shift for Summer Sp Ed - $165,000 Legal Costs - $100,000

Budget Proposal Increases Electric Costs - $54,000 Building Condition Survey - $30,000 Health Insurance - $175,000 Workers Compensation - $48,000 MTA Tax - $180,000 Garbage Pickup - $25,000 PPS Contractual Services - $90,000

Budget Proposal Decreases Substitute Teacher Costs (-$50,000) Custodial Overtime (-$25,000) Heating Oil (-$49,000) Refinancing Debt Service (-$45,000)

Revenue Issues State Aid Reductions/Mid year Cuts Loss of Federal Stimulus $ Low interest rates impacting interest income Non-Resident Tuitions STAR Payments

Discussion Topics Cost Containment Negotiations Temperature Levels in buildings Building repairs – boilers, hot water tanks, valves Cooperative bidding – transportation, custodial supplies Hiring part time employees instead of overtime Substitute teacher management Refinancing Old Debt

What’s Next? Meeting Schedule Budget Workshops - 2/9, 3/5 (all day), 3/9 Preliminary Budget Hearing – 4/20 Budget Hearing – 5/4 Budget Vote – 5/18