Possible Expenditure Reductions and Deficit Financing February 15, 2006 * Indicates the Superintendent’s Recommendation

Given Philosophies and Conditions A double digit tax rate increase on expenditures is not acceptable A double digit tax rate increase on the tax levy is not acceptable A K-8 program has very limited options for making large-scale cost savings

Review of Current Financial Status current deficit of $389, the district will incur approximately a $600,000 deficit To maintain the current program will result in approximately a $3.1 million dollar increase

Budget Amounts To carry forward the current program (deductions applied) will increase the expenditure side of the budget by 3.1 million dollars ($21,637,000) Without an approved budget, a contingency budget will go into effect. This will result in a 2 million dollar decrease in current program ($19,627,524) –A 2 million dollar cut in this program without major changes to some “big ticket” items will result in drastic program cuts (academics will be impacted) These numbers do not reflect any money applied to the deficit from or 05-06

Possible Options to Reduce Expenditures and Decrease Taxes Transportation Deficit Financing Grade 9 Program

Transportation Approximate cost to transport at 100% busing- $1 million dollars (including high school transportation) Possible alternatives: –State minimum busing- 2 miles K-8, 3 miles 9-12 –Combination of minimum requirements with kindergarten busing Approximate saving $500,000 Loss in State Transportation Aid- approximately $250,000 *Stagger the starting times and reduce the number of buses (no loss of State Aid) *Advantage- Approximate savings $200,000 *Maintain current busing at 100% *Extend the elementary student contact time with teachers *This change does not take voter approval *Disadvantage- Door to door pick up will no longer be available

Deficit Financing *Finance deficit from school year, currently $389,118 *Finance deficit from school year at an amount to be determined (~$600,000) Advantages –Lessen the impact on the tax rate, spread out over five years –Usually quarterly reporting to State is required Disadvantages –Possible credit downgrade by Standard and Poor’s –Payment of debt by borrowing

Grade 9 Program Approximate costs based on current tuition rates- 1.6 million dollars (conservative) Approximate cost to create a program with interscholastic sports, clubs, teachers, etc. $600,000 Approximate savings to district after expenses to create a ninth grade program- 1 million dollars

Other Issues *School Entrance Evaluation –Hire four part-time hall monitors to supervise locked doors and hallways –Having security does not decrease the district’s insurance rates *Amended STAC –Amended forms submitted to SED for approximately $140,000 in State Aid were not accepted for submission because they are beyond the allowable submission dates –Senator LaValle and Assemblyman Thiele will sponsor legislation to extend the submission deadline *Audit Requests –Capital fund money appears to have been used for non-capital expenses (LIPA and KeySpan) –Request to have comptroller audit district

Public Budget Meetings The administration will provide a fiscally responsible and educationally sound budget The administration will provide what a contingency budget will look like