Budget Proposal BOARD OF EDUCATION MEETING TUESDAY, APRIL 14, BUDGET DEVELOPMENT

Proposed Budget Presentation Overview  Board of Education Budget Development Goals  Timelines  Work to Date  Overview of Presentation BUDGET DEVELOPMENT

Board of Education Budget Development Goals 1.Keep present tax levy at or below the cap 2.Preserve and improve core instructional programming to promote student achievement 3.Provide a foundation for future budgets 4.Maintain co-curricular opportunities (clubs, athletics, fine & performing arts) 5.Maintain the physical plants BUDGET DEVELOPMENT

Fundamental Problem For the last five years Frontier expenses have exceeded its revenues. Frontier has used its savings account (fund balance) to make up the difference BUDGET DEVELOPMENT $26 million withheld by New York GEA 39 positions eliminated 56 student clubs eliminated Athletic reductions 6 teams & 125 students

Consequences of Fundamental Problem Student programming Student services School culture Buildings in disrepair Cash flow for summer obligations Job layoffs Moody credit downgrade increases interest rate De-stabilize tax rates & property values BUDGET DEVELOPMENT

Stakeholders Budget Input  Sell District vacant property and FEC Building.  Outsource food service, transportation, and/or grounds.  Extend transportation pickup distance.  Eliminate and/or reduce professional growth funds.  Seek green energy grants.  Charge students a fee to participate in a musical or play; play an instrument; be a member of a chorus; play in a sport and/or intramurals; use of athletic facilities; be in a club.  Go paperless or set a goal of 80% reduction in paper.  Eliminate sick bank and/or sick buy back BUDGET DEVELOPMENT

Board of Education Budget Development Timeline 1.Determined budget goals 2.Determined expenses based upon a program continuation model, i.e. no new programming. 3.Determined property levy tax cap at 2.12% 4.Determined potential revenue scenarios based upon Gov. Cuomo’s proposed budget with best scenario presenting $4,491,790 of expenses exceeding revenue. 5.March 24 th Board reviewed $1,550,619 in reductions and retirements, leaving a $2,941,171 gap. Increasing Middle School teacher staff would be an additional $317, BUDGET DEVELOPMENT

6.March 30 th NYS Budget adopted and aid projections were made available. 7.April 7 th Fund Balance review determines an estimate of $803,650 assigned and $1,522,502 unassigned fund balance. 8.April 14 th Board reviews and discusses budget presented by Superintendent. 9.April 21 st Final Budget adopted by the Board of Education BUDGET DEVELOPMENT Board of Education Budget Development Timeline

Budget Summary: Expenditures $77,032, BUDGET DEVELOPMENT  3.72% increase over budget  fewer FTE positions, budget to budget  4 additional FTE teachers at the Middle School  Print shop transition to copy center  10% reduction in materials & supplies

Employee Benefits  New York State Retirement System Contributions in Employees’ Retirement System (ERS) rate decreases from 20.1% to 18.2% Teachers’ Retirement System (TRS) rate decreases from 17.53% to 13.5% BUDGET DEVELOPMENT

Capital Budget $ Change% Change Bus Purchases$867,290$881,353+$14, % Debt Service$3,854,936$4,574,110+$719, % BUDGET DEVELOPMENT

Revenue: Major Sources  State Aid  Property Tax  Sales Tax  Miscellaneous BUDGET DEVELOPMENT

Summary of Revenues BUDGET DEVELOPMENT Summary of Revenues Budget Budget Budget Budget Real Property Tax$33,782,538$34,976,578$36,227,031$36,996,183 State Aid$26,967,702$27,825,430$28,576,205$31,452,434 Erie County Sales Tax$5,296,875$5,373,017$5,458,741$5,375,000 Miscellaneous$3,106,512$2,630,920$2,630,424$2,405,072 Appropriated Fund Balance$1,723,099$438,036$392,513$803,650 Total$70,876,726$71,243,981$73,284,914$77,032,339

Revenue: Gap Elimination Adjustment BUDGET DEVELOPMENT Frontier Gap Elimination Adjustment $6,312, $6,208, $5,335, $4,658, $3,553,328 Subtotal $26,068, Proposed $1,299,327 Total $27,367,556

Revenue: Property Tax Actual Budget $ Change% Change Property Tax Levy $36,227,031 $36,996,183 $769, % Payments in Lieu of Taxes (PILOT) $668,291 $677,739 $9, % Interest on Tax Collections $2,529 $2,400 ($129) (5.1%) Total Property Tax Items $36,897,851 $37,676,322 $778, % BUDGET DEVELOPMENT

Original budget appropriation of Fund Balance to balance the budget BUDGET DEVELOPMENT YEARAMOUNT $5,731, $2,811, $2,611, $1,464, $ 803,650

Fund Balance & Reserves used to support budget Actual Actual Est Actual Budget Total Budget $72,285,048 $73,215,727 $74,271,938 $77,032,339 Total Revenues $69,153,627 $70,805,945 $72,892,401 $76,228,689 Appropriated Fund Balance/Reserves carried over from prior year $1,723,099 $438,036 $392,513 $803,650 Revenue + Fund Balance & Reserves $70,876,726 $71,243,981 $73,284,914 $77,032,339 Appropriated Fund Balance & Reserves as % of Budget 2.4%.6%.5% 1% BUDGET DEVELOPMENT

Tax Rate Actual Budget $ Change% Change Tax Rate/$1000 Assessed Value $26.03 $26.52 $ % BUDGET DEVELOPMENT Tax rate is based on preliminary assessed valuation

Historical Perspective School Budget $73,023,152$74,625,064$72,285,048$73,215,727$74,271,938$77,032,339 Tax Levy $31,850,000$32,889,500$33,778,041$34,969,020$36,227,031$36,996,183 Tax Rate $23.29 Hamburg $23.95 Hamburg $24.44 Hamburg $25.18 Hamburg $26.03 Hamburg $26.52 Hamburg $21.86 Eden $21.17 Eden $22.22 Eden $22.13 Eden $23.02 Eden $23.46 Eden BUDGET DEVELOPMENT

Budget Scenario The budget being proposed is a 2.12% property tax levy increase. If the budget is defeated there can be a revote. If the second vote results in a defeat then the levy is frozen at the previous levy. This would result in an additional reduction of $769,152. WHAT DOES THIS MEAN? There would be additional teachers and staff cut, elimination of clubs and sports, no equipment purchases, and institute use of facilities fee. i.e. Girl & Boy Scouts, PTAs, etc… BUDGET DEVELOPMENT