Alex Anemone, Superintendent of Schools Bob Brown, Interim Business Administrator December 15, 2014

Board of Education Kim Macaulay - President *John Flynn –Vice-President *Jim Novotny Davor Gjivoje * Members, Facilities and Finance Committee

District Goals Math Facts Assessments for all K-5 students. District Writing Assessment for all K-8 students. PARCC preparation and communication. Data Dashboard. The proposed budget will support yet to be named goals for the school year.

Operating Budget The operating budget is: A statement, in financial terms, of the district’s educational priorities. A management tool that projects and balances the district’s revenues and expenses A process that gauges efficiency. A consensus document – BOE, Administration, Parents, Staff, Community. A reflection of the community’s values (small class size, technology, co-curricular activities, facilities maintenance, etc.)

Operating Budget Not developed by increasing each line by a certain percentage. Rather, the budget development is a process that involves considerable time and effort. Current (FY14-15) spending patterns are collected and analyzed for trends. Projections are made up to 18 months in the future. For example, budget estimates made in December 2014 (for 15/16 budget) will have to remain accurate until that particular budget year ends – June 30, 2016!

General Timeline Oct.-Dec. – Administrative meetings November 3 – Budget guidelines approved by BOE December 15 – Preliminary budget report I February 2 – Preliminary budget report II ~February 27 – State aid figures released ~March 16 – Tentative budget presented to BOE ~March 23 – Tentative budget submitted to Executive County Superintendent ~April 20 – Public hearing on the budget July 1 – New fiscal year begins

Budget Process Meet with new Interim B.A. to review CAFR, current budget and plan ahead for operating budget. (ongoing) Refine and update position control roster. (completed) Audit health benefits roster. (completed) Principal/DC – major curriculum items. (ongoing) Forecasting and budgeting for Out of District placements for (ongoing) Refine revenue (tuition, federal grants, state aid) estimates for (ongoing)

Budget Process (cont’d) Factors affecting operating budget: Student achievement Increases in health benefits premiums % Enrollment (predicted to be flat) Curriculum development and support (NGSS) Professional development and other unfunded mandates. Maintaining small class size Continued technology upgrades Ongoing maintenance needs HTEA salary increases +2.60% (as per CBA)

Budget Assumptions - Revenues State aid = $233,677 n/c Tuition revenue = $52,300 n/c Budgeted fund balance =$274,680 +$119 Federal grants = $55,000 ($8,548) Misc. revenue = $33,225 n/c Transportation fees = $10,000 n/c Extraordinary Aid = $190,000 ($10,000) Building usage fees = $9,000 n/c Tier IV of health benefits contributionn/c

Budget Assumptions - Expenses HTEA salary increase +2.6% (as per CBA) Health benefits premiums % (est.) Dental benefits premiums +5% Out of district special education tuition +4-6% (est.) Facilities improvements – elementary school bathrooms renovation.

Budget Assumptions Assumes *no change to staffing configuration, based on October 15, 2014 ASSA student enrollment. If tax levy is at +2.00%, banked cap is available; $82,493 expires after this year; $74,390 expires in the budget cycle. Total banked cap available to the Board for this budget is $156,883. I do not anticipate any banked cap being generated nor made available after Moreover, I anticipate State Aid remaining flat. *Pending kindergarten enrollment (Feb. 2015).

State Aid $364, $ $181, $225, $225, $233, $233,677 (estimate)

Revenue History Local Tax Levy (average)+6.01% 2011– % % 2013– % 2014– % 2015 – % (est.)

Next Steps Continue to refine revenue estimates. Continue to refine expense estimates. Continue to refine out of district special education costs. Preliminary budget II presentation. (Feb.) Governor’s budget address and state aid figures. (Feb.) Tentative budget approved by BOE and sent to ECS. (March) Public hearing on the budget. (April)

Budget Scenarios and Comparisons TOTAL BUDGET TAX LEVYTAX LEVY +2.0% TOTAL NEW BUDGET BUDGET CHANGE District R$11,000,000$10,000,000 ~90% $200,000$11,200, % District M$11,000,000$6,600,000 ~60% $132,000$11,132, % District P$11,000,000$2,200,000 ~20% $44,000$11,044, %

Budget Scenarios and Comparisons TOTAL BUDGET TAX LEVYTAX LEVY +2.0% TOTAL NEW BUDGET 2 YEAR BUDGET CHANGE District R$11,200,000$10,200,000$204,000$11,404, % District M$11,132,000$6,732,000$134,640$11,266, % District P$11,044,000$2,244,000$44,880$11,088, %

Budget Scenarios and Comparisons TOTAL BUDGET TAX LEVYTAX LEVY +2.0% TOTAL NEW BUDGET 3 YEAR BUDGET CHANGE District R$11,404,000$10,404,000$208,080$11,612, % District M$11,266,640$6,866,640$137,333$11,403, % District P$11,088,880$2,288,880$45,778$11,134, %

Budget Scenarios and Comparisons Tax Increase Year I Tax Increase Year II Tax Increase Year III TOTAL District R$200,000$204,000$208,080$612,080 District M$132,000$134,640$137,333$403,973 District P$44,000$44,880$45,778$134,658