Should We Conduct a Preliminary Study? Dansville and Keshequa Central School Districts December 3, 2013 William D. Silky and Alan D. Pole Education Consultants

Why Merger May be Difficult  Fear of losing local identity  Perception that the communities are incompatible  Uncertainty over board representation  Less personal attention for students  Busing time for students will be increased  Fear of losing job security by staff  Natural resistance to change 2Castallo & Silky-Education Consultants

Greater Expectations for Students  Common core requirements to be college and career ready  Elimination of local diploma for regular education students  Passing 5 Regents exams  More math, more science, more credits  Focus on increasing graduation rates  Cut scores on the new common core assessments  Significant local support for students 3Castallo & Silky-Education Consultants

Declining Enrollments Most school districts across New York State are experiencing student enrollment declines 4 District Difference Dansville 1,686 1, (-7.9%) Keshequa (-16.3%) Castallo & Silky-Education Consultants

Financial Crisis  Inequities in state funding…..GEA  Elimination of federal stimulus funding 2 years ago  Fringe benefit costs continue to increase (TRS up 16.5% for )  Districts spending down fund balances and reserves (districts used $84 million for budgets)  Utility costs are increasing  State deficit??  Cuts in state aid  Property tax caps 5Castallo & Silky-Education Consultants

The Perfect Storm  Greater expectations and opportunities for all students  Declining student enrollment in many districts  Precarious financial condition 77% of Superintendents say they will not be able to fund mandates in 4 years; 18% says it will occur in two years. Business as usual will not be an option 6Castallo & Silky-Education Consultants

School District Reorganization 7Castallo & Silky-Education Consultants

Why Consider Merger?  Increase course offerings for students  Teachers teach only in their area of specialization  Upgrade facilities and equipment  More cost effective administrative structure  Eliminate duplication of facilities, equipment, and staff  Consolidate and coordinate support functions  Reduce taxes 8Castallo & Silky-Education Consultants

Two Steps in the Merger Process  The Study-Conducted by consultants with oversight by a local committee to provide information to the boards, the administration, and the communities  The Vote-Overseen by the State Education Department and the District Superintendent, boards sanction an advisory public referendum which, if successful, is followed by a final referendum 9Castallo & Silky-Education Consultants

Components of the Study  Enrollment Projections  Instructional and Extra-curricular Program  Finance  Facilities  Transportation  Staffing 10Castallo & Silky-Education Consultants

The Merger Study  Provides information for school district officials, the communities, and the Commissioner  Describes the other district…..AND what a merged district might look like  Facilitated by consultants  Overseen by school/community advisory committee of people  Both boards of education decide how to proceed with the final study  State funding has been available for studies 11Castallo & Silky-Education Consultants

Time Line for the Study/Merger  September-Boards meet to discuss study  November-Committee appointed  May-Study completed  June-Study reviewed by S.E.D.  August-Study presented to boards  September-Public information and discussion  November-Boards decide to go forth  December-Advisory referendum  January-Final referendum  April-Vote for new board members  May-Budget vote  July 1-New district begins operation with the new board of education 12Castallo & Silky-Education Consultants

Mergers-What Research Tells Us  Curriculum opportunities for students will be enhanced  Extra-curricular opportunities for students will be enhanced  School buildings will be enhanced  Some students will have a longer bus ride  Class sizes tend to get larger  Tax rates on true value decline  School district spending increases 13Castallo & Silky-Education Consultants

The Finances of Merger-Part 1 Incentive Operating Aid Combined operating/foundation aid (GEN Report-Part VII ) for both districts is increased as follows: Year 1-40%Year 6-36% Year 11-16% Year 2-40%Year 7-32% Year 12-12% Year 3-40%Year 8-28% Year 13-8% Year 4-40%Year 9- 24% Year 14-4% Year 5-40%Year 10-20%Year 15-0% 14Castallo & Silky-Education Consultants

15 Incentive Operating Aid for Dansville and Keshequa Merged District Year Dansville Operating Aid (CWR=.423) Keshequa Operating Aid (CWR=.455) Combined Operating Aid Incentive Operating Aid % Incentive Operating Aid (1)6,448,5283,573,99710,022,52540% 4,009, (2)6,448,5283,573,99710,022,52540% 4,009, (3)6,448,5283,573,99710,022,52540% 4,009, (4)6,448,5283,573,99710,022,52540% 4,009, (5)6,448,5283,573,99710,022,52540% 4,009, (6)6,448,5283,573,99710,022,52536% 3,608, (7)6,448,5283,573,99710,022,52532% 3,207, (8)6,448,5283,573,99710,022,52528% 2,806, (9)6,448,5283,573,99710,022,52524% 2,405, (10)6,448,5283,573,99710,022,52520% 2,004, (11)6,448,5283,573,99710,022,52516% 1,603, (12)6,448,5283,573,99710,022,52512% 1,202, (13)6,448,5283,573,99710,022,5258% 801, (14)6,448,5283,573,99710,022,5254% 400, (15)6,448,5283,573,99710,022, TOTAL 38,085,595 Castallo & Silky-Education Consultants

The Finances of Merger-Part 2 Incentive Building Aid  Additional 30% on top of the higher district’s selected building aid ratio up to 95% (98% for high needs districts) for 10 years for any new construction  Existing debt is aided at the higher of the previous districts’ selected building aid ratios 16 Enhanced Building Aid Ratios Dansville.926 Keshequa.955 Castallo & Silky-Education Consultants

The 1/3, 1/3, 1/3 Guideline for Incentive Operating Aid  1/3 to finance transition costs to the merged district  1/3 in reserves for long term fiscal stability  1/3 to reduce taxes 17 Tax Rates on Full Value Dansville $17.07 Keshequa $20.14 Castallo & Silky-Education Consultants

History of School District Reorganization in New York State YearNumber of DistrictsDecrease , , , ,118 1, ,397 2, ,189 3, ,293 1, Castallo & Silky-Education Consultants

K-12 School Districts in New York State-2010 Size of District Number Enrollment Below , , , , , , , , ,279,383 19Castallo & Silky-Education Consultants

What Will the SED/Legislature Do???  Nothing  Update 1958 Master Plan  Discover the 1992 DS Reorganization Plans  Increase Incentives/Disincentives  Create a Commission for School District Reorganization  Mandate Changes  Other 20Castallo & Silky-Education Consultants

Next Steps for Districts  Do nothing  Have boards and administrators meet to discuss issues and future options  Conduct pre-merger feasibility study  Begin merger study  Other??? 21Castallo & Silky-Education Consultants

22 The Pre-Merger Feasibility Study  Would be conducted by consultants to determine if it is feasible to engage in a full and complete merger study  Study is a shorter, much less detailed, and less expensive

Castallo & Silky-Education Consultants23 Why Do a Pre-Merger Feasibility Study?  It would inform the boards if there is the possibility of an educational and fiscal benefit of merger  It causes less disruption in the local communities  It takes less time

Who Has Done a Pre-Merger Feasibility Study?  Romulus, Seneca Falls, South Seneca, and Waterloo  Alfred-Almond, Arkport, and Canaseraga Castallo & Silky-Education Consultants24

The Past………The Future  The structure of school districts has changed dramatically in the past century  School enrollments are projected to continue to decline for at least the next 10 years  More will be required of our students in order for our state and country to be leaders  The financial support for public schools will be challenged in new and different ways  Business as usual will not be an option 25Castallo & Silky-Education Consultants

Questions??? 26Castallo & Silky-Education Consultants