Frontier Central School District BUDGET WORKSHOP Part I Board of Education Meeting Tuesday, January 21, 2014 mac2014budget120901

Introductory Statement Interim Superintendent : Paul G. Hashem 2 mac2014budget120902

Frontier must present the budget in 3 component parts: 1.Program component 2.Capital component 3.Administrative component 3 mac2014budget120903

Component 1-Program *  All salaries & benefits of instructional faculty  In-service training  Programs for students with disabilities  Occupational Education  Library & Audiovisual  District Transportation Services & Bus Garage  Legal Services  Computer-assisted instruction  Guidance  Attendance  Health Services  Psychological & Social Work Services  Co-curricular activities  Interscholastic Athletics  Transfers to school lunch * This list is not all inclusive, but addresses the majority of topics of the component. 4 mac2014budget120904

Component 2-Capital *  All Transportation, capital, debt service and lease expenditures  Annual debt service for all facilities financed by bonds  Judgments from tax certiorari or payments or settlements of court judgments or administrative orders  Construction costs or building improvements  All expenditures associated with custodial salaries and benefits, service contracts, utilities, etc.  Maintenance, operation, and repair of school facilities  School bus purchases/leases  Rental and maintenance operations * This list is not all inclusive, but addresses the majority of topics of the component. 5 mac2014budget120905

Component 3-Administrative *  All Superintendent salary and benefits  All office and administrative salaries and benefits (including central office & building administrators)  All expenditures of the operation of the School Board  District Clerk & district meetings  Treasurer  Purchasing  Evaluations (APPR)  Legal services not covered in programming  Auditing  Records management  Public Information Services  Central printing & mailing  Curriculum development  Supervision of all students  Planning and research  Data processing  Personnel * This list is not all inclusive, but addresses the majority of topics of the component. 6 mac2014budget120906

Administrative Efficiency Source: Business First 10/3/13 7 Frontier #10 of 429 !! mac2014budget120907

Administrative Efficiency Source: Business First 10/3/13 8 Frontier #10 of 429 !! Only 2.1% separates #1-#10 mac2014budget120908

Business First Rankings for WNY Administrative Efficiency at Frontier Central School District 9 mac2014budget YearRank

REVENUE BUDGET DRAFT FRONTIER CENTRAL SCHOOL DISTRICT DRAFT PROPERTY TAX CAP CALCULATION- A VARIANCE PRIOR YEAR TAX LEVY$33,782,538$34,969,020$1,186,482 TAX BASE GROWTH FACTOR1.0085$34,069, $35,213,803$1,144,113 GROWTH FACTOR IS PROVIDED BY NYS PLUS: PAYMENTS IN LIEU OF TAXES RECEIVABLE DURING PRIOR YEAR$602,359$604,359$2,000 MINUS: TAXES LEVIED FOR EXEMPTIONS DURING PRIOR YEAR$655,654$681,784$26,130 LOCAL SHARE OF CAPITAL, TRANSPORTATION VEHICLE DEBT ADJUSTED PRIOR YEAR TAX LEVY$34,016,395$35,136,378$1,119,983 ALLOWABLE LEVY GROWTH FACTOR1.0200$34,696, $35,651,056$954,334 GROWTH FACTOR DETERMINED BY NYS MINUS: PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING YEAR$529,734$616,446$86,712 ESTIMATED PILOTS FOR FISCAL YEAR PLUS: AVAILABLE CARRYOVER (IF ANY)$0 TAX LEVY LIMIT$34,166,988$35,034,610$867, mac2014budget120910

VARIANCE ALLOWABLE GROWTH BEFORE EXEMPTIONS$384,450$65,590($318,861) PERCENTAGE INCREASE BEFORE EXEMPTIONS1.1380%0.1876%(0.9504%) EXEMPTIONS: CAPITAL TAX LEVY$83,480$641,313 LOCAL SHARE OF CAPITAL, TRANSPORTATION VEHICLE DEBT ERS INCREASE$0 DID NOT GO ABOVE 2% SO NO EXCLUSION (20.9 % TO 20.1%) TRS INCREASE$718,552$0 PRESENTLY INCREASE IS ESTIMATED AT 1.50% (16.25% TO 17.75% INCREASE OF 1.50% LESS 2% = NO EXCLUSION) TOTAL$802,032$641,313($160,719) MAXIMUM ALLOWABLE LEVY$34,969,020$35,675,923$706,903 THE DISTRICT WOULD BE ABLE TO INCREASE THE LEVY BY THE AMOUNT LISTED AND NEED ONLY A FIFTY-ONE PERCENT MAJORITY$1,186,482$706,903($479,579) THE ALLOWABLE PERCENTAGE INCREASE WOULD THEN BE:3.5121%2.0215%(1.4906%) REVENUE BUDGET DRAFT FRONTIER CENTRAL SCHOOL DISTRICT DRAFT PROPERTY TAX CAP CALCULATION- B 11 mac2014budget120911

Tax Cap Comparison – Frontier Central School District Actual Tax Levy Draft 2% Tax Levy CalculationDifference Allowable Levy$34,969,020$35,675,923$706,903 Increase in Levy$1,186,482$706,903($479,579) Allowable % Increase3.5121%2.0215%(1.4906%) Tax Base Growth Factor.85%.70%(.15%) Allowable Growth Factor 2.00%1.4648%(.5352%) 12

Draft Revenue Projections For Fiscal Year Budget Projected Budget to Projected Budget DRAFT Projected to Budget SUMMARY OF REVENUES Real Property Tax34,969,02034,976,5787,55835,675,923699,345 State Aid28,013,89827,857,097(156,801)27,410,941(446,156) Erie County Sales Tax 5,327,7505,333,1635,4135,369,42936,266 Miscellaneous2,293,9842,552,208258,2242,349,152(203,056) Appropriated Fund Balance/Reserves 2,611,075 01,250,000(1,361,075) Total Revenues73,215,72773,330,121114,39472,055,445(1,274,676 ) 13 mac2014budget120913

How much does it cost?? Then & Now mac2014budget120914

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* Estimate is statistically different from estimate for the previous year shown (p<.05). SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, Average Annual Premiums for Single and Family Coverage, mac2014budget120918

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General Inflation Examples: 20 mac2014budget120920

EMPLOYEE SALARIES & BENEFITS  Total Budget :$73,215,727  Total Budgeted : Salaries & Benefits$56,414,668  What percentage of the total Budget is Salaries & Benefits? 77% 21 mac2014budget120921

Changes in NYS Retirement Rates Over Time 22 mac2014budget120922

Focus Questions To Consider For Areas of Possible Reductions: What is essential to Frontier’s District Mission? --Education of our children!! Back to Basics? What practices/programs initiated in the past can no longer be sustained in their current format and associated costs? What must be altered / eliminated as we move forward? ANY questions/comments to Board members from community members or stakeholders on the budget should be directed to Mr. Hashem, Interim Superintendent. 23 mac2014budget120923

Board Member Budget Worksheet Areas Suggested For Possible Reductions Programs: ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ Programs: ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ 24 Once we have all our Programs listed, each Board member should rank their top ten to consider for possible reductions. Please rank them in 1 – 10 order with 1 being first choice for possible reduction and so on. mac2014budget120907