GAP ANALYSIS Mary June King Business Administrator 1

STATE AID REDUCED 746,653 FEDERAL AID TO FILL THE GAP $747,810 2

STATE AID REDUCED $1,342,620 FEDERAL AID TO FILL THE GAP $455,857 3

STATE AID REDUCED $1,534,652 FEDERAL AID TO FILL THE GAP $381,000 4

Revenue Gap Issues Diminishing State aid = $ 746,653 (DRA) = $1,342,620 (GEA) = $1,534,652 (GEA) = $1,800,000 (???) Loss of additional Federal aid = $747,810 (ARRA) = $455,857 (ARRA) = $381,000 (EJF) = $ (nothing yet proposed) 5

Revenue Gap Issues… Loss of assessed property value: AES Cayuga = $160,000, = $130,000, = $112,500, = $ 110,000,000* *Negotiations are currently underway to further decrease this. 6

Other Caveats Appropriation of funds = $ 368, = $1,371, = $1,942,000 Fund Balance = $3,938, = $5,088, = $5,750,212 (new language) 7

Property Tax Cap Formula 8

ABCDE Tax LevyGrowth Factor11.12 PILOTS2%12.13 PILOTS $ 13,955, $ 2,377, $2,232,980 [(A * B) + C] * D – E = TAX LEVY LIMIT TAX LEVY LIMIT + EXCLUSIONS = TAX LEVY LIMIT, ADJ. LCSD = $14,569,036 (4.4%) 9

Projected Revenue Gap (variable Appropriated FB) Revenue Source Anticipated Projected Difference State Aid6,471,311 0 Federal Aid30,000 0 Miscellaneous2,441,179499,4461,941,733 PILOTS2,377,7192,232,980144,739 Tax Levy13,955,294 0 Total$ 25,275,503$ 23,189,0312,086,472 10

Budget Projections Caveats ERS/TRS anticipate large increases again Health Insurance increase averages 7 – 8% Projections allow some increases based on spending Faculty Association contract open 11

Budget Projection Current budget: –$25,275,503 Projected budget –$27,059,181 –7.1% increase 54% of total increase = Employee Benefits 19% of total increase = EJF Funding Cliff 12

Projected Budget/Revenue Gap: OCTOBER /11 Projected $ 27,059,181 $ 1,783,678 Budget $ 25,275,503$ 3,870,150 $ 2,086,472 Revenue for $ 23,189,031 13