Lansing Central School District Budget Update March 28, 2011 Dr. Stephen L. Grimm, Superintendent Ms. Mary June King, Business Administrator

Reductions in Workforce School Year Reduction AreaNumber of Positions Administrator Technology Integration Teachers &Teaching Assistants Support Staff7 2

Reductions in Workforce School YearReduction AreaNumber of Positions Teachers &Teaching Assistants Support Staff1 3

Reductions in Workforce School Year Reduction AreaNumber of Positions Administrator Teachers &Teaching Assistants Support Staff9 4

Reductions in Workforce School Year Reduction AreaNumber of Positions Teachers &Teaching Assistants4.4 5

Total Reductions in Workforce School Year Reduction AreaNumber of Positions Administrator Technology Integration Teachers &Teaching Assistants Support Staff19.2 TotalAll Staff44.0 6

Reductions Summary Positions44.0 FTE Approximate Total Personnel- Related Budget Reductions Financial Total $2,500,000 7

BUDGET TRENDS: Instructional ‘stuff’ EQUIPMENT29,50026,55026,10023,700 CONTRACTUAL297,747282,074232,437199,733 M & S297,147270,690142,238142,240 TOTALS624,397579,314400,775365,673 % change from previous year % % %

TAX LEVY, RATE AND BUDGET HISTORY Tax-related calculation for uses AES as PILOT % CHG % CHG AVG % CHG BUDGET22,838,91223,944, %24,377, %3.4 % COMB. LEVY 15,175,92915,785, %16,028, %2.8 % TAX RATE % %2.0 %

TAX HISTORY CONSIDERATIONS PROJECTED TAX RATE $17.96$17.76$18.64 ACTUAL TAX RATE $17.76$17.60$18.48

ROLLOVER v. PROJECTED ROLLOVERPROJECTEDDIFFERENCE GENERAL SUPPORT$ 3,058,547$ 3,005,547$ - 53,000 INSTRUCTION$ 12,839,185$ 12,434,185$ - 405,000 PUPIL TRANSPORTATION $ 1,056,960$ 996,960 $ - 60,000 UNDISTRIBUTED EXPENDITURES $ 8,838,810 $ 0 TOTALS$ 25,793,502$ 25,275,502$ - 518,000

BUDGET CUTS BUILT IN BUDGET CODEITEMDECREASE IN $$CAVEATS School Lunch Super 53,000Offset revenue /130/150Teach Regular Sal210,000Grade 1/Science Teach Regular Sal20,000TA SPED Instruct Sal55,0001 FTE SPED BOCES110,000Decreased RFS Inc Youth/BOCES10,000Decreased costs Transportation Sal60,000Adj. for current exp TOTALS$ 518,000

BUS PURCHASE PROPOSAL, 11/12 (No New Taxes) Proposal: Replace two 2001, 66-seat vehicles Cost new est. $110,000 each No debt service budget impact: – $55,000 payment ‘falling off’. – New purchase budgeted payment is < $55,000/year. PURCHASE FYE ,83057, FYE ,02597,38093,69000 FYE ,37892,66395,32597,8500 FYE ,52860,44659,14057,82061,500 FYE 2011 (proposed) 0055,00058,20056,200 TOTALS 304,761308,019303,155213,870117,700

BUDGET STATE AREA TOTALS, 11/12 UNDISTRIBUTED EXPENDITURES % CHANGE Employee Benefits $ 5,785,403$ 6,535, % Debt Services$ 2,151,125$ 2,303, % Debt Service is offset by matching revenues (state aid) % CHANGE IN 11/12, AS % OF BUDGET General Support $ 2,909,334$ 3,005, %11.89 % Instruction$ 12,494,428$ 12,434, %49.19 % Pupil Transportation $ 1,037,616$ 996, %3.94 % Undistributed Expenditures $ 7,936,529$ 8,838, %34.97 % TOTAL:$ 24,377,907$ 25,275, %

BUDGET, 11/12 (another, but familiar, perspective) % CHANGE IN 11/12, AS % OF BUDGET SALARIES$ 10,869,287$ 10,673, %42.23 % NON-SALARIES$ 2,318,596$ 2,424, %9.59 % BOCES$ 3,253,495$ 3,338, %13.21 % BENEFITS$ 5,785,403$ 6,535, %25.86 % DEBT SERVICE$ 2,151,125$ 2,303, %9.11 % TOTALS$ 24,377,907$ 25,275, %

COMPARATIVE BREAK-DOWN: Budget

COMPARATIVE BREAK-DOWN Budget

BUDGET INCREASE SPECIFICS Total proposed budget increase =$ 897,596 ERS/TRS increase = - 306,764 (with cuts) Debt Service increase = - 207,344 (with matching revenue) Remaining budget increase = $ 383,488 $ 383,488 = 1.57% Budget increase for all other costs of doing the business of providing education

REVENUE PROJECTIONS (with no levy increase, except = f(increased value)) (actual) % CHANGE IN 11/12, AS % OF BUDGET STATE AID$ 6,412,246$ 6,300, %24.93 % FEDERAL AID$ 455,847$ 30, %0.12 % MISCELLANEOUS$ 2,173,329$ 2,616, %10.35 % PILOT$ 2,677,315$ 2,301, %9.10 % TAXES$13,351,156$13,727, %54.31 % TOTALS$25,069,893$25,275, %

REVENUE TRENDS Tax-related calculation for uses AES as PILOT. Calculations for assume levy increase of 2.5% % CHG % CHG % CHG STATE AID7,176,0266,383, ,412, ,300, FEDERAL AID17,7271,051, , , MISCELLANEOUS2,705,802784, , , APPROPRIATED0368,0001,371, ,016, PILOTS 2,803,7843,014, ,677, ,358, TAXES 12,372,14512,770, ,351, ,070, ,075,48424,373,16024,781,35624,925,502

FUND BALANCE ANALYSIS (expenses) General Support: Central Services Instructional: Teaching Regular School, Special Education (08/09 and 10/11) Transportation: Salaries (def in 09/10), Gas & Diesel Undistr. Expend: DS (08/09), EB (09/10), wash (10/11) (est) GENERAL SUPPORT$ 335,939$ 260,760$ 35,357 INSTRUCTION$ 508,860$ 193,314$ 334,824 TRANSPORTATION$ 202,622$ 35,808$ 85,449 UNDISTR. EXPEND$ (121,643)$ 604,173$ 23,079 TOTALS$ 925,778$ 1,094,055$ 478,708

FUND BALANCE ANALYSIS (revenue) 08/09: Misc $ reflects reclass of liabilities, < taxes reflects BOE decrease of levy in Aug. 09/10: State/Fed aid reflects ARRA/ESF, PILOT/Tax reflects TC assessment documentation 10/11: state/Fed aid reflects ARRA/ESF, Misc reflects BOCES refund, (est) STATE AID$ (6,089)$ (286,033)$ (177,758) FEDERAL AID$ (66,646)$ 972,117$ 425,847 MISCELLANEOUS$ 2,112,442$ 609,926$ 319,665 PILOT$ 31,864$ (2,979,755)$ 119,163 TAXES$ (1,079,922)$ 2,482,268$ (18,751) TOTALS$ 991,649$ 798,523$ 668,166

FUND BALANCE ANALYSIS (est) REVENUES$ 991,649$ 798,523$ 668,166 EXPENSES$ 925,778$ 1,094,055$ 478,708 FUND BALANCE$ 1,917,427$ 1,892,578$ 1,146,874

THE AES STORY At the current tax rate (18.48), every $5 million decrease in AES is a ‘loss’ of $92,400 in tax levy for the District. To maintain the tax levy, the tax rate must increase to make up for the decrease in AES value. Projection assumes: 1% taxable value increase, 0% levy increase. Lansing budget is similar to similar-sized schools. Combined Levy % chg levy Tax Rate Tax Rate Chg Chg for home Proposed Combined Levy 16,028, %$ % $ 26$16,028,471

IMPACT OF AES REDUCTION OF AES $30,000, HOMES AT $200,000ea LEFT DISTRICT REDUCTION OF AES $17,500, HOMES AT $200,000ea + 1 HOME AT $100,000 LEFT THE DISTRICT

CONTINGENCY BUDGET PROPOSED BUDGET REQUIRED CUTS $ 24,954,054$ 25,275,503$ 321,449

Multi-Year Financial Projections Budget w/out Cuts 25,275,50326,539,27827,078,742 Revenue 23,123,82423,588,65024,338,650 Budget Gap 2,151,6792,950,6282,740,092 Additional Tax Levy 464,82600 Appropriated FB 882,809961,703996,915 Reserves 804,044500,000250,000 Remaining Gap ($0)($1,488,925)($1,493,177)

Reduction Scenarios 28 Athletics - Non- Varsity100,000 Buildings and Grounds cut 1.0 FTE 36,000 Co-curricular75,000 Elementary School (from 17 to 20 - Grades K-1 from 20 to 25 - Grades 2-4) 4 Teachers240,000 Encore/Electives60,000 Enrichment (1.5)90,000 High School (from 22 to 27) 4 Teachers240,000 Library Clerk share ms and hs 13,000 Library Media Specialist60,000 Microcomputer Specialist 1.0 FTE 60,000 Middle School (from 20 to 25) 4 Teachers240,000 Nursing 40,000 SPED Teacher 1.0 FTE District Wide 50,000 Teacher Leadership Stipends/Positions 40,000 Teaching Assts (13) 520,000 Transportation 100,000 Staff 100,000 Other 100,000 Bad and Ugly Total2,164,000

Key Questions Can we expect outstanding academic achievement results in the future? What quality of education are we responsible to deliver to this generation of children in Lansing? What quality of education are we willing to support in Lansing? 29

Key Questions What is an appropriate class size at each of the schools? How much transportation should the district provide? Should we support a comprehensive educational and social experience in our schools? 30

Key Questions Should we consider partnering with other entities to provide extracurricular and encore opportunities? If so, which ones? Are we willing to sacrifice the general conditions of our buildings and grounds? If so, by how much? Are we willing to accept that no matter what solutions we implement, all stakeholders will not be satisfied? 31

Summary Stay collaborative and come together as a community to solve this problem. Minimize the reduction in opportunity for children; takes time and teamwork. Understand the consequences of further reductions before making decisions to do so Answer the Key Questions 32

REVENUES w/ $2,415,795 APPROP and 0% LEVY Proposed Budget Budget to Budget Change Proposed Combined Tax Levy % Chg Combined Tax Levy Tax Rate Tax Rate Chg Chg for $100,000 Home 25,275, %16,028,4710% %$ 26 REVENUES w/ $ 2,015,046 APPROP and 2.5 % COMBINED LEVY Proposed Budget Budget to Budget Change Proposed Combined Tax Levy % Chg Combined Tax Levy Tax Rate Tax Rate Chg Chg for $100,000 Home 25,275, %16,430,7002.5% %$ 73 REVENUES w/ $ 1,950,926 APPROP and 2.9% Combined levy increase Proposed Budget Budget to Budget Change Proposed Combined Tax Levy % Chg Combined Tax Levy Tax Rate Tax Rate Chg Chg for $100,000 Home 25,275, %16,494,8202.9% %$ 81

34 Proposed Budget Summary Approved Budget$ 24,377,906 Proposed Budget$ 25,275,503 Proposed Increase$ 897,597 Proposed % Increase 3.68 %