Budget Development Budget Workshop #1  Board Meeting  December 16, 2015

State Factors Affect School Budgets State Aid:  Gap Elimination Adjustment  Foundation Aid Formula  State aid predictions for Tax Cap:  Allowable Growth Factor - 0%  Reforms Other Factors:  Smart Schools Bond Act  Tax rebate programs  APPR

Executive Budget Proposal  Proposal set to be unveiled on January 13, 2016 State groups calling for $2.2 billion increase:  NYS Board of Regents & NYS Assoc. of School Business Officials – $2.4 billion  Educational Conference Board (ECB) – $2.2 billion State leaders say….  “We’re increasing school aid. We’re getting rid of the GEA, that’s our number one priority.” Sen. Majority Leader John Flanagan  Education spending is “at an all-time high.” Rich Azzopardi, spokesman for Gov. Andrew Cuomo

State Aid State Aid $10,691, GEA $ 29, State increased by $ 393,684 or 4.45% (w/o Building Aid)

Gap Elimination Adjustment (GEA) Seeks to close the gap between the budgeted State expenditures and revenues available to support them Total GEA from Middleburgh Central School $4.3 million thru  $ 984,233  $1,252,014  $1,085,803  $ 685,572  $ 307,367  $ 29,796

Foundation Aid Enrollment: Budget$20,765, Tax Levy$ 9,460, Foundation Aid$ 6,909,504 Foundation Aid Underfunded $ 117,630 (1) (1) Enacted State Budget School Aid Database

Tax Cap: It’s Not 2% Year Allowable Levy Growth Factor % % % % % projected (1) (1) Average monthly change in Consumer Price Index, Jan- Dec 2014 vs. Jan-Sept 2015

Budget Development Rollover Budget Process Major Expenditures  Salaries – Contract Obligations  Health Insurance Premiums Projected Increase of 5% and Increase in Pharmacy Cost Initial Premium increase “placeholder”  TRS and ERS Projections TRS – 13.26% ( ) to 12.00% ( estimate) ERS 18.20% ( ) to 15.50% ( estimate)

Budget Development - Rollover GAP = Expenditures exceed Revenue  980,000 ( Final $256,568) Potential Changes Legislative Budget / State Aid Final contribution rates Health Insurance assumption changes Tax Levy

BUSES Current Fleet  66-Passengar12  48-Passenger 6  35-Passenger 3  27-Passenger 1  24-Passenger 5  7-Passenger 3  6-Passenger 1 Total 31

Bus Amortization Schedule 3 buses Year Purchased Auth Amount 270, , ,290 First BAN7/24/20147/23/20157/23/20167/23/20177/23/2018Total Year Ending June 30th , ,000 70, , ,000 70,000 65, , ,000 70,000 65, , ,000 75,000 65, , ,000 65, , , , , , , , , ,290 1,606,051

Bus Amortization Schedule Year Amount as BAN Issued Date Maturity Date Interest Rate Interest Owed Principal Owed Total Debt Service State Aid % State Aid Local Share ,1817/24/20147/24/ % 2,351 50,181 52, % 41,920 10, ,0007/23/20157/22/ % 6, , , % 104,642 26, ,2907/23/20167/22/ % 8, , , % 158,267 40, ,5227/23/20177/22/ % 9, , , % 211,327 53, ,6967/23/20187/22/ % 10, , , % 267,827 67, ,5227/23/20197/22/ % 7, , , % 221,186 55,989

Moving forward - January  Continue budget development – Departments and line by line analysis  Monitor State Aid  Calculate Tax Levy Limit  Next Budget Workshop – January 27