1. Newark CSD Board of Education February 10, 2016 2016-17 Budget Discussion

2. Agenda: Unknowns Tax Cap Local Revenue State Aid – Governor’s Proposal Questions

3. Unknowns: Health Insurance Increase for 2016-17 BOCES Costs Workers Compensation costs

4. 2% Tax Cap Misconception: The June 2011 law limits the amount that a school district can raise it’s tax levy in any year to 2%. Fact: -The growth in the property tax levy is capped at 2%. -Voter approval if at or below tax cap is 50% +1 -Voter approval if above the tax cap is a supermajority (60%)

5. 2% Tax Cap Prior School-Year Tax Levy Tax Base Growth Factor PILOTS received in prior school year Tax levy to pay for some court orders/judgments Tax levy to pay for local capital costs Allowable levy growth factor Pilots for the 2016-2017 school year Available Carry-over from 2015-16 = Tax Levy Limit before Exclusions

6. 2% Tax Cap Prior School Tax Levy: ---------------------- $12,429,805 X Tax Base Growth Factor: -------------------------- 1.0002 + Pilots Received Prior School Year: -------- $60,000 - Court Orders/judgments: --------------------------- $0 - Local Capital Costs: --------------------------------- $0 X Growth Factor (2%): ---------------------------- 1.0012 - Pilots for 2016-2017: ----------------------------- $51,000 + Available Carry-over from 2015-2016: $111,692 = Tax Levy Limit before Exclusions: $12,567,974

7. 2% Tax Cap Exclusions Court Orders/Judgments: $0 Capital Tax Levy: $0 Pension Exclusions: o ERS: $0 o TRS: $0 Total Exclusions: $0

8. What does it mean? Tax Levy Limit: $12,567,974 Total Exclusions: $0______ Tax Levy Limit plus Exclusions: $12,567,974 Percent Increase: = ($12,567,974-$12,429,805) $12,429,805 = 1.11%

9. Anticipated Local Revenue 2016-17 Pilots $51,000 Sales Tax$800,000 Rental of Real Property$380,000 Penalties$25,000 Interest$15,000 Admissions$18,000 BOCES Transportation$30,000 Health Services$6,500 Other$134,300 Totals $1.459,800

10. Governor’s Proposal 2015-16 2016-17 Foundation $18,662,157$18,958,885 BOCES & Special Services$1,916,359$1,973,067 High Cost, Excess Cost$1,266,333$1,261,528 Private Excess Cost$27,000$27,778 Hardware & Technology$42,052$41,962 Software, Library, Textbook$169,681$170,098 Transportation$1,680,122$1,949,188 Building$6,064,279$6,023,154 Medicaid Reimbursement$150,000$150,000 Gap Elimination Adjustment-($56,507)-($0 ) Totals $30,075,736 $30,849,184

11. What is next? State Aid Budget Finalization Refining Program And Staffing Use of Fund Balance/Reserve Tax Levy

12. Questions