1. 2012-2013 Budget Proposal MISSION STATEMENT We will support student achievement by developing and sustaining exemplary educational experiences; creating and maintaining an environment that supports learning and embraces individuality; engaging in professional development that drives good instruction; and connecting with our larger community to present opportunities for adult involvement in the educational process. MEXICO ACADEMY & CENTRAL SCHOOL CSD

2.  Preserve all Academic Programs;  Ensure a high-quality education that prepares our students for the 21 st Century;  Maintain our Fine Arts and Interscholastic Programs;  Ensure the health and safety of students and staff;  Ensure long-term fiscal stability (via five-year financial plan);  Provide a responsible, stable tax increase to our community. BUDGETARY GOALS

3.  Unfunded/Underfunded Mandates:  While mandates increase accountability and in many cases improve educational quality, they can also limit flexibility and impact how districts spend money. Essentially, increasing the cost of operating a school district in New York State;  Examples:  Retirement system contributions are State-mandated;  Salaries & benefits are legally-binding contractual obligations;  Special Education Costs (i.e. Individualized Education Plans)  Common Core Standards adoption, implementation and realignment of existing curriculum.  Annual Professional Performance Reviews for teachers and principals, including the creation of a district APPR plan  Transportation Costs (i.e. students with disabilities, private and parochial)  Numerous plans and reporting requirements (approximately 150 per year)  And Many, Many More…View the list at www.p12.nysed.gov/fmis/mandaterelief CHALLENGES

4.  Rising prices of commodities (energy, supplies and materials)  Implementation of the NEW Property Tax Cap Legislation  Elimination of Federal Grant Opportunities for 2012-2013 school year(ARRA) IMPACT OF CURRENT ECONOMIC CLIMATE

5. Mandated Budget Items + Contractual Obligations = Majority of Budget Spending ABOUT THE COST…

6. BUDGET $47,100,000

7. CATEGORY2012-2013 Proposed Percent of Budget GENERAL$6,464,61613.73% INSTRUCTIONAL$23,699,57350.32% PUPIL TRANSPORTATION$2,647,9145.62% COMMUNITY SERVICE$82,000.17% UNDISTRIBUTED$14,205,89730.16% PROPOSED EXPENDITURES BY CATEGORY

8. Category2011-2012 Proposed Budget 2012-2013 Proposed Budget % Change General Support$5,777,556$6,464,61611.89% Instructional$22,168,017$23,699,5736.91% Pupil Transportation $2,482,655$2,647,9146.66% Community Services $39,260$82,000108.86% Undistributed$13,032,512$14,205,8979.00% TOTAL:$43,500,000$47,100,0008.28% CURRENT YEAR VS. PROPOSED BUDGET

9.  Reduced staffing totaling approximately $650,000 in savings  8.7 FTE Instructional  2.0 FTE Non-Instructional  Second-Year effort to right-size staffing requirements to match enrollment trends and course elective needs  Co-curricular stipends remain at 2011-2012 levels;  Continue to fund high school Nova Net summer program and ASAP middle school program;  Funding to support NEW Community Recreation Program;  Utilize cost-savings initiatives to contain costs:  Competitive bidding for insurances and professional services  Transportation re-routing efficiencies  Securing cost effective interest rates on borrowing EXPENDITURE HIGHLIGHTS

10. The State legislation which requires the state’s school districts to have a public budget vote, includes the requirement that the budget be divided up into three components: program, capital, and administration.  Program Budget: This portion covers teacher salaries, school supplies, and all related educational costs.  Capital Budget: Refers to all facilities costs such as leases, annual debt service, custodial salaries and benefits, service contracts, custodial supplies, maintenance and repair of facilities, and utilities.  Administration Budget: This section includes central administration and school offices, along with clerical support, salaries and benefits, and related expenses of all school administrators, board of education expenses for planning, and other administrative activities. THREE-COMPONENT BUDGET

12. ProgramAdministrativeCapital FY 2011-2012$31,277,3913,952,7748,269,835 As a Percent71.90%9.09%19.01% FY 2012-2013$32,812,9234,167,78710,119,290 As a Percent69.67%8.85%21.48% CURRENT YEAR VS. PROPOSED BUDGET

13. Where does our money come from? REVENUE SOURCES

15. Actual at Warrant Issuance State AidFY 2011-2012 BudgetFY 2012-2013 Budget General Aids$16,050,693.00$16,556,642.00 Transportation$1,561,263.00$2,372,776.00 BOCES$1,257,177.00$1,809,533.00 Building Aid$937,210.00$1,576,000.00 TOTAL:$19,806,343.00$22,314,951.00 FMAP Deduction-$189,343.00 $19,617,000.00$22,314,951.00 TOTAL expected 12-13 Aid:$19,617,000.00$22,314,951.00 % Change$$ Change Appropriated Fund Balance $200,000.00 Employee Benefit Reserve$300,000.00 -100.0%-$300,000.00 ERS Contribution Reserve $305,000.00 Debt Service Fund $100,000.00 Tax Stabilization PILOT Miscellaneous Revenues$483,000.00$461,000.00-4.6%-$22,000.00 $283,000.00 Local Tax Levy$23,100,000.00$23,719,049.002.68%Change in Levy TOTAL REVENUE:$43,500,000.00$47,100,000.008.28%Change in Revenue/Expenditure

16. What is this NEW Property Tax Cap Law all about? PROPERTY TAX CAP

17. TAX LEVY LIMIT + Coming School Year Exclusions = MAXIUMUM ALLOWABLE TAX LEVY (requiring a simple majority vote 50% +1) TOTAL LEVY TO SUPPORT PROPOSED BUDGET

18. TAX LEVY LIMIT Tax Levy Limit Prior Year Tax Levy X Tax Base Growth Factor + PILOTs (Prior Year) - Prior Year Exemptions (Not ERS & TRS) = Adjusted Prior Year Tax Levy X Allowable Levy Growth Factor (lesser of 2% or CPI) - PILOTs (receivable in coming year) + Allowable Carryover = TAX LEVY LIMIT

19.  The pension cost exemption applies only when ERS and/or TRS employer contribution rates increase by more than 2 percentage points over the prior year.  ERS Costs = Tax levy necessary for expenditures for coming school year for employer contributions caused by growth in the system average actuarial contribution rate, minus two percentage points. (2.6% increase,.6% excludable portion=.006 X $5,073,666.67 = $30,442 (Exempt Amount)  TRS Costs = Tax levy necessary for expenditures for coming school year for employer contributions caused by growth in the normal contribution rate, minus two percentage points (No exemption for 2012-2013) Exemption = % over 2% X Salary Base = Exempt Amount COMING SCHOOL YEAR EXCLUSIONS

20.  Capital Tax Levy = Tax levy necessary to support capital local expenditures  Capital Local Expenditures = The tax levy associated with budgeted expenditures resulting from the construction, acquisition, reconstruction, rehabilitation or improvement of school district capital facilities or capital equipment, including debt service and lease expenditures, and transportation capital debt service. Exemption: Aid – Expense = Exemption For 2012-2013: $3,397,058 - $3,443,132 = $46,074 Exemption ★ COMING SCHOOL YEAR EXCLUSIONS

21. MAXIMUM ALLOWABLE LEVY Tax Levy Limit + Coming Year Exclusions

22. Prior Year Tax Levy X $23,100,000 Tax Base Growth Factor + 1.0037 Prior Year PILOT (2011-2012) - 0 Prior Year Exclusions + 0 ADJUSTED PRIOR YEAR LEVY$23,185,470 X Allowable Growth Factor (lesser of CPI or 2%) 1.02 - PILOTs for Coming Year (2012-2013) 0 + Allowable Carry Over (N/A for this year) 0 = TAX LEVY LIMIT $23,649,179 + Coming School Year Exclusions $76,516 = MAXIMUM ALLOWABLE LEVY$23,725,695 2.71%

23. 2012-2013 Proposed Levy 2012-13 Proposed Budget less Estimated State Aid less Appropriated Fund Balance & Reserves less Other Revenues _______________________________ 2012-13 Proposed Tax Levy 2012-2013 Maximum Allowable Levy 2012-2013 Tax Levy Limit + Coming Year Exclusions _______________________________ 2012-2013 Maximum Allowable Levy WHAT WILL THE VOTER THRESHOLD BE? $47,100,000 Proposed 2012-2013 Budget -$22,314,951 Estimated State Aid -$ 605,000 Appropriated Fund Balance & Reserves -$ 461,000 Other Revenue ________________________________________________ $23,719,049 PROPOSED LEVY for 2012-2013 2.68% $23,649,179 Tax Levy Limit + $76,516 Coming Year Exclusions ______________________ $23,725,695 2.71% Maximum Allowable Levy

24.  The Proposed 2012-2013 Levy is BELOW the Maximum Allowable Levy (2.68% vs. 2.71%)  Voter Approval Requires a Simple Majority Vote (50% +1) RE-CAP

25.  Supports all Music & Art Programs  Maintains all Sports Teams & Events  Maintains all Extra-Curricular Activities & Clubs  Provides Free Community Use of Buildings  Supports Professional Development for staff  Maintains all academic programs (UPK, AP Courses, Boces courses, Nova Net, ASAP)  Allows for the Upkeep and Maintenance of our Facilities Our School District continues to be a GREAT place for our children to learn! WHAT DOES THE BUDGET SUPPORT?

26.  Please remember to VOTE on Tuesday, May 15, 2012;  Budget Information can be found on the District website under the Business Office page at www.mexico.cnyric.org www.mexico.cnyric.org Thank you! THANK YOU!