1. School District Reorganization Options Inlet Common School District January 21, 2015 Alan D. Pole 4514 Whistler Circle, Manlius, NY 13104 (315.692.4615/polead@yahoo.com) 1

2. Greater Expectations for Students  Common core requirements to be college and career ready  Passing 5 Regents exams  More math, more science, more credits  Focus on increasing graduation rates  Significant local support for students 2

3. Declining Enrollments  Most school districts across New York State are experiencing student enrollment declines 3 2001-022014-15Difference% Difference Inlet2926-3-10% Old Forge396270-126-32%

4. Financial Crisis  Fringe benefit costs continue to increase  Districts spending down fund balances and reserves  Utility costs are increasing  Property tax caps 4

5. The Perfect Storm  Greater expectations and opportunities for all students  Declining student enrollment in many districts  Precarious financial condition 77% of Superintendents say they will not be able to fund mandates in 4 years; 18% says it will occur in two years. Business as usual will not be an option 5

6. Reorganization Options Tuitioning School District Mergers 6

7. Tuitioning Students to Other Districts 7

8. Why Do Districts Tuition Students?  To provide opportunities for students that are not feasible to offer in their home school district.  To reduce cost. The cost of running a high school is the most expensive operation in the K-12 sequence of grades. 8

9. Current Tuitioning Arrangement  Inlet currently has 27 students in Pre-K-6….. and 1 kindergarten student who is tuitioned to Old Forge  Inlet currently has 36 students in 7-12 who are tuitioned to Old Forge  Rate for tuitioning Pre-K-6: $15,000/student  Rate for tuitioning 7-12: $17,200/student 9

10. Distribution of Secondary Students  Grade 7……3  Grade 8……8  Grade 9……8  Grade 10….4  Grade 11….8  Grade 12….5 TOTAL……..36 10

11. Cost for Current Tuitioning Arrangement  1 kindergarten student………….…………$15,000  36 secondary students………………….…619,200  Transportation………………………………..…10,200  TOTAL……………………………………..……..$644,400 Plus: School Psychologist: $58.77/hr (4-12 hrs/mo) Speech Therapist: $108.38/hr (12-25 hrs/mo) Secretarial Services: $20.75/hr (1hr/mo) Bus repairs & maintenance: $150/month 11

12. Tuitioning Guidelines  After a public vote, a district can contract for: -All or part of the elementary students -All or some of the 7-12 students for a period of 2-5 years  Contract may be with one or more school districts 12

13. Tuitioning Support  Receiving district cannot charge more than the difference between the cost of educating the student and the amount of state aid received for that student  Sending district must provide transportation for the tuitioned students 13

14. Rights of Teachers in Tuitioning  Sending district teachers are considered employees of the receiving district  If fewer teachers are needed, teachers cannot bump receiving district teachers  If laid off, teachers are placed on a preferred eligible list for 7 years  Length of service carries over for salary, sick leave, and other purposes 14

15. School District Mergers 15

16. Why Consider Merger?  Increase course offerings for students  Upgrade facilities and equipment  More cost effective  Reduce taxes 16

17. Why Merger May be Difficult  Fear of losing local identity  Uncertainty over board representation  Busing time for students will be increased  Fear of losing job security by staff  Natural resistance to change 17

18. Mergers-What Research Tells Us  Curriculum opportunities for students will be enhanced  Extra-curricular opportunities for students will be enhanced  Tax rates on true value decline  School district spending increases 18

19. Types of Reorganization  Centralization-New district created with a new name and a new board of education  Annexation-One district takes over the other district with the annexing board of education, administration, contracts, policies, etc. remaining in place 19

20. Contiguous Districts for Inlet  Old Forge  Poland  Piseco*  Raquette Lake* 20 *Non-operating Districts

21. The Finances of Merger-Part 1 Incentive Operating Aid Combined operating/foundation aid (GEN Report-Part VII- 2006-07) for both districts is increased as follows: Year 1-40%Year 6-36% Year 11-16% Year 2-40%Year 7-32% Year 12-12% Year 3-40%Year 8-28% Year 13-8% Year 4-40%Year 9- 24% Year 14-4% Year 5-40%Year 10-20%Year 15-0% 21 However, a merger of Inlet and Old Forge would not generate any incentive operating aid.

22. The Finances of Merger-Part 2 Incentive Building Aid  Additional 30% on top of the higher district’s selected building aid ratio up to 95% (98% for high needs districts) for 10 years for any new construction  Existing debt is aided at the higher of the previous districts’ selected building aid ratios 22 DistrictBuilding Aid Ratio Inlet0% Old Forge0%

23. The 1/3, 1/3, 1/3 Guideline for Incentive Operating Aid  1/3 to finance transition costs to the merged district  1/3 in reserves for long term fiscal stability  1/3 to reduce taxes 23 Tax Rate/$1,000 on True Value Inlet$4.90 Difference of 60% Old Forge$3.07

24. Components of Tuitioning or Merger Study  Enrollment History and Projections  Instructional and Extracurricular Program  Facilities  Transportation  Staffing  Finances 24

25. Inlet History  Consultant study in 2000 examined: Stay as is Annexation to Old Forge Become a non-operating district Change to a Pre-K-3 school Consultant recommended that Inlet become a non-operating district 25

26. Non-Operating School Districts  South Mountain  Raquette Lake  Hopevale  Piseco 26

27. Future Options  Remain as currently organized  Invite Old Forge to discuss options  Engage in a study to define a non-operating district  Other 27

28. Questions??? 28