1. Should We Conduct a Preliminary Study? Dansville and Keshequa Central School Districts December 3, 2013 William D. Silky and Alan D. Pole Education Consultants wdsilky@aol.com/polead@yahoo.com

2. Why Merger May be Difficult  Fear of losing local identity  Perception that the communities are incompatible  Uncertainty over board representation  Less personal attention for students  Busing time for students will be increased  Fear of losing job security by staff  Natural resistance to change 2Castallo & Silky-Education Consultants

3. Greater Expectations for Students  Common core requirements to be college and career ready  Elimination of local diploma for regular education students  Passing 5 Regents exams  More math, more science, more credits  Focus on increasing graduation rates  Cut scores on the new common core assessments  Significant local support for students 3Castallo & Silky-Education Consultants

4. Declining Enrollments Most school districts across New York State are experiencing student enrollment declines 4 District 2003-042011-12 Difference Dansville 1,686 1,552 -134 (-7.9%) Keshequa 871 729 -142 (-16.3%) Castallo & Silky-Education Consultants

5. Financial Crisis  Inequities in state funding…..GEA  Elimination of federal stimulus funding 2 years ago  Fringe benefit costs continue to increase (TRS up 16.5% for 2013-14)  Districts spending down fund balances and reserves (districts used $84 million for 2013-14 budgets)  Utility costs are increasing  State deficit??  Cuts in state aid  Property tax caps 5Castallo & Silky-Education Consultants

6. 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 6Castallo & Silky-Education Consultants

7. School District Reorganization 7Castallo & Silky-Education Consultants

8. Why Consider Merger?  Increase course offerings for students  Teachers teach only in their area of specialization  Upgrade facilities and equipment  More cost effective administrative structure  Eliminate duplication of facilities, equipment, and staff  Consolidate and coordinate support functions  Reduce taxes 8Castallo & Silky-Education Consultants

9. Two Steps in the Merger Process  The Study-Conducted by consultants with oversight by a local committee to provide information to the boards, the administration, and the communities  The Vote-Overseen by the State Education Department and the District Superintendent, boards sanction an advisory public referendum which, if successful, is followed by a final referendum 9Castallo & Silky-Education Consultants

10. Components of the Study  Enrollment Projections  Instructional and Extra-curricular Program  Finance  Facilities  Transportation  Staffing 10Castallo & Silky-Education Consultants

11. The Merger Study  Provides information for school district officials, the communities, and the Commissioner  Describes the other district…..AND what a merged district might look like  Facilitated by consultants  Overseen by school/community advisory committee of 16-18 people  Both boards of education decide how to proceed with the final study  State funding has been available for studies 11Castallo & Silky-Education Consultants

12. Time Line for the Study/Merger  September-Boards meet to discuss study  November-Committee appointed  May-Study completed  June-Study reviewed by S.E.D.  August-Study presented to boards  September-Public information and discussion  November-Boards decide to go forth  December-Advisory referendum  January-Final referendum  April-Vote for new board members  May-Budget vote  July 1-New district begins operation with the new board of education 12Castallo & Silky-Education Consultants

13. Mergers-What Research Tells Us  Curriculum opportunities for students will be enhanced  Extra-curricular opportunities for students will be enhanced  School buildings will be enhanced  Some students will have a longer bus ride  Class sizes tend to get larger  Tax rates on true value decline  School district spending increases 13Castallo & Silky-Education Consultants

14. 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% 14Castallo & Silky-Education Consultants

15. 15 Incentive Operating Aid for Dansville and Keshequa Merged District Year Dansville 2006-07 Operating Aid (CWR=.423) Keshequa 2006-07 Operating Aid (CWR=.455) Combined 2006-07 Operating Aid Incentive Operating Aid % Incentive Operating Aid 2015-16 (1)6,448,5283,573,99710,022,52540% 4,009,010 2016-17 (2)6,448,5283,573,99710,022,52540% 4,009,010 2017-18 (3)6,448,5283,573,99710,022,52540% 4,009,010 2018-19 (4)6,448,5283,573,99710,022,52540% 4,009,010 2019-20 (5)6,448,5283,573,99710,022,52540% 4,009,010 2020-21 (6)6,448,5283,573,99710,022,52536% 3,608,109 2021-22 (7)6,448,5283,573,99710,022,52532% 3,207,208 2022-23 (8)6,448,5283,573,99710,022,52528% 2,806,307 2023-24 (9)6,448,5283,573,99710,022,52524% 2,405,406 2024-25 (10)6,448,5283,573,99710,022,52520% 2,004,505 2025-26 (11)6,448,5283,573,99710,022,52516% 1,603,604 2026-27 (12)6,448,5283,573,99710,022,52512% 1,202,703 2027-28 (13)6,448,5283,573,99710,022,5258% 801,802 2028-29 (14)6,448,5283,573,99710,022,5254% 400,901 2029-30 (15)6,448,5283,573,99710,022,5250 - TOTAL 38,085,595 Castallo & Silky-Education Consultants

16. 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 16 Enhanced Building Aid Ratios Dansville.926 Keshequa.955 Castallo & Silky-Education Consultants

17. 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 17 Tax Rates on Full Value Dansville $17.07 Keshequa $20.14 Castallo & Silky-Education Consultants

18. History of School District Reorganization in New York State YearNumber of DistrictsDecrease 1870 11,372 189011,216 156 191010,565 651 1930 9,118 1,447 1940 6,397 2,721 1950 3,189 3,208 1960 1,293 1,896 1970 760 533 1980 739 21 1990 720 19 2000 704 16 2010 697 7 18Castallo & Silky-Education Consultants

19. K-12 School Districts in New York State-2010 Size of District Number Enrollment Below 300 21 4,295 300-599 66 29,919 600-899 58 43,154 900-1199 88 91,388 1200-1499 59 78,395 1500-1999 78 135,092 2000-4999 182590,078 5000-9999 70474,394 10000 + 17 1,279,383 19Castallo & Silky-Education Consultants

20. What Will the SED/Legislature Do???  Nothing  Update 1958 Master Plan  Discover the 1992 DS Reorganization Plans  Increase Incentives/Disincentives  Create a Commission for School District Reorganization  Mandate Changes  Other 20Castallo & Silky-Education Consultants

21. Next Steps for Districts  Do nothing  Have boards and administrators meet to discuss issues and future options  Conduct pre-merger feasibility study  Begin merger study  Other??? 21Castallo & Silky-Education Consultants

22. 22 The Pre-Merger Feasibility Study  Would be conducted by consultants to determine if it is feasible to engage in a full and complete merger study  Study is a shorter, much less detailed, and less expensive

23. Castallo & Silky-Education Consultants23 Why Do a Pre-Merger Feasibility Study?  It would inform the boards if there is the possibility of an educational and fiscal benefit of merger  It causes less disruption in the local communities  It takes less time

24. Who Has Done a Pre-Merger Feasibility Study?  Romulus, Seneca Falls, South Seneca, and Waterloo  Alfred-Almond, Arkport, and Canaseraga Castallo & Silky-Education Consultants24

25. The Past………The Future  The structure of school districts has changed dramatically in the past century  School enrollments are projected to continue to decline for at least the next 10 years  More will be required of our students in order for our state and country to be leaders  The financial support for public schools will be challenged in new and different ways  Business as usual will not be an option 25Castallo & Silky-Education Consultants

26. Questions??? 26Castallo & Silky-Education Consultants