1. Lansing Central School District Budget Update March 28, 2011 Dr. Stephen L. Grimm, Superintendent Ms. Mary June King, Business Administrator

2. Reductions in Workforce School Year Reduction AreaNumber of Positions 2008-2009Administrator1 2008-2009Technology Integration1 2008-2009Teachers &Teaching Assistants9.2 2008-2009Support Staff7 2

3. Reductions in Workforce School YearReduction AreaNumber of Positions 2009-2010Teachers &Teaching Assistants0.6 2009-2010Support Staff1 3

4. Reductions in Workforce School Year Reduction AreaNumber of Positions 2010-2011Administrator1 2010-2011Teachers &Teaching Assistants7.6 2010-2011Support Staff9 4

5. Reductions in Workforce School Year Reduction AreaNumber of Positions 2011-2012Teachers &Teaching Assistants4.4 5

6. Total Reductions in Workforce School Year Reduction AreaNumber of Positions 2008-2011Administrator2 2008-2011Technology Integration1 2008-2011Teachers &Teaching Assistants21.8 2008-2011Support Staff19.2 TotalAll Staff44.0 6

7. Reductions Summary 2008-2012Positions44.0 FTE 2008-2012Approximate Total Personnel- Related Budget Reductions Financial Total $2,500,000 7

8. BUDGET TRENDS: Instructional ‘stuff’ 2008-20092009-20102010-20112011-2012 EQUIPMENT29,50026,55026,10023,700 CONTRACTUAL297,747282,074232,437199,733 M & S297,147270,690142,238142,240 TOTALS624,397579,314400,775365,673 % change from previous year - 7.22 %- 30.82 %- 8.76 %

9. TAX LEVY, RATE AND BUDGET HISTORY Tax-related calculation for 2008-2009 uses AES as PILOT. 2008-20092009-2010% CHG2010-2011 % CHG AVG % CHG BUDGET22,838,91223,944,3154.8 %24,377,9071.8 %3.4 % COMB. LEVY 15,175,92915,785,6334.0 %16,028,4711.5 %2.8 % TAX RATE17.7617.60- 0.01 %18.484.9 %2.0 %

10. TAX HISTORY CONSIDERATIONS 2008-20092009-20102010-2011 PROJECTED TAX RATE $17.96$17.76$18.64 ACTUAL TAX RATE $17.76$17.60$18.48

11. ROLLOVER v. PROJECTED 2011-2012 ROLLOVERPROJECTEDDIFFERENCE GENERAL SUPPORT$ 3,058,547$ 3,005,547$ - 53,000 INSTRUCTION$ 12,839,185$ 12,434,185$ - 405,000 PUPIL TRANSPORTATION $ 1,056,960$ 996,960 $ - 60,000 UNDISTRIBUTED EXPENDITURES $ 8,838,810 $ 0 TOTALS$ 25,793,502$ 25,275,502$ - 518,000

12. BUDGET CUTS BUILT IN 2011-2012 BUDGET CODEITEMDECREASE IN $$CAVEATS 1310-490 School Lunch Super 53,000Offset revenue 2110-120/130/150Teach Regular Sal210,000Grade 1/Science 2110-160Teach Regular Sal20,000TA 2250-150SPED Instruct Sal55,0001 FTE 2250-490SPED BOCES110,000Decreased RFS 2340-490Inc Youth/BOCES10,000Decreased costs 5510-160Transportation Sal60,000Adj. for current exp TOTALS$ 518,000

13. BUS PURCHASE PROPOSAL, 11/12 (No New Taxes) Proposal: Replace two 2001, 66-seat vehicles Cost new est. $110,000 each No debt service budget impact: – $55,000 payment ‘falling off’. – New purchase budgeted payment is < $55,000/year. PURCHASE 2009-20102010-20112011-20122012-20132013-2014 FYE 2006 54,83057,530000 FYE 2007 101,02597,38093,69000 FYE 2009 93,37892,66395,32597,8500 FYE 2010 55,52860,44659,14057,82061,500 FYE 2011 (proposed) 0055,00058,20056,200 TOTALS 304,761308,019303,155213,870117,700

14. BUDGET STATE AREA TOTALS, 11/12 UNDISTRIBUTED EXPENDITURES 2010-20112011-2012 % CHANGE Employee Benefits $ 5,785,403$ 6,535,412 12.96 % Debt Services$ 2,151,125$ 2,303,398 7.08 % Debt Service is offset by matching revenues (state aid) 2010-20112011-2012% CHANGE IN 11/12, AS % OF BUDGET General Support $ 2,909,334$ 3,005,5473.31 %11.89 % Instruction$ 12,494,428$ 12,434,185- 0.48 %49.19 % Pupil Transportation $ 1,037,616$ 996,960- 3.92 %3.94 % Undistributed Expenditures $ 7,936,529$ 8,838,81011.37 %34.97 % TOTAL:$ 24,377,907$ 25,275,5033.68 %

15. BUDGET, 11/12 (another, but familiar, perspective) 2010-20112011-2012% CHANGE IN 11/12, AS % OF BUDGET SALARIES$ 10,869,287$ 10,673,464- 1.8 %42.23 % NON-SALARIES$ 2,318,596$ 2,424,4694.57 %9.59 % BOCES$ 3,253,495$ 3,338,7592.62 %13.21 % BENEFITS$ 5,785,403$ 6,535,41212.96 %25.86 % DEBT SERVICE$ 2,151,125$ 2,303,3987.08 %9.11 % TOTALS$ 24,377,907$ 25,275,5033.68 %

16. COMPARATIVE BREAK-DOWN: Budget

17. COMPARATIVE BREAK-DOWN Budget

18. BUDGET INCREASE SPECIFICS 2011-2012 Total proposed budget increase =$ 897,596 ERS/TRS increase = - 306,764 (with cuts) Debt Service increase = - 207,344 (with matching revenue) Remaining budget increase = $ 383,488 $ 383,488 = 1.57% Budget increase for all other costs of doing the business of providing education

19. REVENUE PROJECTIONS 2011-2012 (with no levy increase, except = f(increased value)) 2010-2011 (actual) 2011-2012% CHANGE IN 11/12, AS % OF BUDGET STATE AID$ 6,412,246$ 6,300,311- 1.75 %24.93 % FEDERAL AID$ 455,847$ 30,000- 93.42 %0.12 % MISCELLANEOUS$ 2,173,329$ 2,616,72120.40 %10.35 % PILOT$ 2,677,315$ 2,301,282- 14.05 %9.10 % TAXES$13,351,156$13,727,1892.82 %54.31 % TOTALS$25,069,893$25,275,5030.82 %

20. REVENUE TRENDS Tax-related calculation for 2008-2009 uses AES as PILOT. Calculations for 2011-12 assume levy increase of 2.5%. 2008-20092009-2010 % CHG 2010-2011 % CHG 2011-2012 % CHG STATE AID7,176,0266,383,245-11.16,412,2460.56,300,311-1.8 FEDERAL AID17,7271,051,4825931455,847-56.730,000-93.2 MISCELLANEOUS2,705,802784,800-71.0513,792-34.5449,446-12.5 APPROPRIATED0368,0001,371,000372.62,016,56347.1 PILOTS 2,803,7843,014,7457.52,677,315 -11.22,358,814-11.9 TAXES 12,372,14512,770,8883.213,351,156 4.514,070,3685.4 25,075,48424,373,16024,781,35624,925,502

21. FUND BALANCE ANALYSIS (expenses) General Support: Central Services Instructional: Teaching Regular School, Special Education (08/09 and 10/11) Transportation: Salaries (def in 09/10), Gas & Diesel Undistr. Expend: DS (08/09), EB (09/10), wash (10/11) 2008-20092009-20102010-2011 (est) GENERAL SUPPORT$ 335,939$ 260,760$ 35,357 INSTRUCTION$ 508,860$ 193,314$ 334,824 TRANSPORTATION$ 202,622$ 35,808$ 85,449 UNDISTR. EXPEND$ (121,643)$ 604,173$ 23,079 TOTALS$ 925,778$ 1,094,055$ 478,708

22. FUND BALANCE ANALYSIS (revenue) 08/09: Misc $ reflects reclass of liabilities, < taxes reflects BOE decrease of levy in Aug. 09/10: State/Fed aid reflects ARRA/ESF, PILOT/Tax reflects TC assessment documentation 10/11: state/Fed aid reflects ARRA/ESF, Misc reflects BOCES refund, 2008-20092009-20102010-2011 (est) STATE AID$ (6,089)$ (286,033)$ (177,758) FEDERAL AID$ (66,646)$ 972,117$ 425,847 MISCELLANEOUS$ 2,112,442$ 609,926$ 319,665 PILOT$ 31,864$ (2,979,755)$ 119,163 TAXES$ (1,079,922)$ 2,482,268$ (18,751) TOTALS$ 991,649$ 798,523$ 668,166

23. FUND BALANCE ANALYSIS 2008-20092009-20102010-2011 (est) REVENUES$ 991,649$ 798,523$ 668,166 EXPENSES$ 925,778$ 1,094,055$ 478,708 FUND BALANCE$ 1,917,427$ 1,892,578$ 1,146,874

24. THE AES STORY At the current tax rate (18.48), every $5 million decrease in AES is a ‘loss’ of $92,400 in tax levy for the District. To maintain the tax levy, the tax rate must increase to make up for the decrease in AES value. Projection assumes: 1% taxable value increase, 0% levy increase. Lansing budget is similar to similar-sized schools. Combined Levy % chg levy Tax Rate Tax Rate Chg Chg for 100000 home Proposed Combined Levy 16,028,4710.00%$18.7421.42% $ 26$16,028,471

25. IMPACT OF AES 2010-2011 REDUCTION OF AES $30,000,000 150 HOMES AT $200,000ea LEFT DISTRICT 2011-2012 REDUCTION OF AES $17,500,000 87 HOMES AT $200,000ea + 1 HOME AT $100,000 LEFT THE DISTRICT

26. CONTINGENCY BUDGET PROPOSED BUDGET REQUIRED CUTS 2011-2012 $ 24,954,054$ 25,275,503$ 321,449

27. Multi-Year Financial Projections 27 2011 - 20122012-20132013-2014 Budget w/out Cuts 25,275,50326,539,27827,078,742 Revenue 23,123,82423,588,65024,338,650 Budget Gap 2,151,6792,950,6282,740,092 Additional Tax Levy 464,82600 Appropriated FB 882,809961,703996,915 Reserves 804,044500,000250,000 Remaining Gap ($0)($1,488,925)($1,493,177)

28. Reduction Scenarios 28 Athletics - Non- Varsity100,000 Buildings and Grounds cut 1.0 FTE 36,000 Co-curricular75,000 Elementary School (from 17 to 20 - Grades K-1 from 20 to 25 - Grades 2-4) 4 Teachers240,000 Encore/Electives60,000 Enrichment (1.5)90,000 High School (from 22 to 27) 4 Teachers240,000 Library Clerk 1.0 - share ms and hs 13,000 Library Media Specialist60,000 Microcomputer Specialist 1.0 FTE 60,000 Middle School (from 20 to 25) 4 Teachers240,000 Nursing 40,000 SPED Teacher 1.0 FTE District Wide 50,000 Teacher Leadership Stipends/Positions 40,000 Teaching Assts (13) 520,000 Transportation 100,000 Staff 100,000 Other 100,000 Bad and Ugly Total2,164,000

29. Key Questions Can we expect outstanding academic achievement results in the future? What quality of education are we responsible to deliver to this generation of children in Lansing? What quality of education are we willing to support in Lansing? 29

30. Key Questions What is an appropriate class size at each of the schools? How much transportation should the district provide? Should we support a comprehensive educational and social experience in our schools? 30

31. Key Questions Should we consider partnering with other entities to provide extracurricular and encore opportunities? If so, which ones? Are we willing to sacrifice the general conditions of our buildings and grounds? If so, by how much? Are we willing to accept that no matter what solutions we implement, all stakeholders will not be satisfied? 31

32. Summary Stay collaborative and come together as a community to solve this problem. Minimize the reduction in opportunity for children; takes time and teamwork. Understand the consequences of further reductions before making decisions to do so Answer the Key Questions 32

33. REVENUES w/ $2,415,795 APPROP and 0% LEVY Proposed Budget Budget to Budget Change Proposed Combined Tax Levy % Chg Combined Tax Levy Tax Rate Tax Rate Chg Chg for $100,000 Home 25,275,5033.68%16,028,4710%18.741.43%$ 26 REVENUES w/ $ 2,015,046 APPROP and 2.5 % COMBINED LEVY Proposed Budget Budget to Budget Change Proposed Combined Tax Levy % Chg Combined Tax Levy Tax Rate Tax Rate Chg Chg for $100,000 Home 25,275,5033.68%16,430,7002.5%19.213.96%$ 73 REVENUES w/ $ 1,950,926 APPROP and 2.9% Combined levy increase Proposed Budget Budget to Budget Change Proposed Combined Tax Levy % Chg Combined Tax Levy Tax Rate Tax Rate Chg Chg for $100,000 Home 25,275,5033.68%16,494,8202.9%19.294.37%$ 81

34. 34 Proposed Budget Summary Approved 2010-2011 Budget$ 24,377,906 Proposed 2011-2012 Budget$ 25,275,503 Proposed 2011-2012 Increase$ 897,597 Proposed % Increase 3.68 %