1. Lansing Central School District Budget Update March 26, 2012 Dr. Stephen L. Grimm, Superintendent Ms. Mary June King, Business Administrator

2. Key Questions Is this budget plan educationally responsible to the total community of Lansing? Is this budget plan fiscally responsible to the total community of Lansing? Will this budget deliver a high quality comprehensive educational and social experience to this generation of children in Lansing? 2

3. Reductions in Workforce School Year Reduction AreaNumber of Positions 2008-2009Administrator1 2008-2009Technology Integration1 2008-2009Teachers &Teaching Assistants9.2 2008-2009Support Staff7 3

4. Reductions in Workforce School YearReduction AreaNumber of Positions 2009-2010Teachers &Teaching Assistants0.6 2009-2010Support Staff1 4

5. Reductions in Workforce School Year Reduction AreaNumber of Positions 2010-2011Administrator1 2010-2011Teachers &Teaching Assistants7.6 2010-2011Support Staff9 5

6. Reductions in Workforce School Year Reduction AreaNumber of Positions 2011-2012Teachers &Teaching Assistants4.4 6

7. Reductions in Workforce School Year Reduction AreaNumber of Positions 2012-2013Administrator0.3 2012-2013Teachers &Teaching Assistants4.6 2012-2013Support Staff1.75 7

8. Total Reductions in Workforce School Year Reduction Area Total Cuts Remaining % of 08 Staff Remaining 2008-13Administrator2.3672 % 2008-13 Technology Integration 11.864 % 2008-13 Teachers &Teaching Assistants (and nurses) 26.413884 % 2008-13 Support Staff (does not include cafeteria and SACCP) 19.28582 % TotalAll Staff48.9230.883 % 8

9. TAX LEVY, RATE AND BUDGET HISTORY 2008-20092009-20102010-20112011-2012 AVG % CHG BUDGET22,838,91223,944,31524,377,90725,318,5033.50% COMB. LEVY 15,175,92915,785,63316,028,47116,386,7162.06% TAX RATE 17.7617.6018.4819.102.48%

10. TAX HISTORY CONSIDERATIONS 2008-20092009-20102010-20112011-2012 PROJECTED TAX RATE $17.96$17.76$18.64$19.10 ACTUAL TAX RATE $17.76$17.60$18.48$19.10

11. THE AES STORY At the current tax rate (19.10), every $5 million decrease in AES is a ‘loss’ of $95,500 in tax levy for the District. Projected decrease for 12-13 in AES value is $26,000,000 2009-20102010-20112011-20122012-2013AVE % CHG AES TAX VALUE160,000,000130,000,000112.500.00086,250,000- 18.51 % COMBINED LCSD VALUE 875,813,105865,479,826855,337,121841,372,320- 1.33 % COMBINED LEVY 15,785,63315,994,06716,494,19416,794,0422.09 % AES as % TOTAL LEVY 17.84 %15.2 %13.03%8.64% TAX RATE$ 17.60$ 18.48$ 19.10$ 19.964.50 %

12. 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

13. IMPACT OF AES 2012-2013 REDUCTION OF AES $26,300,000 131 HOMES AT $200,000ea AND 1 AT $100,000 LEFT DISTRICT

14. BUS PURCHASE PROPOSAL, 12/13 (No New Taxes) Proposal: Replace two 20**, 66-seat vehicles Replace one 20**, 29-seat mini-bus Cost new est. for Full-sized buses $115,000 each; for mini-bus, $47,421 No debt service budget impact: – $93,960 payment ‘falling off’. – New purchase budgeted payment is < $65,000/year. PURCHASE 2011-20122012-20132013-20142014-20152015-2016 FYE 2007 93,6900000 FYE 2009 95,32597,850000 FYE 2010 59,14057,82061,50000 FYE 2011 47,15653,27552,85051,97556,100 FYE 2012 (proposed) 057,06864,00061,80059,600 TOTALS $ 295,311$ 266,013$ 178,350$ 113,775$ 115,700

15. BUDGET STATE AREA TOTALS, 12/13 UNDISTRIBUTED EXPENDITURES 2011-20122012-2013 % CHANGE Employee Benefits $ 6,535,412 $ 6,904,025 5.64 % Debt Services$ 2,303,398 $ 2,228,123 - 3.27% 2011-20122012-2013% CHANGE IN 12/13, AS % OF BUDGET General Support $ 3,005,547$ 3,021,6000.53 %11.62 % Instruction$ 12,434,185$ 12,861,6833.44 %49.47 % Pupil Transportation $ 1,040,961$ 984,607- 5.41 %3.79% Undistributed Expenditures $ 8,838,810$ 9,132,148 3.32 %35.12 % TOTAL:$ 25,319,50326,000,0382.69 %

16. BUDGET, 12/13 (another, but familiar, perspective) 2011-20122012-2013 % CHANGE IN 12/13, AS % OF BUDGET SALARIES$ 10,665,965$ 10,996,3733.10 %42.29 % NON- SALARIES $ 2,475,969$ 2,485,2710.38 %9.56 % BOCES$ 3,338,759$ 3,386,2461.42 %13.02 % BENEFITS$ 6,535,412$ 6,904,0255.64 %26.55 % DEBT SERVICE $ 2,303,398$ 2,228,123- 3.27 %8.57 % TOTALS$ 25,319,503$ 26,000,0382.69 %

17. COMPARATIVE BREAK-DOWN: Budget

18. COMPARATIVE BREAK-DOWN Budget

19. BUDGET INCREASE SPECIFICS 2012-2013 Total proposed budget increase =$ 680,353 ERS/TRS increase = - 368,613 (with cuts) Education Jobs Fund = - 381,200 (The last “Funding Cliff”) - 69,460 Remaining budget increase = $ - 69,460 $ - 69,460 = - 0.27 %

20. REVENUE TRENDS Tax-related calculation for 2008-2009 uses AES as PILOT. 2008-092009-102010-11 2011-12 *Actual 3.27 AVE % CHG STATE AID7,176,0266,383,2456,326,142* 6,384,104- 3.71 % FED AID17,7271,051,482455,847* 12,750 MISC2,705,8021,152,8011,652,139* 835,188- 10.50 % APPROP000734,936 ‘OTHER’ PILOTS 281,864233,945274,915* 360,99310.61 % AES LEVY2,521,9202,816,0002,402,400* 2,148,750- 4.53 % TAX LEVY12,372,14512,735,68813,351,157* 13,954,4514.11 % 25,075,48424,373,16124,462,60024,431,172

21. FYE12 FUND BALANCE PROJECTION This means we will use (as needed) $750,000 rather than $1.94M of appropriated revenue in current year. That will allow $1.45M towards next year’s appropriated revenue needs. That $1.45M, coupled with ~ $400,000 excess unassigned in 11.12, allows for $1.85M appropriated in 12.13 without touching reserves. BUDGETED AMOUNTPROJECTED ACTUALDIFFERENCE REVENUES$ 25,319,503$ 25,638,964+ 319,461 EXPENSES$ 25,319,503$ 24,431,172+ 888,331 ANNUAL PROJECTED FB$1,207,792 ADD ENCUMBRANCES ($250,000) $1,457,792

22. REVENUE SHORTFALL SOLUTIONS $ 1,764,030 Shortfall contains 2.6% levy increase FUND/SOURCE $$ TO BE APPROPRIATED AMOUNT REMAINING IN FUND SHORTFALL BALANCE $ 2,046,728 11/12 (excess) Fund Balance $ 1,857,792$ 0$ 188,936 ERS Reserve$ 100,000$ 554,012$ 88,936 Tax Cert Reserve$ 88,936$ 312,700$ 0 EBALR$ 0$ 234,536 Unemployment Reserve $ 0$ 200,243 Unappropriated FB$ 0$ 1,040,002 TOTAL RESTRICTED AND UNRESTRICTED MONIES AT 6.30.12 (projected) $ 2,341,493

23. CONTINGENCY BUDGET New law stipulates that no new property taxes may be raised with contingency budget. Additional $ 848,423 would have to be cut from budget or appropriated from reserves to meet the confines of the new law. CONTINGENCY BUDGET PROPOSED BUDGET REQUIRED CUTS 2012-13 $ 25,986,348$ 26,000,038$ 13,690

24. 2012-13 Reductions DescriptionAmount Athletics$10,000Asst Varsity Track Coach, Modified Girls BB 2nd Team - Lansing Rec Alternative for additional players, consolidated game schedule and materials and supplies. Teacher Aide - assists with ES attendance (2 hrs) $4,000 Business HS - Cut 0.1 resulting in a 0.5 FTE for the least senior teacher $11,000Yearbook class everyother day. Cleaner - Attrition$38,000Share across buildings and restructure amount of work. 24

25. 2012-13 Reductions DescriptionAmount Cut 0.5 ES Enrichment - serve only upper level students - teacher fills 0.5 LOA for the Teacher Ctr Director $20,000 DCC$10,000Cut district-wide core leaders and combine BCCs for district-wide DCC Director of Technology, and Coordinator of Curriculum Reorg- cut.2 $30,000 ELA - Cut 0.5: 7-12. travelling MS teacher to teach 0.2 at HS -. Attrition through retirement. $27,000Staffing numbers plus help from the MS. 25

26. 2012-13 Reductions DescriptionAmount Health Teacher - 0.4 …. MS CPR covered by Teaching Asst they already have. Leaves 0.2 Health PT: could absorb in PE. $30,000Health Teacher covers middle and high school. Still preserves PAWS and QUEST in MS. LOTE Cut 0.6 -.4 at HS.2 at MS $38,000This would be the BOCES share. Class size and offerings continue to be maintained. Microcomputer Specialist - reduce from general fund and secure 0.5 BOCES share $30,000 Sabbaticals$11,000 26

27. 2012-13 Reductions DescriptionAmount Science 0.5 - 7-12 - Attrition $25,000 Special Ed Teacher - Eliminate ES Assignment - Teaching Assistant picks up some RtI. $60,000 Student Services - 1.0 Psychologist - Attrition $107,000K-12 Psychologist and Counselor responsibilities are under review to understand full implications of this cut by attrition. Summer School (Middle School in-district) $9,000Possibly redesign for future. 27

28. Total Reductions DescriptionAmount Initial Reductions$600,000 Supplemental$460,000 Total Reductions from Oct ‘11 Projected Budget $1,060,000 28

29. The Numbers DescriptionAmount Original Projected Budget – Oct 2011 27,060,000 Initial Reductions 600,000 Supplementary Reductions 460,000 Final Budget Recommendation 26,000,000 Revenues 23,620,000 Gap 2,380,000 Fund Balance 1,860,000 Reserves 190,000 Remaining Gap 330,000 29

30. The Numbers DescriptionAmount Proposed Budget 26,000,000 Budget Growth 2.69% Combined Tax Levy 2.00% Projected Tax Rate 4.50% 30

31. Effect on Homeowners – No Star -(>$500K income: 50 to 60 people in Lansing) 31 DescriptionAmount Effect on $100,000 Home$ 86 Effect on $200,000 Home$ 172 Effect on $300,000 Home$ 258 Effect on $400,000 Home$ 344 Effect on $500,000 Home$ 430 Effect on $600,000 Home$ 516 Effect on $800,000 Home$ 688 Effect on $1,000,000 Home$ 860

32. Effect on Homeowners – Basic Star -$30,000 from assessed value 32 DescriptionAmount Effect on $100,000 Home$ 60 Effect on $150,000 Home$ 103 Effect on $200,000 Home$ 146 Effect on $250,000 Home$ 189 Effect on $300,000 Home$ 232 Effect on $350,000 Home$ 275 Effect on $400,000 Home$ 318 Effect on $450,000 Home $ 361 Effect on $500,000 Home$ 404

33. Effect on Homeowners Enhance Star -$62,200 from assessed (< $79,050 income) DescriptionAmount Effect on $100,000 Home$ 33 Effect on $150,000 Home$ 76 Effect on $200,000 Home$ 119 Effect on $250,000 Home$ 162 Effect on $300,000 Home$ 205 Effect on $350,000 Home$ 248 Effect on $400,000 Home$ 291 Effect on $450,000 Home$ 334 Effect on $500,000 Home$ 377 33

34. The Numbers - NO AES DROP DescriptionAmountNO AES Problem Amount Proposed Budget 26,000,000 Budget Growth 2.69 % Combined Tax Levy 2.00 % Projected Tax Rate 4.50 %1.34 % Effect on $100,000 Home $86$26 Effect on $100,000 Home – STAR $60$18 Effect on $100,000 Home – Enhanced STAR $33$10 34

35. AGRICULTURAL LAND EXAMPLES Assessment determines the market value and the productivity value of the land The difference is the exemption # ACRES LAND ASSESSMENT AG CEILING EXEMPTION EXEMPTION % FARM A811$ 949,050$ 356,72037.59 % FARM B87$ 100,200$ 36,31136.24 % FARM C102$ 112,800$ 66,58259.03 % EXAMPLES PROVIDED BY TOMPKINS COUNTY ASSESSMENT OFFICE

36. The Numbers – School + Town Description2011-20122012-2013 School 19.1019.96 Town of Lansing 1.621.38 Combined School + Town 20.7221.34 Projected Tax Rate Increase 2.99% 36

37. The Numbers – School + Town NO AES DROP Description2011-20122012-2013 School 19.1019.36 Town of Lansing 1.621.38 Combined School + Town 20.7220.74 Projected Tax Rate Increase 0.10% 37

38. Multi-Year Financial Projections 38 2012-20132013-20142014-2015 Budget26,000,00027,000,00027,800,000 Revenue23,620,00024,000,00024,800,000 Budget Gap (Deficit) 2,380,0003,000,000 Additional Tax Levy 337,000500,000 Appropriated FB1,642,7281,500,0001,550,000 Reserves200,000500,000450,000 CUTS1,000,000500,000 Remaining Gap($0)

39. The Numbers - Summary DescriptionAmount Proposed Budget26,000,000 Budget Growth2.69% Projected Combined Tax Levy Increase -Set in the Summer of 2012 2.00% Projected Tax Rate Increase -Set in the Summer of 2012 4.50% 39

40. Key Questions Is this budget plan educationally responsible to the total community of Lansing? Is this budget plan fiscally responsible to the total community of Lansing? Will this budget deliver a high quality comprehensive educational and social experience to this generation of children in Lansing? 40

41. 41 Proposed Budget Summary Approved 2011-2012 Budget$ 25,319,503 Proposed 2012-2013 Budget$ 26,000,038 Proposed 2012-2013 Increase$ 680,535 Proposed % Increase 2.69 %

42. REVENUES w/ $2,046,728 APPROP and $329,848 ADDITIONAL LEVY Proposed Budget Budget to Budget Change Proposed Combined Tax Levy % Chg Combined Tax Levy Tax Rate Tax Rate Chg Chg for $100,000 Home 26,000,0383.68%16,794,0422.00%19.96034.50%$ 86 BUILT-IN CUTS TO BUDGET = $ 600,000 USE OF PROJECTED FUND BALANCE = $ 1,457,792 USE OF RESERVES TO FILL GAP = $ 188,000 REMAINING RESERVES = $ 1,301,491 PROPOSED BUDGET FINANCED WITH 2.0% COMBINED LEVY INCREASE