2013‐14 District Budget ProposalGovernor’s Budget Information

January 28, 2013

� Total Increase in School Aid  + $889 million� (+4.4% year‐to‐year funding increase) _____________________________________________________

� General Support for Public Schools + $561 million� Most is allocated to GEA restoration and by redirecting High 

Tax aid; theoretically promotes more equitable distribution of aid to school districts

� Targets school aid increases to high‐need school districts –high need districts receive 75% of 2013‐14 increase and 69% of total school aid

� Performance Grants +   $50 million� Additional added to competitive grant programs� Brings total of competitive grant program aid to $100 million

� Fiscal Stabilization funding  +  $203 million� one‐time financial relief to school districts for extraordinary 

increases in fixed costs, including pensions

� State of the State Initiatives (Competitive Grants)� Full‐day Pre‐k Program + $25 million

� Targeted to higher need students in lower wealth districts (competitive grants)

� Extended Learning Time + $20 million� Prioritized to support high‐quality extended school year/school day programs. Must expand learning time by 25%. Grant will cover full cost

� Community Schools + $15 million� Will integrate social, health & other services; after school programming to support students and their families

� High Performing Teachers + $11 million� Annual stipends of $15,000 for 4 years to the most effective teachers in the state. Will begin with Math/Science teachers

� Early College High School Programs + $4 million

� Reimbursable Aid Categories (expense driven) +$289 million� Building Aid/Transportation Aid, BOCES Aid, High cost Excess Cost Aid, Private Excess Cost Aid, Computer hardware/software/library materials aid 

� Safe Act Funding – offered to districts that purchase school safety equipment (metal detectors/cameras). 10% incentive above normal Building Aid ratio (ours is .898)

� Stable pension contribution option to allow schools to realize immediate Tier 6 saving� Long‐term stable rate pension contributions “locked in” (12% ERS; 12.5% TRS)� Period of years to be determined by Comptroller & TRS in order to achieve full 

funding of pension systems� Number of years needed for commitment unknown at this time� Will dramatically reduce near‐term payments but will require higher than 

normal contributions in latter years

� Unnecessary Reporting Requirements‐all school district reporting requirements would be eliminated on 4/1/2014 unless the Mandate Relief Council approves continuing them. Burden of proof on state agencies to justify continued reporting

� School District Mandate Relief – creates new waiver  process which will allow school districts to petition SED for flexibility in special education requirements (requires parental input)

� Internal auditor for school districts with less than 1,000 students will be eliminated (would only help us if we dipped below 1,000 students in the future – current savings approximately $7,000)

� Commitment to increase school aid by 3.3% in 2014‐15

� Reform Unemployment Insurance � Includes substantial reforms that  will decrease costs to employers, including 

local governments 

� Workers Compensation reforms ($900 million in savings)� Will reduce assessments to businesses and streamline the system� Economic benefits to businesses without affecting workers’ rights

� Minimum wage increased from $7.25/hour to $8.75/hr  (does not affect us)

� Continues commitment to teacher evaluation reform ‐ links increases in school aid to compliance with the teacher evaluation system by 9/1/2013

� Maintains merger  incentive monies for school districts

2012-13 Governor's Budget +(-) $ from +(-) % fromAid Category Base 2013-14 2012-13 2012-13Foundation Aid* 6,717,361$ 6,717,361$ -$ 0.00%Gap Elimination Adjustment (1,499,989)$ (1,499,989)$ -$ 0.00%Gap Elimination Adjustment Restoration 156,096$ 156,096$ #DIV/0!Public High Cost Excess Cost*** 352,629$ 283,249$ (69,380)$ -19.68%Private Excess Cost*** 22,831$ 22,878$ 47$ 0.21%BOCES*** 1,511,208$ 1,444,511$ (66,697)$ -4.41%Transportation*** 468,090$ 478,353$ 10,263$ 2.19%Building Aid*** 2,411,127$ 2,410,917$ (210)$ -0.01%Instructional Materials*** 102,985$ 108,469$ 5,484$ 5.33%Total General Aids 10,086,242$ 10,121,845$ 35,603$ 0.35%

Universal Pre-K 164,736$ 164,736$ -$ 0.00%Total Aid 10,250,978$ 10,286,581$ 35,603$ 0.35%

� Foundation Aid = $6,717,361 – NO INCREASE FROM 2012‐13

� Gap Elimination Adjustment = $1,499,989 (same amount as 2012‐13 net GEA [GEA less Restoration] 

� GEA Restoration = $156,096

� Net Proposed 2013‐14 GEA = $1,343,893

Gap Elimination Adjustment (GEA)

Gap Elimination Adjustment GEA

GEA Restoration ARRA $ Cumulative Aid Loss

2010-11 (1,394,911) 0 473,601 $ (921,310)

2011-12 (1,855,739) 76,612 396,402 $ (2,304,035)

2012-13 (1,640,614) 140,625 - $ (3,804,024)

2013-14 (1,499,989) 156,096 - $ (5,147,917)

District Name2012‐13 CWR** Foundation Aid GEA GEA Restoration

GEA as % of Foundation Aid

Restoration as % of Foundation 

AidRestoration as % 

of GEAAddison 0.381 12,167,620           1,200,208             415,816                9.86% 3.42% 34.65%Alfred‐Almond 0.552 4,396,085             1,045,809             130,555                23.79% 2.97% 12.48%Arkport 0.428 4,107,229             758,223                125,200                18.46% 3.05% 16.51%Avoca 0.497 5,572,102             657,449                133,422                11.80% 2.39% 20.29%Bath 0.406 13,784,608           1,546,491             417,634                11.22% 3.03% 27.01%Bradford 0.461 3,091,921             371,912                90,132                  12.03% 2.92% 24.23%Campbell Savona 0.418 9,263,083             939,526                250,827                10.14% 2.71% 26.70%Canaseraga 0.458 2,755,985             290,673                79,326                  10.55% 2.88% 27.29%Canisteo Greenwood 0.413 11,104,208           1,121,010             320,156                10.10% 2.88% 28.56%Corning Painted Post 0.636 27,302,499           6,403,878             602,597                23.46% 2.21% 9.41%Elmira 0.436 55,082,875           5,682,612             1,542,681             10.32% 2.80% 27.15%Elmira Heights 0.533 6,717,361             1,499,989             156,096                22.33% 2.32% 10.41%Hammondsport 1.522 2,889,778             404,373                30,318                  13.99% 1.05% 7.50%Hornell 0.340 15,687,928           1,455,027             444,876                9.27% 2.84% 30.58%Horseheads 0.653 20,346,678           5,048,275             417,531                24.81% 2.05% 8.27%Jasper Troupsburg 0.390 5,436,907             512,704                194,115                9.43% 3.57% 37.86%Odessa Montour 0.502 6,542,424             709,821                197,360                10.85% 3.02% 27.80%Prattsburgh 0.501 3,991,193             440,872                121,989                11.05% 3.06% 27.67%Spencer Van‐etten 0.546 8,730,162             1,392,184             248,963                15.95% 2.85% 17.88%Watkins 0.669 9,221,836             2,282,939             182,823                24.76% 1.98% 8.01%Waverly  0.419 12,392,383           1,097,888             337,319                8.86% 2.72% 30.72%Average 0.53            11,456,422           1,660,089             306,654                14.49% 2.68% 18.47%

� Overall aid decrease estimated : ‐ $66,697

� Decrease in Career & Technical Education (CTE) expenditures  of $92,207 (based on percentage of total average enrollment)� BOCES Aid Ratio of .798 x $92,207 = $73,581 decrease in aid 

(estimated)� Net decrease in aid offset by other increases/decreases of 

expenditures in other cosers 

� BOCES charges for Special Education paid under Excess Cost/High Cost Aid not under BOCES aid category

� Overall aid decrease estimated : ‐ $69,380 

� High Cost  is based on cost of certain students over the basic contribution (3 * AOE/TAPU)** and our Public excess cost ratio� Number of students entered in the STAC system (over the high 

cost threshold)� Cost of programs, related services (OT/PT/Speech/Counseling/1:1 

aids)

� Public Excess Cost is based on 2006‐07 public excess cost aid and the increase in CPI between current year and 2006‐07

� **AOE/TAPU = Approved operating expense/Total aidable pupil units from 2 years prior

TRSRate Salaries Contribution

Teachers 16.50% $5,264,122 $ 868,580 Teacher Assist 16.50% 238,638 $ 39,375 Total TRS $5,502,760 $ 907,955

ERSTier 5 17.00% $ 142,566 $ 24,236 Tier 6 11.60% 42,637 $ 4,946 All other tiers 21.10% $1,163,018 $ 245,397 Total ERS $1,348,221 $ 274,579

TRSRate Salaries Contribution

Teachers 12.50% $5,264,122 $ 658,015 Teacher Assist 12.50% 238,638 $ 29,830 Total TRS $5,502,760 $ 687,845

ERSTier 5 12.20% $ 142,566 $ 17,393 Tier 6 11.60% 42,637 $ 4,946 All other tiers 12.20% $1,163,018 $ 141,888 Total ERS $1,348,221 $ 164,227

Current Rate Leveled Rate Savings

TRS $ 907,955 $ 687,845 $ 220,110

ERS $ 274,579 $ 164,227 $ 110,352

Savings $ 1,182,534 $ 852,072 $ 330,462

� Tax Levy Allowable Limit $7,366,343� Allowable increase of 5.27%

� Current Year exemptions (TRS/ERS)� With pension exclusion      $196,499� W/out pension exclusion     $0

Due to leveling� Decrease in exclusion ($196,499)

� Revised Allowable Limit $7,169,845� Revised Allowable increase of 2.46%

2013-2014 Assumptions

1/14/13

2013-2014Current

ProjectionDollar

ChangePercent Change

Real Property & Other Tax Items (includes STAR) 7,366,343 7,169,845 (196,498) (2.67)%

Charges for Services 109,400 109,400 - 0.00%

State Aid 10,275,265 10,310,868 35,603 0.35%

Federal Aid 125,000 125,000 - 0.00%

Other (includes Sale of Property, Misc.) 477,673 477,673 - 0.00%Interfund Transfers (includes

Appropriated F/B) 645,942 645,942 - 0.00%

Total Revenues and Other Sources 18,999,623 18,838,728 (160,895) (.85)%

2013-2014 Assumptions

1/14/13

2013-2014Current

Projection

Dollar Change

Percent Change

Budget Area

General Support 2,825,710 2,825,710 -0- 0.00%

Instruction 9,499,194 9,499,194 -0- 0.00%

Pupil Transportation 475,221 475,221 -0- 0.00%

Employee Benefits 4,970,524 4,640,062 (330,462) (6.65)%

Debt Service 2,903,269 2,903,269 -0- 0.00%

Inter-fund Transfers 65,620 65,620 -0- 0.00%

Total General Fund 20,749,038 20,418,576 (330,462) (1.59)%

� Net effect of Governor’s budget and TRS/ERS leveling would be a reduction in the projected shortfall of $169,567 (from $988,636 to $819,069; 5.10% to 4.18%)

$ Increase as presented 1/14/13 % Increase

$ Increase with Gov Budget & Leveling % Increase

Projected General Fund Budget 1,357,264 7.00% 1,026,802 5.29%

Projected Revenue  (including tax levy allowable increase) 368,628 1.90% 207,733 1.11%

Projected Shortfall 988,636 5.10% 819,069 4.18%

� The chart below estimates the possible 2013‐14 tax increases on a property with a value of $100,000 with a 5.27% or a 2.46% tax levy increase.� This chart does not take into account any changes in your town 

equalization rates and assessments2012‐13 2013‐14 2013‐14

Actual5.27% (No TRS/ERS 

Leveling)2.46% (With 

TRS/ERS Leveling)Property Value $100,000 

Tax rate per $1000 of assessed value $22.23 $23.41 $22.78

Average School Tax Bill * $2,223  $2,341  $2,278 

Annual $ tax increase (before STAR) $118  $55 

Monthly $ tax increase (before STAR) $9.83  $4.58 

Basic STAR Exemption ** $656  $669  $669 

Average tax due after STAR $1,567  $1,672  $1,609 

Annual $ tax increase (after STAR) $105  $42 

Monthly $ tax increase (after STAR) $8.75  $3.50 

� Continue to share your voices with elected officials BEFORE they have to enact a budget (Legislative budget generally includes some additional aid)

� Demand changes in Foundation Aid  Formulas to provide a more fair and equitable distribution of limited funds

� Fight for the  elimination of the GEA� On the radar: Sequestration Issues yet resolved� Heights on the Hill: February 5, 2013