Budget Presentation 2010-2011

Fixed ExpendituresCentral Office Budget

Important Items of Note

• At the end of this process the Board will approve the spending plan for the school district.

• This spending plan becomes a proposition that will go to the voters on May 18th.

Important Items of Note• The budget does not determine the tax rate.

– Based on assessment that changes annually– Tax levy determined by the Board in August– The rate (per $1000) for this school year decreased

with a levy of 3%.• The approved spending plan along with other

revenue determines the needed funds from taxpayers.– State & Federal Aid– Grants for all sources– Donations, Use of Money, and other receipts

Important Items of Note

• These budget presentations are based on changing information.– State aid runs– Federal aid and grant approvals– Needs of the district (cost of business, programs,

etc)– Determinations made by administration and the

Board of Education

Mission and Goals

The mission of the Morristown Central school district is to prepare all students to confidently and

competently pursue their goals and to demonstrate ethical responsibility to the world around them.

• Fostering an instructional environment that focuses on student need.

• Integrating technology in a meaningful way to improve student learning.

• Meeting NYS academic standards at the mastery level.

Goals & Strategic Plan Guidelines

• Initiate programs and services that are consistent with our mission

• Initiate programs and services that contribute to our mission

• Expect potential programs to have a plan for implementation and assessment of effectiveness

• Not allow negative thinking to interfere with the consideration of new ideas

Today’s Budget ClimateJanuary 20, 2010

• Current fiscal situation– Governor’s budget calls for a $1.1 reduction in aid– Anticipated cut in aid for 2010-2011 and beyond

• District Direction– Maintain as close to a zero-dollar increase as possible

while maintaining focus on mission, goals, and the strategic plan (Contingent budget will be 0% - pending legislative action)

• Current political environment– Signals from Albany that cuts will happen

Overview of 2010-2011 costs that are givens

– Contractual Obligations for MTA & CSEA (wages & benefits)

– TRS & ERS– Long-term Debt

Overview of 2010-2011 costs that are givens – Salaries & Benefits

• Increases in Wages– MTA 4.5% increase– CSEA 3.5% increase– Administration – TBD

• Minimal increase in MTA– Breakage– Retirements

Overview of 2010-2011 costs that are givens – Salaries & Benefits

• Anticipated Increases• Riders 5&6• Plan C • 5% estimated overall

• FICA based on wages• Other Income Includes

• Workers’ Comp.• Master’s credit

Overview of 2010-2011 costs that are givens – TRS & ERS

Breakdown of Wages & Benefits

Impact on the budgetExpenditure Actual 2008-09 Budget 2009-10 Proposed 2010-11 Change in Budget $ Change in Budget %

Administration Salaries $ 186,200 $ 209,000 $ 200,155 $ (8,845) -4.2%

Instructional Salaries $ 2,036,848 $ 2,125,980 $ 2,134,801 $ 8,821 0.0%

Non-Instructional Salaries $ 663,761 $ 711,423 $ 724,154 $ 12,731 1.8%

Total Salaries $ 2,886,809 $ 3,046,403 $ 3,059,110 $ 12,707 0.4%

Employee Retirement System $ 45,271 $ 68,000 $ 103,400 $ 35,400 52.1%

Teacher Retirement System $ 165,303 $ 267,749 $ 297,000 $ 29,251 10.9%

FICA $ 234,082 $ 267,160 $ 257,034 $ (10,126) -3.8%

Other Benefits $ 82,552 $ 96,982 $ 117,706 $ 20,724 21.4%

Health Insurance $ 1,285,932 $ 1,274,349 $ 1,383,700 $ 109,351 8.6%

Total Benefits $ 1,813,140 $ 1,974,240 $ 2,158,840 $ 184,600 9.4%

Grand Total 4,699,949 5,020,643 5,217,950 197,307 3.78%

Overview of 2010-2011 costs that are givens – Long term debt

• Error in the 2009-2010 budget (added in the wrong dollar amount)

• Over expenditure offers an opportunity to help address budget concerns for 2010-2011 and beyond

Expenditure Actual 2008-09 Budget 2009-10 Proposed 2010-11Change in Budget $

Change in Budget %

Serial Bond Principal $ 580,000 $ 580,000 $ 335,000 $(245,000) -42.2%

Serial Bond Interest $ 122,104 $ 123,057 $ 87,100 $ (35,957) -29.2%

Bus BAN Principal $ 88,000 $ 106,400 $ 318,600 $ 212,200 199.4%

Bus BAN Interest $ 10,630 $ 9,673 $ 5,800 $ (3,873) -40.0%

Capital BAN Interest $ - $ - $ 74,525 $ 74,525  

Total Debt Service $ 800,734 $

819,130 $

821,025 $ 1,895 0.2%

Central Administration BudgetItems included in the Central Administration Budget

Board of Education Personnel

District Clerk Legal

District Meeting Central Printing & Mailing

Chief School Administrator Central Data Processing

Business Administration Unallocated Insurance

Auditing School Association Dues

Treasurer BOCES Administrative Costs

Tax Collector BOCES Capital Expenses

Purchasing Curriculum Development

Fiscal Agent Fee Supervision

Central Administration Budget

Central Administration Budget

• Increases to the Budget (All BOCES items)– Anticipated increase to BOCES costs (5%)– Personnel (Curriculum Development)– Central Printing & Mail (Print Shop & Postage)– Central Data Processing (BOCES increase & new

service)– Curriculum Development

• Decreases to the Budget– Board of Education Budget (Superintendent Search)

Central Administration BudgetDEPARTMENT Actual 2008-09 Budget 2009-10 Proposed 2010-11 Change in Budget $ Change in Budget %

TOTAL ADMINISTRATIVE

BUDGET $ 756,097 $ 798,244 $

816,730 $ 18,486 2.3%

Tax Rate per $1000School District 2008-2009

A 25.71

B 23.65

O 23.21

D 21.07

I 20.46

C 19.51

E 18.95

P 18.71

Q 18.21

L 16.87

M 16.86

Morristown 13.69

K 13.46

F 13.39

H 12.9

N 12.78

J 12.21

G 11.59

Budget Calendar

• April 20, 2010 - Deadline for submission of petitions for propositions and nominations of BOE candidates to be placed on ballot. (1 seat)

• April 23, 2010 - Last Day for Budget Adoption• April 24, 2010 - Property tax report card must be

submitted to SED within 24 hours of budget adoption. This is the last day to send if budget adopted on April 23rd.

• April 27, 2010 - Mail district budget newsletter• May 5, 2010 - Budget hearing• May 18, 2010 - Statewide annual meeting/board

election/budget vote

Budget Options

• Budget Passes– Enact changes as necessary for the 2010-2011 school year

• Budget Defeat– Options Available to a Board of Education

• Board may prepare and adopt a contingent budget without going back to the voters

• Board may submit a budget to voters a second time• If voters reject that budget, the Board must adopt a contingent budget

• Contingent Budget – Cannot exceed an increase of 120% times C.P.I. (-.4%) This maybe 0%

this year as CPI is a negative number – pending legislative action.– Includes cuts for all equipment purchases, uniforms, student supplies

and public use of facilities where a cost is involved