FULT

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DISTR

ICT

2012-13 D

RAFT B

UDGET

NYS FINANCIAL PROBLEM

Constrained Current Revenues – Economy

NYS has Changed Education Policy in Funding Public Education

NYS Continues to Freeze Foundation Aid at 2008-09 Levels, Continues to Impose a Gap Elimination Adjustment on School Districts and Index Increases in Education Aid Based on Personal Income Tax Receipts (Capped at 4%)

HISTORY OF BUDGET REVENUES

FCSD is a High Need/Low Wealth District – CWR .355

FCSD is Highly Dependent NYS for Revenue

Approximately 61% of Revenues from NYS

Approximately 32% from Local Tax levy

Remainder Other Sources

WHY WE FACE THIS PROBLEM

Revenue Problem

Not a Spending Problem

NYS Distribution of Aid is Not Equitable

FCSD is Not Able to Make Up Locally the Funding Cuts from NYS

FCSD Has Had to and Needs to Continue to Live within its Means

FCSD BUDGET PROCESS TO DATE

BOE Parameters Workshop 12/3/11

Budget Committee Meetings January 17 & 31/2012

Review of District Programs, Services, Operations and Financials

Review District Spending , Anticipated Revenue, Student Enrollment, Personnel, Prior Years’ Spending and Staff Reductions, and Projected Costs for the Budget Moving Forward

ITEMS DRIVING BUDGET COSTS

Staff Salaries & Benefits

Transportation of Students

BOCES Services, Expenses & Charges

Information Technology - Software, Hardware and Connectivity

Supplies, Materials & Equipment

Custodial & Maintenance

Energy

Debt Service

DISTRICT BUDGET COMPONENTS (PROJECTED)

Instructional Staff, Program and

Services 74.1%

Administrative Components 9.4%

Capital Component 9.2%

Debt Service 7.3%

THE GOVERNOR’S 2012-13 PROPOSAL

Increases State Aid to FCSD for 2012-13 by $1.2 Million

Shifts 15% of Preschool Special Education Costs from the County to School Districts

2012-13 YR. GOV.’S BUDGET IMPACT Governor’s Proposed Budget Increase of $1.2 Million in

Aid to FCSD

Where will this money go?

Federal Jobs Bill Ends in June 2012 - $404,000 in Staffing to Continue

Governor’s Proposed Budget –$427,000 of the Increase in Aid is Directly Tied to the District’s New Cost for the Oswego County BOCES Capital Project beginning this Year.

Increases in District Operations, Energy Costs, Retirement System Costs, Health Care and Salaries

Increase in BOCES Administrative Costs of $100,000

IMPACT OF GOVERNOR’S PROPOSAL

State Aid Impact Increases Funding by $1.2 Million

Cost to Maintain Current 2011-12 Programs, Services and Operations Including $404,000 Funded Positions in the Federal Jobs Bills Results in a $2..8 Million Budget Gap

Combined Initial Impact on Local

Tax Levy = 14.4% Increase

Unrealistic and Not Sustainable to District and Tax Payers

DISTRICT REVENUE BUDGET

Revenue Budget =

State Aid (Including Building Aid)+

Local Tax Levy +

Miscellaneous Income +

Designated Fund Balance (Use of Reserves)

CURRENT CONSIDERATIONS

$2,800,000 Budget Gap

If: $387,568 (2% Tax Levy Impact)

$2,412,432 Gap

*Budget Gap Closing Options are further tax levy increases, use of Reserve Funds and/or staff and program reductions.

CURRENT CONSIDERATIONS

Use of District Reserves – The implications for the Future

Reserves are Established for Specific Legal Purposes

To Address potential District Financial Obligations and Liabilities

To plan for and protect the Long Term Fiscal Health of the School District

LOCAL TAX LEVY OPTIONS

2% Levy Threshold or CPI Which Ever is Lower

2% Levy Threshold , Not Including Exclusions, Requires Basic Majority for Voter Approval

Exclusions included Pension Costs Rate Increases Above, 2%, Local Share of Debt Service, large Tort Judgments

Levy Increase Greater than 2% ,Not Including the Exclusions, Requires a Super Majority of 60% of Voter Approval

* District Must Notify NYS Agencies on March 1st

PROPOSED BUDGET EQUATION 2012-13State Aid $37,969,596 (Gov.’s Proposal)

+ Spending Reductions $

+ Local Levy Increase $

+/- Miscellaneous Revenue $

+ Use of District Reserves $

= Total $

TOTAL BUDGET

Total Budget $61,936,414

$1,696,319 Increase

2.8% Budget to Budget Increase

BUDGET COMMITTEE’S FOCUS

2012-13 Budget & Multi Year Budget Approach

Address the Loss in June 2012 of the $404,000 in Federal Jobs Bill

District Budget Reductions Enacted in 2009-10, 2010-11 &2011-12 have Raised Class Sizes, have Reduced and placed strain on RTI and AIS for Students in Need, has Reduced Administrative Support and Supervision for Schools, Alternative Education, Program Support and Development

Regents Reform Agenda is Leading in Redesign of District Instructional, Assessment and Support Models- District Faces Many New Costs

Long Term Picture - Based on Inequitable Aid Distribution

Building Budget in Alignment with Tax Levy Threshold Law for Majority or Super Majority Voter Approval

BUDGET COMMITTEE’S FOCUS

Aligning of District’s Staffing, Services and Operations with Enrollments

Maintaining Quality Educational Programs & Services

District Sustainability Study Long Term Cost and Analysis of District Operations and Configuration

Program, Service and Operations Review to Assess and Consolidations for 2012-13 and Beyond

NEXT STEPS

Wait for Legislative Action in Albany

First Draft of Budget March 13rth

Tentative Budget April 10h

Joint Site Based Meeting April 30h

Public Hearing May 2nd

Community Vote May 15h

ON GOING ACTIONS

● Informing All District Staff

● Communications with the Community – Media Articles, Letters to Media, Budget Newsletter

● Communications with Legislators & Governor’s Office

● Lobbying Through Central New York and New York State School Boards Assoc. and Small Cities School Districts Assoc.

QUESTIONS?