Mount Vernon City School District’s

2012-13 Budget Hearing Presentation

May 2, 2012

2012 Sample Ballot

Budget Resolution #12-265DEPT: BUSINESS OFFICE

Offered at the “Special Meeting” of the Mount Vernon Board of Education, held Thursday, April 19, 2012

APPROVAL OF THE PROPOSED 2012-2013 BUDGETAND THE PROPERTY TAX REPORT CARD

BE IT RESOLVED: that the proposed budget of expenditures of the District for the school year in the amount of $208,821,056, and for the purposes shown in the statement of estimated expenditures adopted by the Board of Education, be and the same hereby is approved and the amount thereof shall be raised by a levy of a tax upon the taxable property of the school district, after first deducting the monies available from State Aid and other sources as provided by law, and be it,FURTHER RESOLVED: that upon the recommendation of the Superintendent of Schools, this Board of Education approves the attached Property Tax Report Card for the 2012-2013 school year.BE IT FURTHER RESOLVED: that the Board of Education shall meet to discuss transfers to line items in the budget in order to fund certain positions and programs for students.

Budget Materials• Budget Adopted by Board of Trustees in the Three Parts format as

required by NYS• Includes required and supplemental information

– Budget Resolution as amended– Property Tax and Property Tax Cap Form– Other Required Information

• District-wide Report Cards• Fiscal Accountability • Information about Students with Disabilities• Administrative Compensation• Property Tax Exemptions• Budget Notice

– Enrollment Data– Estimated Revenue and Statement of Fund Balance– Personnel Changes– Budget Summary Information

Budget Information

• Budget Books in each school building; at the district office (Clerk to the Board and Business Office), and at the Mount Vernon Public Library

• Budget Newsletter which contains the Budget Notice will be mailed on Friday, May 5th

• Website: http://www.mtvenonocsd.org– Budget Book– Budget by Building– Sample Ballot– Polling Locations

Property Tax Levy Cap

• Applies to all municipalities and school districts, except NYC and differently to the Big 4 school districts (Yonkers)

• For school districts the cap begins with the 2012-13 Budget vote

• The cap is a property tax levy cap; – Not a 2% cap – Not a cap on tax rates or tax bills– Not all district’s will have the same cap

• The property tax levy cap is determined by an 8 step formula

• Submitted on March 1, 2012 as required– For Mount Vernon the cap on the property tax levy is .38%

Calculation of Current Year (CY) Tax Cap - Represents proposal for next school year

1) Prior Year Tax Levy 132,419,130.00TIMES x

2) 1.0000Sub-Total 132,419,130.00

PLUS +3) PY PILOTS 450,000.00

MINUS -4) PY Levy for Judgements over 5% of total tax levy 0.00

PY Levy for excess increases to ERSPY Levy for excess increases to TRSPY Capital Tax Levy 6,092,477.00

EQUALS =PY TAX LEVY LIMIT 126,776,653.00

TIMES x5) Allowable Levy Growth Factor (1 + inflation factor, up to 2%) 1.02

Sub-Total 129,312,186.06MINUS -

6) CY PILOTS 570,000.00PLUS +

7) Available Carryover 0.00EQUALS =

128,742,186.06PLUS +

8) CY Levy for Judgements over 5% of total tax levy 0CY Levy for excess increases to ERS 94,833.95CY Levy for excess increases to TRS 0.00CY Capital Tax Levy 4,079,483.00

MINUS -9) Erroneous levy plus interest from prior year 0

EQUALS =ALLOWED TAX LEVY WITH 50% plus 1 approval 132,916,503.01

Increase: 497,373.010.38%

1 + Tax Base Growth Factor (provided by Commissioner of Tax &

CY TAX LEVY LIMIT (to be submitted to State Comptroller, Commissioner of

Property Tax Levy Cap (continued)

• Voters vote on budget; but the cap is on the property tax levy

• A higher threshold for voter approval required if the tax levy exceeds the cap

A budget with a tax levy less than the cap requires a simple 50% plus 1 majority to pass

• A budget with a tax levy greater than the cap requires a 60% majority

A budget that fails to obtain a majority continues with the same tax levy

Voter Approval

Voters approve the expenditure budget:

Option 1:  Propose a budget requiring a tax levy at or below the “allowable tax levy prescribed by law”• (Requires a simple majority; 50% + 1 voter approval)

 

Option 2:  Propose a budget requiring a tax levy before exemptions above the “allowable tax levy prescribed by law”• (Requires a “super majority;” 60% voter approval)

Property Tax Report Card660900 - MT VERNON CITY SD

School District Contact Person:

School District Telephone Number: (914) 665-5215

Budgeted 2011-12

(A)

Budgeted 2012-13

(B)

Percent Change

(C)

Total Spending 206,743,435$ 208,821,056$ 1.00%

School Tax Levy Limit 128,742,186$

Permissible Exclusions to the School Tax Levy Limit 4,174,317$

Proposed School Year Tax Levy (not including Permissible Exclusions to the School Tax Levy Limit) 128,244,813$

Proposed School Year Tax Levy (including Permissible Exclusions to the School Tax Levy Limit)

132,419,130$ 132,419,130$ 0.00%

Public School Enrollment 8,693 8,668 -0.29%

Consumer Price Index 3.20%

* If this Percent Change exceeds the Tax Levy Limit Exclusions, approval of 60% or more of qualified voters present and voting is required

Actual 2010-11

(D)

Estimated 2011-12

(E)

Adjusted Restricted Fund Balance 3,179,937 6,779,937

Assigned Appropriated Fund Balance 5,063,096 3,995,313

Adjusted Unrestricted Fund Balance 9,406,138 4,750,852

Adjusted Unrestricted Fund Balance as a Percent of the Total Budget 4.55% 2.28%

Timothy Costello

Property Tax Report Card• New Format due to Property Tax Cap provided by NYS on March

20, 2012• Presents a 1% increase in spending, or $2,077,621

– Entirely due to tuition for Charter Schools and the cost of fringe benefits (retirement and health insurance)

– 3.2% rate of inflation• Presents a 0% change in the property tax levy – within the property

tax levy cap• Presents a .29% decrease in enrollment• Uses $3,995,313 in fund balance and reserves• Estimates an increase in revenues of $2,923,281 from state aid and

other local sources (utility tax and Medicaid) • Filed with NYS on April 20, 2012

Major Revenue Items

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$110

$120

$130

$140

Millions

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

State AidTax LevyOther

Adjusted Adjusted Adopted2010-11 2011-12 2012-13 Dollars Per Cent

Foundation Aid 62,573,692 62,573,692 62,949,134 375,442 0.60%Universal PreKingergarten 1,743,177 1,740,968 1,743,177 2,209 0.13%BOCES + Special Services 914,929 943,473 979,429 35,956 3.81%High Cost Excess Cost 1,501,089 1,067,207 1,872,236 805,029 75.43%Private Excess Cost 707,214 924,115 977,064 52,949 5.73%Hardware & Technology 107,686 115,894 116,958 1,064 0.92%Software, Library, Textbook 766,966 756,093 787,750 31,657 4.19%Transportation incl Summer 4,373,964 3,848,766 4,791,162 942,396 24.49%High Tax Aid 1,858,682 1,858,682 1,858,682 - 0.00%Supplemental Pub Excess Cost 305,348 305,348 305,348 - 0.00%GAP Elimination Adjustment -9,765,508 -13,196,859 -12,166,610 1,030,249 -7.81%SFSF+Ed Jobs Fund Restoratn 3,315,595 - 209,846 209,846 #DIV/0!

Net GAP Elimination Adjmt -6,449,913 -13,196,859 -11,956,764 1,240,095 -9.40%FMAP Reduction -474,201 - - - #DIV/0!Subtotal 67,928,633 60,937,379 64,424,176 3,486,797 5.72%

Building + BLDG Reorg Incent 4,819,444 4,711,941 5,517,032 805,091 17.09%Total 72,748,077 65,649,320 69,941,208 4,291,888 6.54%

Adj to Adpt Change in

New York State Aid

New York State Aid (continued)• Final New York State budget adopted prior to March 31st deadline

• NYS continues to the GAP elimination adjustments at $11,956,764; at this rate it will take twelve years to recover

• Foundation Aid has been reduced by $960,000 for certain students incarcerated or in state supported schools

• Building Aid has a one-time increase for the Columbus masonry emergency project which impacted the property tax cap

• Transportation Aid is reduced to reflect routing changes made by SWBOCES which reduce 2011-12 costs

• BOCES Aid is reduced to as recommended by SWBOCES to reflect reduced usage of certain non-special education services

• Universal Pre-K aid is included in the state aid runs but is not directly used in the General Fund Budget

Budget Summary in 3 PartsFunction or Account Code Administration Capital Program Total

% of Total Budget 8.34% 18.47% 73.18% 100.0%

Board of Education 1099.0 367,689$ 367,689$ Central Admin 1240.0 423,868$ 423,868$ Finance 1399.0 1,520,739$ 1,520,739$ Legal Services 1420.0 690,000$ 690,000$ Personnel 1430.0 540,772$ 540,772$ Records Management 1460.0 17,950$ 17,950$ Public Information 1480.0 32,750$ 32,750$ Operation of Plant 1620.0 11,706,396$ 11,706,396$ Maintenance of Plant 1621.0 2,312,109$ 2,312,109$ Security 1623.0 3,173,453$ 3,173,453$ Other Central Serv. 1699.0 2,236,316$ 2,236,316$ Insurance Prop/Liab 1910.4 1,108,465$ 1,108,465$ Judgments & Claims 1930.4 130,000$ 130,000$ County Sewer Taxes 1950.4 275,050$ 275,050$ Refund of Taxes 1964.4 1,630,000$ 1,630,000$ Other Special Items 1998.0 853,287$ 853,287$ Curriculum Devel. 2010.0 751,452$ 751,452$ Supervision Reg School 2020.0 5,646,592$ 5,646,592$ Supervision Special School 2040.0 1,119,202$ 1,119,202$ Other Admin Support 2099.0 122,909$ 122,909$ Regular School, LEP & PSEN 2110.0 62,021,218$ 62,021,218$ Program for Special Ed 2250.0 34,128,432$ 34,128,432$ Occupational Education 2280.0 995,612$ 995,612$ Special Schools & Programs 2399.0 278,522$ 278,522$ Media & Computer 2699.0 2,832,236$ 2,832,236$ Pupil Personnel Services 2899.0 7,845,272$ 7,845,272$ Extra-curricular & Interscholastic Sports 2859.0 608,531$ 608,531$ District Transportation 5510.0 122,976$ 122,976$ Contract Transportation 5540.4 7,766,925$ 7,766,925$ Employee Benefits 9098.0 3,098,547$ 6,655,498$ 34,919,258$ 44,673,303$ Debt Service 9898.0 10,967,247$ 10,967,247$ Transfers to Capital 9950.9 620,027$ 620,027$ Other Transfers 9951.0 1,301,756$ 1,301,756$

2012-13 Proposed Budget 17,422,073$ 38,578,245$ 152,820,738$ 208,821,056$

Capital

Administration

Program

2012-13 Three Part Components of Budget

Program, 73.18%

Capital, 18.47% Administration 8.34%

Cost Increases 2012-13 Budget Increases – These are district-wide

• NYS Employee Retirement will increase rate from 15.9% to 18.7% at a cost of $527,061 – All three components

• NYS Teacher Retirement will increase rate from 11.11% to 11.84% at a cost of $728,131 – All three components

• Health Insurance will increase by 8.5% at a cost of $1,023,552 – All three components

• Charter school will more than double at a cost of $1,736,839 for tuition and special education services – Program Component

• Transfer to Capital from reserve an amount of $620,027 to rebalance the Capital Fund with no tax impact – Capital Component

• Invest in equipment and furnishings in an amount of $513,083 using unassigned fund balance and state aid - All three components

Total for these six items will increase costs in the Budge by $5,148,693 more than twice the amount of the Proposed budget increase of $2,077,621

Budget Increases

$1,736,839

$620,027

$1,023,552

$728,131

$2,077,621

$527,061

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

Employee Retire

Teacher Retire

Health Insurance

Transfer to Cap

Charter Schools

Challenge 2012-13

Academic Difficulties– Joint Intervention Team (JIT) and Schools/District in Need of

Improvement• MV and Mandela Highs, AB Davis and Longfellow Middles and

Graham Elementary Schools

– Adequate Services for Special Education– Adequate Services for English Language Learners/English as

Second Language Learners– Facility and Infrastructure updates

Community Involvement• Voter participation less than 3,148 out of 36,023 eligible

(2,469 for the budget)

Challenges 2012-13 (continued)Budget Increases • Loss of Education Jobs Funds: -$2,775,000 for over 30 positions-

cost will be assumed by General Fund in 2012-13• Loss of Title I funds for $575,000 for 4 positions-cost will be

assumed by General Fund in 2012-13• Step (Triborough) Increases for negotiating units will increase by

over $1,400,00• Wage Costs - unknown as labor contracts are unsettled since 2009

and no funding is provided in the current budget• Energy – will be held at current levels• Special Education – significant source of increases in recent years

has seen consolidation and rearrangements in services• Bond refinancing will save an estimated $600,000.• Reduces five vacant positions; adds a .5 FTE Nurse for the

expanding Charter School population; No layoffs

Proposed vs. Contingency

• From the proposed budget non-contingent items must be removed to conform to NYS contingent budget requirements - These are district-wide– Certain equipment: $392,400 ($50,000/Admin;

$52,400/Capital; $290,000/Program) offset by appropriated fund balance

– Transfers to Capital: $620,027offset by reserve in Capital

– Community Use: paid for by user– Maintain ratio ( at least, 10.24%) between

Administration and combined Administration plus Program

Next

• Continue the conversation with the community

• Improve voter participation

• Vote May 15th

• Contact: Timothy Costello, Assistant Superintendent for Business (914) 665-5215 or tcostello@mtvernoncsd.org