Tuckahoe Common School District1- Property Tax Levy Cap Impact2- 2012-2013 Budget

Property Tax Cap: A change in the conversation

In the past

• Budget to budget increases

• Contingency Cap / Budget

• Tax rate increases from year to year

The new paradigm

• Tax levy increases

• Property Tax Levy Cap is on the levy increase (2% or CPI whichever is lower) beginning in 2012-13

• Allows for exemptions beyond the 2%

Property Tax Cap Facts• Stays in affect until 2016-17

• Allows for exemptions that could go beyond the 2%

• Is a “soft” cap not a “hard” cap – does not relate to the increase in taxes that you will pay individually

• Changes the 50.1% majority to a 60% super-majority for all budgets over the maximum property levy limit

• If the budget proposal is not approved by the required margin, after two attempts, the Board of Trustees must adopt a budget that requires a tax levy no greater than that of the prior year (0% increase in the tax levy)

Property Tax Levy Limit Calculation

Prior year tax levy

X

Tax base growth factor, if any

+

PILOTS receivable

-

Taxes levied for exemptions, prior year

=

Adjusted Prior Year Tax Levy

X

Allowable levy growth factor (lesser of 2% or CPI)

-

PILOT for coming year

+

Available carryover, and any exclusions

=

“Tax Levy Limit”

15,815,008X

1.0039+

29,000-

383,400=

15,522,286X

1.02-

29,000+

401,640=

16,205,372

QUESTIONS??????

Budget Planning Questions

What are the priorities for learning.

How do we efficiently align the resources with learning needs.

How do we effectively implement long term fiscal responsibility and communications.

How do we address rising health care and personnel costs.

Challenges Affecting Budget Planning

Increased academic expectations

Increasing tuition, health, and retirement costs

Increases in state mandates for CSE and CPSE

Most ambitious reform agenda from NYSED in decades Incur additional requirements for teacher training, RTTT, ESL and CSE Technological Assessments/Instruction

Imposition of a Property Tax Levy Cap

Weary tax base: homeowners bear the primary tax burden

Falling house prices and assessed values

End of Federal Aid (AARA, Jobs Stimulus)

Our Budget Planning Reflects:• A learning environment for all.

• A proposed budget to include the following:• Class sizes of approximately 20 students/class at all grade levels• Full day pre-kindergarten • Maintain art, music, and technology programs• Special Education services to support learning and speech • ESL intervention that include Language Literacy Intervention• Science curriculum integrated into the General Education Classroom

• Produce a budget that will establish a property tax level below property tax levy cap mandates.

Budget Planning Reflections (con’t)

• The 2011 assessment value of Tuckahoe property.

• Decrease in educational services.

• Changing non-resident funding (Seneca Falls) formula costs

• Service for unfunded mandates from the State/Federal Governments

Budget to Levy Increase/Decrease

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

7.65%

2.27%

3.50%3.19%

9.27%

3.84%

6.25%

2.18%

Budget Increase Levy Increase* Projected

Projected

Budget HistoryEfficient/Effective Changes

• 2010-2011• 2 Special Education TA’s• 1 Special Education

Teacher• Reduction in Technology

Improvements• Teaching Assistants for

Grades 2,3,4,5

• 2011-2012• Reduction of part-time music

teacher• Reduction of 1 regular education

teacher• Reduction of 1 part-time monitor• Consolidation of Technology and

Tech Ed Teacher• Reduction of FLES Teacher• Reduced Employer share of

health insurance through contract negotiations

• Eliminated AIS cost while keeping program

Budget History

School Year 2012-2013 Respects Each Program as a Priority

2012-2013 Roll Over Budget

$18,025,029

Change between Roll Over Budget and Proposed Budget

shows a decrease of

$419,818

2012-2013 Proposed Budget

$17,605,210

2012-2013 Proposed Roll Over Budget Levy Increase

4.839%

2012-2013 Proposed Budget Levy Increase

2.184%

Programmatic reductions for school year 2012-2013

Efficient/Effective Reductions to Stay Under the Cap

Reality

Program changes reflected in 2012-2013 Proposed Budget

• Budget items that have been removed or are above the 2.47% include the following:

Budget Reductions Budget Cost Tax Levy Increase Tax Levy Rate Increase

Elementary Science Teacher 115,451.00$ 16,275,872.50$ 2.914%Outdoor Education 5th and 8th Gr. 38,977.00$ 16,314,849.50$ 3.161%Special Education Personnel 133,794.00$ 16,448,643.50$ 4.007%1 Social Worker - PART-TIME 41,369.00$ 16,490,012.50$ 4.268%Field Trips 33,298.50$ 16,523,311.00$ 4.479%Cultural Arts Playwriter Program 7,500.00$ 16,530,811.00$ 4.526%Reduction in Administration 49,429.00$ 16,580,240.00$ 4.839%Total budget if all items added back to budget 419,818.50$ 16,580,240.00$ 4.839%

The Property Tax Caps Real Story

We cannot keep up with the increasing costs and stay under the cap!

*

*This change/percentage is based on 2011 CBA agreement that provides short term financial relief. Long-term projections are 7-9% annual increase.

Average of Budget Annual Average IncreaseTuition 25.79% 4.76%Active Health Benefits 7.01% -2.17%Retirement 3.20% 20.13%Retiree Heatlh Benefits 1.27% 4.08%

Tuition Costs and Choice

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 $2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$7,000,000.00

Southampton HS O

nly

Current HS Choices

Westhampton HS Only

Hampton Bays HS Only

Five Year Projection Summary

• Real negative growth for our school

• Year-to-Year reduction in future programs

• The need to examine the alternatives if we want Tuckahoe Common School District to be Tuckahoe Common School District

Spending Projections for Next Five Years as a Surplus (Deficit)

2012 2013 2014 2015 2016($2,500,000)

($2,000,000)

($1,500,000)

($1,000,000)

($500,000)

$0

$500,000

$1,000,000

Surplus (Deficit)

Shortfalls Unless the Cap is Pierced

2013-14 2014-15 2015-16This equals to:

Teachers Teachers TeachersTeacher Assistants Principal Custodial StaffAll Outdoor Education Programs Part-time Business Offi ce Staff MonitorsAll Field Trips Custodial StaffAll Clubs Clerical StaffPart-time Social Worker Cafeteria Program StaffAll after school programs Monitors

What are our Options??

1. Attend a less expensive High School

2. Teach the 9th grade at Tuckahoe Common School District

2013-2014 2014-2015 2015-2016Southampton High School ONLY 4,964,400.00$ 5,106,780.00$ 6,288,219.00$ Westhampton Beach High School ONLY 3,891,405.00$ 3,983,222.25$ 4,846,860.11$ Hampton Bays High School ONLY 3,089,608.52$ 3,133,158.37$ 3,726,234.08$ Current Cost for Dual HS Choices 4,671,555.00$ 4,822,445.25$ 6,078,920.40$

2013-2014 2014-2015 2015-20161,471,050.00$ 1,166,874.00$ 2,202,196.00$

Cost Savings for Teaching 9th Gr. At Tuckahoe

What are our Options?? (con’t)

3. Research cost effectiveness of a Tuckahoe High School Grades 9-12

4. Consider consolidation

Voting History2009-2010

• Voters approve budget by 19 votesYES – 212 NO – 193

This represents a 52.35% approval

2011-2012

• Voters approve budget by 8 votesYES – 165 NO – 157

This represents a 51.24% approval

2010-2011

• Voters approve budget by 54 votesYES – 135 NO – 81

This represents a 62.50% approval

Budget Forum Summary

• We have one more year to plan for the maiden voyage of the Property Tax Cap Impact before we reach the iceberg.

• We have a hard working Teacher and Administrative Staff that will work to route a safe course for your children.

• We need your inputs to guide our efforts.

This is your Budget

Vote on May 15, 2012

7 am – 8 pm

We encourage you to vote!!!!

QUESTIONS??????

Anonymous Author

“Some view our schools as burdens as if they were centers for problems. We view our

schools as treasures and a citizenship obligation to support our children’s future”