duanesburg school district budget presentation
TRANSCRIPT
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2013-14 Budget and Future of DCS Forum
February 28, 2013
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Outline of Tonights Presentation
Financial, academic highlights and comparisons
Financial challenges
Financial history at DCSReview statewide tax levy cap
Possible budget balancing tools
Long-range financial plan, future of DCS
Community involvement, input
Public survey
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Academic, Financial and OtherHighlights & Comparisons
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Highlights & Comparisons
Did you know DCS has a high ROI?One of the highest graduation rates in region
In 2012, nearly 80 percent of graduates pursued
a post-secondary education
Consistently ranked as a high-performing district
Good academic standing, NYS Report Card
Preparing college-ready students by offering a varietyof AP and UHS courses
21st-century elective courses
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Highlights & Comparisons
$0
$5,000
$10,000
$15,000
$20,000$25,000
$30,000
$35,000
$40,000
$45,000
Middleburgh
Schohar
ie
BKW
Schalmon
t
RCS
Tacon
icHills
Cohoes
Schodac
k
Voorheesv
ille
Cob
lesk
ill
Sco
tia
BH-B
L
Duanesburg
Schenec
tady
DCS has a lower than average per pupil cost:
$16,227 vs. state average $20,145
Middleburg $23,974Schoharie $23,491BKW $22,387Shalmont $21,698Duanesburg $16,227
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Highlights & Comparisons
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Albany
SouthColonie
Ravena-Coeymans-Selkirk
Berkshire
Greenville
Johnsburg
EastGreenbush
Schalmont
Niskayuna
NorthColonie
Johnstown
FortPlain
Hudson
Chatham
BurntHills-BallstonLake
Shenendehowa
Middleburgh
Germantown
Coxsackie-Athens
Greenwich
Warrensburg
Bethlehem
Fonda-Fultonville
AverillPark
HoosickFalls
BallstonSpa
Canajoharie
Schodack
Guilderland
SouthGlensFalls
Scotia-Glenville
Schoharie
Berlin
Windham-Ashland-Jewett
Troy
SaratogaSprings
Catskill
GlensFalls
Schuylerville
Mayfield
NorthGreenbush(Williams)
SaintJohnsville
Galway
Kinderhook(IchabodCrane)
Schenectady
Rensselaer
Voorheesville
Rotterdam-Mohonasen
Gloversville
SharonSprings
Mechanicville
Menands
Bolton
Broadalbin-Perth
Cambridge
Amsterdam
Wynantskill
LakeGeorge
Salem
FortEdward
Berne-Knox-Westerlo
Hadley-Luzerne
Corinth
Argyle
NorthWarren
Cohoes
Cairo-Durham
Hunter-Tannersville
Waterford-Halfmoon
Queensbury
Cobleskill-Richmondville
Northville
NewLebanon
Jefferson
HoosicValley
Brunswick(Brittonkill)
Duanesburg
HudsonFalls
Gilboa-Conesville
Whitehall
GreenIsland
Granville
FortAnn
Stillwater
Lansingburgh
Hartford
Watervliet
Oppenheim-Ephratah
GlensFallsCommon
Wheelerville
TaconicHills
Putnam
Median DCS Teacher Salary: $50,436
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Highlights & Comparisons
DCS has had minimal spending increases,even some decreases.
Budget Year Total Budget Spending Increase2008-09 $14,821,497 +5.8%
2009-10 $14,864,913 +0.3%
2010-11 $14,616,629 -1.4%
2011-12 $14,069,135 -3.75%
2012-13 $14,196,703 0.91%
2013-14 (projected) $14,435,344 1.68%
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Proposed budget
2013-14 budget changes Based on enrollment figures and student needs
Reduce 2 FTE elementary teacher positions
Reduce 1 FTE foreign language teacher position
Reduce 0.5 FTE MS/HS library media position
Based on district needs Increase communication services by 0.1 FTE
Increase technology teacher 0.2 FTE
Total projected savings: $219,012
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Financial Challenges at DCS
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Financial Challenges
State aid: Declining or relatively stagnant
Health insurance costs: Nearly doubled
in the last 10 yearsTRS contribution costs: Risen from0.36% in the 2002-03 school year to
16.25% in the 2013-14 school yearAdditional unfunded mandates (APPR)
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Financial Challenges
DCS has a $1 million hole in budget left by
the decrease in state aid over the years
School Year Total State Aid % Change
2009-10 $7.2 million -5.5%
2010-11 $6.8 million -5.6%
2011-12 $5.9 million -13.5%
2012-13 $5.8 million -1%
2013-14* $5.9 million 0.98%
In 2008-09, state aid was 52 percent of revenues.In 2012-13, state aid was 41 percent of revenues.* This is an estimate based on Gov.s 2013-14 state budget proposal.
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Financial Challenges
1.111.216
1.333 1.354 1.3851.434 1.455 1.438
05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Health Insurance Costs
Millions
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Financial ChallengesERS: Employees Retirement System
TRS: Teachers Retirement System
Mandatory employer participation cannot be
negotiated between district and bargaining unitsALL full-time local government employees areMANDATED to participate
Required by the NYS Constitution to be fully funded
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Financial Challenges
118,299
169,018
130,888111,943
130,887
174,890
222,880
336,000
0
50,000100,000
150,000
200,000
250,000
300,000
350,000
400,000
05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Employees Retirement Contr ibutions
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Financial Challenges
326,838401,260 423,601 392,417
314,572
416,090
529,172
719,000
0
100,000200,000
300,000
400,000
500,000
600,000
700,000
800,000
05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Teachers Retirement Contributions
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Financial History
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Financial History
Made substantial cuts over the years Reduced nearly a dozen staff positions (instructional and
non-instructional)
Reduced many full-time positions to part-time
Eliminated non-aidable software, equipment, textbooks
Eliminated summer programs
Reduced out-of-district tuition costs
Reduced field trips, clubs, summer services
Reduced transportation costs, cut scrimmage travel
Reduced all department supply budgets
Reduced administration positions and froze salaries
New mandate requirements shifted to existing staff,
no new hires
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Financial History
Cost savingsParticipate in consortiums (healthcare, energy,
purchasing, workers compensation)
Share transportation services
Run in-district programsRetirement incentives
Restructured employee healthcare benefits
Special education audit to better align appropriateservices with student needs
Use BOCES to acquire aidable goods and services (i.e.,equipment, technology, printing, etc.)
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States Tax Levy Limit or Tax Cap
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Tax Levy Cap Review
It is NOT a 2% tax cap575 school districts had a capgreaterthan 2%.
91 districts had a cap less than 2%.
Only 5 districts actually had a 2% cap.
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Tax Levy Cap Review
Limits a districts levy (total amount it cancollect), NOT individual tax bills
8-step formula determines a districts
individual tax levy limitTax levy cap sets a higher threshold forvoter approval IF districts exceed tax levylimit60 vs. 50 percent
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Maximum Allowable Tax Levy
DCSs maximum allowable tax levyincrease is 4.47percent.
This would allow for an estimated revenueincrease of close to $330,000.
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Possible Budget Balancing Tools
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Possible Budget Balancing Tools
We need to be realistic:
Small cuts here and there do NOT impact ourbudget enough to keep it financially solvent.
Already operate on a bare-bones budget.
No indication of additional aid, revenue.
We could be financially insolvent by 2017-18.
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Possible Budget Balancing Tools
What are our options:
Further reduce the budget, cut programsand staff.
Spend down Fund Balance Reserves.
Propose a tax levy increase.
A combination of the three.
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Possible Budget Balancing Tools
Reduce budget by cutting non-mandatedprograms, services and staff, such as:
Kindergarten
Sports, extracurricular clubs
K-6 music and arts program and reduce music, artand technology offerings in grades 7-12
Advanced Placement, UHS, elective classes
Library and social services(These are not being recommended. Its just a list of programs,
services that are NOT mandated in a school district.)
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Possible Budget Balancing Tools
Spend down the fund balanceBoard has appropriated $800,000 annually over the
years to balance budget, save additional cuts.
Cant replenish fund balance, its dwindling.
Without using other budget balancing tools, fundbalance will be gone by 2016-17.
Based on budget projections, more fund balanceneeds to be used in the future.
Without a fund balance (savings account)
unexpected costs cant be funded, have to borrow.
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Possible Budget Balancing Tools
Dwindling fund balance
$4.024
$3.086
$2.085
$0.922
($0.335)
($1.0)
$0.0
$1.0
$2.0
$3.0
$4.0
12-13 13-14 14-15 15-16 16-17Fundba
lancein$millio
ns
School Year
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Possible Budget Balancing ToolsFive-year budget projection
2012-13 2013-14 2014-15 2015-16 2016-17
Expenditures $14,531K $14,876K $15,327K $15,717K $16,203K
Revenue
Tax Levy $7,389K $7,612K $7,840K $8,075K $8,317KState Aid $5,859K $5,915K $5,971K $6,028K $6,085K
Misc $200K $200K $200K $200K $200K
Total Rev. $13,449K $13,726K $14,011K $14,303K $14,602K
Exp.over Rev. (-$1,083K) (-$1,150K) (-$1,317K) (-$1,414K) (-$1,601K)
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Possible Budget Balancing Tools
Tax levy increase now and for the future
Propose maximum allowable tax levy increase of 4.47%
Board can use less fund balance, $743,897.
Keep academic programs intact.
Within 5 years, board will likely be able to plug $1 million hole inbudget left by years of decreasing state aid, keep district solvent.
Propose a tax levy increase of 3.71%
Board would need to continue to use fund balance, $800,000.
No additional budget cuts. Keep district financially solvent onlyuntil 2017-18 school year.
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Possible Budget Balancing ToolsPropose a tax levy increase of 3%
Board must continue to use fund balance, $800,000.
Cut an additional $52,000 from budget.
Run out of fund balance, become financially insolvent by 2016-17.
Propose a tax levy increase of 2.5%
Board must continue to use fund balance, $800,000. Cut an additional $89,000 from budget.
Run out of fund balance, become financially insolvent by 2016-17.
Propose a tax levy increase of 2%
Board must continue to use fund balance, $800,000.
Cut an additional $126,000 from budget.
Run out of fund balance, become financially insolvent by 2016-17.
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Long-Range PlanFuture of DCS
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Long-Range PlanFuture of DCS
District was not awarded consolidation study grants.
Board passed resolution in October to keep DCSfinancially solvent, refrain from a merger.
We need to ask our community members:
What matters most to them?
Whats best for the future of Duanesburg?
Do they want a Duanesburg School District in the future?
Will they financially support DCS and keep it fromfinancial insolvency?
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Long-Range PlanPlan B
When the district becomes financially insolvent,what are our options?:
Pay tuition to send our students in grades 9-12 to other
districts high schools.Merge our district with a neighboring district.This requires a public vote.
Become annexed (absorbed) by another district.
Become a school district that is essentially financiallyinsolvent, too much of a liability to borrow money.
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Community InvolvementFuture of DCS and Tax Levy Increase Survey
The districts survival rate depends on theDuanesburg community, not on the state.
What can and will the community support?
Take an online survey and let us know what you
would support.
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Community Involvement
Thank you for getting involved and learningabout the budget and the future of DCS, please:
Attend future forums, budget development meetings
Stay informed by reading updates on our website,www.duanesburg.org, and our Facebook page
Spread the word about what youve learned today,encourage others to get informed
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Thank youPlease complete the paper or
online survey and encourage communitymembers to get involved now!
www.surveymonkey.com/s/DCSbudgetsurvey