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North Merrick Public Schools Citizens Budget Advisory Committee

Meeting #1

Budget Development Process and

Projected Revenues

February 29, 2016

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Camp Avenue – est. 1923

Harold D. Fayette – est. 1950

OLD MILL ROAD – EST. 1953

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THANK YOU LAY BUDGET

COMMITTEE

Board of Education

Jonathan Butler , President

Steve Enella , Vice-President

Neil Brown

Linda Fuller

Wendy Gargiulo

Skip Haile

Lisa Katz

Superintendent of Schools

David S. Feller

2016-2017 BUDGET DEVELOPMENT CALENDAR

Monday 2/29 7:00pm - Budget Advisory Meeting #1 Overview and Projected Revenue

Tuesday 3/8 7:00 pm –Budget Advisory Meeting #2. Review of Admin and Capital Component

Tuesday 3/8 8:00 pm – Monthly Board Meeting

Tuesday 3/22 7:00 pm – Budget Advisory Meeting #3 Review of Instructional Component

Thursday 3/31 First of four legal notices regarding Budget Hearing and Annual Budget Vote to

be published by this date, 45 days before vote.

Tuesday 4/12 Monthly Board Meeting/Anticipated Budget Adoption

Wednesday 4/13 Submission of Property Tax Report Card on SED State Website

Tuesday 4/19 BOE Meeting: BOCES Special Budget Vote

Week of 5/2 Budget Brochure mailed and proposed budget ready for distribution

Tuesday 5/3 Meet the Candidates Night (If Necessary)

Wednesday 5/4 Voter Registration 4 – 8 p.m.

Tuesday 5/10 Monthly Board Meeting /Budget Hearing

Wednesday 5/11 Budget Notice postcard mailed to voters

Thursday 5/12 Absentee List is available for public inspection by District Clerk

Tuesday 5/17 Budget Vote and Trustee Election

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Board of Education, Superintendent, and Central Administration

reviews impact of new laws and regulations (Federal and State)

District receives Governor’s proposal for state aid

Assistant Superintendent for Business calculates the tax cap limit

Principals in consultation with staff and community, identify programmatic needs and develop draft budgets

Central Office Administrators identify district program, staffing, and facility needs

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Administrators review their draft budgets with the

Superintendent and Assistant Superintendent for Business

Superintendent and Assistant Superintendent for Business

develop composite draft budget for deliberation by BOE

BOE reviews draft budget with Lay Budget Committee

BOE considers suggestions and determines the proposed budget

for voter approval

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BUDGET ADVISORY COMMITTEE

Review rules pertaining to the tax levy cap

Discuss district needs and priorities

Present Recent List of Unfunded Mandates

Review Draft Budget

Make Recommendations

Suggest Modifications

2015-2016

CURRENT BUDGET INFORMATION

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2015-2016 FINANCIAL BUDGET ACCOMPLISHMENTS

1. The Proposed Tax Levy was Tax Cap Compliant

2. The Proposed Tax Levy was over 48% less than allowable

Tax Levy Maximum

3. Submitted a Joint Government Efficiency Plan that illustrated

a Savings of 1% of 2014-15 Tax Levy

As a result, eligible North Merrick Community members

will/have received the 2015 tax rebate check.

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2015-2016 School Budget Vote

Thank You North Merrick Community

The North Merrick community supported the

2015-16 Budget with 72.80% voter approval

and Bond Vote with 69.50% voter approval

2016-2017

CURRENT BUDGET INFORMATION

EDUCATIONAL

PROGRAM

GOALS

EXPENDITURE

BUDGET

TAX LEVY

&

PROJECTED

REVENUES

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• Inform and involve the public & staff about the budget

• Keep Tax levy within the Tax cap while still maintaining quality programs, appropriate staffing levels, and meeting State and Federal mandates

• Maintain reasonable class size

• Maintain services that meet the needs of all students.

• Increase technology provided to students and staff

• Keep up with facility maintenance.

• Increase security at schools.

2016-2017 Budgetary Goals

2016-2017 BUDGET UNKNOWNS

As of February 29, 2016

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• Final State Aid

• LIPA Litigation

• Validation of Maximum Tax Cap Increase

• Final Student Enrollment

• Classified Student Needs

• English Language Learner Needs

• State Mandated Student Remediation/Intervention Needs

• New Mandates

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Requirements

Resident must receive STAR exemption

Must make $275,000 or less

District must have Tax Cap Compliant Tax Levy

New Tax Rebate of $130 for 2016-2017

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1. 2015-2016 Tax Levy:

$21,100,460*

2. Tax Base Growth Factor: multiply by 1.0033

+$69,632

* Pending LIPA Litigation related to PILOT

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3. Add 2015/2016 PILOT Receivable:

$273,627*

4. Subtract Prior Year Excluded Expenditures:

$0 **

* Pending LIPA Litigation related to PILOT

** There were no allowable Exclusions for the 2015/16 school year

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5. 2016-2017 Allowable Levy Growth Factor

[Add CPI 0.12% ] = ($21,443,719 x 0.12%)

+$25,732

6. Subtract 2016/2017 Estimated PILOT =

- $253,322*

Pending LIPA Litigation related to PILOT and currently the amount is unknown.

Amount used on advice of Counsel.

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7. Add Prior Year Available Carryover

+$225,000

Total Tax Levy Limit Prior to Excluded Expenditures

$21,441,129

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8. Take the “Tax Levy Limit” ($21,441,129) and Add in Excluded Expenditures

• Add transfer of government function = $0 (per OSC)

• Add the 2016-2017 “Excluded Expenditures”=

i. Court orders/judgments > 5% tax levy = $0

ii. TRS above 2% rate increase =$0

iii. ERS above 2% rate increase = $0

iv. Estimated capital levy = $0**

* Capital Exclusion is $0, as the District is receiving more Building aid that

Estimated Capital Expenditures. ($75,000 transfer to Capital + $50,000 debt

service payment - $322,844 building aid.

Calculation Of The 2016-2017

“Tax Levy Maximum Increase”

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2016-2017 Maximum Allowable Tax Levy =

$21,441,129

Corresponding Dollar Increase =

$340,669

Levy-to-Levy % Increase =

1.61%

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TREND OF STATE AID AS A % OF BUDGET

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North Merrick Gap Elimination Adjustment History

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Under-funded Foundation Aid

As per the Council of Superintendents if the Foundation Aid Formula was

updated the North Merrick UFSD could receive an additional

$608,576

Calculating the Allowable Budget

Under the Tax Cap Provisions

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Take the 2016-2017 Maximum Allowable Tax Levy of $21,441,129

Add all anticipated Revenues to the Maximum Allowable Tax:

State Aid:

+ $6,702,098

2016/2017 Estimated PILOT:

+ $253,322* (Decrease of $20,305 as of 2/29/16*)

*Pending LIPA Litigation related to PILOT and currently the amount is

unknown. Amount used on advice of Counsel

Calculating the Allowable Budget

Under the Tax Cap Provisions

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District Generated Revenue

+344,988 (Decrease of $87,137 as of 2/29/16*)

Applied Reserves

+$739,000** (Decrease of $67,000)

Appropriated Fund Balance

+720,000 (No Increase or Decease)

*Decrease due to Tuition Students aging out of program

**Decrease due to decreases in ERS expenditures

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Projected 2016-2017 Revenue

ACCOUNT DESCRIPTION

2015-16 BUDGET

REVENUES

2016-17 ESTIMATED

REVENUES $ DIFFERENCE % DIFFERENCE

A 1001 REAL PROPERTY TAXES $21,100,460 $21,441,129 $340,669 1.61%

A 1081 PILOTS * $273,627 $253,322 -$20,305 -7.42%

A 1090 INTEREST & PENALTIES ON PROPERTY TAX $2,000 $2,000 $0 0.00%

A 2230 TUITION - OTHER DISTRICTS $240,000 $156,988 -$83,012 -34.59%

A 2280 HEALTH SERVICES - OTHER DISTRICTS $95,000 $95,000 $0 0.00%

A 2401 INTEREST AND EARNINGS $1,000 $500 -$500 -50.00%

A 2403 EMPLOYEE BENEFIT RESERVE INTEREST $500 $500 $0 0.00%

A2404 ERS RESERVE INTEREST $1,000 $500 -$500 -50.00%

A 2410 RENTAL REAL PROPERTY $17,625 $18,000 $375 2.13%

A 2705 GIFTS AND DONATIONS $15,000 $15,000 $0 0.00%

A 2770 OTHER UNCLASSIFIED REVENUE $40,000 $45,000 $5,000 12.50%

A 2816 DIAGNOSTIC SCREENING $10,000 $1,500 -$8,500 -85.00%

A 3101 STATE AID - BASIC FORMULA $4,984,719 $4,987,285 $2,566 0.05%

GAP ELMINATION ADJUSTMENT -$406,824 -$279,503 $127,321 31.30%

GEA RESTORATION $0 $0 $0 0.0%

A 3103 BOCES OPERATING AID $486,754 $485,790 -$964 -0.20%

A 3260 TEXTBOOK AID $100,804 $98,312 -$2,492 -2.47%

A 3261 COMPUTER HARDWARE AID $18,480 $19,503 $1,023 5.54%

A 3288 EXCESS AID $62,730 $169,380 $106,650 170.01%

A 3289 OTHER STATE AID $1,357,125 $1,221,331 -$135,794 -10.01%

A 4601 MEDICAID REVENUE $10,000 $10,000 $0 0.00%

SUBTOTAL INCOME & STATE AID $28,410,000 $28,741,537 $331,537 1.17%

RESERVES $806,000 $739,000 -$67,000 -8.31%

APROPRIATED FUND BALANCE $720,000 $720,000 $0 0.00%

TOTAL REVENUES $29,936,000 $30,200,537 $264,537 0.88%

Calculating the Allowable Budget

Under the Tax Cap Provisions

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Projected 2016-2017 Revenue (as of 2/29/16)

$30,200,537

Corresponding Dollar Increase

$264,537

Budget to Budget Revenue % Increase =

0.88%

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INFLUENCES ON EXPENDITURES

The Instructional Program

Personnel, Supplies

Enrollment

Building and Grounds

Maintenance and Repair and Related Personnel

School Security

State and Local Mandates:

Unfunded and Under-funded

Technology

Auditing and Legal Services

Liability Insurance

Employee Benefits, i.e. Health Insurance, Social Security, Retirement System Contribution

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UNFUNDED AND UNDER-FUNDED MANDATES

Annual Professional Performance Review (APPR)

Implementation of State Mandated Learning Standards

Dignity for All Students Act (DASA)

Mandated Professional Development

Most high cost special education services/placements

Academic Intervention Services & Response to Intervention

English Language Instruction for English Language Learners

State Assessment Program

Auditing

Administration of Special Education services for non-residents

attending private schools in North Merrick

NEW YORK STATE FORMAT

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General Fund Appropriation Budget

Administrative Program Capital

Three Components

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Administrative Component

Board of Education

Central Administration

Finance

Legal Services

Insurance

Curriculum Development and School Supervision

Staff Development

Benefits directly attributable to employees in the above categories

BOCES Administrative Fees

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Capital Component

Central Services

Operation of Plant

Custodial Services

Maintenance of Plant

Lease/Purchase of Vehicle

Benefits related to central service employees

Debt Service

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Teaching and Assessment

Instructional Media

Library and Multimedia

Computer Assisted Instruction

Pupil Personnel Services

Health Services

Special Education

Academic Intervention Services

Psychological Services

Co-curricular Activities

Pupil Transportation

Benefits for employees in these categories

Program Component

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Preliminary 2016-2017 Budget (as of 2/29/16)

$30,586,332

Corresponding Dollar Increase

$650,332

Budget % Increase =

2.17%

PRELIMINARY BUDGET INCREASE

Projected Revenue Increase

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Projected 2016-2017 Revenue (as of 2/29/16)

$30,200,537

Corresponding Dollar Increase

$264,537

Revenue % Increase =

0.88%

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AS OF 2/29/2016

ESTIMATED

NORTH MERRICK UFSD

2016/2017 BUDGET SHORTFALL

$385,795

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Possible Shortfall Offsets

• Increase revenue?

• State Aid Increase?

• Apply Additional Fund Balance

• Decrease Expenses

• Combination

2016-2017 BUDGET DEVELOPMENT CALENDAR

Monday 2/29 7:00pm - Budget Advisory Meeting #1 Overview and Projected Revenue

Tuesday 3/8 7:00 pm –Budget Advisory Meeting #2. Review of Admin and Capital Component

Tuesday 3/8 8:00 pm – Monthly Board Meeting

Tuesday 3/22 7:00 pm – Budget Advisory Meeting #3 Review of Instructional Component

Thursday 3/31 First of four legal notices regarding Budget Hearing and Annual Budget Vote to

be published by this date, 45 days before vote.

Tuesday 4/12 Monthly Board Meeting/Anticipated Budget Adoption

Wednesday 4/13 Submission of Property Tax Report Card on SED State Website

Tuesday 4/19 BOE Meeting: BOCES Special Budget Vote

Week of 5/2 Budget Brochure mailed and proposed budget ready for distribution

Tuesday 5/3 Meet the Candidates Night (If Necessary)

Wednesday 5/4 Voter Registration 4 – 8 p.m.

Tuesday 5/10 Monthly Board Meeting /Budget Hearing

Wednesday 5/11 Budget Notice postcard mailed to voters

Thursday 5/12 Absentee List is available for public inspection by District Clerk

Tuesday 5/17 Budget Vote and Trustee Election