Marcellus Central School District COMMUNITY BUDGET FORUM

“PRESERVING THE MARCELLUS OF TODAY”

MARCH 30, 2015

Purpose for Tonight’s Meeting

Facts, Figures and Future

Tonight’s Agenda

John Fuller, Vice President, Board of Education

Reflective thoughts about the

Marcellus Central School District

Ryan Riefler, President, Board of Education

Board of Education priorities

Anthony Sonnacchio, Business Administrator

2014-2015 financial status

2015-2016 budget development

Beyond 2015-2016

Community questions and answers

Reflective Thoughts About the

Marcellus Central School District

MR. JOHN FULLER

VICE PRESIDENT, BOARD OF EDUCATION

Reflective Thoughts Controlling Costs: Salaries

13.4

13.6

13.8

14.0

14.2

14.4

14.6

14.8

15.0

15.2

15.4

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Mill

ion

s

Actual Salary Costs – 2008-2009 through 2013-2014

Source: NYSED ST-3 Financial Report

Reflective Thoughts Controlling Costs: Health Insurance

2.9

3.0

3.0

3.1

3.1

3.2

3.2

3.3

3.3

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Mill

ion

s

Actual Health Insurance Costs – 2008-2009 through 2013-2014

Source: NYSED ST-3 Financial Report

Reflective Thoughts Controlling Costs: General Fund Budget

27.0

27.5

28.0

28.5

29.0

29.5

30.0

30.5

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Mill

ion

s

Actual General Fund Expenditures – 2008-2009 through 2013-2014

Source: NYSED ST-3 Financial Report

Reflective Thoughts Controlling Costs: General Fund Budget

Reflective Thoughts Controlling Costs: General Fund Budget

Reflective Thoughts Controlling Costs: Expenditures Per Pupil

12,000

17,000

22,000

27,000

32,000

37,000

42,000

2014-2015 Budgeted Expenditures Per Pupil: New York State

Source: 2014-2015 NYS Property Tax Report Card 33rd of 669 Districts in NYS

Low = $13,557

Marcellus = $16,920 High = $137,176

Reflective Thoughts Fiscal Responsibility: Fund Balance

0%

10%

20%

30%

40%

50%

60%

June 30, 2014 Reserves as a Percent of Budget: Central New York Districts

Source: 2014-2015 NYS Property Tax Report Card 5th of 31 Districts in CNY

Low = 5.4%

Marcellus = 12.9% High = 56.9%

Marcellus Central School District Board of Education Priorities

MR. RYAN RIEFLER

PRESIDENT, BOARD OF EDUCATION

Board of Education Priorities

Safety

Ensure safety for all through diligence and improvement of building security, and through continued support for our School Resource Officer model

Academic Programs

Strive for improvement in the areas of assessment, graduation rates, and student growth

Continued excellence with our Special Education program

Continue aligning curriculum with the Common Core and State Education Department

Continued support of Academic Intervention Services and Response to Intervention program

Maintain manageable class sizes

Fiscal Responsibility

Continue to balance the needs of our students with the fiscal capacity of our community

Board of Education Priorities

Maintain Our Physical Plant, Technology Infrastructure, and Human Capital

Maintain and improve our campus, buildings, transportation vehicles and plant

Upgrade and maintain our infrastructure to remain current with advancements in instructional technology

Support staff development opportunities and training on implementation of APPR

Student Opportunities

Continue to offer enhanced educational programs such as advanced placement and elective courses, as well as distance learning programs

Continue to offer extracurricular activities such as Art, Music, Drama and Athletics

Energy Efficiency and Green Technologies

Evaluate and implement appropriate methods to conserve energy and promote respect for our environment

Marcellus Central School District Current Year Budget Status

ANTHONY SONNACCHIO

BUSINESS ADMINISTRATOR

Marcellus Central School District Current Year Budget Status

2014-2015 2014-2015

Category Budget Projected

Total Revenues $31,605,814 $ 30,538,195

Total Expenditures 31,605,814 30,900,034

Projected Year End Variance $ 0 $ 361,839*

*Addressed through scheduled use of reserves

Reflective Thoughts Controlling Costs: Expenditures Per Pupil

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

2014-2015 Budgeted Expenditures Per Pupil: Central New York Districts

Source: 2014-2015 NYS Property Tax Report Card 3rd of 31 Districts in CNY

Low = $16,023

Marcellus = $16,920 High = $28,086

Marcellus Central School District 2015-2016 Budget Update

ANTHONY SONNACCHIO

BUSINESS ADMINISTRATOR

Marcellus Central School District 2015-2016 Budget Update: Expenditures

2014-2015 2015-2016 2015-2016 Category Adopted Initial Draft Current Draft

Salaries $15,365,859 $15,764,556 $15,764,556

Equipment 171,255 166,155 166,155

Contractual 1,960,219 2,006,223 2,106,223

BOCES 2,122,947 2,334,446 2,334,446

Materials & Supplies 837,741 820,241 870,240

Debt Service 2,988,821 2,906,177 2,906,177

Employee Benefits 8,058,972 7,655,550 7,624,334

Interfund Transfers 100,000 100,000 100,000

Total Projected Expenditures $31,605,814 $31,753,348 $31,872,131

Marcellus Central School District 2015-2016 Budget Update: Revenues

2014-2015 2015-2016 2015-2016 Category Adopted Initial Draft Current Draft

Tax Levy $17,776,775 $18,132,311 $17,907,445

State Aid 12,395,418 12,395,418 12,477,418

Other 450,285 450,285 450,285

Appropriated Fund Balance 983,336 0 0

Total Projected Revenues $31,605,814 $30,978,014 $ 30,835,148

Marcellus Central School District 2015-2016 Budget Update: Property Tax Cap

2014-2015 Tax Levy $17,776,775 Per 2013-2014 Budget

Tax Base Growth Factor x 1.0044 Per NYS Office of Real Property Services

Adjusted Tax Levy $17,854,993

2014-2015 Levy Supporting Capital - 693,257 Per NYSED/2014-2015 Budget

Adjusted Prior Year Levy $17,161,736

Allowable Growth Factor x 1.0162 Per statutory regulations

Tax Levy Limit $17,439,756

2015-2016 Levy Supporting Capital + 467,689 Per NYSED/2015-2016 Budget

Maximum Allowable Tax Levy $17,907,445

Maximum Allowable Increase $ 130,670 0.74% max increase with majority vote

Marcellus Central School District 2015-2016 Budget Update: Current Budget Gap

2013-2014 2014-2015 2014-2015 Adopted Initial Draft Current Draft

Total Projected Revenues $31,605,814 $30,978,014 $ 30,835,148

Total Projected Expenditures $31,605,814 $31,753,348 $ 31,872,131

Current Budget Gap $ 1,036,983

Factors eventually resulting in elimination of the budget gap include:

• Additional state aid

• Additional use of reserves

• Further tightening of budgetary estimates – meaning that flexibility available for future

budgets will be reduced.

Marcellus Central School District 2015-2016 Budget Update: Reserve Funds Available

Authorized Reserves June 30, 2013 June 30, 2014

Retirement Contribution Reserve $ 2,376,745 $ 2,726,745

Unemployment Insurance Reserve 28,386 28,386

Employee Benefit & Accrued Liability Reserve 272,863 296,720

Total Restricted Fund Balance $ 2,677,994 $ 3,051,851

Reserve for Tax Reduction 602,128 983,336

Unassigned Fund Balance 1,986,062 1,369,955

Total Assigned and Unassigned Fund Balance $ 5,266,184 $ 5,405,142

Marcellus Central School District The Future of Our School Budget

ANTHONY SONNACCHIO

BUSINESS ADMINISTRATOR

Marcellus Central School District Looking to the Future…

Marcellus Central School District Looking to the Future: What We Need

The Gap Elimination Adjustment

“New York State had a gap, they needed to eliminate it, so they adjusted something.” – Rick Timbs, Statewide School Finance Consortium

Because of the GEA, Marcellus continues, since 2010, to experience a loss of state aid:

Year Loss of Aid

2010-2011 (2,042,891)

2011-2012 (2,304,718)

2012-2013 (1,960,907)

2013-2014 (1,515,854)

2014-2015 (1,204,751)

Total Loss of Aid (9,029,121)

Community Q & A