R.E.A.D. The Cost of

Underfunded Mandates

May 2011

READ School Districts: Brewster, Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

R.E.A.D. Meeting Goals Explain our analysis of underfunded mandates. Illustrate the need for legislation which requires

calculating local costs associated with bills before they are enacted.

Illustrate the need to review current mandates to see if there are alternatives to reduce costs. There are low-hanging, less politically driven mandates that

can be adjusted to reduce tax payer costs immediately.

Illustrate the need to slow down APPR implementation, which could be one of the largest underfunded mandate to date.

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R.E.A.D. R.E.A.D.

Specific Focus Rolling back underfunded mandates, by making

lawmakers aware of their actual costs

Sharing cost saving ideas among the R.E.A.D. districts

TRS and ERS pension fund shortfalls

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R.E.A.D. Underfunded Mandates Be informed:

We need to understand where and how funding is spent.

Responsible leadership: We represent taxpayers. These mandates are paid for by local

property taxes.

Accountability and transparency: School districts must show how they spend money.

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R.E.A.D. Underfunded Mandates R.E.A.D. created a template that itemizes and presents information on estimating the cost of Underfunded mandates. Over 90 mandates are included, segmented into categories:

Special Education & Special Services

NCLB Requirements/ Academic Intervention Services AIS/RTI

Transportation

Health & Safety Buildings & Grounds Finance Professional

Development

R.E.A.D. Presentation, Fall 2010 NYSBBA Conference

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R.E.A.D. Underfunded Mandates State, Federal and SED mandates are included.

Does not include mandates which R.E.A.D. feels are necessary district obligations.

Does not include costs associated with Benefits (retirement system, health, etc.), Wicks Law (over the life of the loan), Triborough and other major benefit, negotiation or construction costs.

The compilation is an objective view of mandate costs. Each mandate has cost consequences whether or not they are

beneficial. The list is continuously updated and revised to be a more accurate

representation of mandate obligations. The most recent revision is an update developed in December

2009.

R.E.A.D. Presentation, Fall 2010 NYSBBA Conference 6

R.E.A.D. Mandate Cost Calculation Each district compiles their own data.

NYSBBA and Westchester Putnam School Board Association (WPSBA) are helping to coordinate the effort.

Definitions for mandate have been developed so that districts are consistent in identifying costs associated with mandates. Methods for estimating personnel hours and other costs, ST3

locations, etc. are provided to make cost calculations easier.

Templates for estimating testing costs and Wicks law costs are provided.

R.E.A.D. Presentation, Fall 2010 NYSBBA Conference

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R.E.A.D. Underfunded Mandates Categories, descriptions, and account codes

are provided. School districts provide actual amounts. Aid is subtracted from total costs.

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Transportation Description Account Codes Cost Private and parochial schools within 15 miles

Total transportation costs: gas, buses, driver salaries/benefits

A5510.16, A5545 $3,413,792

Special Education (out of district)

Total transportation costs: gas, buses, driver salaries/benefits, aids, 19A requirements

A5510.16, A5545

$8,042,253 Emissions controls $7000 for each new bus. A5510.21 $4,673,564 Bus Driver Training for Special Education Students IEPS etc. A5510.4 $15,700

Transportation Aid Subtract these costs

Sum four transportation items and apply State Share Transportation Ratio $5,758,238

Subtotal $10,387,071

As per SED ST3/Descrip5ons

R.E.A.D. The Cost of Underfunded Mandates In FY 08-09, the total cost for these Underfunded mandates for

seven districts was $94.4 million, or an average of 20% of the entire school budget.

Total School District Budgets: $464.8 million Source: Underfunded Mandate spreadsheet, 8 districts, FY 08-09: Brewster, Carmel, Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

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R.E.A.D. The Cost of Underfunded Mandates

Source: Underfunded Mandate spreadsheet, 8 districts FY 08-09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

*Other = Health & Safety (1.4%), Finance (.4%), Buildings and Grounds and other (category not specified) mandates (

R.E.A.D. Statewide Costs Statewide Costs for Underfunded Mandates 675 Districts Total FY '08-09 budget for 675 districts $30,805,193,773 % of budget that is due to Underfunded mandates 20% Total Statewide Cost of Underfunded Mandates (extrapolated) $6,161,038,755

* Not including big 5 cities and special act districts.

Source: Underfunded Mandate spreadsheet, 8 districts FY 08-09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland 11

R.E.A.D. The Cost of Underfunded Mandates The numbers add up quickly for eight school districts...

Over $587,881 in testing costs. Over $151,460 in internal audit costs. Over $541,093 in data warehousing costs. Over $287,338 in special education legal costs. Over $66,185 in Special Education (STAC) reporting. Over $118,000 in clerical costs associated with

professional development & monitoring highly qualified teacher requirements.

Over $209,779 in inspections, monitoring, and compliance (OSHA, DEC, elevators, fire safety, extinguishers).

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Source: Underfunded Mandate spreadsheet, 8 districts FY 08-09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

R.E.A.D. The True Cost Of Underfunded Mandates

Total Costs for Seven Districts

Average Cost Per District

Extrapolated Over 675 Districts*

Testing $587,881 $73,485 $49,602,459

Internal audit and risk assessment $151,460 $18,933 $12,779,438

Data warehousing $541,093 $67,637 $45,654,722

Special Education legal costs $287,338 $35,917 $24,244,144

Special Education (STAC) reporting. $66,185 $8,273 $5,584,359 Clerical costs associated with professional development & monitoring highly qualified teacher requirements. $118,000 $14,750 $9,956,250 Inspections, monitoring, and compliance (OSHA, DEC, elevators, fire safety, extinguishers $209,779 $26,222 $17,700,103

Total Costs for Select Mandates $1,961,736 $245,217 $165,521,475

* Not including big 5 cities and special act districts.

Source: Underfunded Mandate spreadsheet, 8 districts FY 08-09: Brewster, Carmel Croton-Harmon, Garrison, Haldane, Hendrick-Hudson, Highland Falls/Fort Montgomery, Lakeland

The Cost of Underfunded Mandates

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R.E.A.D. Legislation Initial Requests May 2011 Underfunded mandate reduction act, following the lines of the federal paperwork

reduction act. Requires a cost estimate for each new mandate from the legislature or the education

department. These costs would be calculated for the different types of local districts and accumulated for a statewide total mandate cost.

Legislation to reduce the cost of the new comptrollers audits, which have cost taxpayers more to conduct than they have saved. Reduce the frequency to every two years Streamline the requirements on districts who have had clean records for two cycles, to a

half-cost audit.

Support for the bill allowing amortization of TRS payments (Member Abbates Bill Number A06309 - Same as State Senate Number S 4067).

Delay introduction of APPR until costs associated with implementation such as data collection, reporting, training, etc. are known and mechanisms for paying for these costs are implemented. Estimated costs for 6 Rockland districts are $2.7 million per year. Extrapolated to 675

school districts the cost per year could be over $306 million per year.

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R.E.A.D. Brewster Central School District 30 Farm to Market Road Brewster, NY 10509 Superintendent Dr. Jane Sandbank jsandbank@brewsterschools.org 845-279-8000 President of Board of Education Dr. Stephen Jambor oehan@aol.com

Haldane Central School District 15 Craigside Drive Cold Spring, NY 10516 Superintendent Dr. Mark Villanti mvillanti@haldane.lhric.org 845-265-9254 President of Board of Education David Merandy dmerandy@haldane.lhric.org

Hendrick Hudson Central School District 61 Trolley Road Montrose, NY 10548 Superintendent Dr. Daniel McCann Daniel.McCann@henhudschools.org Phone: 914-257-5112 President of Board of Education Marion Walsh Marion.Walsh@henhudschools.org

R.E.A.D.

R.E.A.D. Highland Falls-Fort Montgomery School District PO Box 287 Highland Falls, NY 10928 Superintendent Dr. Debra Jackson djackson@hffmcsd.org Phone (845) 446-9575 President of the Board of Education Kevin D'Onofrio kdonofrio@hffmcsd.org

Lakeland Central School District 1086 East Main Street Shrub Oak, NY 10588 Superintendent Dr. George Stone gstone@lakelandschools.org 914-245-1700, ext. 222 President of Board of Education Elizabeth Kogler

R.E.A.D.

R.E.A.D. Croton-Harmon Union Free School District 10 Gerstein Street Croton-On-Hudson, NY 10520 Superintendent Dr. Edward R. Fuhrman Jr.* Edward.fuhrman@chufsd.org 914-271-4793 President of Board of Education Karen Zevin Karen.zevin@chufsd.org

Garrison Union Free School District 1100 Route 9D Garrison, NY 10524 Superintendent Gloria J. Colucci* gcolucci@gufs.org 845-424-3689 President of Board of Education Carol McCullough cmccullough@gufs.org

* R.E.A.D. Co-Chairs for 2010-2011

Website: http://www.READ1.Org

R.E.A.D.