Fulton City School District

1. Fulton City School District 2012-13 Draft Budget

2. NYS Financial Problem • Constrained Current Revenues – Economy • NYS has Changed Education Policy in Funding Public Education • NYS Continues to Freeze Foundation Aid at 2008-09 Levels, Continues to Impose a Gap Elimination Adjustment on School Districts and Index Increases in Education Aid Based on Personal Income Tax Receipts (Capped at 4%)

3. History of Budget Revenues • FCSD is a High Need/Low Wealth District – CWR .355 • FCSD is Highly Dependent NYS for Revenue • Approximately 61% of Revenues from NYS • Approximately 32% from Local Tax levy • Remainder Other Sources

4. Why We Face This Problem • Revenue Problem • Not a Spending Problem • NYS Distribution of Aid is Not Equitable • FCSD is Not Able to Make Up Locally the Funding Cuts from NYS • FCSD Has Had to and Needs to Continue to Live within its Means

5. FCSD Budget Process to Date • BOE Parameters Workshop 12/3/11 • Budget Committee Meetings January 17 & 31/2012 • Review of District Programs, Services, Operations and Financials • Review District Spending , Anticipated Revenue, Student Enrollment, Personnel, Prior Years’ Spending and Staff Reductions, and Projected Costs for the Budget Moving Forward

6. Items Driving Budget Costs • Staff Salaries & Benefits • Transportation of Students • BOCES Services, Expenses & Charges • Information Technology - Software, Hardware and Connectivity • Supplies, Materials & Equipment • Custodial & Maintenance • Energy • Debt Service

7. District Budget Components (Projected) • Instructional Staff, Program and Services 74.1% • Administrative Components 9.4% • Capital Component 9.2% • Debt Service 7.3%

8. The Governor’s 2012-13 Proposal • Increases State Aid to FCSD for 2012-13 by $1.2 Million • Shifts 15% of Preschool Special Education Costs from the County to School Districts

9. 2012-13 YR. Gov.’s Budget Impact • Governor’s Proposed Budget Increase of $1.2 Million in Aid to FCSD • Where will this money go? Federal Jobs Bill Ends in June 2012 - $404,000 in Staffing to Continue Governor’s Proposed Budget –$427,000 of the Increase in Aid is Directly Tied to the District’s New Cost for the Oswego County BOCES Capital Project beginning this Year. Increases in District Operations, Energy Costs, Retirement System Costs, Health Care and Salaries Increase in BOCES Administrative Costs of $100,000

10. Impact of Governor’s Proposal • State Aid Impact Increases Funding by $1.2 Million • Cost to Maintain Current 2011-12 Programs, Services and Operations Including $404,000 Funded Positions in the Federal Jobs Bills Results in a $2..8 Million Budget Gap • Combined Initial Impact on Local Tax Levy = 14.4% Increase • Unrealistic and Not Sustainable to District and Tax Payers

11. District Revenue Budget • Revenue Budget = • State Aid (Including Building Aid)+ • Local Tax Levy + • Miscellaneous Income + • Designated Fund Balance (Use of Reserves)

12. Current Considerations $2,800,000 Budget Gap If: $387,568 (2% Tax Levy Impact) $2,412,432 Gap *Budget Gap Closing Options are further tax levy increases, use of Reserve Funds and/or staff and program reductions.

13. Current Considerations Use of District Reserves – The implications for the Future Reserves are Established for Specific Legal Purposes To Address potential District Financial Obligations and Liabilities To plan for and protect the Long Term Fiscal Health of the School District

14. Local tax levy Options • 2% Levy Threshold or CPI Which Ever is Lower • 2% Levy Threshold , Not Including Exclusions, Requires Basic Majority for Voter Approval • Exclusions included Pension Costs Rate Increases Above, 2%, Local Share of Debt Service, large Tort Judgments • Levy Increase Greater than 2% ,Not Including the Exclusions, Requires a Super Majority of 60% of Voter Approval • * District Must Notify NYS Agencies on March 1st

15. Proposed Budget Equation 2012-13 • State Aid $37,969,596 (Gov.’s Proposal) • + Spending Reductions $ • + Local Levy Increase $ • +/- Miscellaneous Revenue $ • + Use of District Reserves $ • = Total $

16. Total Budget • Total Budget $61,936,414 • $1,696,319 Increase • 2.8% Budget to Budget Increase

17. Budget Committee’s Focus • 2012-13 Budget & Multi Year Budget Approach • Address the Loss in June 2012 of the $404,000 in Federal Jobs Bill • District Budget Reductions Enacted in 2009-10, 2010-11 &2011-12 have Raised Class Sizes, have Reduced and placed strain on RTI and AIS for Students in Need, has Reduced Administrative Support and Supervision for Schools, Alternative Education, Program Support and Development • Regents Reform Agenda is Leading in Redesign of District Instructional, Assessment and Support Models- District Faces Many New Costs • Long Term Picture - Based on Inequitable Aid Distribution • Building Budget in Alignment with Tax Levy Threshold Law for Majority or Super Majority Voter Approval

18. Budget Committee’s Focus • Aligning of District’s Staffing, Services and Operations with Enrollments • Maintaining Quality Educational Programs & Services • District Sustainability Study Long Term Cost and Analysis of District Operations and Configuration • Program, Service and Operations Review to Assess and Consolidations for 2012-13 and Beyond

19. Next Steps • Wait for Legislative Action in Albany • First Draft of Budget March 13rth • Tentative Budget April 10h • Joint Site Based Meeting April 30h • Public Hearing May 2nd • Community Vote May 15h

20. On Going Actions ● Informing All District Staff ● Communications with the Community – Media Articles, Letters to Media, Budget Newsletter ● Communications with Legislators & Governor’s Office ● Lobbying Through Central New York and New York State School Boards Assoc. and Small Cities School Districts Assoc.

21. Questions?