Building the Budget: 2010-2011

1. Croton-Harmon Schools Building the Budget: 2010-2011 Croton-Harmon School District Community Forum January 13th, 2010

2. Presentation Overview • Mission and Vision: community feedback, movement on quality initiative • Factors influencing overall budget development: enrollment, revenue, major expenses, issues we face • District Spending: overview of major categories, how we compare to other similar districts • The budget process: the steps, public input dates. • Q & A discussion

3. Mission: The purpose of schooling Vision: What the purpose looks like in our schools Learning Standards and Performance Indicators Tri-State Consortium of High Performing School Districts Quality Standards for Curriculum, Instruction, Assessment & Technology

4. Budget and Tax Rate • Last year, the school district did not raise the tax rate. • From FY ’07-’08 to FY ’08-’09, school district tried to keep taxes low as well.

5. Enrollment • Over the past ten years, enrollment has grown 21% (367 students). • Over the past few years, enrollment is leveling off.

6. Revenue • Revenue from sources other than property taxes are decreasing. • The increase in state aid last year was due to back payment of building aid and was given back to tax payers in ‘09-’10. • Using fund balance as a resource is not sustainable.

7. Revenue Sources (State Aid and STAR) • State Aid is declining. • ’08-’09 increase is due in part to increases in state aid, but 1.5 million is building aid ($1 million of which is back payment). • ‘09-’10 and ‘10-’11 aid includes the stimulus money which will not be in FY ‘11-’12. • The State received additional taxes last year without raising taxes: • STAR reimbursements to the school district declined. • Middle Class STAR Rebate check payments no longer exist.

8. Revenue Sources (Not State Aid) • Precipitous decline in aid from sources other than the State. • Over 4 year period, we’ve lost slightly under 2% of the budget. * Other: Rentals, BOCES/Medicaid Reimbursements, Admission, etc.

9. Major Budget Areas • Costs are increasing, but no area has experienced the same type of cost increase as benefits up from $6.7 million in ‘09-’10 to $8.0 million in ‘10-’11.

10. The Increasing Cost of Benefits • In ‘09-’10 increases in medical benefits and social security were offset by declines in pension costs. • In ’10-’11 all costs are increasing. Pension costs are increasing by $760,000 (equivalent to almost 2% budget increase).

11. Budget Area Expenditures

12. Keeping Costs Down: Issues We Face • Shifting costs • MTA Tax • Pension funds (ERS and TRS) • Health benefit increases • Other state initiatives that are not funded. For Croton, this represents ~20% of the budget. • State has deferred payments. • Withholding of a portion of STAR payments ($1,027,647) • Cut STAR last year • Cut state funding (stimulus funding helped overcome shortfall). • Future cuts will have direct impact on programs and our ability to maintain facilities.

13. Croton ranks 29th out of 44 school districts on cost per pupil spending, well below average and median spending. • $23,337 average cost • $22,881 average cost without Pocantico Hills • $22,658 median cost All Costs Per Pupil: Westchester/Putnam School Districts Westchester-Putnam School Board Association Facts and Figures 2009: Cost per pupil for 2007-2008. Calculated by dividing school district budget by # of students. Special Acts Districts not included. Note: Calculation is not a equal comparison across all districts. Some districts have smaller transportation costs or higher special ed costs. Some districts are on contingency budgets.

14. General Education Costs Per Pupil Croton has lowest cost per pupil of 18 similar districts.

15. Croton has the highest health care contribution among teachers and has had the highest contribution for years. 2009-2010 Teacher Health Benefit Contribution • If district is not listed, district is either self insured or contribution is not a straight forward %. • Lakeland will increase to 15% in 2010-2011. • Chappaqua, Eastchester, Garrison, Haldane, Mamaroneck, Mt Pleasant, PNW BOCES, SW BOCES and White Plains will increase contributions in FY '10-'11.

16. Keeping Costs Down • Cooperative endeavors • Health consortium • Life insurance • Workman’s compensation • Shared Services • Transportation routes with other districts • BOCES • Village • State, county, and BOCES contracts used to get best deals • EXCEL Aid • Energy Performance Contract

17. Expenditures Revenue • 3% cut – $1.29 million dollars • 2% cut - $860,000 • 1% cut - $430,000

18. Operations & Maintenance Considerations • #1 Need – New Roofs • Use Capital Reserve • Requires voter approval to take the money from the capital reserve • No additional cost • #2 Need - Science Labs • Researching phased approach over multiple years • Other needs – to be discussed on 1/25 at the Board work session on facilities

19. Budget Planning

20. Budget Community Involvement • January 13th community forum • January 25th Board work session on facilities • February 4th Budget workshop • February 25th Budget workshop • February 27th Budget Saturday (preliminary budget presented to community and Board) • Every subsequent Board Business Meeting and Work Session until April (State mandated) deadline for adoption will have time for discussion of the budget. • If necessary, more meetings will be added. • Special meetings with organizations and community groups will be arranged upon request.

21. Questions and Answers