1. Menands Union Free School District 2016-2017 Budget Workshop February 8, 2016

2. A Recent Budget History  2014 -2015  Our Tax Cap was 1.79 % or $110,267  We exceeded the cap at 2.88% or $122,839 to preserve what was identified as important to our constituents  This still resulted in reductions amounting to $186,456, including:  FT PE position reduced to.4  A reduction in Speech to a.4FTE  Reduced a classroom section  FT custodial position reduced to.5  Reduction of clubs & elimination of Missoula  2015 – 2016  Our Tax Cap was 1.36% or $86,522  We went out at the cap  Reductions were realized through:  FT Accounts Payable Clerk position was reduced to.6 FTE  A TA position was moved from the general fund to grant funding

3. Budget Reminders  We will budget from the perspective of what we know to be true in the present moment.  Though we will be cautiously optimistic about decreases in expenditures or increases in revenue, WE WILL NOT MAKE ASSUMPTIONS.

4. What We Now Know  What the Governor has proposed for state aid  Our analysis of changes to this proposal  Our tax cap calculation based on current figures  Current student FTE for tuition, HS & BOCES  Municipal agreement with South Colonie CSD  TRS Employer contribution  SED review of school lunch fund balance

5. The Governor’s Proposal $969,765 in aid for 2015 – 2016 $1,030,054 in aid for 2016 – 2017 A reported increase of $60,289 Or A reported increase of 6.22%

6. Why the Governor’s Proposal is not Accurate  Unlike us, the calculations under this proposal are derived using assumptions and projections to predict expense driven aids.  Unlike us, they are not based on what we know to be true in the present moment.

7. Our Adjustments To The Proposal

8. A Truer Reflection Of The Governor’s Proposal $969,765 in aid for 2015 – 2016 $965,816 in aid in 2016 – 2017 In reality a DECREASE of $3,949 Or a DECREASE of 0.4%

9. Tax Cap a Review  2% is not really 2%  The calculation is based on an 8-step formula dictated by NYS  The formula is driven by CPI (this year.12%) and Tax Base Growth (this year.55%)  Results of the formula determines the amount that property taxes can increase setting a threshold for voter approval.  Below the threshold requires a simple majority  Beyond the threshold requires a supermajority (60%)

10. Tax Cap Calculation – 2% 2016-2017 Tax Cap Calculation Calculate "Adjusted" Current Year Tax Levy Threshold: Tax Levy 2015-20166,381,215.00 Tax Base Growth Factor(Provided by Tax and Finance) x1.0055 sub-total=6,416,311.68 PILOTS - 2015-2016+0.00 sub-total=6,416,311.68 Value of claims and judgements > 5% of total tax levy-0.00 Local share after aid of current (2015-2016) allowable capital expenses-266,860.00 Adjusted 2015-2016 Current Year Tax Levy=6,149,451.68 Calculate Projected Tax Levy Threshold 2016-2017 Allowable Levy Growth Factor (1 + inflation factor, up to 2%)x1.02 sub-total=6,272,440.72 Projected PILOTS for 2016-2017-0.00 Available Carryover+0.00 2016-2017 TAX LEVY LIMIT (to be submitted to State Comptroller, Commissioner of Tax & Finance and the Commissioner of Education by March 1st) ==6,272,440.72 Calculate Coming Year Exemptions: Value of any claims and/or judgements greater than 5% for 2016-2017 year+ - ERS Employer Contribution Amount+ - TRS Employer Contribution Amount+ - Local share after aid of 2016-2017 allowable capital expenditures+262,382.00 sub-total=6,534,822.72 Erroneous levy plus interest from prior year-0 Maximum Tax Levy Threshold for 2016-2017 =6,534,822.72 (requiring a simple majority vote) 2016-17 Adj Levy =6,534,822.72 2015-16 Levy =6,381,215.00 $ Change =153,607.72 % change =2.41%

11. Actual Tax Cap Calculation 2016-2017 Tax Cap Calculation Calculate "Adjusted" Current Year Tax Levy Threshold: Tax Levy 2015-20166,381,215.00 Tax Base Growth Factor(Provided by Tax and Finance) x1.0055 sub-total=6,416,311.68 PILOTS - 2015-2016+0.00 sub-total=6,416,311.68 Value of claims and judgements > 5% of total tax levy-0.00 Local share after aid of current (2015-2016) allowable capital expenses-266,860.00 Adjusted 2015-2016 Current Year Tax Levy=6,149,451.68 Calculate Projected Tax Levy Threshold 2016-2017 Allowable Levy Growth Factor (1 + inflation factor, up to 2%)x1.0012 sub-total=6,156,831.02 Projected PILOTS for 2016-2017-0.00 Available Carryover+0.00 2016-2017 TAX LEVY LIMIT (to be submitted to State Comptroller, Commissioner of Tax & Finance and the Commissioner of Education by March 1st) ==6,156,831.02 Calculate Coming Year Exemptions: Value of any claims and/or judgements greater than 5% for 2016-2017 year+ - ERS Employer Contribution Amount+ - TRS Employer Contribution Amount+ - Local share after aid of 2016-2017 allowable capital expenditures+262,382.00 sub-total=6,419,213.02 Erroneous levy plus interest from prior year-0 Maximum Tax Levy Threshold for 2016-2017 =6,419,213.02 (requiring a simple majority vote) 2016-17 Adj Levy =6,419,213.02 2015-16 Levy =6,381,215.00 $ Change =37,998.02 % change =0.60%

12. Tax Cap Impact Tax Levy 2015-2016 Mandated Tax Levy 2016-2017 Dollar Difference Percent Difference $6,381,205$6,419,213$37,9980.60% This means we can only increase revenue via taxes by $37,998 without exceeding the cap and requiring a supermajority. We can not do next year what we do now with this increase.

13. Where we are to date Expenses2015-2016 December Projection February ProjectionDifference Instructional Salaries$2,399,668$2,317,281($82,387) Non-Instructional Salaries$467,112$356,731($110,381) Health Buyout$0$98,000 Contractual$1,059,089$1,126,589$67,500 Tuition - High School$1,361,980$1,432,716$70,736 Tuition - Charter$96,720$129,760$33,040 BOCES$420,201$525,000$104,799 Employee Retirement$95,000$65,000($30,000) Teachers Retirement$310,000$300,000($10,000) Transfer - Cafeteria$40,000$35,000($5,000) Unchanged Expenses$2,106,290 Budget Proposal #1$8,306,605$8,356,060$49,455 Budget Proposal #2$8,356,060$8,492,367$136,307 Budget Gap $185,762

14. Major Factors Driving Spending Increase  Increases in Special Education Tuitions  Increased enrollment at Charter Schools  Increased enrollment at High Schools  Expenses associated with number of students protected under the Federal McKinney Vento legislation

15. Further Impacting Things Current Aid Proposals are not providing full funding:  Foundation Aid: 2016 -17 Proposed Foundation Aid:$378,611 Full Phase-in Foundation Aide:$522,110 Amount Underfunded:$143,499  Gap Elimination Adjustment: 2016-17 Proposed GEA:$ 7,925  Total Underfunding: $151,424

16. Imagine If...  2% were really 2%: Current Gap:$185,762 A True 2% Tax Cap:$153,608 Adjusted Gap:$ 32,154  We were fully funded: Current Gap:$185,762 Full Aid:$151,424 Adjusted Gap:$ 34,338

17. What Does It All Mean?  As a result of increasing expenses and inadequate funding WE HAVE A GAP.  We must consider options to close the gap:  Reduce Expenses impacting current program offerings.  Additional dip into “savings”.

18. What we can expect at next BOE meeting…  NYS Budget update and any impact.  Expenditure and revenue updates.  Comprehensive review of fund balance.  Continue discussion on closing the ($185,762) Gap.

19. Questions & Discussion Next Budget Workshop February 22, 2016 Time?