1. 2016-17 Budget Development Budget Workshop #1  Board Meeting  December 16, 2015

2. State Factors Affect School Budgets State Aid:  Gap Elimination Adjustment  Foundation Aid Formula  State aid predictions for 2016-17 Tax Cap:  Allowable Growth Factor - 0%  Reforms Other Factors:  Smart Schools Bond Act  Tax rebate programs  APPR

3. Executive Budget Proposal  Proposal set to be unveiled on January 13, 2016 State groups calling for $2.2 billion increase:  NYS Board of Regents & NYS Assoc. of School Business Officials – $2.4 billion  Educational Conference Board (ECB) – $2.2 billion State leaders say….  “We’re increasing school aid. We’re getting rid of the GEA, that’s our number one priority.” Sen. Majority Leader John Flanagan  Education spending is “at an all-time high.” Rich Azzopardi, spokesman for Gov. Andrew Cuomo

4. 2016-17 State Aid 2015-16 State Aid $10,691,443 2015-16 GEA $ 29,796 2015-16 State increased by $ 393,684 or 4.45% (w/o Building Aid)

5. Gap Elimination Adjustment (GEA) Seeks to close the gap between the budgeted State expenditures and revenues available to support them Total GEA from Middleburgh Central School $4.3 million thru 2014-15  2010-11 $ 984,233  2011-12 $1,252,014  2012-13 $1,085,803  2013-14 $ 685,572  2014-15 $ 307,367  2015-16 $ 29,796

6. Foundation Aid 2015-16 Enrollment: 765 2015-16 Budget$20,765,915 2015-16 Tax Levy$ 9,460,904 2015-16 Foundation Aid$ 6,909,504 Foundation Aid Underfunded $ 117,630 (1) (1) 2015-16 Enacted State Budget School Aid Database

7. Tax Cap: It’s Not 2% Year Allowable Levy Growth Factor 2012-132.00% 2013-142.00% 2014-151.46% 2015-161.62% 2016-170.00% projected (1) (1) Average monthly change in Consumer Price Index, Jan- Dec 2014 vs. Jan-Sept 2015

8. 2016-17 Budget Development Rollover Budget Process Major Expenditures  Salaries – Contract Obligations  Health Insurance Premiums Projected Increase of 5% and Increase in Pharmacy Cost Initial Premium increase “placeholder”  TRS and ERS Projections TRS – 13.26% (2015-16) to 12.00% (2016-17 estimate) ERS 18.20% (2015-16) to 15.50% (2016-17 estimate)

9. 2016-17 Budget Development - Rollover GAP = Expenditures exceed Revenue  980,000 (2015-16 Final $256,568) Potential Changes Legislative Budget / State Aid Final contribution rates Health Insurance assumption changes Tax Levy

10. BUSES Current Fleet  66-Passengar12  48-Passenger 6  35-Passenger 3  27-Passenger 1  24-Passenger 5  7-Passenger 3  6-Passenger 1 Total 31

11. Bus Amortization Schedule 3 buses Year Purchased20142015201620172018 Auth Amount 270,181 360,000 325,290 First BAN7/24/20147/23/20157/23/20167/23/20177/23/2018Total Year Ending June 30th 2016 50,181 2017 55,000 70,000 125,000 2018 55,000 70,000 65,058 190,058 2019 55,000 70,000 65,058 255,116 2020 55,000 75,000 65,058 325,174 2021 75,000 65,058 270,174 2022 65,058 195,174 2023 65,058 130,116 2024 65,058 270,181 360,000 325,290 1,606,051

12. Bus Amortization Schedule Year Amount as BAN Issued Date Maturity Date Interest Rate Interest Owed Principal Owed Total Debt Service State Aid % State Aid Local Share 2016 270,1817/24/20147/24/20150.87% 2,351 50,181 52,53279.80% 41,920 10,611 2017 580,0007/23/20157/22/20161.06% 6,131 125,000 131,13179.80% 104,642 26,488 2018 780,2907/23/20167/22/20171.06% 8,271 190,058 198,32979.80% 158,267 40,062 2019 915,5227/23/20177/22/20181.06% 9,705 255,116 264,82179.80% 211,327 53,494 2020 985,6967/23/20187/22/20191.06% 10,448 325,174 335,62279.80% 267,827 67,796 2021 660,5227/23/20197/22/20201.06% 7,002 270,174 277,17679.80% 221,186 55,989

14. Moving forward - January  Continue budget development – Departments and line by line analysis  Monitor State Aid  Calculate Tax Levy Limit  Next Budget Workshop – January 27