2011 - 2012 BUDGET FORUM Impact of On-going State Fiscal Crisis FEBRUARY 17, 2011

OVERVIEW: Revenue impact of State aid reduction; What have we done/saved so far? District’s financial condition; Other sources of funding; Federal and State mandates vs. Community mandates (including special education); Unfunded and underfunded; Quality of education; Questions?

State Aid 2011-12 Reduction = $2,788,263* *Gap Adjustment = $9,708,835

Proposed 2011-12 Budget 2010-2011 Adopted Budget: $106,095,742 Change in Budget $ - 0 - Note: No increase in budget achieved despite $1,736,373 increase in retirement system costs.

Impact on Programs Replace K-6 summer school with year-long Academic Intervention Services (AIS)/ Response to Intervention (RTI) programs; Undertake 12-month program dialogue with community and staff.

Impact on Staffing All contracts renegotiated and extended; Reduced approximately 5% of workforce—since 9/1/09, positions abolished when vacated: Central office 1 Administrative 1 Teachers 29.7 Classified Staff 29 TOTAL 60.7 Unfunded mandates resulting in staffing needs: Mentoring; Academic Intervention Services; Professional Development 175 hour requirement.

What have we done so far? WSAA Central Office Offered to freeze 2010-11 base salary; freeze extended to 2011-12; No health insurance paid for these employees; Eliminated Assistant Superintendent and two secretarial positions ($289,000). WSAA Half year freeze in salary increase of 3.5% in 2010-11 and 2011-12 (salaries in effect for half of each year); Freeze salaries in 2012-2013; ARO reduced to $600 from $1,485; Annual health insurance cost to District limited each year to approximately 80% of premium cost.

What have we done so far? (continued) WSTA No new money on schedule for 2011-12 and 2012-13; 1% for top step in 2011-12 – not added to base salary; 2% for top step in 2012-13 – not added to base salary; Freeze health insurance premiums through 2014—District cost is approximately 72% of premium; Skip July and August 2011 health insurance premium = $880,000; Eliminate 30 hours of ARO = $596,900; Freeze supervision and stipends, including coaching, through June 30, 2014.

What have we done so far? (continued) CSEA Delayed salary increases in 2011-12, 2012-13; raises effective January 1 each year; Contribute towards health insurance effective 7/1/2014. Managerial Groups Gave back negotiated increases; No new money on schedule for 2011-12 and 2012-13; 1% for top step in 2011-12 – not added to base salary; 2% for top step in 2012-13 – not added to base salary; Health insurance cost fixed for District as of 7/1/2014; No base salary increase until 2013-14.

What have we saved so far? Contract renegotiations and extensions; Heating; Electric; Transportation; Eliminated positions through attrition. Result: Approximately $5.2 million projected to be saved annually.

District’s Financial Condition Excellent at this time, but will erode the longer the State withholds the $9,708,835 in aid (gap adjustment).

Other Sources of Funding Grants; Education Jobs Funding (retains 37.7 jobs); ARRA money.

West Seneca Central School District Equalized Tax Rate 2005-06 $17.46 2006-07 16.96 2007-08 16.89 2008-09 16.80 2009-10 15.93 2010-11 $16.03 Most recent Erie County average from 2008-09 was $16.30.

Government Mandates vs Government Mandates vs. Community Mandates (including Special Education) Federal mandates; State mandates; Community mandates are not mandated by the State or Federal government. Local mandates are programs compelled by the local community.

Federal Mandates Homeless Act (McKinney-Vento); Department of Transportation requirements; Medicaid compliance; Violent and Disruptive Incident Report (VADIR) tracking and reporting; Response to Intervention (2012 required);

Federal Mandates (continued) Special Education: Students with disabilities enrolled in private schools; Students with disabilities home schooled by parent; Committee on Special Education (CSE) staffing, reporting, compliance; NYS regulations stricter than Federal regulations; “Burden of proof;” Impartial hearings; Extended school year; Committee on Preschool Education (CPSE).* * Unfortunately, one “mandate relief” includes a change in CPSE that while it would cap dollars to the County, it would mandate the District to make up the cost.

Federal Mandates (continued) Of 219 Federal Regulations related to Special Education… 79% of those regulations, when reflected in a NYS special regulation, were written in a more restrictive, costly manner. The most recent NYS draft mandate in Special Education offers 22 items. Three of those items afford potential real dollar savings—one in printing costs; one in potential less risk of due process hearings; and one Federal grant savings.

State Mandates Record retention requirements; Body Mass Index reporting; Academic Intervention Services/Response to Intervention; Home/hospital instruction; Regents exam administration/curriculum requirements; Automated External Defibrillator mandates; Teacher mentor program; Teacher professional development tracking; Annual Professional Performance Review; Non-public health services; District data management.

State Mandates (continued) Of 121 State mandates most raised in discussion with school administration, Board of Education members and the public… 84% of the mandates are unfunded.

Community Mandates Full-day kindergarten; Art; Music; Athletics; Social work; Enrichment programs; Summer school; Academy programs;

Community Mandates (continued) Transportation: High school/middle school – under 3 miles; Elementary – under 2 miles; Current class sizes; Afterschool hours building use; Community Education programs; Town and service groups use of facilities. What are local taxpayers willing to pay for?

Questions?