BUDGET DEVELOPMENT

CHALLENGING FINANCIAL TIMES CONTINUE MAKING BUDGET DEVELOPMENT A MORE COMPLEX AND CHALLENGING PROCESS

THE PROBLEM Revenue is still at risk Revenue is still at risk Significant cost drivers continue to increase Significant cost drivers continue to increase Major education reform underway in NYS with significant expense Major education reform underway in NYS with significant expense

Last Year Local Districts Had to Find a Way To Deliver an Educational Program that Met State and Local Expectations with Less Available Revenue

EXPENSES Budget: $47m $47.4m $47.36m Budget Change: 2.94% 0.7% -.06% Enrollment:

STAFF REDUCTIONS Non-instructional 1 bus driver 1 bus driver 1.2 mechanics 1.2 mechanics 1 custodian – MS 1 custodian – MS 1.5 clerical 1.5 clerical 3.5 teacher aides-library & elementary 3.5 teacher aides-library & elementary Instructional Instructional 2.6 elementary teachers 2.6 elementary teachers 1.0 instructional specialist 1.0 instructional specialist 2.0 MS teachers – reductions in phys ed, remediation, French & Spanish- due to enrollment & phys ed schedule modification 2.0 MS teachers – reductions in phys ed, remediation, French & Spanish- due to enrollment & phys ed schedule modification 3.3 HS teachers-reductions in all disciplines but science due to enrollment 3.3 HS teachers-reductions in all disciplines but science due to enrollment 2 coaches 2 coaches

STAFF REDUCTIONS Non-instructional Non-instructional 1 transportation director 1 transportation director 1 custodian – HS 1 custodian – HS 1.5 clerical 1.5 clerical 1 aide 1 aide Instructional Instructional.3 Special ed administrator.3 Special ed administrator 1.0 elementary teacher 1.0 elementary teacher 1.0 special ed teacher 1.0 special ed teacher 5.0 HS teachers –reductions due to enrollment 5.0 HS teachers –reductions due to enrollment 1.0 elementary counselor 1.0 elementary counselor.4 Psychologist.4 Psychologist 3.0 teaching assistants 3.0 teaching assistants 1.0 elementary librarian through attrition 1.0 elementary librarian through attrition 13 coaches 13 coaches

BUDGET Debt service down 6.3% Debt service down 6.3% Fringe Benefits up 8.51% with pension and health insurance rate increases Fringe Benefits up 8.51% with pension and health insurance rate increases Transportation up 3.01% with staff reduction, extra run reductions Transportation up 3.01% with staff reduction, extra run reductions Operations & maintenance Operations & maintenance down 2.12% with staff reduction down 2.12% with staff reduction Athletics down 8.8% with staff reductions Athletics down 8.8% with staff reductions Technology down 1.6% with ordering less equipment Technology down 1.6% with ordering less equipment District office down 1.8% with staff reduction District office down 1.8% with staff reduction Instructional down 4.18% with staff reductions, decreased staff development, centralizing copying, reducing audio visual support Instructional down 4.18% with staff reductions, decreased staff development, centralizing copying, reducing audio visual support

REDUCTIONS OVER TIME Reductions were made as far from classroom as possible; Reductions were made as far from classroom as possible; most reductions were in most reductions were in non-instructional and support areas non-instructional and support areas Further significant non-instructional reductions were not possible; Further significant non-instructional reductions were not possible; significant reductions made in budgets directly affecting students significant reductions made in budgets directly affecting students

PROPOSED EXPENSE PLAN BUDGET

DEBT SERVICE Payment of interest and/or principal continues on former and current building projects Payment of interest and/or principal continues on former and current building projects Debt for energy performance contract – paid Debt for energy performance contract – paidTOTALS 11-2 Budget - $3,624, Proposed Budget - $3,493,457 Difference = $131,210 = 3.62% Decrease

TRANSPORTATION Status quo budget Status quo budget No changes in bus runs No changes in bus runs No changes in personnel, cost up slightly No changes in personnel, cost up slightly Vehicle insurance up slightly Vehicle insurance up slightly Diesel fuel budget status quo Diesel fuel budget status quo TOTALS TOTALS Budget $1,814, Budget $1,840,692 Difference = $26,432 = 1.46% increase

Bus Purchases passenger w/o luggage $207, passenger w/o luggage $207, passenger bus w/ luggage passenger bus w/ luggage $105,706 $105, Passenger bus $96, Passenger bus $96,056 TOTAL $409,200 Last year we purchased 3 buses, 1 suburban – TOTAL $347,536

TRANSPORTATION PERSONNEL.5 Safety Officer.5 Safety Officer 1FTE dispatcher 1FTE dispatcher 32 Drivers 32 Drivers 4 Mechanics 4 Mechanics

OPERATIONS&MAINTENANCE Status quo budget Status quo budget No changes in personnel, cost up slightly No changes in personnel, cost up slightly Decrease in custodial overtime Decrease in custodial overtime Increase grounds supplies- salt Increase grounds supplies- salt Increase in BOCES Data Processing Increase in BOCES Data ProcessingTOTALS Budget $3,284, Budget $3,315,410 Difference = $30,539 =.93% increase

PROPOSED EQUIPMENT REPLACEMENT 1 Vacuum cleaner 1 Vacuum cleaner 1 Floor scrubber 1 Floor scrubber 1 Carpet cleaner 1 Carpet cleaner 1 snow blower 1 snow blower Hand held testing equipment Hand held testing equipment Total = $25,000 Total = $25,000

OPERATIONS&MAINTENANCE PERSONNEL 1 Director 1 Director 26 Custodians 26 Custodians 5 Maintenance Workers 5 Maintenance Workers

FRINGE BENEFITS Increase in payment to Teacher Retirement System and Employee Retirement System Increase in payment to Teacher Retirement System and Employee Retirement System $302,732 increase $302,732 increase Increase in worker’s compensation insurance Increase in worker’s compensation insurance $106,447 $106,447 Increase in health and dental insurance Increase in health and dental insurance $159,648 $159,648TOTALS Budget = $12,556, Budget = $12,556, Proposed Budget = $13,137, Proposed Budget = $13,137,232 Difference =$571,054 = 4.54% Increase Difference =$571,054 = 4.54% Increase

CENTRAL OFFICE Board of Education status quo Board of Education status quo Central Administration status quo Central Administration status quo Finance status quo, slight increase in personnel costs Finance status quo, slight increase in personnel costs General Support – slight increase in liability insurance cost General Support – slight increase in liability insurance cost Decrease in central office curriculum coordination staff Decrease in central office curriculum coordination staff Increase in curriculum/staff development Increase in curriculum/staff development

CENTRAL OFFICE TOTALS Change Change Board of Ed $19,000 $19,000 0% Board of Ed $19,000 $19,000 0% Central Admin $232,000 $233,741.37% Central Admin $232,000 $233,741.37% Finance $285,721 $291, % Finance $285,721 $291, % Gen Support $397,323 $401, % Gen Support $397,323 $401, % Curriculum/ $327,497 $250, % Curriculum/ $327,497 $250, % Instruction Instruction

CENTRAL OFFICE PERSONNEL Superintendent Superintendent Administrative assistant Administrative assistant Assistant Superintendent Assistant Superintendent Administrative assistant/receptionist Administrative assistant/receptionist Business Official Business Official 3.0 business staff 3.0 business staff Director of Curriculum & Personnel eliminated Director of Curriculum & Personnel eliminated

INSTRUCTIONAL PROGRAM BUDGET Central Office Curriculum/Instruction Central Office Curriculum/Instruction Athletics Athletics Technology Technology Building Level Instructional Budget Building Level Instructional Budget

ATHLETICS –Status quo budget –No change in personnel, cost up slightly – 13 coaching positions –jv cheer, assistants in boys/girls lacrosse and track, modified positions in girls/boys soccer, boys/girls lacrosse, baseball, softball, track, and cross country remain out of the budget – Increase in official expenses –No uniform purchases TOTALS TOTALS Budget $613, Budget $618,816 Difference = $4,257=.69% increase

ATHLETIC PERSONNEL 1 Director 1 Director 1 clerical 1 clerical 84 coaching positions 84 coaching positions

TECHNOLOGY No change in personnel No change in personnel Increase in summer hourly work Increase in summer hourly work from $10,000 to $20,000 from $10,000 to $20,000 New equipment cost unchanged New equipment cost unchanged $54,000 per level = $162,000 $54,000 per level = $162,000 Increase in cost for infrastructure support from BOCES as new infrastructure project begins- upgrading wired network and replacing the wireless network Increase in cost for infrastructure support from BOCES as new infrastructure project begins- upgrading wired network and replacing the wireless network $150,000 $150,000

TECHNOLOGY PERSONNEL 1 District Coordinator 1 District Coordinator 1 Network Technician 1 Network Technician 5 District Assistants 5 District Assistants

TECHNOLOGY TOTALS Budget - $891, Budget - $891, Budget - $1,098, Budget - $1,098,713 Difference = $207,395 = % increase Difference = $207,395 = % increase

BUILDING LEVEL INSTRUCTIONAL BUDGET No change in building administration, cost up slightly No change in building administration, cost up slightly No change in number of K-12 teachers, cost down due to retirement savings No change in number of K-12 teachers, cost down due to retirement savings No change in number of assistants, cost up slightly No change in number of assistants, cost up slightly No change in number of aides, cost up slightly No change in number of aides, cost up slightly No change in current library staff, decrease in budget No change in current library staff, decrease in budget No change in guidance, cost up slightly No change in guidance, cost up slightly New testing requirements from Albany New testing requirements from Albany $65,000 $65,000 New elementary math teaching materials New elementary math teaching materials $105,000 $105,000

SPECIAL EDUCATION Budget reflects cost to serve students in non-public schools in district Budget reflects cost to serve students in non-public schools in district No change in number of special ed teachers, cost down due to retirement savings No change in number of special ed teachers, cost down due to retirement savings No change in number of assistants or aides, cost up slightly No change in number of assistants or aides, cost up slightly Slight increase in number of psychologists Slight increase in number of psychologists Increase in cost for BOCES placements Increase in cost for BOCES placements $244,000 $244,000

INSTRUCTIONAL STAFF 5 Principals, 4 assistant principals 5 Principals, 4 assistant principals 65.3 K-4 Teachers 65.3 K-4 Teachers Teachers Teachers 64.4 High School Teachers 64.4 High School Teachers 13 Teaching Assistants, 13 aides 13 Teaching Assistants, 13 aides 6.8 Clerical 6.8 Clerical

SPECIAL EDUCATION STAFF 28 Teachers 28 Teachers 2 administrators 2 administrators 25 Teaching Assistants 25 Teaching Assistants 2 clerical assistants 2 clerical assistants 34 Teacher aides 34 Teacher aides 3.4 Occupational/Physical Therapists 3.4 Occupational/Physical Therapists

OTHER INSTRUCTIONAL STAFF 4 Librarians 4 Librarians 1 AV Specialist 1 AV Specialist 8 Guidance Counselors 8 Guidance Counselors 4 Guidance clerical staff 4 Guidance clerical staff 1 Attendance Aid 1 Attendance Aid 5.4 Nurses 5.4 Nurses 5.9 Psychologists 5.9 Psychologists 2 Alcohol/Drug Counselors (ADAPEP) 2 Alcohol/Drug Counselors (ADAPEP)

INSTRUCTIONAL TOTALS Budget $25,090, Budget $25,090, Budget $25,050, Budget $25,050,876 Difference = $39,979 = -.16% Difference = $39,979 = -.16%

TOTAL BUDGET PLAN Budget $47,366, Budget $47,366, Proposed Budget $47,835, Proposed Budget $47,835,195 Difference =$468,350 =.99% increase Difference =$468,350 =.99% increase

REVENUE PICTURE AT J-D

SOURCES OF REVENUE State Aid 24% 21% Other Sources 7% 8% Federal & County Property Tax Levy 69% 71%

STATE AID SUMMARY $12.4 Million (Included: $1.7 Million $1.7 MillionFederal Stimulus funds) $11.1 Million (Included: $641,000 $641,000 Federal Federal Stimulus funds) $ 9.8 Million

PROJECTED STATE AID Total $10,468,136 JD Share of $94,183 JD Share of $94,183 promised 4% increase promised 4% increase

OTHER REVENUE SOURCES $1.22 million $1.22 million Special Ed Aid Special Ed Aid (Includes:$479,000 (Includes:$479,000 Stimulus Money) Stimulus Money) $330,000 $330,000 Remediation Aid Remediation Aid $75,000 $75,000 Stimulus Money Stimulus Money County Sales Tax County Sales Tax $668,000 $668, $1.22 million $1.22 million Special Ed Aid Special Ed Aid (Includes:$479,000 (Includes:$479,000 Stimulus Money) Stimulus Money) $282,000 $282,000 Remediation Aid Remediation Aid $65,500 $65,500 Stimulus Money Stimulus Money County Sales Tax County Sales Tax $600,000 $600, $789,000 $789,000 Special Ed Aid Special Ed Aid $220,000 $220,000 Remediation Aid Remediation Aid County Sales Tax County Sales Tax $319,000 $319,000

LOCAL TAX LEVY Levy: $31.9m $32.7m $33.9m Levy Change: -1.9% 2.5% 3.6%

LOCAL TAX LEVY PROJECTIONS ( Tax Levy Limit) Prior year levy $33,914,477 Prior year levy $33,914,477 Multiplied by tax base growth factor determined by the state to be 0.51% Multiplied by tax base growth factor determined by the state to be 0.51% Subtract local share of capital costs Subtract local share of capital costs This is multiplied by the allowable growth factor based on CPI which this year will be 2% This is multiplied by the allowable growth factor based on CPI which this year will be 2% Tax Levy Limit = $34,358,804 Tax Levy Limit = $34,358,804

Our Allowable Tax Exemptions share of capital expenditures $760,011 Local share of capital expenditures $760,011 Court Orders $0 Portion of Retirement Costs $26,886

MAXIMUM ALLOWABLE TAX LEVY $35,145,700 which represents a $35,145,700 which represents a 3.63% increase in the levy 3.63% increase in the levy Not the highly publicized 2% Not the highly publicized 2%

OTHER REVENUE SOURCES Sales Tax reduced $160,635 Sales Tax reduced $160,635 Other Revenue Sources projected to remain the same – e.g. interest, reimbursement from other districts, e- rate, medicare reimbursement Other Revenue Sources projected to remain the same – e.g. interest, reimbursement from other districts, e- rate, medicare reimbursement Federal ARRA/Jobs Money $0 Federal ARRA/Jobs Money $0

MAJOR REVENUE SOURCES Other Revenue Sources $1,512,359 Other Revenue Sources $1,512,359 State Aid $10,468,136 State Aid $10,468,136 Tax Levy at 3.63% limit $35,145,700 Tax Levy at 3.63% limit $35,145,700 Fund Balance $709,000 Fund Balance $709,000 Total Revenue $47,835,195 Total Revenue $47,835,195

PUTTING THE BUDGET PIECES TOGETHER J-D High Achieving District With High Expectations J-D High Achieving District With High Expectations Economic Environment - Calls for Even More Vigilance on Monitoring and Controlling What We Spend Economic Environment - Calls for Even More Vigilance on Monitoring and Controlling What We Spend Political Environment- Where Every Government Entity is Being Asked/Forced to Do More with Less Political Environment- Where Every Government Entity is Being Asked/Forced to Do More with Less Environment of Significant Educational Reform on Accelerated Time Schedule Environment of Significant Educational Reform on Accelerated Time Schedule

EXPENSE SIDE - SHORT AND LONG TERM Majority of Our Cost is People Majority of Our Cost is People Downsized Non-instructional Operations Downsized Non-instructional Operations Refinanced Debt Refinanced Debt Participate in consortiums that Help Moderate Benefit, Energy, and Purchasing Costs Participate in consortiums that Help Moderate Benefit, Energy, and Purchasing Costs

BUDGET STRATEGY Goal is to Maintain a Quality Comprehensive K-12 Program Goal is to Maintain a Quality Comprehensive K-12 Program Decreased the Expenses in Some Areas So We Would Not Lose Any Program in its Entirety Decreased the Expenses in Some Areas So We Would Not Lose Any Program in its Entirety

HOW IS DIFFERENT reduced 8.2 non-instructional positions, 8.9 instructional positions, 2 coaching positions reduced 8.2 non-instructional positions, 8.9 instructional positions, 2 coaching positions reduced 4.5 non-instructional positions, 12.7 instructional positions, 13 coaching positions reduced 4.5 non-instructional positions, 12.7 instructional positions, 13 coaching positions – 1 position recommended to be reduced – 1 position recommended to be reduced

WHY IS DIFFERENT In these fiscally challenging times, we can recommend a status quo budget because a significant number of retirements last year saved personnel costs this year. In these fiscally challenging times, we can recommend a status quo budget because a significant number of retirements last year saved personnel costs this year. Very few staff are now eligible to retire, so we will not see those savings again Very few staff are now eligible to retire, so we will not see those savings again

WHAT DOES THIS MEAN LONG TERM It will cost more in to maintain a status quo budget It will cost more in to maintain a status quo budget Personnel costs, and fringe benefit costs will continue to rise Personnel costs, and fringe benefit costs will continue to rise There will be no more savings in debt service There will be no more savings in debt service There will be cost to the educational reform There will be cost to the educational reform

LONG TERM REVENUE PICTURE  Our 3.63 % levy limit is one of the highest in the area  Most districts are trying to come close to the publicized 2% cap  Our state aid increase is high because of new building aid. The new formula aid is $94,000 and we are not a high needs district

SUSTAINING A HIGHER COST STATUS QUO BUDGET If state aid increases remain modest and If state aid increases remain modest and Our levy is capped in the future at 2% Our levy is capped in the future at 2% We will have to use reserves to make up the difference We will have to use reserves to make up the difference

SO WHY NOT JUST USE THE RESERVES? The revenue plan presented to the board is projected to leave us with the same amount of reserves next year as we have this year The revenue plan presented to the board is projected to leave us with the same amount of reserves next year as we have this year If we decrease those reserves for this budget, there will be less available to support a status quo budget in going forward If we decrease those reserves for this budget, there will be less available to support a status quo budget in going forward Program reduction would be the result Program reduction would be the result

LONG TERM GOALS No loss of program No loss of program Long term sustainability of current state Long term sustainability of current state

COMING NEXT Budget Adoption April 2 nd Budget Adoption April 2 nd Budget Hearing May 7 th Budget Hearing May 7 th Budget Vote May 15 th Budget Vote May 15 th