1. Citizen Forum Fire Hall Elbridge, New York April 7, 2011 1

2. The numbers presented in this presentation are best estimates developed using information provided by the state, the district’s website and the presenter’s own knowledge of revenues and costs. It is impossible to fine tune these estimates without having direct access to system reports and analysis models. Other unknown cost considerations may also be in play that have not been factored in to the numbers presented here. 2 Disclaimer

3.  Citizens asked me to speak.  Care about the community. Grew up here.  Want to help. Have always been willing to help.  Abrupt change with no consultation = knowledge gap.  Hope this information will filter back to the district and benefit everyone in some way. 3

4. 4 Terminology

5. 5 Times are Very Difficult for Everyone

6. 6 What is the plan to get there? Where do we want to be five years from now and beyond? That plan should determine budget and spending priorities.

7. 7 In summary, …. The estimated funding gap is $3.0 million. This assumes a 3% levy increase, $12.5 in non- levy revenue, the use of $1.2 million from fund balance and reserves and a projected status quo budget increase projection of 7.0%. It would appear that a lot can be done to close the gap without having to make wholesale layoffs and program cuts. TARGET BUDGET PROJECTED BUDGET

8. 8 $12,951,145$12,234,386 $37,500 $275,000 $620,438 Original Slide Dr. Larry Zacher March 29, 2011

9. 9 Estimate of total non-tax levy revenue is $925,259 less than the district’s previously stated estimate. Even after adjusting last year’s state aid budget downward we still ended up too close for comfort!!

10. 10 Getting a better fix on state aid…

11. 11 Breakdown of Projected Revenue

12. 12 Estimate of FYE2012 percentages of total revenue… state aid 49%, down from 51% property taxes 37%, up from 32%

13. 13 Original Slide Dr. Larry Zacher March 29, 2011 $800,000 FYE2010 Balance $251,733 $250,000 <$251,733 not

14.  Debt service is easily predicted (like your own mortgage).  Debt service planning, along with corresponding state aid projecting, is done in concert with the board-appointed fiscal advisor. Presently, Bernard P. Dongegan, located in Victor, NY. 14

15. 15 Fund balance and reserves are presently strong. This is a good thing heading into a crisis and prior to bonding. It will be important to maintain a strong balance sheet.

16. 16 $25,180,754 4.5% lower 3.00% <10 Original Slide Dr. Larry Zacher March 29, 2011

17.  No change in labor.  3% increase in wages across all labor codes.  Equipment, supplies and most contractual the same.  3% increase in BOCES. No contract change.  11.1% Teacher Retirement System.  18.0% Employee Retirement System.  5.0% Workers’ Comp.  6.0% Health Insurance.  FICA and Pension for $640K in wages from F and C funds.  $250K for legal per LZ (3/29/11).  $540K increase in debt service. 17

18. 18 1 2 345 6 2 The estimated “gap” = $3,022,057 = $28,202,811 - $25,180,754

19. 19 Expenditures by area have stayed about the same as percentage of total expenditures

20. 20 TRS Employer Contribution Rates Over Time 11.1%, up from 8.6% est $285K increase

21. Athletics and Cocurricular Activities (clubs, drama, marching band, etc.) as a percentage of total expenditures

22. ∆ ∆ ∆∆ ∆∆ ∆ ∆ District began to invest more in athletics (labor and fields) a few years ago. Costs were charged to athletics (A2855) to get a true picture of total cost.

23. 23 Legal $250K = $180/Student State Average = $50/Student

24. 24 Original Slide Dr. Larry Zacher March 29, 2011 Look carefully It does not appear to be necessary to make these “overnight” systemic decisions to balance the budget.

25. 25 Original Slide Dr. Larry Zacher March 29, 2011 Again, it does not appear to be necessary to make these “overnight” systemic decisions to balance the budget.

26. 26 Original Slide Dr. Larry Zacher March 29, 2011 18.0 18.6 19.8 20.4 22.5 20.7 22.0 Success in the early grades means a greater likelihood of success all the way through

27. For More Information Please Contact Bill Hamilton bh@hamilton-us.com 27

28. 28 Dissatisfaction and discouragement are not caused by the absence of things but the absence of vision. — Anonymous