Ticonderoga Central School District Financial Overview 2019

Ticonderoga Central School District Public Hearing May 14, 2019

Proposed Budget as of 5/14/2019 Budget $22,905,742 Budget Increase 2.18% Fund Balance Used $750,000 Tax Levy $12,768,628 Tax Levy Increase 9.57%

How did the District get into this financial situation? State and Federal Aid trends $6.98M in 2008/2009 $7.16M in 2018/2019 $174,473 increase seen in total federal and state aid revenues (less building aid) over this time period Tax Levy Average Increase since 2014-2015 of 1.54% Health Insurance Increases 10% mid-year increase in 17/18 13.5% increase for 18/19 15.9% increase for 19/20 Increase of $1,763,318 from 16/17 budget to 19/20 budget

What is the reason for the large increase in health insurance and what action is the District taking to address this? TCSD is part of the CEWW Health Insurance Consortium Self-Funded plan premiums are pooled to cover paid claims 93% Efficiency rating - 93% of all funds go directly towards paid claims Increase in usage

What is the reason for the large increase in health insurance and what action is the District taking to address this? New consultant RFP for new plan administrator Ad hoc committee MOA with faculty New prescription rebates Telemedicine

School Budget Cuts Since 2008-2009 Instructional: Some of these cuts were due to enrollment decline, but most were due to budget situations. Foreign Language- 1 (7-8), phasing out French Librarians- 2 (k-12) Elementary- 7 (k-6) Music Position- 1 (k-12) AIS- 2 (k-12) ELA- 1.5 (7-12) Business/Computer- 1 (9- 12) Science- 2 (7-12) Social Studies- 2.5 (7-12) Department Chairs- 7 (k- 12)

School Budget Cuts Since 2008-2009 Administration/ Central Office Student Support Curriculum Coordinator- 1 (k-12) Mechanic- (District) Secretary- (k-8) Central Office Support- 1 (District) Baker- (k-12) (This budget code is separate however and not part of the general budget.) Transportation & Operations/Maintenance Director- 1 (District)

School Budget Cuts Since 2008-2009 Other After School Program- Federal Grant Cheerleading Field Trips- Local Trips only or if self funded. Professional Development (Will provided subs if staff cover the cost of the workshop. Some PD does happen if covered in a grant.) Modified B Sports Intramurals Regular Education Summer School Effective Schools/Building Leadership Teams Summer Driver Education Gymnastics

Trends in Special Education Enrollment Ticonderoga Central School District New York State 1200 3000000 1000 2500000 800 2000000 600 1500000 08/09 13/14 18/19 08/09 13/14 18/19 400 1000000 200 500000 0 0

Special Education Expense Analysis 2008-09 2013-14 2018-19 Total Budget $15,906,961 $18,520,267 $22,416,587 Less Debt -$1,169,692 -$2,702,276 -$3,153,813 Adj. Budget $14,737,26 $15,817,991 $19,262,774 SE Dept. Exp. $1,882,865 $2,505,233 $3,332,758 Percent of Budget 12.78% 15.84% 17.30%

Special Education Enrollment and Staffing Analysis 2008-09 2013-14 2018-19 Total Enrollment 1034 951 791 Total Special Ed. Enrollment 157 168 177 Percent for Sp. Ed. 15.18% 17.67% 22.38% Total staff 136.5 122.5 127 Special Ed. Staff* 46 42 51 Percent of Sp. Ed. Staff 33% 34% 40% *includes teachers, aides, assistants and related services staff

If there is an override this year, what is the situation for the future? Assumptions for long-term financial plan Retirement Health Insurance 5% State Aid Salaries BOCES Categorical 12% 1% 3.75% 5% 1% Salaries assumes no breakage

If there is an override this year, what is the situation for the future? Projected 2020-2021 23,917,075 9,475,490 13,691,584 Projected 2021-2022 24,158,877 9,265,585 14,593,292 Projected 2022-2023 24,929,623 9,348,511 15,281,112 Expenditures Revenues Tax Levy Levy Increase 7.23% 6.59% 4.71% *20/21 includes increase for BOCES Capital Project, 21/22 includes decrease due to debt being retired *These rates are starting points for budget discussion, actual levy increase will fall within the tax cap

How is this increase going to impact me? Taxable Value $100,000 (Ti) $100,000 (Hague) Increase in Bill $103.00 $129.00 Monthly Expense $8.58 $10.75 Taxable Value reflects difference in assessed value less any exemptions that one may be eligible for (i.e. STAR, etc.)

What will happen to STAR as a result of the override? Basic and Enhanced STAR exemptions remain intact STAR eligible taxpayers would not receive the Property Tax Relief Credit

Tax Cap Override 60% supermajority public vote required for a budget that would exceed the levy limit Taxpayers would not received Property Tax Relief Credit, but Basic and Enhanced STAR stay intact If override fails, district has three options: Resubmit the budget and try for a second supermajority public vote Submit a budget within the levy limit which requires a majority vote Adopt a contingency budget with a 0% levy growth

Property Tax Relief Credit (Basic STAR) $75,000 to 150,000 $179.32 $185.44 $150,000 to 200,000 $104.60 $108.17 $200,000 to $250,000 $29.89 $30.91 <$75,000 $254.03 $262.70 Hague Ticonderoga

Property Tax Relief Credit (Enhanced STAR) Hague Ticonderoga $199.06 $210.85 Property Tax Relief Credit for Enhanced STAR recipients has no income limitation (income limit of $86,300 to be eligible for Enhanced STAR in 2019) Override of tax cap only impacts Property Tax Relief Credit, Basic and Enhanced STAR tax deductions remain intact

What reductions are taking place to address this situation? Supply budget for all departments Professional Development Shared Service agreement expansion for IT department Not replacing two departures (1 Teacher, 1 Teaching Assistant) Reduction of one bus run Reduction of athletics programs Non-contractual compensation/insurance restructured

Budgetary reductions needed to achieve tax cap 7 Teachers Music, Math, ELA, Home & Career, Elementary, Business, Driver Ed/P.E. .4 School Psychologist 1 Cleaner 1 Teaching Assistant 2 Clerical positions Administrative restructuring Athletics and extracurricular programs

Categorical Expense Breakdown 19/20 Proposed 18/19 Budget Dollar Change Percent Change Board of Education 16,400 16,900 -500 -2.96 Central Office 229,201 224,717 4,484 2.00 Business Admin. 263,781 256,247 7,534 2.94 Legal/Personnel 35,360 34,324 1,036 3.02 Operations & Maint. 1,531,639 1,564,453 -32,814 -2.10 Ins/BOCES Admin. 382,107 363,986 18,121 4.98 Instructional Admin. 511,346 502,278 9,068 1.81 Instructional Program 5,005,597 5,007,122 -1,525 -0.03

Categorical Expense Breakdown 19/20 Proposed 18/19 Budget Dollar Change Percent Change Special Program Pupil Services Extracurricular/Athletics Transportation Census Employee Benefits Debt Service/Transfers 2,523,085 1,007,014 371,402 894,218 4,844 6,922,515 3,207,233 2,430,427 1,089,161 394,191 877,370 4,675 6,474,923 3,175,813 92,658 -82,147 -22,789 16,848 3.81 -7.54 -5.78 1.92 3.61 6.91 0.99 169 447,592 31,420 Totals 22,905,742 22,416,587 489,155 2.18

Revenue Breakdown 19/20 Proposed 8,227,218 1,159,896 750,000 12,768,628 18/19 Budget 8,103,871 1,244,238 1,415,219 11,653,259 Dollar Change 123,347 -84,342 -665,219 1,115,369 Percent Change 1.52 -6.78 -47.00% 9.57% State Aid Miscellaneous Revenue Fund Balance Tax Levy Totals 22,905,742 22,416,587 489,155 2.18%

What is a Contingent Budget? -No increase in tax levy -Administrative budget cap -Non-contingent expenses disallowed -Community use of school buildings expense, public use only when no expense is incurred -Equipment not associated with health and safety

Contingent Budget Scenario Budget $22,905,742 Tax Cap $21,440,373 Difference $1,115,369 Tax Cap 0% Will require all cuts made to achieve tax cap, along with an additional $505,013 *Based on $750,000 of Fund Balance being used

Proposed Budget as of 5/14/2019 Budget $22,905,742 Budget Increase 2.18% Fund Balance Used $750,000 Tax Levy $12,768,628 Tax Levy Increase 9.57%