All figures are subject to adjustment.

Riverhead CSD 2013-2014 Proposed Budget Presentation #1

Presented by Nancy Carney, Superintendent Riverhead Central School District Board of Education Meeting February 5, 2013

All figures are subject to adjustment.

All figures are subject to adjustment.

Agenda
Board of Education Budget Goals Tax Levy Cap Facts, Myths and Calculations State Aid in the Governors Budget Overview of Changes to the RCSD Program General Support Benefits Debt Service
All figures are subject to adjustment.

All figures are subject to adjustment.

BOE Budget Goals

To design and adopt a budget that stays within the Tax Cap limitations To design and adopt a budget that preserves programs for RCSD students to the greatest extent possible To design and adopt a budget that recognizes the current fiscal reality for Riverhead residents To highlight to state leaders in Albany that ever increasing mandates are financially unsustainable for the RCSD
All figures are subject to adjustment.

All figures are subject to adjustment.

Tax Cap What Does the Law Say?

Revenues raised by the district through property tax the levy can increase no more than approximately 2%, plus exempt items, year over year:
The exact figure is subject to a calculation of exemptions and revenue sources.

Exempt from the tax calculation:

Capital costs Some pension costs
All figures are subject to adjustment.

All figures are subject to adjustment.

Tax Cap What Does the Law Not Say?

Myth: The levy will rise no more than 2%.
Fact: Exempt items are added to the capped items, meaning the levy can rise above 2%.

Myth: The law exempts health insurance costs and mandates.

Fact: Health insurance and most state mandated expenses are not exempt under the law.

All figures are subject to adjustment.

All figures are subject to adjustment.

Impact on RCSD Program

If the budget is Rolled Over:
Estimated Budget To Budget Increase = $6,600,905 Estimated Tax Levy increase = 7.48%

The Roll Over Budget contains all contractual increases and necessary adjustments to preserve existing programs but does not include any cuts. Thus, to comply with the tax levy cap law, the 2013-2014 budget will have to be reduced by about $2 million.
All figures are subject to adjustment.

State Aid in the Governors Budget

All figures are subject to adjustment.

2012-2013 2013-2014 Actual Governor Foundation Aid $13,136,749 $13,136,749 Transportation $2,144,818 $2,942,568 BOCES & Excess Costs $1,554,888 $2,041,425 High Tax Aid $2,256,813 $1,225,869 Building Aid $800,036 $1,134,633 Instructional Materials $458,293 $488,744 Charter School $0 $218,633 Gap Elimination -$3,391,888 -$3,110,049 TOTAL $16,959,709 $18,078,572 +6.60%
All figures are subject to adjustment.

All figures are subject to adjustment.

Overview of Changes to the RCSD Program

At least 20 teachers will retire at the end of the 2012-2013 school year The resulting savings will allow for the preservation of all programs now in place Slight reductions to other areas with reduced needs because of changes in enrollment or completed programs.

All figures are subject to adjustment.

All figures are subject to adjustment.

General Support
Board Of Education Unpaid volunteers Central Administration Superintendents Office, Business Office, Personnel Office Auditing Three unfunded, mandated audits Data Processing State mandated testing District Insurance Real property and vehicle BOCES Administration - Mandated
All figures are subject to adjustment.

All figures are subject to adjustment.

General Support
2011-2012 2012-2013 2012-2013 2013-2014 Actual Adopted Revised Proposed Percentage Expenditure Budget Budget Budget Change

BOE, Clerk, Associations Superintendent's Office and Related Functions Business Administration & Auditing, Treasurer, Legal Personnel & Records, Mailing, Printing Insurance & Assessments BOCES Administration Total
All figures are subject to adjustment.

$110,850 $307,541

$134,386 $327,569

$134,698 $336,084

$135,315 $328,981

0.69% 0.43%

$949,398 $1,233,191 $1,269,948 $1,286,965 $874,072 $573,872 $865,451 $674,108 $876,522 $670,643 $860,634 $685,030

4.36% -0.56% 1.62% 4.00% 2.23%

$517,945 $550,127 $550,127 $572,132 $3,333,678 $3,784,832 $3,838,022 $3,869,058

All figures are subject to adjustment.

Benefits
Employees Retirement RCSD Paid Contribution System (ERS) and Rates of Gross Salary Teachers Retirement 2011- 2012- 2013System (TRS) are state 2012 2013 2014 mandated programs ERS 15.90% 18.90% 21.10%
(estimated)

RCSD also must TRS 11.11% 11.84% 16.25% provide health (estimated) insurance, unemployment benefits, and disability and workers compensation coverage
All figures are subject to adjustment.

All figures are subject to adjustment.

TRS Contribution Rates

25.00%

23.49% 21.40% 21.40% 18.80% 14.79% 8.41% 6.87% 5.63% 0.43%

1994-95 1996-97 1998-99 2000-01 2002-03

Mandatory Employer Contribution Rate

20.00% 15.00% 10.00% 5.00% 0.00% 1978-79

16.25% (estimated) 11.84%

2.52%
2004-05 2006-07 2008-09

6.19%
2012-13 2010-11

1980-81

1982-83

1984-85

1986-87

1988-89

1990-91

1992-93

Years

All figures are subject to adjustment.

All figures are subject to adjustment.

Benefits
2012-2013 Revised Budget 2013-2014 Proposed Budget Percentage Change 22.30% -2.09%

2011-2012 2012-2013 Actual Adopted Expenditure Budget ERS & TRS

$6,938,261 $8,990,296 $8,990,296 $10,995,553

Social Security $4,021,523 $4,781,552 $4,781,552 $4,681,831 Workers' Comp., Unemployment, Disability $1,329,258 $1,793,141 $1,793,141 $1,645,841 Health & Waivers, Misc. $10,692,172 $12,412,019 $12,310,306 $13,075,974 Total $22,981,214 $27,977,008 $27,875,295 $30,399,199

-8.21% 5.35% 8.66%

All figures are subject to adjustment.

About $1.16 million of pension costs are excluded from the Tax Cap calculation under the law.

All figures are subject to adjustment.

Debt Service
The district has certain existing debt obligations, including capital work approved by the voters in 1999 and bus purchases that are made annually. The district is beginning to repay a portion of the bonds authorized in October 2011. The district is also beginning to repay money borrowed under the Energy Performance Contract.
All figures are subject to adjustment.

All figures are subject to adjustment.

Debt Service
2012-2013 Adopted Budget 2012-2013 2013-2014 Revised Proposed Budget Budget Percentage Change

2011-2012 Actual Expenditure All Construction Bonds All Bus Purchases Energy Performance Contract All Library Bonds Total

$1,809,475 $1,351,150 $1,351,150 $322,463 $434,308 $434,308

$1,905,462 $569,047

41.03% 31.02%

$0

$0

$0

$583,088 $217,875 $3,275,472

--49.99% 47.47%

$437,263 $435,625 $435,625 $2,569,201 $2,221,083 $2,221,083

All figures are subject to adjustment.

All figures are subject to adjustment.

Future Presentations
Feb. 26 Regular Day School Budget, Transportation, Facilities March 12 Special Education, PPS, Guidance and Other Instructional Items March 19 Revenues and Projected Tax Levy April 9 Total Tentative Budget April 23 BOE Adoption of Proposed Budget May 21 Budget Vote (6 am 9 pm at local polling locations)
All figures are subject to adjustment.

All figures are subject to adjustment.

Questions?
Call or write to:
Nancy Carney Superintendent (631) 369-6716 nancy.carney@riverhead.net

All figures are subject to adjustment.