EAST GREENBUSH CENTRAL SCHOOL DISTRICT Board of Education Budget Review Session Wednesday, March 2, 2016 Genet Elementary School Auditorium MINUTES 1.
Call to Order – Dr. Harrison – 7:31 p.m.
MEETING BEGINS
2.
Attendance
ATTENDANCE
Mr. Buono Ms. Curran Ms. Curtin Mr. Dunn Dr. Harrison Ms. Maciol Mr. Mann Ms. Massey Ms. Taylor Also Attending Dr. Nagle Ms. Bowman Mr. Edson Dr. Pampel
Present x x x x x x
Absent
x x x
x x x x
Dr. Harrison said that the Board concluded its Superintendent search process and would make an announcement at the end of the meeting. 3.
A. Superintendent’s Presentation Dr. Nagle welcomed members of the public to the first review session. She reviewed financial activities prior to the budget session. In September the tax bills were issued, reflecting a 1% decrease in the tax levy from the prior year. The Government Efficiency Plan was approved by the State Division of Budget in October; the purpose was to allow homeowners the ability to get a rebate for the increase in school property tax, as long as the school district remained within the tax cap. The Superintendent said the fleet replacement plan was posted on the website in October. Some of the purchases will come
PRESENTATIONS
from the reserve; some will come from borrowing. Voters will have the opportunity to consider propositions #2 and #3 on the ballot in May. No comments on the fleet replacement plan have been received to date. Dr. Nagle explained that the Comptroller’s Office issued a no findings report in January. They audited claims for a 14 month period. The report is posted on the District website. She also noted that Moody’s issued an Aa3 credit rating, which reflected the District’s long-term credit quality as well as its adequate takeout provisions, sufficient liquidity, and a strong history of market access. The Superintendent said that material growth in liquidity and reserves or significant improvement in the tax base or demographics could lead to a credit upgrade. She stated that operating deficits, deterioration of the tax base or demographics, or additional debt could lead to a credit downgrade. In late January, the Office of the State Comptroller issued the Fiscal Stress Monitoring System for school districts across the State. Dr. Nagle shared that points were received in seven different financial areas based on school district budget and financial statement information. The higher the point total received denotes a school in fiscal stress. East Greenbush Central School District received a score of 20%, which is considered as “No Designation”; this is the best score that can be received. Dr. Nagle said the excellent rating was a reflection of the Board’s fiscal planning in a number of areas, including debt refinancing, negotiations, BRAC and audit committee community membership, and reserves. She said the environmental stress score was also “No Designation”, although points were received for declining enrollment and slight decrease in the tax base. The Executive Budget was also released in January by the Governor. Restorations of the Gap Elimination Adjustment (GEA) will likely be linked to the proposal for a $15 per hour minimum wage. Dr. Nagle said that additional GEA restoration would be preferable for the District, which is competing with rural and urban schools looking for increases in foundation aid. The Superintendent spoke of starting the school budget development process back in December. She said the draft document was available for Board of Education review. Dr. Nagle stated that East Greenbush is the lowest among the thirteen Suburban Council Schools for the five year average tax levy increase. The information is readily available on the State
Education Department website within the property tax report cards. The Superintendent reviewed enrollment projections of 3,976 next year as compared to the 4,006 students this year. She said that CDRPC projects slight enrollment decline of about 80 students in the next five years, which is lesser than the 400 student decline in the most recent five years. Projections may vary due to changes in live birth rates and housing developments within the District. The full report is posted online on the website. Dr. Nagle spoke to the revenue drivers in the budget: A) The state property tax cap – limits growth based on a formula beginning with the CPI at 0.12% B) Payments in Lieu of Taxes – some agreements are expiring, leading to a decline in available revenue C) Health insurance trust refund – previous refunds resulted in $550,000 in revenue this year; only $247,000 is projected for next year D) Foundation formula – only $3,467 in additional revenue is projected on the $16.2 million base foundation aid E) Gap Elimination Adjustment – the Governor proposes to restore $600,000, $20 million has been deducted over six years F) Emergency building aid – the current budget contains one-time building aid of $2.1 million related to the Bell Top project G) Expiring building aid – the revenue status report shows $3.0 million in building aid that will expire over the next two years The Superintendent spoke to expense drivers in the budget: A) School enrollment and programs – projected enrollment drives the need for student programs and staffing B) Employee compensation – result of contractual bargaining agreements C) State Pension System Contributions – employer contributions to the pension systems will decline as a result of five-year stock market performance D) BOCES services – most service increases are at 0% next year with some exceptions E) Special education tuition – direct result of placements, seeing increases in private school and BOCES tuition placements
F) Debt related to capital projects – result of capital projects in process Dr. Nagle said the Board is committed to maintaining class sizes in accordance with contractual requirements. Building budget allocations are about the same district-wide due to declining enrollment and a two percent increase in the per pupil amount. All seven schools are SED designated Schools in Good Standing; Bell Top Elementary School is a reward school. With regard to curriculum development and supervision, the Superintendent said the budget reflects continuation of the STEM program, on which the Board receives periodic information and updates. The special education budget line reflects additional cost related to outside placements. Continuing education programs remain unchanged. Dr. Nagle thanked Dr. Pampel for her efforts to implement phase five of the construction project and spending under the Smart Schools Bond Act related to technology. Instructional services in the preliminary budget such as library, guidance, health, psychology, and social work remain unchanged, including continuation of the school resource officer and student assistance counselor. There are no anticipated changes in extracurricular activities. The interscholastic sports budget remains unchanged; the requests for additional teams are not in the preliminary budget. The Superintendent said proposed staffing for next year reflects a shift of resources to the middle school based on enrollment. She reviewed an increased section at Citizen Genet Elementary and a reduced section at Donald P. Sutherland Elementary School. A half-time position will be added district-wide to accommodate new regulations for English as a new language. Howard L. Goff Middle School will see a net increase of 2.4 FTE; Columbia will see a net decrease of 2.2 FTE. Dr. Nagle shared that the preliminary budget proposal was $90,362,210 with a 2.47% total increase. The anticipated increase in the tax levy is 7.15%, which is over the 4.45% State threshold. Currently, the budget would need a 60% supermajority margin. If the proposed tax levy did not exceed the 4.45% threshold, a 50% plus one vote simple majority would be needed. The Superintendent said a contingent budget would require cuts of $3.6 million in non-mandated areas. Mr. Edson advised that the 4.45% threshold was higher than
previous years due to projected full value growth, PILOT revenue decreases, carryover from the previous year, CPI allowable increase, and capital exclusion. He said the preliminary computation will be posted on the website. The Superintendent reviewed three propositions on the ballot on May 17, 2016. Proposition #1 will be the proposed 2016-2017 budget. Propositions #2 & 3 will request the purchase of buses from the voter approved 2010 bus purchase reserve and through borrowing in accordance with the fleet replacement plan. Voting will also occur for the three open Board of Education seats currently held by Dr. Harrison, Ms. Curran, and Ms. Maciol. Dr. Nagle thanked staff and community members for their support and patience during the budget development process. She also suggested consideration of the potential cuts that would be required under a contingent budget. B. Physical Education Mr. Leonard reviewed current physical education class sizes with the Board. He requested additional staffing of 1.0 FTE to minimize injuries, reduce class size, and provide a safe and quality program for students.
PHYSICAL EDUCATION PRESENTATION
Ms. Taylor asked if discipline issues have increased in the locker rooms. Mr. Leonard said that there are some issues that are addressed by him and his staff. Mr. Buono asked if student teachers could provide assistance. Mr. Leonard replied that student teachers or teaching assistants were not a substitute for qualified physical education teachers, in order to minimize liability. 4.
Board Comments Dr. Harrison said the District had done a great job of keeping the tax levy increase low for residents during the past five years. However, he stated there has come a point where larger increases are needed to maintain programs and services. He said that the District does not plan to add any new programs, just sustain and maintain the existing programs. Dr. Harrison noted the public needs to decide what it will pay for in light of the 4.45% tax cap number. He also commented that the $3.6 million cut under a contingent budget would include all nonmandated programs, which will be a serious risk to the District.
BOARD COMMENTS
Mr. Dunn commented that we must reach out to the public and talk about children and the quality of education received in the District. He thanked Mr. Leonard for the presentation and asked that the issue be addressed. Mr. Dunn asked for input from the audience on the preliminary budget, requested individuals to contact legislators, and attend the budget review sessions. Ms. Curtin thanked Dr. Nagle for the presentation. Ms. Maciol asked Mr. Edson when more information will be available. Mr. Edson anticipated an on-time budget and insurance renewal rates at the end of the month. Ms. Maciol questioned the health insurance cost increase. Mr. Edson said it is based on preliminary premium rate increases of 3% to 25.8%. He shared that the District continues to work with the bargaining units to control insurance cost increases. Employees contribute more, and the plans have changed compared to prior years. 5.
Public Comments None at this time.
PUBLIC COMMENTS
6.
Board Comments None at this time.
BOARD COMMENTS
7.
Personnel Agenda Instructional/Instructional Support Personnel #659 as Recommended by Superintendent
PERSONNEL AGENDA
Motion by Ms. Curtin, Seconded by Ms. Massey Vote: Ayes – 8, Nays - 0 Motion carried. 8.
Resolution for Appointment of Superintendent of Schools APPOINTMENT OF and Acceptance of Employment Agreement SUPERINTENDENT Dr. Harrison spoke about the high regard for Mr. Simons, who was selected from a quality pool of candidates due to his high quality and character. He shared Mr. Simons’ nine years of experience in the Rome City School District, the removal of individual schools from the SED focus list, and approved capital projects. Dr. Harrison welcomed Mr. Simons as an inclusive individual who will be supportive of staff. Mr. Simons expressed his gratitude to the Board of Education. He noted the rigor and challenge of the Superintendent search process. Mr. Simons congratulated the District for its
outstanding reputation across New York State. He was impressed by the level of commitment to the District and the pride in schools expressed by the community. Mr. Simons said he was anxious to meet everyone, introduced his family, and looked forward to working with staff, students and administration. Dr. Harrison thanked Ms. Martin for serving as consultant and providing invaluable support during the search process. He also said that Mr. Mann, although absent from the meeting, communicated his full support of Mr. Simons’ appointment. Dr. Harrison read the following Resolution Approving Appointment of Superintendent of Schools and Acceptance of Employment Agreement (Jeffrey P. Simons) Whereas, the Board of Education has conducted a thorough search process to select a new Superintendent of Schools; and Whereas, after careful consideration and consultation, has determined that Jeffrey P. Simons, currently serving as the Superintendent of Schools for the Rome City School District, possesses the necessary qualifications and experience to serve as the East Greenbush Central School District’s Superintendent of Schools and to continue the orderly administration of the District’s ongoing programs and projects; and Whereas, Mr. Simons has agreed to accept the Board’s offer of appointment for a 3-year term to serve as the Superintendent, effective on July 1, 2016. Now, Therefore, Be It Resolved that the Board of Education hereby appoints Jeffrey P. Simons as the Superintendent of Schools of the East Greenbush Central School District for an initial term of three (3) years, commencing July 1, 2016 through June 30, 2019 at an initial annual base salary of One Hundred Seventy-Seven Thousand Five Hundred Dollars ($177,500) and hereby ratifies and adopts a written contract of employment (attached hereto as Exhibit “A”), containing all of the relevant and applicable benefits, terms and conditions of employment of the Superintendent; and Be It Further Resolved that the Board of Education authorizes the President of the Board, or the Vice President in his absence, to execute said Agreement on behalf of the District and to file same with the District Clerk. Motion by Mr. Dunn, Seconded by Ms. Taylor Vote: Ayes – 8, Nays – 0 Motion carried
8.
Adjournment Motion by Mr. Buono, Seconded by Ms. Massey to adjourn the meeting. Vote: Ayes – 8, Nays – 0 Motion carried. Time: 8:30 p.m.
Respectfully submitted,
Darcy Mancino District Clerk
ADJOURNMENT
