Possible Expenditure Reductions and Deficit Financing

1. Possible Expenditure Reductionsand Deficit Financing February 15, 2006 Indicates the Superintendent’s Recommendation

2. Given Philosophies and Conditions • A double digit tax rate increase on expenditures is not acceptable • A double digit tax rate increase on the tax levy is not acceptable • A K-8 program has very limited options for making large-scale cost savings

3. Review of Current Financial Status • 2004-2005 current deficit of $389,118 • 2005-2006 the district will incur approximately a $600,000 deficit • To maintain the current program will result in approximately a $3.1 million dollar increase

4. Budget Amounts • To carry forward the current program (deductions applied) will increase the expenditure side of the budget by 3.1 million dollars ($21,637,000) • Without an approved budget, a contingency budget will go into effect. This will result in a 2 million dollar decrease in current program ($19,627,524) • A 2 million dollar cut in this program without major changes to some “big ticket” items will result in drastic program cuts (academics will be impacted) • These numbers do not reflect any money applied to the deficit from 04-05 or 05-06

5. Possible Options to Reduce Expenditures and Decrease Taxes • Transportation • Deficit Financing • Grade 9 Program

6. Transportation • Approximate cost to transport at 100% busing- $1 million dollars (including high school transportation) • Possible alternatives: • State minimum busing- 2 miles K-8, 3 miles 9-12 • Combination of minimum requirements with kindergarten busing • Approximate saving $500,000 • Loss in State Transportation Aid- approximately $250,000 • Stagger the starting times and reduce the number of buses (no loss of State Aid) • Advantage- Approximate savings $200,000 • Maintain current busing at 100% • Extend the elementary student contact time with teachers • This change does not take voter approval • Disadvantage- Door to door pick up will no longer be available

7. Deficit Financing • Finance deficit from 2004-2005 school year, currently $389,118 • Finance deficit from 2005-2006 school year at an amount to be determined (~$600,000) • Advantages • Lessen the impact on the tax rate, spread out over five years • Usually quarterly reporting to State is required • Disadvantages • Possible credit downgrade by Standard and Poor’s • Payment of debt by borrowing

8. Grade 9 Program • Approximate costs based on current tuition rates- 1.6 million dollars (conservative) • Approximate cost to create a program with interscholastic sports, clubs, teachers, etc. $600,000 • Approximate savings to district after expenses to create a ninth grade program- 1 million dollars

9. Other Issues • School Entrance Evaluation • Hire four part-time hall monitors to supervise locked doors and hallways • Having security does not decrease the district’s insurance rates • Amended STAC • Amended forms submitted to SED for approximately $140,000 in State Aid were not accepted for submission because they are beyond the allowable submission dates • Senator LaValle and Assemblyman Thiele will sponsor legislation to extend the submission deadline • Audit Requests • Capital fund money appears to have been used for non-capital expenses (LIPA and KeySpan) • Request to have comptroller audit district

10. Public Budget Meetings • The administration will provide a fiscally responsible and educationally sound budget • The administration will provide what a contingency budget will look like