West Hempstead UFSD Community Discussion on the Budget Process

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West Hempstead UFSD Community Discussion on
the Budget Process

• February 1, 2007

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Budgeting for the Future
West Hempstead is

• Residents 18,700
• Students 2,400 Public 1,050 Private/Parochial
• Staff 339 Full Time 22 Part Time
• Buildings 6 Buildings covering
• 402,233 Square Feet on
• 44 Acres

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KEY CONSIDERATIONS
Student Enrollment and Class Size
Revenue Sources Including Local Property Taxes,
State Aid and Alternative Sources
BOE Policy
Budget Decision Making
Collective Bargaining Agreements
NYS Learning Standards Assessments
Health, Safety Preservation Of Property
Academic Programs and Extracurricular Activities
Federal State Mandates
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Budget Timetable2007-2008 Proposal
Budgeting for the Future
Building Inspection Reports from Principals Due
All Budgets from Principals to Business Office
Administrative Budget Meetings
Building Inspections for All Schools
November 10
November 22
December 11-15
January 6
BOE and Central Administration Refine Budget
February 2 March 20
Budget Hearings March 6 March 20 Budget Vote
May 15
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Budgeting for the Future

• Budget proposals
• - are zero-based
• - must be supported by data and sound philosophy
• - lead to the creation of a line item budget
• - are continually adjusted until formally adopted
  by the BOE

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Budgeting for the Future
Tax Definitions

• Tax Rate-The dollar amount per 1000 of assessed
  value used to compute a parcels tax burden. It
  is computed by the local municipality/town based
  on the assessed value, base proportion and
  equalization rate.
• Assessed Value-This is 0.25 x the Full Market
  Value of a property. This is determined by the
  Tax Assessor.
• Base Proportion-The percent of the overall tax
  levy that will be paid by each of the four tax
  classes. It is governed by 1803-a of the Real
  Property Tax Law.
• Equalization Rate-This rate is set annually by
  the Office of Real Property Services in Albany
  and it does not impact school district taxes in
  West Hempstead because the entire district falls
  within one municipality (Town of Hempstead).
• Tax Levy-The total value of funds to be collected
  by the tax collector on behalf of the school and
  library. It is set by the Board of Education and
  the Library Board.

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Budgeting for the Future
Tax Facts
The tax rate consists of four variables, which
include the tax levy (less payments received from
the New York State STAR Program), equalization
rate, assessed valuation and base proportion. The
Districts only part in determining the tax rate
is establishing the tax levy. As of April 1,
2006, the Nassau County Assessors Office
estimated that the average home in West Hempstead
had an assessed value of 1,062 (average full
value 424,800).The school tax for 2006-2007 on
the average home is approximately 5,516 before
STAR reimbursement. For the 2005-06 year, the
school tax for 2005-2006 on the average home was
5,301 before STAR exemption.
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Budgeting for the Future
Tax Facts
The 2006-2007 Budget changed the tax levy by
2.74. How much did your school taxes change?

• Three Factors That Are Causing Tax Increases
• Percent Increase in Home Value
• Class Shift in Tax Levy
• School Tax Levy

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Budgeting for the Future
Tax Facts
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Budgeting for the Future

• Long Island is more heavily dependent on
  property taxes because the state share of support
  is decreasing
• - 39 districts received less than 10 of revenue
  from the state
• - 55 districts received 10 to 30 of revenue
  from the state

Only 214 districts in the state receive 30 or
less of the revenue from the state - 94 of those
districts are on Long Island
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Budgeting for the Future
West Hempstead Revenue 2005-2006
Approximately 12 of West Hempsteads total
revenue was from State Aid during 2005-2006.
Percentages are expressed as a share of total
revenue.
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Budgeting for the Future
Nassaus Dilemma Cost of Living

• - The cost of living is 20-50 higher than in
  other NYS counties.
• Said another way
• - The value of the aid dollar is 20-50 lower
  than in other NYS counties.

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Budgeting for the Future
Nassaus Dilemma Aid as a of Income Tax
Latest available income data
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Budgeting for the Future
Nassaus Dilemma Aid as a of Income 2002-2003

• For every income tax dollar Nassau sends to
  Albany, it received 25 cents back.
• The State average was approximately 75 cents for
  every dollar sent.
• For NYC it was 72 cents.

Latest available income data
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Budgeting for the Future
West Hempstead State Aid
The Nassau County Average is 16.5
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Budgeting for the Future
West Hempstead Tax Levy
As the percent share of State Aid to expenses
decreases, the percent share of expenses to tax
levy increases.
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Budgeting for the Future
Comparison of 2005/2006 to 2006/2007 West
Hempstead School Tax Bills
Statistics are from the Nassau County Tax
Assessors Office. They excluded properties with
changes in exemptions, additions/renovations, and
residential vacant land.
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Budgeting for the Future
Unfunded Mandates
No Child Left Behind (NCLB) including Grade
3-8 Testing Test Scoring Score Reporting
Data Analysis Individuals with Disabilities
Education Improvement Act (IDEA) Americans with
Disabilities Act (ADA) Expansion of Special
Education Services (Inclusion) Expansion of
Regents Testing/Setting Regents Diploma as
minimum graduation requirement Initiation of
more student health screenings Annual Inspections
Required by NYSED/Facilities Planning Pension
Contributions Insurances Auditing
Functions Defibrillator purchase, maintenance and
training Project SAVE
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Budgeting for the Future

• Most of the School District Budget is
  non-discretionary. Once budgets are estimated for
  unfunded mandates, the Board of Education
  deliberates over items such as building
  maintenance, textbook adoptions, curricular
  innovations and K-12 class sizes. These are
  important issues however, most of the local
  decision making is spent on 3 of the budget.

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Budgeting for the Future

• While preparing the 2007-2008 budget proposal,
  the BOE is monitoring

• - The Governors Budget Proposal and the
  Legislative Response to it
• - Regional Economic Growth/CPI
• - Interest Rates
• - Mandatory contributions to NYS Pension
  Systems and Insurance Costs

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Budgeting for the Future

• The BOE and Administration uses the following
  strategies to keep budget growth in check

- closely evaluating staffing levels -
scrutinizing and justifying all budgetary
requests - combining purchasing power with other
districts and municipalities
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Budgeting for the Future
West Hempstead keeps costs down by

• - continuing to expand its purchasing agreements
  with other municipal districts. The joint buying
  power of these consortiums helps lower operating
  costs.
• - maintaining purchasing, bidding and shared
  service agreements with over 20 other school
  districts, BOCES, two municipalities and with New
  York State.

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Budgeting for the Future

• A partial list of these agreements include

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Budgeting for the Future
The BOE is using the following strategies to keep
tax growth in check

• - Include only necessary and prudent expenditures
  in the budget proposal
• - Continue to improve operational efficiency
• - Continue to maintain alternative revenue
  sources
• - Continue to look for new revenue sources
• - Use Reserves

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Budgeting for the Future
The West Hempstead BOE is working in conjunction
with our local representatives, the Long Island
Association, the Nassau-Suffolk School Boards
Association, the Nassau County Council of School
Superintendents, the Suffolk County School
Superintendents Association and the NYS
Association of School Business Officials to

• - Provide property tax relief to West Hempstead
  and Long Island
• - Increase direct state aid for public education
• - Adjust aid based on demographic, achievement
  and wealth data, and regional cost differences
• - Guarantee minimum state share for every
  district
• - Introduce multi-year aid to enhance planning
• - Consolidate and simplify aid formulas

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Budgeting for the Future

• Remember Vote on May 15th
• Its Important!
• Have Questions? Email them to
• votemay15_at_whufsd.com