Syracuse City School District

Superintendent‟s Proposed
2011-2012 Budget
Executive Summary

Daniel G. Lowengard, Superintendent of Schools

Suzanne Slack, Chief Financial Officer
February 9, 2011
 2011-2012 Budget Gap

During the earliest stages of the 2011-2012 budget process it became clear that
with non-recurring revenues and rising expenses we would once again be facing a
budget deficit. Every year the Syracuse City School District faces devastating budget
gaps forcing the administration to once again do more, or in fact do better, with
less. This year the $50 million gap was so large, the Board of Education called upon
experts in the community to help us identify solutions.
In November the Superintendent outlined the $50 million Gap as follows:

Source 2011-12 GAP

Use of Fund Balance in 2010-11 of $19
million leaving only $6 million to pay for $ 13 m
2011-12 expense

Federal Stimulus Funds (ARRA / Jobs Bill)

of $14 million in 2010-11 expected to be $ 9m
only $5 million in 2011-12

Say Yes to Education Proforma expenses

for 2011-12 estimated at $16 million with $ 15 m
known revenues of $1 million

Projected Expenditure Increases $ 13 m

Total $ 50 m

In conjunction with Robert Shaffer Associates and Say Yes to Education, the
Board of Education formed a Budget Workout Group of City, County, State, Union,
School District and professional consultants to work on creative solutions to the $50
million budget crisis. Three teams were formed in November and within eight weeks
they produced recommendations which narrowed the gap to $4.5 million.

2
 Budget Workout Results

Team One: Revenue / Funding / Grants

Long-Term
Recommendations Funding Opportunity
$ in Millions $ in Millions
City Collaboration – Taxes, Pre-K, Say Yes $2.0 – $3.0
Foundation Grants – Say Yes initiatives $3.0
Other Grants $1.5
State Aid Formula Equity $8.0 – 15.0
Outsource Medicaid Billing $3.0
Additional Use of Fund Balance $4.0
Deferral of Federal Jobs Bill to 2011-12 $2.4
Total $9.4 Up to $22.5

Team Two: Consolidation of Services

Expense Long-Term
Recommendations Reduction Opportunity
$ in Millions $ in Millions
Operations & Maintenance $7.0
Health Insurance $2.8
Repurpose Two Facilities $3.0 $2.0
Consolidation of Social Services with the County $0.0
Departmental Sharing of Clerical Support $0.5
Total $10.5 $4.8

Team Three: Staffing & Student Services

Expense Long-Term
Recommendations Reduction Opportunity
$ in Millions $ in Millions
Special Education Reconfiguration $7.5
District-wide Staffing Reductions $15.0
Contract Re-negotiations $7.0
Say Yes to Education Revisions $4.0
Total $22.5 $11.0

3
 Budget Workout Results

Summary of Budget Workout $ in Millions

Projected Budget Gap as of November $ 50.0

Reduction of expense projections - 3.1

Revised Budget Gap as of January $ 46.9

Team One: Revenue / Funding / Grants $ 9.4

Team Two: Consolidation of Services 10.5
Team Three: Staffing & Student Services 22.5
Total $ 42.4

Net Budget Gap after Workout $ 4.5

The original budget gap was estimated at $50.0 million and was subsequently
reduced to $46.9 million. This reduction was created by changes to the projected
expenses for 2011-2012 after updated retirement, benefit, and other cost increases
were determined. The three teams produced suggestions totaling $42.4 million, leaving
a gap of $4.5 million which was eliminated by the administration through further budget
reductions.
On February 1st Governor Cuomo released the Executive Budget Proposal which
included a reduction of the Syracuse City School District‟s State Aid allocation for 2011-
2012 of $16.3 million, or 6% of State Aid, to which additional budget reductions have
been made to produce a balanced budget.

Education Resource Strategies (ERS)

ERS is a national research firm that analyzes school spending, resources allocation,
and student performance to maximize resources and student achievement. The findings
from ERS‟s in-depth analysis are as follows:

• Restructure Special Education

• Reduce Teaching Assistants, School Safety Officers, Custodians
• Central Office spending is in line with comparable districts

This information was used by the three Budget Workout Teams to support the areas
of expense reduction.

4
 Superintendent’s Proposed Budget
February 9, 2011

The Proposed General Fund Budget of $332 million has decreased 6% despite
the rising cost of retirement, health care, contractual salaries, and expansion of Say Yes
to Education to the Nottingham Quadrant. The Governor‟s Executive Budget Proposal
includes a $24 million Gap Elimination Adjustment (GEA) for Syracuse. The District has
reduced positions in the past three budget years due to State Aid shortfalls and
proposes another 539 position reductions this year to balance the budget.

Every line item of the budget, every program, and every type of expenditure was
reviewed in our zero-based budgeting process this year. The following two pages
highlight expense categories where reductions were made in order to balance the 2011-
2012 budget in light of State Aid funding cuts.

5
 Superintendent’s Proposed Budget - February 9, 2011

Net Expense
Increase
Function – General Fund Only (Reduction) % Change

Board of Education ($ 95,000) ( 11.6%)

Information Technology ($ 406,000) ( 4.1%)

Business Administration $ 306,000 3.6%

Accounting for Change in Inventory Valuation $ 1,000,000 12.0%

Borrowing & Cash Management ($ 4,108,000) ( 14.0%)

Facilities ($ 2,523,000) ( 8.0%)

Regular Instruction ($14,775,000) ( 9.5%)

Special Education ($ 4,115,000) ( 6.7%)

Guidance ($ 118,000) ( 3.1%)

Health Services ($ 66,000) ( 12.3%)

Co- Curricular Activities ($ 102,000) ( 16.1%)

Interscholastic Athletics ($ 380,000) ( 19.6%)

Transportation $ 425,000 2.2%

Insurance $ 2,196,000 8.4%

Total ($22,761,000) ( 6.4%)

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Superintendent’s Proposed Budget - February 9, 2011

Net Expense
Increase
Object of Expense – General Fund Only (Reduction) % Change

Salaries & Benefits ($ 18,041,000) ( 11.0%)

Inventory $ 1,000,000 -

Equipment ($ 200,000) ( 14.8%)

Contract Services ($ 1,540,000) ( 2.8%)

Travel ($ 114,000) ( 18.9%)

Supplies $ 242,000 ( 11.0%)

Debt & Cash Management ($ 4,108,000) ( 14.0%)

Total ($ 22,761,000) ( 6.4%)

7
Revenue - State Aid

CFE - Campaign for Fiscal Equity – The Broken Promise

In 2007-08 the State was bound by the courts decision to fully fund the neediest
districts. Governor Spitzer implemented a four year phase-in plan. For Syracuse this was
an increase of $85 million, or about $4,000 per student, by 2010-11. This chart shows
the promise, and now the reality of New York State‟s funding cuts and the devastating
impact.

Not only is the promise broken, but in the last two years the Gap Elimination
Adjustments - $11 million in 2010-11 and now $24 million in 2011-12 - resulting in only
$13 million of an $85 million promise in 2011-12.

8
Revenue - State Aid

State Aid Funding – Four Year Budget Trend

Over the past four years through the fiscal stewardship of the Board of
Education, we have seen a decrease in our General Fund Budget by 5% or $18.5
million. In this same timeframe our State Aid has decreased by $25 million, or 9%. We
have still managed to implement Say Yes to Education across the District, expand the
Expeditionary Learning program, implement a new business system, make payments on
JSCB debt with little or no offsetting Building Aid, and absorb annual increases to
retirement and health insurance costs.

Governor Cuomo‟s Executive Budget Proposal reduces state support for public
schools by $1.5 billion, or 7.3%, holds Foundation Aid at 2008-09 levels through 2012-
13, and caps each districts state aid at the 2011-12 Executive Budget amounts.

9
 Revenue - State Aid

The Governor‟s Executive Budget includes significant funding reductions. The

State Aid proposal includes a $24 million Gap Elimination Adjustment to the Syracuse
City School District which is the equivalent of a 10% reduction of the District‟s State
Aid.

Governor Cuomo has stated that the funding reductions were structured so that
a low-wealth district will face a smaller percentage cut than a higher-wealth district.
Looking at the graph below it is clear to see that this is not the case. The Gap
Elimination Adjustment for Syracuse is 7% of our Total General Fund Budget and
Syosset which is 7 times as wealthy is cut only 1% of their General Fund.

Governors Proposed 2011-12 Gap Elimination

Adjustment Compared to District Wealth
30% 5.5
28%
27% 27%
26% 26% 26%
25% 25%
25% 25% 25% 25%
25% 4.5

20% 3.5
Percent Reduction

16%

15% 2.5
13%

10% 9%
10% 9% 9% 8% 1.5

7% 7% 7% 7%
7%
Locust Valley
North Shore

5% 5% 4% 5% 5%
Jericho
Syosset

5% 4% 0.5
West Genesee
North Syracuse

Baldwinsville
Liverpool
Rochester

Yonkers
Syracuse

1%
Buffalo

1% 1% 1%
Skan.
NYC
ESM

FM
JD

0% -0.5
0 5 10 Nassau15
County Districts
Gap % of State Aid Gap % of TGFE Districts listed in order of poorest to wealthiest (CWR)

10
Revenue - State Aid & Property Tax

State Aid

The Syracuse City School District primarily depends on State Aid for General
Fund Revenue. State Aid accounts for about 74 cents of every General Fund dollar that
we receive. As a result, any reductions of State Aid have a significant impact on our
ability to meet our expense obligations when balancing the budget.

All Other, 3% Fund Balance, 4%

STAR, 3%

Property
Tax, 16%

State Aid,
74%

2011-12 Revenue Budget

$ in Millions $ / Pupil
State Aid $ 243.8 $ 12,435
Property Tax 55.5 2,831
STAR 7.8 398
Fund Balance 10.0 510
Federal 8.0 408
Other 6.6 337
Total $ 331.7 $ 16,919

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Revenue - School Tax

School Tax

School Tax Revenue of $55 million excluding STAR represents 16 cents of every
General Fund dollar that we receive. School Taxes have remained flat for several years.
As Assessed Values increase the Tax Levy should increase by simply holding the Tax
Rate flat. For the past three years the City has decreased the Tax Rate holding flat the
Tax Levy. The cumulative impact of decreasing Tax Rate has cost the Syracuse City
Schools is just over $3.0 million of lost revenue.

City of Syracuse School Tax History

$400 $18.00
$3.65 Billion $3.70 Billion $3.70 Billion
Assessed $3.58 Billion $3.62 Billion
Value
in Billions

$300 $17.75
$17.70 $17.69
Tax Rate
Per
$1,000 $17.55

$200 $17.50

$17.34 $17.34

$100 $17.25
Tax Levy $64.09 $64.09 $64.09 $64.09
$63.43
including
STAR in
Millions

$- $17.00
2007 - 08 2008 - 09 2009 - 10 2010 - 11 2011 - 12

Assessed Value in millions Tax Levy in millions Tax Rate per $1,000

2008-09 2009-10 2010-11 2011-12 Difference

Budget Budget Budget Budget from 2008-09

Total Assessed Value $ 3,622,263,893 $ 3,651,668,347 $ 3,696,960,379 $ 3,696,960,379

Total Tax Levy $ 64,094,544 $ 64,094,544 $ 64,094,544 $ 64,094,544

Tax Rate per $1,000 $ 17.69 $ 17.55 $ 17.34 $ 17.34 -2.0%

What Tax Levy including STAR would

$ 64,094,511 $ 64,614,811 $ 65,416,235 $ 65,416,235
be at 2008-09 Tax Rate 2.1%
School Tax dollars if Tax
Rate remained at 2008-09 Level $ 520,267 $ 1,321,691 $ 1,321,691 $ 3,163,649
over three years
HISTORY 2008 - 09 2009 - 10 2010 - 11 2011 - 12

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Revenue - Property Tax
Syracuse City School District
Revenue Generated per Tax Rate Increase

Key Assumptions
2010-2011 Assessment $3,696,960,379
Current Tax Rate $17.337 per $1,000 of Assessed Value

STAR Benefit Calculation

Gross Benefit $30,000
Multiplier 0.67
Equal. Rate 0.8450
Net Benefit $16,985

Increase to Annual Property Increase to Annual Property

Impact on School Tax Rate
Tax Bill (including full STAR Tax Bill (without STAR Benefit)
Benefit of $30,000)
Assessed Value of Home Assessed Value of Home

% Revised Tax
Increase Amount of Rate (per
in School Revenue $1,000 of
Tax Rate Generated Assessed Value) $ Increase $40,000 $70,000 $100,000 $40,000 $70,000 $100,000
1% $640,946 $17.51 $0.17 $3.99 $9.19 $14.39 $6.93 $12.14 $17.34
2% $1,281,891 $17.68 $0.35 $7.98 $18.38 $28.78 $13.87 $24.27 $34.67
3% $1,922,837 $17.86 $0.52 $11.97 $27.57 $43.18 $20.80 $36.41 $52.01
4% $2,563,783 $18.03 $0.69 $15.96 $36.77 $57.57 $27.74 $48.54 $69.35
5% $3,204,729 $18.20 $0.87 $19.95 $45.96 $71.96 $34.67 $60.68 $86.69
6% $3,845,674 $18.38 $1.04 $23.94 $55.15 $86.35 $41.61 $72.82 $104.02
7% $4,486,620 $18.55 $1.21 $27.93 $64.34 $100.75 $48.54 $84.95 $121.36
8% $5,127,566 $18.72 $1.39 $31.92 $73.53 $115.14 $55.48 $97.09 $138.70
9% $5,768,511 $18.90 $1.56 $35.91 $82.72 $129.53 $62.41 $109.22 $156.03
10% $6,409,457 $19.07 $1.73 $39.90 $91.91 $143.92 $69.35 $121.36 $173.37
11% $7,050,403 $19.24 $1.91 $43.89 $101.10 $158.32 $76.28 $133.50 $190.71
12% $7,691,349 $19.42 $2.08 $47.88 $110.30 $172.71 $83.22 $145.63 $208.05
13% $8,332,294 $19.59 $2.25 $51.87 $119.49 $187.10 $90.15 $157.77 $225.38
14% $8,973,240 $19.76 $2.43 $55.86 $128.68 $201.49 $97.09 $169.90 $242.72
15% $9,614,186 $19.94 $2.60 $59.85 $137.87 $215.89 $104.02 $182.04 $260.06
16% $10,255,131 $20.11 $2.77 $63.84 $147.06 $230.28 $110.96 $194.18 $277.39
17% $10,896,077 $20.28 $2.95 $67.83 $156.25 $244.67 $117.89 $206.31 $294.73
18% $11,537,023 $20.46 $3.12 $71.82 $165.44 $259.06 $124.83 $218.45 $312.07
19% $12,177,969 $20.63 $3.29 $75.81 $174.64 $273.46 $131.76 $230.58 $329.40
20% $12,818,914 $20.80 $3.47 $79.80 $183.83 $287.85 $138.70 $242.72 $346.74

This chart demonstrates the impact of a school tax increase to City of Syracuse
homeowners. A 1% tax rate increase is $0.17 per $1,000 of assessed value. A taxpayer
with a $70,000 home would pay an additional $9.19 per year if eligible for STAR (School
Tax Aid Relief) or $12.14 if not eligible for STAR.

A 1% tax rate increase would generate additional revenue of $641,000 and a 2%

tax rate increase would generate additional revenue of $1.3 million to the District.

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Revenue – School Property Tax

School Property Taxes of Syracuse Property Owners - 2010-2011

Number % of
Range of Properties Total
No Tax 3,291 8%
$1 - $500 8,034 20%
$501 - $1,000 15,368 34%
$1,001 - $1,500 8,711 21%
$1,501 - $2,000 2,988 8%
$2,001 + 3,605 9%
Total 41,997 100%

Syracuse School Tax Ranges

30,000 26,176 26,762 26,747 26,693
Number of Properties

16,026 15,237 15,197 15,304

15,000

-
2007-08 2008-09 2009-10 2010-11

$0 - $1,000 $1,001 +

Since 2007-08 the number of properties in Syracuse paying $1,000 or less per
year in property tax has increased by 220, or 1%. The number of properties paying
more than $1,000 has decreased by 722, or 5%. Over 60% of the property owners in
Syracuse pay less than $1,000 annually in School Taxes.

14
Revenue – School Property Tax

Inequity among School Districts - Property Tax

Years of School
Net Profit on Tax in Gross
Current Annual School Property Value Gross Profit on Sale after 10 Profit on Sale of
District Property Value Tax in 10 Years Sale in 10 Years years of taxes Property

Down State District

(tax rate $10) $ 1,000,000 $ 10,000 $ 2,000,000 $ 1,000,000 $ 900,000 100 Years

NYS Average District

(tax rate $25) $ 200,000 $ 5,000 $ 300,000 $ 100,000 $ 50,000 20 Years

Syracuse
(tax rate $18) $ 70,000 $ 1,260 $ 70,000 $ - $ (12,600) 0 Years

This chart demonstrates the property wealth behind students in a wealthy district
versus that of a poorer district. In this scenario the value of home increases over time
in wealthy and average districts yet remains flat in Syracuse.

Charles Shippee of the New York State Education Department presented

property values from 1996-97 to 2006-07 in “The Fiscal Environment in Large City
School Districts”. This report shows that on average homes in New York increased in
value by 49% over 10 years, however, in Syracuse homes decreased in value by 1% in
that same time frame.

15
Revenue - State Aid & Property Tax

Governor's 2011-2012 Executive Budget Proposal February 1, 2011

Property Tax
Combined Prior Year Levy as % of
District Wealth 2010-11 Gap Elimination GEA % of GEA as % 2011-12 Total Total Total General General State Aid % of 2009 Tax Property Total
Ratio Student Adjustment GEA Per 2010-11 of General Proposed State State Aid Fund Estimate Fund $ General Rates $ / Property Tax Tax Levy Assessed
(CWR) Enrollement (GEA) Student State Aid Fund Aid $/Student (TGFE) Per Pupil Fund $1,000 Levy $/Student Value

Onondaga County

Syracuse 0.294 21,267 $ 24,405,392 $ 1,148 9.5% 6.9% $ 251,275,998 $ 11,815 $ 353,701,340 $ 16,631 71% $ 17.69 $ 64,094,544 $ 3,014 1.8%

North Syracuse 0.541 9,550 $ 12,674,157 $ 1,327 23.4% 9.4% $ 52,562,153 $ 5,504 $ 135,467,060 $ 14,185 39% $ 18.82 $ 65,825,314 $ 6,893 2.0%

Baldwinsville Central 0.567 5,818 $ 8,173,806 $ 1,405 25.0% 8.7% $ 31,994,725 $ 5,499 $ 93,669,512 $ 16,100 34% $ 24.15 $ 47,962,999 $ 8,244 2.4%

Liverpool 0.55 7,591 $ 11,573,214 $ 1,525 24.4% 8.8% $ 49,693,239 $ 6,546 $ 131,277,809 $ 17,294 38% $ 25.02 $ 71,584,655 $ 9,430 2.5%

West Genesee 0.586 5,052 $ 5,921,944 $ 1,172 24.6% 8.5% $ 23,898,206 $ 4,730 $ 69,938,455 $ 13,844 34% $ 20.48 $ 37,325,063 $ 7,388 2.0%

East Syracuse Minoa 0.615 3,405 $ 5,008,121 $ 1,471 23.9% 6.9% $ 20,896,483 $ 6,137 $ 72,339,792 $ 21,245 29% $ 23.61 $ 39,900,108 $ 11,718 2.4%

Westhill 0.647 1,895 $ 2,518,469 $ 1,329 25.0% 7.8% $ 10,373,995 $ 5,474 $ 32,465,318 $ 17,132 32% $ 24.82 $ 17,156,297 $ 9,053 2.5%

Fayetteville Manlius 0.952 4,609 $ 3,443,385 $ 747 22.6% 4.7% $ 16,140,555 $ 3,502 $ 74,020,753 $ 16,060 22% $ 24.47 $ 51,636,150 $ 11,203 2.4%

Jamesville Dewitt 0.928 2,884 $ 2,050,386 $ 711 23.7% 4.3% $ 9,420,145 $ 3,266 $ 47,395,914 $ 16,434 20% $ 20.94 $ 32,383,999 $ 11,229 2.1%

Skaneateles 1.339 1,664 $ 1,146,074 $ 689 25.0% 4.0% $ 5,864,670 $ 3,524 $ 28,765,843 $ 17,287 20% $ 12.70 $ 19,790,204 $ 11,893 1.3%

Big 4

Rochester 0.273 33,709 $ 27,292,300 $ 810 6.4% 4.7% $ 440,506,598 $ 13,068 $ 580,687,245 $ 17,226 76% $ 20.72 $ 119,099,946 $ 3,533 2.1%

Syracuse 0.294 21,267 $ 24,405,392 $ 1,148 9.5% 6.9% $ 251,275,998 $ 11,815 $ 353,701,340 $ 16,631 71% $ 17.69 $ 64,094,544 $ 3,014 1.8%

Buffalo 0.306 40,269 $ 37,880,724 $ 941 7.1% 4.7% $ 607,321,991 $ 15,082 $ 805,972,860 $ 20,015 75% $ 11.47 $ 70,322,758 $ 1,746 1.1%

Yonkers 1.052 23,964 $ 32,851,833 $ 1,371 15.4% 6.9% $ 201,819,655 $ 8,422 $ 476,113,536 $ 19,868 42% $ 10.03 $ 218,849,240 $ 9,132 1.0%

* 2010-11 Enrollment BEDS Data, https://eservices.nysed.gov/sams-public/reports.do, General Aid Output Report (Line 97)
** CWR Data, https://eservices.nysed.gov/sams-public/reports.do , General Output Aid Report (Line 52)
(A) Data from 2011-12 Executive Budget Proposal 2-1-11

This chart compares data from the Governor‟s Executive Budget for area and Big 4 districts relative to wealth,
property tax, state aid, and general fund amounts.

16
Revenue – Grant Funds

Grant Funding Multi Year Trend

$ in Millions
$100
$ 94.8
$ 92.5 $ 92.0
$ 89.3 $ 87.7
$13.7
$13.0 $12.8 $ 80.9
$12.5
$ 77.8
$ 74.2 $ 73.4 $19.9
$75 $ 72.2
$ 68.3 $6.1 $17.2
$13.9
$5.2 $12.4 $16.0
$38.0 $42.2
$40.9 $18.2
$38.6
$17.7
$24 million of State
$50 $16.6
$38.1 Funds reallocated to $16.7
$33.5 General Fund in 2007-08 $4.2
$37.9
$12.7

$25
$43.2 $45.4
$41.5 $38.6 $38.9 $40.7
$38.2
$30.4 $33.3
$30.0
$25.2

$0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Federal ARRA State Local Agencies

Grant Funds are not part of the General Fund Budget; however, grant funds do
supplement programs in the General Fund. As grant funds decline the District‟s overall
ability to support program initiatives is diminished.

The Federal American Recovery and Reinvestment Act Funds, which were
earmarked to save jobs, will end this year. The federal funding cliff that has been
discussed for the past two years is here and the results are devastating. With the
termination of these funding streams and with flat funding of Federal and State grants,
many jobs will be eliminated.

17
Fund Balance

Fund Balance Trend

$50.0

2009-10
$6.9 million
savings
$40.0

2008-09 $11.1
million savings 2010-11
Budget use of
$30.0 $19 million

2007-08 $6.3 million

Lottery Aid Advance $27.5

$20.0 2004-05 $20 million $23.4

Lottery Aid Advance
2011-12 Budget
Proposed use of
$10 million
$15.5 $13.6
$10.0 $13.0
$5.9 $10.2
$3.6
$11.2
$8.4
$6.3 $5.2 $6.0 $6.0
$3.9 $3.8 $4.1
$-
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
$ in Millions Projected
Restricted Unrestricted

The Superintendent‟s Proposed 2011-12 Budget includes the use of $10 million,
or ½, of fund balance to partially fund the gap left in our budget by State Aid
reductions.

Fund Balance is made of up of restricted and unrestricted amounts. Restricted

Fund Balance includes open purchase and funds restricted by the Board of Education
for technology. Unrestricted Fund Balance is the amount available at the end of a
school year for use in a future year. As of June 2010, our audited Fund Balance of
$38.6 million included $27.5 million of unrestricted funds.

The last two years of devastating State Aid reductions resulted in use of the
District‟s Fund Balance, or savings, in order to balance the budget. At this rate, we will
leave only $3.6 million, less than 1%, in Fund Balance for the 2012-13 budget year.

18
Expenses

75 cents of every dollar spent in the District is for the salaries and benefits of our
employees. Most employees are represented by collective bargaining units and their
annual salaries are negotiated in multi-year contracts. When the District is faced with
budget funding shortfalls, reductions of staff are necessary as employee expenses are
the largest portion of expenditure.

Contractual services represent 16 cents of every dollar spent. Contractual

services include categories such as student transportation, charter school tuition,
electric and gas, and professional services.

The 2011-2012 budget includes expense increases over the current year budget
for initiatives and set expenditures including the expansion of Say Yes to Education,
contractual wage increases, employer contributions for ERS and TRS, unemployment
costs relative to position reductions, and health insurance.

Expenses by Category
Debt &
Interfund, 7% Other, 2%

Contract
Services, 16%

Salaries &
Benefits, 75%

Salaries & Benefits Contract Services Debt & Interfund Other

2011-12 Budget Expenses

$ in Millions $ / Pupil
Salaries & Benefits $ 247.3 $12,612
Contract Services 53.1 2,707
Equipment & Supplies 6.7 343
Debt 16.7 405
Total $ 331.7 $16,919

19
 Cost Increases

Higher Education Price Index (HEPI) vs. Consumer Price Index (CPI)

The Consumer Price Index is not an appropriate metric for educational

institutions because the normal „basket of goods‟ which CPI represents does not include
the types of goods and services that comprise a school district budget. School district
expenses are similar to higher education institutions and therefore more closely follow
the High Education Price Index. Even though HEPI increases have outpaced CPI
increases, the District has reduced overall spending in the 2011-2012 budget.
Higher Education and Consumer Price Index
300

HEPI average 10 year

increase 3.5%
275

250
Price Index

225

200
CPI average 10 year
increase 1.6%

175

150
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

HEPI CPI

HEPI is the measure of the impact of price CPI is the measure of the impact of price
changes on goods and services typically changes on goods and services typically
Hepi by colleges. This is similar to the
purchased purchased by households. The market basket
Salaries
goods – staff
and services purchased by school of goods and services purchased by households
districts: includes:
Employee salaries and benefits Food and beverages
TRS
Contract services Housing
Health
Communication services Apparel
Charter
Transportation Medical care
Equipment and supplies Recreation
Library resources Education
Utilities 20
Cost Increases

Charter School Tuition

Charter School enrollment has increased slightly, but more importantly Charter
School Tuition has increased at double digit rates in the past four years. Charter School
Tuition is calculated from the expenses of the District in which the Charter School
resides, regardless of the actual expenses of the Charter School.

In the Syracuse City School District, our expenses include the costs of providing
special education, transportation, retiree benefits, and compliance with multiple Federal
and State regulations. Charter Schools do not typically have these same levels of
expense and therefore operate at a lower cost per student.

Although State Aid per pupil to the District is frozen at 2008-09 levels, Charter
School tuition rates continue to increase year after year.

Charter School Tuition Rates and Enrollment

$12,000 1,300

$11,400
$11,130
$11,130

$10,500 $10,362 1,148

1,100
Tuition Rates

Enrollment
$9,000
$8,884

929 930

900

864
$7,500
833

$6,000 700
2007-08 2008-09 2009-10 2010-11 2011-12

Tuition Enrollment

21
Cost Increases

Teacher and Employee Retirement Costs

Teacher Retirement System (TRS) and Employee Retirement System (ERS) rates
are set by New York State. Three indicators that cause the retirement fund to fluctuate
each year are the economy, investment earnings, and the number of retirees drawing
from the fund. This year New York State has estimated the employer contribution rate
for TRS at 11.5%. This is an average increase of 33% over the current contribution
rate. In total, the Syracuse City School District Retirement cost is expected to increase
by $3 million in 2011-12.

Retirement Employer Contribution Rate History

16%

In 2011-12 TRS Rates are increasing 33% and ERS Rates are
increasing 24%. As a result, total retirement expense is
projected to increase over $3 million in 2011-2012.

12.4%

12% 11.7%

10.9% 10.8% 11.5%

10.0% 10.0%
9.6%
10.0%

8.6% 8.7%
8%
8.0% 8.0%

7.0%

4%
2005-2006 2006-2007 2007-2008 2008-2009 2009-10 2010-2011 2011-2012
Teacher Retirement System (TRS) Employee Retirement System (ERS) TRS 3,100 Employees ERS 1,000 Employees

22
Cost Increases

Health Insurance

In 2007-08 employees paid 6.4% of total health insurance costs. The District‟s
collective bargaining agreements all include progressive employee cost sharing that
increase as salaries increase. The employee portion ranges from 10% -20% for active
members (current employees). Total health care cost includes the health insurance
claims for retirees who contribute at the Medicare rate until age 65.

Overall health insurance costs are projected to increase 8% in 2011-12 to just

over $64 million. The employee health care contribution is projected to increase
approximately 10% in 2011-12 as a result of the progressive health care contribution in
our collective bargaining agreements.

Health Insurance Cost Share

$70 $64 12.0%
$61 $61
$55
Health Insurance Cost in Millions

$50
$53 10.0%

Employee Contribution
9.6%

$35 9.0%
8.1%
7.7%
$18
6.4%

$- 6.0%
2007-08 2008-09 2009-10 2010-11 2011-12

Health Insurance Cost Employee

Contribution

23
Say Yes to Education

Say Yes to Education

2008-09 2009-10 2010-11 2011-12
Pre-K - High School
Number of Schools (Elementary & Middle K - 8) 8 14 24 33
Number of Students (Elementary & Middle K - 8) 1,857 4,191 7,510 9,792
Number of Schools Say Yes implementation(Elementary K - 8) 6 12 18 22
Number of Students PHASED IN 1,607 3,691 6,760 8,903
Student Monitoring K - 6
# Instructors to be trained by the end of the year (projection) 80 185 150 -
Total cost by year $ 85,000 $ 1,000 $ 144,762 $ -
Total cost per student $ 53 $ 0 $ 22 $ -
Tutoring and After School K - 6
Student Participation (60% of phased in grades enrollment) 804 2,100 4,056 5,342
# Certified Staff (15:1 ratio avg. w/ some pulling out in 5:1 Tutoring sessions) 161 140 270 356
Total cost by year $ 1,450,955 $ 2,724,190 $ 5,379,610 $ 6,169,733
Total cost per participating student $ 1,806 $ 1,297 $ 1,326 $ 1,155
School Wide Improvement Plans & Professional Development K - 6
Develop school-wide improvement plans $ 993 $ 195,450 $ 250,000 $ -
Total cost per student $ 53 $ 38 $ -
Summer School K - 8 - UTC PROGRAM
Student Participation 804 1,800 4,056
Certified or Non Certified Staff (25:1 ratio) 120 162
Total cost by year $ 790,000 $ 1,092,064 $ 1,789,952
Total cost per participating student $ 983 $ 607 $ 441
Counseling & Family Engagement K - 6
Social Worker for every 200 Students ( reduced by current staff in schools impacted) 6 12 14 20
Total cost by year $ 447,139 $ 967,843 $ 1,215,000 $ 1,650,000
Total cost per student $ 241 $ 231 $ 167 $ 169
# Social workers per building 0.8 0.9 0.6 0.6
Middle School Initiatives
Middle School Students (add 250 / year) 250 500 750 1,000
Total cost by year $ 700,000 $ 1,750,000 $ 2,625,000 $ 2,625,000
Cost per student for program initiatives $ 3,500 $ 3,500 $ 3,500 $ 3,500
High School Initiative
Total cost by year $ 65,000 $ 150,000 $ 150,000
PreKindergarten Initiative
PreKindergarten Initiative # students 56 56 56
Total Cost $ 250,000 $ 280,000 $ 280,000
Administrative Overhead
SYTE Program Director, Coordinator & Clerical Support 2 2 2 3
Total Cost by Year $ 244,547 $ 319,512 $ 233,940 $ 360,000

Total - Say Yes To Education Program

Total # students enrolled K - 8 1,857 4,191 7,280 9,792
Total # students enrolled K - 6 1,607 3,691 6,638 8,903
Total cost by year $ 2,928,634 $ 6,867,545 $ 11,120,375 $ 13,024,685
Total cost per student enrolled K-8 $ 1,577 $ 1,639 $ 1,528 $ 1,330
# Buildings 8 14 24 33

24
Staffing Reductions

Staffing Reductions

2010-11 Staffing 2011-12 Proposed

Staff Reductions All Funds
% of FTE's
Staffing Category A Fund F Fund C Fund Reduced
FTE's FTE's FTE's Total FTE's % of FTE's FTE's by Unit
Administration & Supervision 159.4 20.7 17.0 197.0 5% (15.0) -8%
Office Support & Clerical 235.3 39.3 3.6 278.1 7% (20.5) -7%
Teachers / Instructional Support 1,619.6 270.5 - 1,890.1 48% (164.8) -9%
Pupil Services 126.1 113.0 - 239.1 6% (21.0) -9%
Teaching Assistants 553.1 269.0 - 822.1 21% (156.0) -19%
Security & Building Services 435.8 3.0 20.0 458.8 12% (69.5) -15%
Adult Education & Other 2.5 82.0 - 84.4 2% (2.0) -2%
Unidentified Reductions - - - - 0% (90.0) -
3,131.7 797.4 40.6 3,969.7 100% (538.8) -14%

Class Sizes

2010-2011 2011-2012
Average Class Size Class Size Maximum *
Class Size Range Range Grade Class Size
K-2 24
Elementary 21 17-28 19-27 3 25
4-5 27

Middle School 19 17-27 20-27 6-8 30

High School 21 15-30 15-30 9-12 30

* Some may exceed limit when necessary

25
 Staffing Equity Report – Instructional Staff

Regular Regular Support Special Education Special Education Teaching Teaching Library Media Total Administrative Total Teaching
School Administration Social Workers Psychologist Counselors
Enrollment Teachers Teachers Teachers Support Teachers Assistants Assistant Subs Specialists & Instructional Staff Staff
October # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils
2010 FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE
Bellevue ES 472 2 236 24 20 7 67 9 52 5 94 23 21 1 472 2 236 1 472 - 2 236 76 6 45 10
Blodgett 449 3 150 23 20 11 41 7 64 4 112 20 22 1 449 3 150 3 150 1 449 1 449 77 6 45 10
Delaware 401 3 134 24 17 16 25 11 36 1 401 27 15 1 401 2 201 1 401 - 1 401 87 5 52 8
Elmwood 373 2 187 19 20 5 75 8 47 2 187 18 21 1 373 2 187 1 373 - 1 373 59 6 34 11
Franklin 730 3 243 34 21 11 66 6 122 4 183 19 38 2 365 3 243 1 730 1 730 1 730 85 9 55 13
Frazer 805 3 268 39 21 14 58 13 62 5 161 30 27 - 3 268 1 805 2 403 1 805 111 7 71 11
Hughes 494 3 165 28 18 11 45 11 45 5 99 42 12 3 165 1 494 1 494 1 494 1 494 107 5 55 9
Huntington 865 3 288 45 19 10 87 13 67 - 22 39 1 865 3 288 2 433 2 433 1 865 102 8 68 13
Hyde 469 2 235 23 20 7 67 10 47 3 156 24 20 2 235 2 235 1 469 - 1 469 75 6 43 11
Dr. King 509 2 255 32 16 6 85 11 46 2 255 30 17 1 509 2 255 1 509 - 1 509 88 6 51 10
LeMoyne 402 2 201 19 21 5 80 10 40 4 101 19 21 1 402 2 201 1 402 - 1 402 64 6 38 11
McKinley 499 2 250 19 26 6 83 7 71 - 19 26 1 499 2 250 1 499 - 1 499 58 9 32 16
Meachem 412 2 206 20 21 7 59 11 37 3 137 21 20 - 2 206 1 412 - 1 412 68 6 41 10
Porter 523 2 262 25 21 10 52 8 65 2 262 14 37 1 523 2 262 1 523 - 1 523 66 8 45 12
Roberts 621 3 207 35 18 14 44 12 52 4 155 25 25 1 621 2 311 1 621 1 621 1 621 99 6 65 10
Seymour 448 2 224 23 19 11 41 5 90 1 448 12 37 2 224 2 224 1 448 - 1 448 60 7 40 11
Ed Smith 688 2 344 36 19 11 63 17 40 9 76 47 15 1 688 2 344 1 688 1 688 1 688 128 5 73 9
H. W. Smith 784 3 261 36 22 13 60 12 65 - 21 37 1 784 2 392 1 784 1 784 1 784 91 9 61 13
Van Duyn 357 2 179 18 20 6 60 8 45 4 89 19 19 1 357 2 179 1 357 - 1 357 62 6 36 10
Webster 597 2 299 23 26 6 100 11 54 3 199 19 31 1 597 1 597 1 597 - 1 597 68 9 43 14
Dr. Weeks 757 3 252 35 22 8 95 7 108 4 189 19 40 1 757 3 252 1 757 - 1 757 82 9 54 14
Average 555 2 28 9 10 3 23 1 2 1 0 1 82 50
Total 11,655 51 229 580 20 195 60 207 56 65 179 490 24 24 486 45 259 24 486 10 1,166 22 530 1,713 7 1,047 11

Bellevue Academy 283 2 142 17 17 8 34 4 71 3 105 6 44 1 283 1 283 1 283 2 142 1 283 46 6
Clary 360 2 180 21 17 8 46 6 60 3 120 15 24 1 360 1 360 1 360 2 180 1 360 61 6 38 10
Danforth 493 3 164 25 20 12 41 7 70 3 164 11 45 1 493 1 493 1 493 2 247 1 493 67 7 47 10
Expeditionary 129 1 129 8 17 3 44 - 1 129 2 65 - 1 129 1 215 1 129 1 215 18 7 12 11
Grant 629 3 210 33 19 15 43 13 48 2 315 11 57 1 629 1 629 1 629 3 210 1 629 84 8 63 10
Levy 77 - 5 17 1 154 3 26 1 96 9 9 - - - 1 154 - 18 4 9 9
Lincoln 465 2 233 26 18 8 61 5 93 3 155 7 66 2 233 1 465 1 465 2 233 1 465 58 8 42 11
Average 348 2 19 8 5 2 9 1 1 1 2 1 50 35
Total 2,436 13 187 134 18 54 45 38 64 16 157 61 40 6 406 6 406 6 435 13 195 6 435 351 7 210 12

Corcoran 1,387 6 231 65 21 16 87 18 77 5 277 25 55 1 1,387 - 2 694 6 231 1 1,387 145 10 104 13
Fowler 1,154 6 192 53 22 16 72 18 64 4 289 27 43 3 385 1 1,154 2 577 6 192 2 577 138 8 91 13
Henninger 1,683 7 240 68 25 15 112 24 70 4 421 31 54 1 1,683 - 2 842 7 240 1 1,683 160 11 111 15
Institute Tech 375 2 188 28 13 3 125 2 188 1 375 7 54 1 375 - 1 375 1 375 1 375 47 8 34 11
Nottingham 1,316 5 263 55 24 18 73 19 69 1 1,316 48 27 2 658 - 1 1,316 5 263 1 1,316 155 8 93 14
Average 1,183 5 54 14 16 3 28 2 0 2 5 1 129 87
Total 5,915 26 228 269 22 68 87 81 73 15 394 138 43 8 739 1 5,915 8 739 25 237 6 986 645 9 433 14

Elmcrest 1 - 6 - 1 - 5 - 1 - 5 - - - 1 - - - 20 - 13 -
McCarthy - - - - - 1 - - - 1 - - - 2 - -
Carnegie - 5 - - 1 - - 4 - - - - 1 - - 11 - 6 -
Public Safety Building - 13 - 1 - - - - - - - - - 14 - 14 -
Total 1 - 24 - 2 - 6 - 1 - 10 - - - 2 - 1 - - 47 - 33 -
Pre-K 1,286
Total 21,292 91 234 1,007 21 319 67 332 64 97 221 699 30 38 560 52 409 40 538 49 439 34 634 2,756 8 1,723 12

26
 Staffing Equity Report – Building Support Staff

Nationality Health Case Attendance Total Support Staff

School Enrollment Sentries Clerical Nurses Hall Monitor Police Officers Custodians
Worker Attendant Manager Assistant for Building
October # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils # Pupils
2010 FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE FTE's / FTE

Bellevue ES 472 - 2 236 1 472 - - - - - 2 236 5 94

Blodgett 449 2 225 3 150 1 449 - - - - 1 449 1 449 4 112 12 37
Delaware 401 - 3 134 1 401 - 1 401 - 1 401 1 401 4 100 11 36
Elmwood 373 - 1 373 - - - - - - 2 187 3 124
Franklin 730 - 2 365 1 730 - 1 730 - - 2 365 3 243 9 81
Frazer 805 1 805 2 403 1 805 - 1 805 - - 1 805 3 268 9 89
Hughes 494 - 2 247 1 494 - 4 124 - 1 494 1 494 3 165 12 41
Huntington 865 1 865 4 216 1 865 - 1 865 - - 2 433 1 865 4 216 14 62
Hyde 469 - 2 235 1 469 - - - - - 3 156 6 78
Dr. King 509 - 2 255 2 255 - 1 509 - - 1 509 4 127 10 51
LeMoyne 402 - 2 201 1 402 - - - - - 3 134 6 67
McKinley 499 - 2 250 1 499 - - - - 1 499 3 166 7 71
Meachem 412 - 2 206 2 206 - 1 412 - - - 3 137 8 52
Porter 523 - 2 262 1 523 - - - - - 3 174 6 87
Roberts 621 1 621 3 207 1 621 - 1 621 - - 2 311 3 207 11 56
Seymour 448 - 2 224 1 448 - - - - 1 448 3 149 7 64
Ed Smith 688 1 688 3 229 1 688 - - - - - 3 229 8 86
H. W. Smith 784 1 784 3 261 1 784 - 1 784 - - - 3 261 9 87
Van Duyn 357 - 2 179 1 357 - - - - - 3 119 6 60
Webster 597 - 2 299 1 597 - 1 597 - - - 3 199 7 85
Dr. Weeks 757 - 2 379 1 757 - 1 757 - - 1 757 3 252 8 95
Average 555 0 2 1 - 1 - 0 1 3 8
Total 11,655 7 1,665 48 243 22 530 - 14 833 - 2 5,828 14 833 2 5,828 65 179 174 67
Bellevue Academy 283 2 142 3 94 1 283 - - - - 2 142 1 283 3 94 12 24
Clary 360 1 360 3 120 1 360 - 1 360 - - 2 180 1 360 3 120 12 30
Danforth 493 1 493 3 164 1 493 - - - - 2 247 1 493 3 164 11 45
Expeditionary 129 - 1 129 1 129 - - - - 1 129 1 129 4 32
Grant 629 2 315 4 157 1 629 - - - - 2 315 1 629 4 157 14 45
Levy 77 1 77 - 1 77 - - - - 1 77 2 39 5 15
Lincoln 465 1 465 3 155 1 465 - 3 155 - - 2 233 1 465 3 155 14 33
Average 348 1 2 1 - 1 - - 2 3 10
Total 2,436 8 305 17 143 7 348 - 4 609 - - 12 203 5 487 19 128 72 34
Corcoran 1,387 4 347 8 173 1 1,387 - 2 694 - - 5 277 2 694 5 277 27 51
Fowler 1,154 3 385 7 165 1 1,154 - - - 1 1,154 4 289 2 577 5 231 23 50
Henninger 1,683 3 561 10 168 2 842 - - - - 6 281 2 842 5 337 28 60
Institute Tech 375 1 375 8 47 - - - - - - 1 375 1 375 11 34
Nottingham 1,316 2 658 7 188 1 1,316 - - 1 1,316 - 6 219 2 658 5 263 24 55
Average 1,183 3 8 1 - 0 0 0 4 4 23
Total 5,915 13 455 40 148 5 1,183 - 2 2,958 1 5,915 1 5,915 21 282 9 657 21 282 113 52
Elmcrest - 1 - - - - - - - 1 -
McCarthy - - - - - - - - -
Carnegie - 1 - - - - - - 1 - 1 - 3 -
Johnson Ctr. 1 - 7 - - 1 - - - - - 9 -
Public Safety Building - - - - - 2 - - - 2 -
Total 1 - 9 - - 1 - - 2 - - 1 - 1 - 15 -
Pre-K 1,286
Total 21,292 29 734 114 187 34 626 1 21,292 20 1,065 3 7,097 3 7,097 48 444 16 1,331 106 201 374 57

27
 Summary of 2011-12 General Fund Budget

Revenue

2011-12
2010-11 2011-12 % of Total $ Change % Change $ Per Pupil

State Aid $ 255,581,091 $ 243,749,365 73% $ (11,831,726) -5% $ 12,211

STAR 8,588,317 7,852,557 2% $ (735,760) -9% $ 393
Tax Levy 55,506,227 55,506,227 17% $ - 0% $ 2,781
Sales Tax 2,600,000 2,000,000 1% $ (600,000) -23% $ 100
Use of Fund Balance 19,000,000 10,000,000 3% $ (9,000,000) -47% $ 501
Federal ARRA/JOBS 5,722,580 4,786,776 1% $ (935,804) -16% $ 240
Miscellaneous 7,487,250 7,829,450 2% $ 342,200 5% $ 392
$ 354,485,465 $ 331,724,375 100% $ (22,761,090) -6% $ 16,619

Expenses

2011-12
2010-11 2011-12 % of Total $ Change % Change $ Per Pupil
Staff $ 240,387,621 $ 220,161,476 66% $ (20,226,145) -8% $ 11,030
Non Staff 114,097,844 111,562,899 34% $ (2,534,945) -2% $ 5,589
Total $ 354,485,465 $ 331,724,375 100% $ (22,761,090) -6% $ 16,619
% Increase (Decrease) -6%

28
 Impact of across the board staffing reductions:

FTE Reduction
Bargaining Unit FTE's* 1% 2% 3% 4% 5% 6% 7% 10% 15% 20%
T eachers & Ancillary (1) 2,213 (22) (44) (66) (89) (111) (133) (155) (221) (332) (443)
Administrators (2 & 3) 149 (1) (3) (4) (6) (7) (9) (10) (15) (22) (30)
Building T rades (5) 39 (0) (1) (1) (2) (2) (2) (3) (4) (6) (8)
Operation of Plant (6) 276 (3) (6) (8) (11) (14) (17) (19) (28) (41) (55)
Food Service (7) 118 (1) (2) (4) (5) (6) (7) (8) (12) (18) (24)
T eaching Assistants (8) 962 (10) (19) (29) (38) (48) (58) (67) (96) (144) (192)
Office Personnel (9) 278 (3) (6) (8) (11) (14) (17) (19) (28) (42) (56)
Health & Social Services (10) 75 (1) (2) (2) (3) (4) (5) (5) (8) (11) (15)
Supervisors (11) 65 (1) (1) (2) (3) (3) (4) (5) (7) (10) (13)
Native American (12) 2 (0) (0) (0) (0) (0) (0) (0) (0) (0) (0)
4,176 (42) (84) (125) (167) (209) (251) (292) (418) (626) (835)

Estimated Salary & Benefit Reduction in Millions $ (2.8) $ (5.6) $ (8.4) $ (11.1) $ (13.9) $ (16.7) $ (19.5) $ (27.8) $ (41.8) $ (55.7)

*Based on current FTE's as of 2/2/2011

29