Cost Analysis Update Hendrick Hudson School District FGL

Cost Analysis Update Hendrick Hudson School District FGL School Community January 29, 2020

Projected PILOT Payments Revenue Lost = $60, 510, 748

How Have We Responded? Multi-Pronged Advocacy Initiatives: • • • Annual Saving to Reduce Future Tax Increases Cessation Mitigation Program Fund Business Development in the Hendrick Hudson School District House of Representatives – Bills in Committee Westchester County Sales Tax Increase Cost Analysis Study

Unassigned Fund Balance Increasing Reserves Maximum allowed by State General Fund Total Fund Balance

Reducing Expenses 7

Average Tax Increase Since 2013 1. 04%

Cessation Mitigation Program Grant Funding for Eligible Local Government Entities Demonstrating Qualifying Property Tax Reductions Owed By an Electric Facility Subject to Their Taxing Authority. • $30 million program (increases to $45 million in 2020) • Tax Loss must be 20% or more and a direct result of an electric generation facility ceasing operation • Awards are over 7 years with up to 80% of the Tax Loss provided in the first year, declining by 10% every year over the seven year period. * Adapted from May 31, 2017 Presentation to the Indian Point Task Force

Cessation Mitigation Program Hendrick Hudson School District, in Concert with State Officials, Successfully Advocated and Increased the Cessation Fund by $34 M in 2018 and 2019. • Hen. Hud Receives 70% of Fund Distribution (PILOT calculation) • $23. 8 M earmarked to Hendrick Hudson • ~ 57% Tax Increase

Cost Analysis Can We Organize Students Differently to Reduce Expenses? Elementary Configuration Middle Level Organization High School Course Enrollment

Cost Analysis A Study to Examine the Utilization of the District’s Schools August 2018: BOE commits to review organization and configuration, in effort to curb expenses and mitigate tax increases November 2018: In partnership with BOCES, and at the recommendation of NYSSBA, NYSCOSS and others, we identify Castillo and Silky to conduct the analysis December 2018 – November 2019: Data collection, site-visits, conference calls, draft reports reviewed, etc.

Cost Analysis A Study to Examine the Utilization of the District’s Schools • • • Enrollment Trends and Projections Live Birth Data Students Homeschooled, or Attending Other Schools Class Sizes and Enrollment (grade, course/program) Building Size, Classroom Configuration and Square Footage Room Utilization Bus Run Data – Capacity, Run Times, etc. Employee Tax and Budget Information Salary and Benefit Data

Cost Analysis A Study to Examine the Utilization of the District’s Schools Recommendation 1: Status Quo “The neighborhood school concept has been embraced by Hendrick Hudson for the location of its elementary schools. Under this model, each elementary school contains all elementary grades and is generally organized around neighborhoods. The status quo option maintains this arrangement. ”

Cost Analysis A Study to Examine the Utilization of the District’s Schools Recommendation 2: Grade Center Plan Using Three Schools “This option would create one primary school housing grades K-1, an elementary school housing grades 2 -3, and an intermediate school housing grades 4 -5. In addition to offering a number of instructional advantages, grade centers create equity of class/section sizes and teacher loads across the district. In addition, moving from the current number of 52 K-5 sections to 46 with the grade center plan would conservatively reduce six elementary classrooms/teachers and three teaching assistants equaling annual savings of approximately $1, 006, 962. ”

Cost Analysis Proposed Next Steps and Decisions: • Publish the Analysis • Commit Not to Implement Any Change (Option) Until September 2021 • Eliminate Options That Are Not Feasible, of Interest • Schedule School-Based and Community Meetings in January and February 2020 to Review and Seek Input • Commission Ad-Hoc Group to Explore Implementation Feasibility, with Outside Facilitator, Should We Consider to Move Forward

Cost Analysis What We’ve Learned: • We Are Not Alone - Many Districts Are Looking at Similar Studies • We Have Viable Options to Explore to Reduce Expenses and Mitigate Significant Tax Increases • Status Quo is an Option • We Have Time for Further Research and Discussion www. henhudschools. org/domain/1595

Sources of Funds: Current to 2027 -2028