Budget Planning

Transcription

1 Budget Planning March 25, 2019 Board of Education Meeting Budget Review, Instruction & Revenue

2 Factors Impacting Rollover Budget Expenses - Health Insurance - Contractual Salary Increases - Retirement Systems - Retirements* - Tax Levy - State Aid Foundation Aid* Expense Driven Aids - Other Rental Revenue Total Increase $2,360,000 Total Increase $1,210,000 *indicates that we still do not know final impact of these factors 3/25/2019 Budget Update 1

3 Budget Status Rollover Budget $55,425,000 Anticipated Revenue $54,275,000 Rollover GAP $1,150,000 Rollover Budget based on maintaining all current levels of staffing and programming 3/25/2019 Budget Update 2

4 Budget Status Rollover GAP $1,150,000 Current Deficit $850,000 Total GAP $2,000,000 3/25/2019 Budget Update 3

5 Why Do We Have a Deficit? The budget was balanced, which means that true revenue equaled true expenses. Since the District has seen the following changes: Expenses $2.3 million increase in health insurance $2.2 million increase in salaries TOTAL $4.5 million Revenue $2 million increase in tax levy $800,000 increase in Foundation Aid TOTAL $2.8 million $1.7 million deficit 3/25/2019 Budget Update 4

6 District Use of Fund Balance/Reserves Impact of increased use of Fund Balance/Reserves Depletion of $850,000 in Depletion of $850,000 projected for , even after the $1 million in cuts to the adopted budget 3/25/2019 Budget Update 5

7 Fund Balance Projections* Beginning Reserve Balance $6,500,000 $5,650,000 $3,650,000 $1,350,000 -$1,400,000 Net Budget Deficit -$850,000 -$2,000,000 -$2,300,000 -$2,750,000 -$3,250,000 Ending Reserve Balance $5,650,000 $3,650,000 $1,350,000 -$1,400,000 -$4,650,000 *Projections based on maintaining all current levels of staffing and programming 3/25/2019 Budget Update 6

8 How to Bridge Current GAP? Breakdown of Budget Expenses Salaries $27,000,000 Benefits $13,500,000 Debt Service $6,000,000 SPED Placements $2,500,000 BOCES Services $2,000,000 Utilities $1,000,000 $52,000,000 These components make up 94% of the total budget 3/25/2019 Budget Update 7

9 Proposed Staffing Reductions to Budget 2 Administrators 6 Elementary 3 Secondary 1 Library 1.7 Music.4 Art 2 Cleaners 2 Monitors 1 IT Tech 1 Bus Mechanic 1 Account Clerk (Central Office/Business Office) 1 Clerical Currently many of these reductions are through attrition. The hope is that with the current retirement incentives that this will continue to increase. 3/25/2019 Budget Update 8

10 Budget with Proposed Reductions Approximately $1.5 million (net) in proposed reductions would still result in a $500,000 deficit in This deficit would be addressed through a combination of additional retirements, an increase in Foundation Aid and use of reserves. 3/25/2019 Budget Update 9

11 Year Foundation Aid History Foundation Aid Received Full Phase-In Formula Foundation Aid Amount Underfunded $12,561,189 $16,981,128 $4,419, $12,598,712 $16,861,887 $4,263, $12,775,793 $16,707,342 $3,931, $12,822,430 $15,709,052 $2,886, $12,898,380 $15,341,231 $2,442, $13,251,691 $15,717,416 $2,465, $13,602,225 $16,701,859 $3,099, $13,681,549 $18,155,493 $4,473,944 Average $3,497,930 3/25/2019 Budget Update 10

12 Impact on Class Sizes Grade Level Current Enrollment Current Sections Current Class Size Projected Enrollment Projected Sections Projected Class Size K Average /25/ Budget Adoption

13 History of Class Sizes Grade Level (projected) K Average /25/ Budget Adoption

14 Expenditures With Proposed Reductions Budget Projected Budget as of 3/25/19 $ Change Instruction $27,684,825 $28,131,900 $447,075 Employee Benefits Operations & Maintenance $12,496,000 $12,982,000 $486,000 $2,662,850 $2,704,550 $41,700 Transportation $2,292,050 $2,300,750 $8,700 District Support $1,983,525 $2,034,675 $51,500 Debt Service $5,945,750 $6,122,500 $176,750 Total $53,065,000 $54,276,375 $1,211,375 3/25/ Budget Update

15 Projected Revenues Projected Budget (as of 3/25/19) $ Change State Aid $22,269,225 $22,663,549 $394,324 Property Tax Levy $27,322,621 $28,365,366 $1,042,745 Fund Balance Appropriation $1,200,000 $1,200,000 $0 Reserve Appropriation $850,000 $850,000 $0 BOCES Rental $592,000 $526,500 (65,500) Interfund Transfer (Debt Service) Other Revenue (Interest, Fees, Cont. Ed., Admissions, Bldg. Use) $375,000 $175,000 ($200,000) $456,154 $495,960 $39,806 Total $53,065,000 $54,276,375 $1,211,375 2/25/ Budget Update

16 4 - Full size 72 passenger buses - Gasoline 2 33 passenger buses - Gasoline Bus Proposition Proposition Amount = $610,000 Less State Share of Trans. Aid 72.1% = ($439,810) District/Taxpayer Share over 5 years = $170,190 District/Taxpayer Impact per year = $34,038 - due to the debt that will drop off the actual new cost to taxpayers will be approximately $10,000 Note: Need for buses is determined by the Mohonasen Bus and Vehicle Replacement/Obsolescence Schedule 3/25/ Budget Update

17 Contingent Budget Rules What happens if the budget is rejected by voters? If the proposed budget is not approved by the voters, the district may resubmit the original budget or submit a revised budget to the voters on the third Tuesday in June OR adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in the tax levy). If the resubmitted/revised budget proposal is NOT approved by the required margin, the Board MUST adopt a budget that levies a tax no greater than that of the prior year (0% increase in the tax levy) AND the budget would be subject to contingent budget requirements. Under a Contingency Budget, some items would need to be cut from the budget to meet the law with respect to definition of contingency appropriations. Cuts would be to student supplies, community use of buildings and grounds, certain equipment purchases and salary increases. 3/25/ Budget Update

18 Board of Education Vacancies Two (2) at large seats Three-year terms At least 25 signatures required on petition Petitions are currently available in District Office Petitions are due back to the District by Monday, April 22 at 5 p.m. 3/25/ Budget Update

19 Next Steps April 8, 2019: Adoption of budget proposal; 6:30pm HS LGI May 13, 2019: Budget Hearing and Meet the Candidates Night; 6:00pm HS LGI May 21, 2019: Annual Budget Vote & BOE Election; 7:00am 9:00pm HS Gym 3/25/19 Budget Update 18

20 Questions? 3/25/ Budget Update