HAUPPAUGE PUBLIC SCHOOLS BUDGET REVENUE BUDGET NYS TAX LEVY LIMIT MARCH 1, 2016

Transcription

1 HAUPPAUGE PUBLIC SCHOOLS BUDGET REVENUE BUDGET NYS TAX LEVY LIMIT MARCH 1, 2016

2 REVENUE BUDGET

3 A BALANCED BUDGET REVENUES EXPENSES BUDGET $107,659,633 $107,659,633 STATE LAW REQUIRES A SCHOOL DISTRICT S BUDGET TO BE BALANCED THE CURRENT BUDGET OVERAGE IS $453,386.

4 SOURCES OF REVENUE State Aid Other Revenue (PILOTS, Interest Income, Rental Fees, etc.) Appropriated Fund Balance / Reserves Property Tax Levy

5 REVENUE

6 POLL EVERYWHERE To participate, text jamesstucchi040 to Standard message and data rates will apply.

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10 STATE AID EXECUTIVE BUDGET PROPOSAL 2015/ /17 VARIANCE FOUNDATION AID 7,504,549 8,382, ,166 BUILDING AID 2,703,282 2,387,751 (315,531) TRANS. AID 1,214,445 1,364, ,807 EXCESS COST AID 518, ,824 93,958 BOCES AID 752, , ,015 OPWDD AID 500, ,000 0 MATERIALS AID 323, ,921 (10,640) TOTAL 13,517,575 14,419, ,775

11 STATE AID The Governor s Executive Budget Proposal: School aid statewide will increase 4.3% ($991 million). School aid to Long Island will increase by 4.5% ($126.8 million). Includes $244 million in Gap Elimination Adjustment (GEA) statewide, $78 million or 32% on Long Island. Hauppauge will receive no increase in Foundation Aid and the minimum required restoration of the GEA. Long Island schools educate 16.2% of the state s students, but only receive 12.3% of state aid. Due to its status as a low-need school district, Hauppauge does not benefit from the current Foundation Aid formula.

12 CHANGE IN STATE AID* SINCE ,000,000 11,500,000 AN INCREASE OF 209,256 or 1.8% 11,000,000 10,500,000 10,000,000 9,500,000 9,000, GOVERNOR'S PROPOSAL *EXCLUDES BUILDING AID

13 GAP ELIMINATION ADJUSTMENT D8gZDgA&feature=em-share_video_user

14 GAP ELIMINATION ADJUSTMENT STATE AID LOST 2010/2011 ($1,637,303) 2011/2012 ($2,383,422) 2012/2013 ($2,312,969) 2013/2014 ($2,173,529) 2014/2015 ($1,818,752) 2015/2016 ($1,154,334) 2016/2017* *Governor s Proposal ($799,930) TOTAL ($12,280,239)

15 STATE AID TOTAL COMPUTERIZED AIDS GAP ELIMINATION ADJUSTMENT Long Island 12% Big Four 8% NYC 40% Long Island 32% Big Four 1% NYC 9% Lower Hudson 11% Rest of State 34% Lower Hudson 6% Rest of State 47%

16 STATE AID AS A PERCENTAGE OF TOTAL REVENUE 1995/ / % 86.6% State Aid Other Revenue

17 CHANGES IN STATE AID 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% % % 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Introduction of the GEA Governor s Proposal

18 ADVOCACY A prepared letter advocating the complete restoration of the GEA is available on our website for you to send to our elected state representatives. As the deadline for the state budget adoption is April 1 st, these letters need to be mailed, ed or faxed now!

19 OTHER REVENUE 2015/ /17 VARIANCE PILOTS 4,281,125 5,031, ,992 TUITION 300, ,000 0 HEALTH SERVICES 65,000 70,000 5,000 RENT 237, ,970 17,970 E-RATE 55,000 45,000 (10,000) MISCELLANEOUS 402, ,000 8,000 TOTAL 5,340,125 6,111, ,962

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21 HOW FUND BALANCE IS DERIVED REVENUES EXPENSES BUDGET $30,000,000 $30,000,000 ACTUAL $30,200,000 $29,700,000 GAIN $ 200,000 $ 300,000 TOTAL FUND BALANCE PICK-UP $500,000

22 APPROPRIATED FUND BALANCE / RESERVES 2015/ /17 VARIANCE FUND BALANCE 4,250,000 4,250,000 0 EBAL RESERVE 650, ,000 0 RETIREMENT 250, ,000 0 RESERVE TOTAL 5,150,000 5,150,000 0

23 APPROPRIATED FUND BALANCE The District will use $4,250,000 to balance the 2016/2017 budget. $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0

24 FUND BALANCE AS OF JUNE 30, 2015 Beginning Fund Balance $4,177,501 Revenues Over Budget $2,321,927 Expenditures Under $5,276,569 Budget Budget Revisions ($1,902,115) Transfers to Reserves $192,279 **Including Interest Payments Appropriated Fund Balance ($5,850,440) **Includes Energy Performance Contract Prepayment Unreserved, Undesignated Fund Balance (4%) $4,215,721

25 RESERVE FUNDS AS OF JUNE 30, 2015 RESERVE FOR WORKERS COMPENSATION To pay workers compensation claims $790,296 RESERVE FOR GENERAL INSURANCE To pay any loss, claim or action of judgment for which a school district is authorized or required to purchase insurance $429,515 RESERVE FOR REPAIRS To pay for repairs to capital improvements or equipment that does not recur $404,658 RESERVE FOR UNEMPLOYMENT INSURANCE To pay the State Unemployment Insurance Fund for payments made to claimants $169,286

26 RESERVE FUNDS AS OF JUNE 30, 2015 RESERVE FOR RETIREMENT CONTRIBUTIONS To pay retirement contributions to the state pension plan $3,379,124 RESERVE FOR EMPLOYEE BENEFIT ACCRUED LIABILITY To pay for accumulated unused leave days upon employee termination $6,937,768 RESERVE FOR CAPITAL To pay for the costs of any capital project that is eligible to be financed with a bond issue $3,387,392

27 EMPLOYEE ACCRUED LIABILITY BENEFIT RESERVE If necessary, the District will appropriate $650,000 from this reserve for unused sick leave payments to retiring employees. BALANCE AS OF 02/2016 $6,937,768 APPROPRIATED FOR 2016/2017 ($650,000) REMAINING BALANCE $6,287,768 NUMBER OF YEARS UNTIL FUND DEPLETION IF CONTINUE TO APPROPRIATE $650,

28 RETIREMENT CONTRIBUTION RESERVE If necessary, the District will appropriate $250,000 from the reserve for employer retirement contributions to the ERS. BALANCE AS OF 02/2016 $3,387,392 APPROPRIATED FOR 2016/2017 ($250,000) REMAINING BALANCE $3,137,392 NUMBER OF YEARS UNTIL FUND DEPLETION IF CONTINUE TO APPROPRIATE $250,

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30 SOLVING FOR TAX LEVY The following factors affect the tax levy: Expenditure Budget State Aid Other Revenue Appropriated Fund Balance / Reserves

31 SOLVING FOR TAX LEVY 2016/17 BUDGET $107,659,633 OTHER REVENUE ($6,111,087) APPROPRIATED FUND BALANCE ($5,150,000)* *INCLUDES $900,000 FROM RESERVES STATE AID ($14,419,350) To Solve for the Tax Levy: Subtract Other Revenue, Appropriated Fund Balance / Reserves and State Aid from the total budget amount. TAX LEVY $81,979,196** TAX LEVY LIMIT: $81,525,810

32 PROPERTY TAX LEVY INCREASES 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00%

33 PROPERTY TAX LEVY AS A PERCENTAGE OF TOTAL REVENUE 84.00% 82.00% 80.00% 78.00% 76.00% 74.00% 72.00% 70.00%

34 PROPERTY TAX LEVY AN ESTIMATED 51.9% OF THE TAX LEVY WILL BE PAID BY BUSINESS AND COMMERCIAL INDUSTRY 51.9% 48.1% HOMEOWNERS BUSINESS / COMMERCIAL INDUSTRY

35 TAX LEVY LIMIT WHEN 2% IS NOT REALLY 2%

36 TAX LEVY LIMIT Tax Levy Limit Calculation: P:\Do_Bus_off\DRAFTS OF BUDGET \REVENUE BUDGET\TAX CAP\Tax Cap Calculation xlsx

37 Why 2% is not 2%? Why is the 2016/17 tax levy limit 0.17% and not 2.00%? For the 2016/17 calculation, the change in the Consumer Price Index (CPI) is 0.12%, not 2.0% The tax base growth factor assigned to the school district was 1.000, indicating no growth of the tax base.

38 PROPERTY TAX REBATES As a part of the 2014/15 Enacted State Budget, property tax rebates were available to homeowners. In 2014/15, property taxpayers received a rebate equal to their increase in school taxes, if their school district complied with the tax cap. In 2015/16, property taxpayers received a rebate equal to their increase in school taxes for the past two years, if their school district complied with the tax cap and had an approved government efficiency plan.

39 PROPERTY TAX REBATES As a part of the 2015/16 Enacted State Budget, these property tax rebates were extended. In 2016/17, property taxpayers will receive a rebate of $130, if their school district complies with the tax cap. In subsequent years until 2019, property taxpayers will receive a rebate based upon their income, if their school district complies with the tax cap. Linking the property tax relief rebates to complying with the tax cap, will make an override even more difficult despite levy increase limits close to 0%.

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