Budget Development

Transcription

1 Budget Development

2 State Aid: Update and phase-in the Foundation Aid formula. Tax Cap: Amend the formula to support multi-year planning (Allowing for more exemptions). Mandate Relief: Maximizing Resources to benefit students ( Change your rules or fund your rules ). Reserves: Give schools tools like those available to municipalities (Creating a TRS Reserve). Bottom-line: Inaction on the tax cap formula or maximizing resources will require large state aid increases or drastic reductions in expenditures.

3 Major Budget Increases In the Proposed Budget Plan (Expenditures For Which There is Minimal or No District Control) Expense Dollar Amount Increase Percent Increase Teachers Retirement System (TRS) $248, % Employees Retirement System (ERS) Health Insurance (Projected 11/2017) $21, % $41, % Negotiated Salaries $950, % Total Increase $1,261, %

4 Rank Program Amount Faculty/Staff Notes Proposed Use of Reserves Prioritized Order 1 Special Education $8, FTE Field Trips and Additional Supplies 2 Cayuga Heights Elementary 3 High School $15, FTE 4 Athletics $59, FTE 5 Technology $190,900 0,0 FTE $46, FTE Classroom Furniture, Art Kiln and Additional Café Monitor Classroom Furniture, Professional Development and Supplies and Increase Hours in Supervision Basketball Net System for High School Gymnasium, Athletic Trainer Golf Cart and JV Lacrosse Replacement and Upgrades of Servers, Switches and Chromebooks $9,000 6 Districtwide $13,200 0,0 FTE Addition of 6 Outside Building Cameras and Wiring 7 Transportation $52, FTE Replacement of Fuel Pumps $52,896 8 Buildings and Grounds $49, FTE Increase to Contractual Services, Visitor Management System, Bypass Valve Replacement and Professional Development 9 Buildings and Grounds $30, FTE High School Pool Filter and Cover Repairs $30, Buildings and Grounds $12, FTE Equipment attachments for Maintenance of Turf Fields $12,000 TOTAL: $478,692 $103,896

5 Budget Plan Major Budget Changes In the Proposed Budget Plan (Revenue For Which There is Minimal or No District Control) Item Change in Dollar Amount Percent Difference NYS State Aid (Executive Budget) $444, % Tax Levy (estimated maximum allowable tax cap) Fund Balance(compared use to current year) Reserves(compared use to current year) $327, % $300, % -$251, % Total Increase $820, %

6

7 Allowable Levy Growth Factor = the lessor of 2% or the inflationary change using the CPI-U 2.14% (Actual as of 2/1/18). Therefore, the base is 2% before exemptions. There is a formula to determine each District s Cap Tax Levy $17,558,919 Tax Base Growth Factor: X Tax Base Growth Amount: +$84, PILOTS +251,805 8 PILOTS Capital Expense within Local Budget Adjusted Current Year Levy $17,662,050 -$232,957 Per OSC Office of Real Property Tax Services Allowable Levy Growth Factor: X2.00% CPI or 2% Max Allowable Levy Growth Amount: +$353,241 EST PILOTS -$257,586 Projected 8 properties Eligible carry over from prior year $0.00 Tax Levy before Adjustments/ Exemptions $17,757,705 $198,786 / %

8 Tax Levy Cap Formula Levy Limit BEFORE Exemptions $17,757,705 $198,786 / % Under the law, a District can utilize specific exemptions toward the Tax Levy Cap. Depew can not utilize ERS/TRS Pension, Capital Expense or Judgments Pension (ERS) > 2% + $0.00 ACTUAL Pension (TRS) > 2% + $0.00 ACTUAL Capital Expense within Local Budget + $129,205 ACTUAL Torts/Judgments > 5% + $0.00 ACTUAL Total Levy Cap Exclusions $129,205 ACTUAL Total Tax Levy with Exemptions $17,886,910 ACTUAL Allowable Tax Impact Increase $327,991 ACTUAL Allowable Tax Levy Increase 1.87% Maximum Levy after exemptions

9 Climate to go above the cap proves to be a high risk with very few districts being successful in going over the tax levy cap. Depew s Combined Wealth Ration (CWR) is.646, which is the 7 th lowest out of 23 Erie County School Districts. Depew s three year average for Free and Reduced Lunch Percentage for Kindergarten through 6 th grade is 46.9%, which is ranked 4 th highest in Erie County.

10 Draft Budget Draft Revenues Budget Shortfall $44,212,819 $43,656,819 $556,000

11 1. Protect Programming for Students 2. Protect Reasonable Class Size and at the same time adhere to Contractual Limits 3. Maximize District Resources and Efficiencies 4. Review and Evaluate Needs versus Wants 5. Review and Evaluate Budgeting and Spending 3 Year Trends

12 1. Identify the amount of proposed and final state aid. 2. Then reduce the amount of new budget requests, in a reverse prioritized order. 3. Then, if needed, implement further budget reductions within the current budget in a prioritized order. 4. Or, reduce a combination of both lists. 5. If, we receive more State Aid after the State finalizes their budget, we will replace any reductions in a prioritized order.

13 Rank Program Cut Amount Faculty/Staff Notes 1 2 Aligning Budgeted Amounts and Verified 18/19 Districtwide Benefit Reductions -$281, FTE Costs in the areas of Health Insurance; TRS; Workers Comp. and Breakage in Retirement Buildings and Grounds 3 Technology -$9, FTE 4 High School -$1, FTE 5 Cayuga Heights Elementary 6 Special Education -$236, FTE TOTAL: $556,000 -$18, FTE Decrease to Contractual Services Actual expense will be lower than the original quote Reduce Partial Equipment Reduction and Partial Professional Development -$8, FTE Reduce Grade 3 Classroom Furniture Aligning budgeted amounts with actual use in the areas of out of District Placements and BOCES

14 Employee Benefit Accrued Liability Reserve $3,139, $3,141, $2,659, $2,436, $2,302, ERS Reserve $2,003, $1,979, $2,405, $1,884, $1,618, Tax Certiorari Reserve $178, $152, $86, $86, $86, Unemployment Reserve $387, $387, $387, $388, $389, Workers' Comp Reserve $24, $24, $124, $100, $25, Capital Improvement Reserve 2016 Capital Reserve for Vehicles & Equipment 2016 $1,180, $1,620, $800, $801, $803, $1,283, $1,415, $1,749, $1,329, $980, Repair Reserve $152, $152, $197, $158, $113, Grand Total All Reserves at Year End $8,350, $8,874, $8,411, $7,186, $6,320,104.79

15 $10,000, $9,000, $8,000, $7,000, $6,000, $5,000, $4,000, $3,000, $8,350, $6,320, EBLAR ERS Tax Cert Unemploy Workers' Comp Capital Vehicle Repair $2,000, Total $1,000, $

16 On May 19, 2009 voters approved the establishment of a Vehicle Purchase Reserve Fund and again on December 13, 2016 the voters re-established this fund. Excess funds have been placed in this reserve for future purchases of school buses and equipment. This reserve fund allows the District to make bus or equipment purchases that do not affect the amount of the current budget proposal or the tax levy. The District also receives State Aid for bus purchases in the subsequent years. This aid continues to support the bus replacement program.

17 Years Bus Purchase Total Aid Interest Received $372,190 $386,420 $14, $431,528 $448,000 $16, $303,264 $315,910 $12, $269,001 $280,230 $11, $281,719 $293,446 $11, $360,825 $375,258 $14,433 (Estimated) $291,901 $303,577 $11,676 (Estimated) TOTAL $2,310,428 $2,402,841 $92,413

18 Vehicle Purchase from Reserve Fund $291, Passenger School Bus with 3 Wheelchair Stations and Wi-Fi 1 30-Passenger Buses with Wi-Fi 4 Surplused Vehicles with over 478,943 miles 5

19 In order to address issues outlined in the Building Conditions Survey, in a responsible and sustained manner over a period of time, the District continues to utilize the benefit of its $100,000 Capital Outlay Projects, which began with the budget year. A $100,000 Capital Outlay Project is an opportunity to institute Capital improvement projects that cost no more than $100,000 and is preferably covered under one trade (i.e. Architectural, Mechanical, Electrical, Plumbing or Civil). A district must show this expenditure in its annual budget plan and will then receive aid in the following aid year. A district may receive aid for a maximum of one such project in an aid year. As the district completes these projects on an annual basis, the aid begins to cover 80% of each project.

20 Year Cost Aid Total Cost 1 $100,000 $0.00 $100,000 2 $100,000 $80,000 $20,000 3 $100,000 $80,000 $20,000 4 $100,000 $80,000 $20,000 5 $100,000 $80,000 $20,000 6 $100,000 $80,000 $20,000 7 $100,000 $80,000 $20,000 8 $100,000 $80,000 $20,000 9 $100,000 $80,000 $20, $100,000 $80,000 $20,000 Total $1,000,000 $720,000 $280,000

21 Capital Outlay work being anticipated within the Budget Plan will include, but not necessarily be limited to modest upgrades and improvements to the Cayuga Heights Elementary building, such work being anticipated to includes: the installation of safety and security window film, the removal and replacement of existing interior and exterior doors, the installation of swipe card systems, door access entry systems and lock replacements.

22 April: Determine final State Aid allocation. Finalize budget additions and reductions as appropriate to State Aid allocation. Finalize full budget plan Publicize the required legal notices Board of Education adopts the Budget, Tax Levy Limit and Proposition Language for the May Vote

23