District Budget Proposal OVERVIEW & ASSUMPTIONS FEBRUARY 22, 2018

Transcription

1 District Budget Proposal OVERVIEW & ASSUMPTIONS FEBRUARY 22, 2018

2 BUDGET Assumptions Expenditures must EQUAL Revenues Expenditures Salaries/Contractual Projections Health Insurance Projections TRS/ERS Projections Sources of Revenues STATE AID Federal Aid Grants PropertyTaxes Reserves

3 Expenditures PRELIMINARY Projections on Salary/Contractual increases are approximately an average of 3.67% increase representing approximately $275,125 (includes new UPK teacher & aide position) PRELIMINARY Projections of Health Insurance are approximately $3,160,000 which represents the base line cost changing to Excellus BC/BS Blue PPO Signature Copay 1 (decreasing expenditures by $230,000 to maintain comparable benefits) ERS (Employee Retirement Rates set by State) District contribution of 14.9% of payroll representing an increase of $3,776 TRS (Teacher Retirement System Rates set by State) Rates projection of 11.00% of payroll representing an increase of $34,478 GST BOCES Projection of 3.48% increaseover current year costs of $192,241

4 District Department Needs: Instructional Program Personnel Additional UPK full day section 1 teacher, 1 teacheraide Middle School Dean to Full Time (***No additional staff required. ***Covered by the reallocation of existing Social Studies faculty if no cuts enacted through the budget process.)

5 District Department Needs: Instructional Program Equipment Elementary: 5 standing desks, replacement furniture for Rm 214 multi purpose room, 20 wobble chairs, P.E. Safety Equipment Middle: 5 Robotic Kits (BOCES COSER purchase) High School: No Additional Equipment Requests District Wide: AED Updates

6 District Department Needs: Instructional Program General Maintain discretionary funding for conferences, building unexpected needs, technology, textbooks etc Consideration of expansion of the I Ready diagnostic program for Math Grade 6 9 (purchase through BOCES COSER)

7 Athletics Maintain current athletic programlevels Fitness Room Equipment Lease: Cardio equipment lease $3, Video cameras (2) for teams $1, Portable sound system and fixing football field sound system $3, Cheerleading stunt mats $2, Replacement of 10 x 20 Athletic Tent $2,000.00

8 Transportation Conference monies to attend the NYAPT Continue with Bus Replacement cycle (requires2 buses to bring up to date) Update school vehicles as needed. Consideration for lease program versus outright purchase of vehicles. 1 replacement student transportation vehicle needed

9 Maintenance Conference monies to attend the NYSSFAManager s Academy General supplies/materials increase General Equipment General contractual increases (ex. service contracts)

10 Maintenance Capital Outlay Project $100,000 COHEN Complex: (Tentative plan) * additional HD Security Cameras in playground, basketball court, tennis court, softball field and parking lot areas * Replace exterior lighting for building/parking areas

11 Food Service Possible changes pending Governor s proposed budget to include changes in lunch shaming policies/procedures, mandated outreach and breakfast after the bell programs.

12 Technology Services Maximize services through BOCES Fully utilize State aid for replacement of one computer lab OR the purchase of class sets of 1 1 devices

13 BOCES Services COSER School Curriculum Stipends increase by $1,980 COSER Cooperative Advertising/Recruiting increase by $3,578 COSER Library Automation Services increase by $2,000 COSER Instructional Material Development increase by $250 for Robotics kits COSER Cross Contract with Monroe 1 BOCES increase by $2,880 for Hudl Athletics program COSER I ready Math Diagnostic Grades 6 9 increase of $11,000

14 Projected Costs for Additional Needs Instructional Program Personnel $ 111,750 Instructional Program Equipment $ 7,000 Instructional Program General $ 1,200 Maintenance $ 37,000 Transportation $ 30,000 Athletics $ 8,000 Technology $ 20,000 BOCES $ 21,500 Capital Outlay ( net $0 change) $ 100,000 *$235,380 If additional bus purchase proposition approved

15 Projected Expenditures Account Adopted Budget Proposed Budget Dollar Difference Percent Difference General $2,999,103 $3107,286 $108, % Support Instructional $11,083,602 $11, $710, % Transportation $560,978 $508,773 <$52,205> <9.31%> Employee $5,084,319 $4,889,441 <$194,878> <3.83%> Benefits Debt Service $1,473,146 $1,757,453 $284, % Interfund $175,000 $150,000 <$25,000> <14.29%> Transfer Total $21,376,148 $22,207,462 $831, %

16 Expenditure Impact of Proposed Budget Adopted budget $ 21,376, Preliminary Proposed Budget $ 22,207, Expenditure Projected Increase $ 831,314

17 Sources of Revenue State Aid: Governor s Proposal Increase of 1.4% New Money Expense Driven Aid (Revenue based on current year expenditures.) Federal and Grant Dollars: Targeted at specific programs Reserves: Limited flexibility in use and limited thresholds to be discussed Appropriated Fund Balance: Carry over monies to be discussed Local Taxes: Threshold target to be discussed

18 Governor s Proposed Budget Breakdown New $$$

19 How Foundation Aid is Negatively Impacting our District since the CFE Court Decision and Lack of Fully Funding Foundation Aid Formulas Community Schools Set-Aside, if any: Community Schools Set-Aside: $ Community Schools Set-Aside: $0 Change in Community Schools Set-Aside: $0 Foundation Aid: Proposed Foundation Aid: $7,280,581 Full Phase-in Foundation Aid: $9,295,716 Amount Under-funded: ($2,015,135) SOURCE: Compiled by the Council from NYS Education Department School Aid data.

20 Other Governor Proposals on the Radar with Potential Financial Impacts Special Education Cost Shift: Eliminate 80% reimbursement for educating students with disabilities during summer months ($70 million cost shift to districts) Continues provision authorizing the DOB to enact mid-year cuts, absent legislative proposals, if federal revenues decline more than $850 million in Medicaid, or $850 million in other funding sources. Proposes new authority for the DOB to reduce appropriations if annual estimate of receipts are off by $500 million. School aid exempt. Caps on expense driven aides such as BOCES and building aid Statewide. Changes to STAR program

21 Sources of Revenue (cont d) (Federal and Grant Monies) Federal Aid: ESSA (Every Student SucceedsAct) Projected Title I/IIA $327,369 (current funding) *Title IIA $45,000 is possibly being eliminated Projected IDEA $254,376 Grant Dollars: Targeted to specific Programs. Flow through monies where expenditures are offset with revenues. Example APEX Afterschool Grant

22 Sources of Revenue (cont d) RESERVES Our reserves are our savings accounts Some created by BOE resolution and some by voter resolution Current Balances Retirement Contributions Reserve $ 1,166,377 Unemployment $ 175,781 Workers Compensation $ 695,798 Employee Benefit Accrued Liability $ 258,296 Tax Certiorari $17,873 Capital $ (Voter) $ 300,000 Repair Reserve $205,155 Considerestablishing a TRS reserve IF the legislature approves this additional legal reserve

23 Sources of Revenue (cont d) Use of Appropriated Fund Balance HISTORICAL DATA Appropriated Fund Balance $ 600, $ 600, $ 600, $ 705, $ 600, $ 697, $ 700,000 (Final to be determined through budgeting process)

24 Sources of Revenue (cont d) Property Taxes PropertyTaxes: 2 nd largest source of Revenue Property Tax Cap:*Preliminary projections are the lesser of 2% or the current CPI projected at 2.1% Historical Impact on Revenues $ 6,736, $ 6,997, $ 7,375, $ 7,440, $ 7,433, $ 7,446, $ 7,631,798 Projected Range 0% 7,631,798 to *Projected Tax Cap 5.20% $8,028,619

25 PRELIMINARY Tax Cap Calculations Tax Levy Limit (cap) Before Exclusions Tax Cap Calculations and Totals Tax Levy Fiscal Year Ending (FYE) 06/30/2018 $ 7,631,798 Total Tax Cap Reserve Amount from FYE 06/30/2018 $ 0 Tax Cap Growth Factor ** PILOTS receivable FYE 06/30/2017 $ 172,610 Capital Tax Levy for FYE 06/30/2017 $ 167,506 Allowable Levy Growth Factor*** PILOTS receivable FYE 06/30/2019 $ 177,681 Available Carry Over from FYE 06/30/2018 $ 0 Total Levy Limit Before Exclusions $ 7,655,552 ** As determined by the NYS Office of real property Tax Services (ORPTS) *** As determined by the NYS Office of the State Comptroller

26 PRELIMINARY Tax Cap Calculations (cont d) Exclusions Tax levy necessary for expenditures resulting tort orders/judgements over 5% FYE 06/30/2018 tax levy $ 0 Capital Tax Levy for FYE 06/30/2019 $ 373,067 Tax levy necessary for pension contributions expenditures Caused by growth in the system average acturarial contribution rate (ERS) or normal contribution rate (TRS) In excess of 2 percentage points ERS $ 0 TRS $ 0 Total Exclusions $ 373,067 Tax Levy Limit, Plus Exclusions $ 8,028,619 Tax Levy Limit, Plus Exclusions % 5.20%

27 PRELIMINARY Tax Cap Calculations (cont d) DISCUSSION NEEDED Proposed Levy for FYE 06/30/2019 $ 7,631,798 Difference Between Tax Levy Limit Plus Exclusions and Proposed Levy $ (396,821) Do you plan to override the cap in 2019? Yes No

28 Revenue Impact with current Assumptions Governor s Proposed State Aid $ 11, 663,028 Federal Grants (Flat) ESSA $ 327,369 IDEA $ 254,376 Reserves (same projections as ) $ 275,000 Appropriated Fund Balance $ 700,000 Tax Levy (Range) 0% increase to projected tax cap of 5.20% $ 7,631,798 - $8,028,619 Other Revenue $ 1,509,026

29 Range of PRELIMINARY Impact on Proposed Budget Based on proposed expenditures and funding levels included in the Governor s Proposed Budget Based on Tax Levy remaining same as Based on Tax Levy maximum increase of 5.20% $22,207, Preliminary $22,207,462 Proposed Budget $7,631,798 Tax Levy $8,028,619 $11,498,292 Projected State Aid $11,498,292 $2,483,994 Other Revenues $2,483,994 $593,378* Anticipated Shortfall $196,557* *Can be decreased by the use of appropriated fund balance, reserves, or other strategic methods currently being evaluated.

30 Projected Expenditure to Revenue Gap Based on 5.20% Cap Based on 2.49% Cap (same as last year) Proposed Budget Projections: $ 22,207,462 $ 22,207,462 Projected Revenues: $ 22,010,905 $ 21,804,116 Current Gap based on $ 196,557 $ 403,346

31 What is at Stake? If the voters reject the District s proposed budget, the Board of Education may do one of the following: Resubmit the defeated budget Submit a revised budget or Adopt a contingent budget If the resubmitted or revised budget is defeated the BOE must adopt a contingent budget consisting of teachers salaries and ordinary contingent expenses, subject to a cap on the administrative portion of the budget, with no increase in tax levy over the prior year. (Gap increases to $ 593,378)

32 Budget Development Next Steps Needing BOE Guidance TAX CAP TARGET Parameters Needed Projected Use of Reserves/Fund Balance Potential Cuts to Expenditures TBD

33 Questions

34 MARCH MADNESS March 7 th Updated Projections Expenditure Adjustments (Prioritized Cut List) March 21 st Updated Projections Expenditure Adjustments (Prioritized Cut List) Contingency Budget Implications

35 We are THE Elmira Heights CSD Where kids come first and WE MATTER!