North Syracuse Central School District. Budget Update April 4, 2016

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1 North Syracuse Central School District Budget Update April 4,

2 Agenda State Aid Tax Cap Budget Status & Implications Revenue & Expense Summary Budget Process Timeline 2

3 State Aid Final vs. Executive Proposal Approved Executive Difference Budget Budget $ % Foundation Aid 43,747,558 43,701,446 46, % Excess Cost - Private 443, ,114 21, % Excess Cost - Public 2,177,464 2,177, % Subtotal 46,368,320 46,301,024 67, % Hardware & Technology 160, ,131 (1,186) -0.7% Software, Library, Textbook, 740, ,899 (6,373) -0.9% Transportation (budget adjusted) 8,148,291 8,148, % BOCES 4,868,334 4,873,132 (4,798) -0.1% Subtotal 13,918,096 13,930,453 (12,357) -0.1% GAP Elimination Adjustment 0 (1,166,757) 1,166, % Total (Without Building Aid) 60,286,416 59,064,720 1,221, % Building Aid 7,296,148 7,296, % TOTAL STATE AID 67,582,564 66,360,868 1,221, % Universal Pre-K 606, , % TOTAL STATE AID w/ Pre-K 68,188,684 66,966,988 1,221, % 3

4 State Aid Projected vs. Final Gen Rpt Approved Difference Aid Projection Budget $ % Foundation Aid 43,324,523 43,747, , % Excess Cost - Private 445, ,298-2, % Excess Cost - Public 1,963,288 2,177, , % Subtotal 45,733,283 46,368, , % Hardware & Technology 163, ,945-2, % Software, Library, Textbook, 746, ,526-5, % Transportation (budget adjusted) 8,135,093 8,148,291 13, % BOCES 4,412,529 4,868, , % Subtotal 13,456,674 13,918, , % GAP Elimination Adjustment (1,918,145) 0 1,918, % Total (Without Building Aid) 57,271,812 60,286,416 3,014, % Building Aid 7,973,236 7,296, , % TOTAL STATE AID 65,245,048 67,582,564 2,337, % Universal Pre-K 606, , % TOTAL STATE AID w/ Pre-K 65,851,168 68,188,684 2,337, % 4

5 Foundation Aid History Campaign for Fiscal Equity Law Suit Enacted State Budget/School Year Current Year Aid Full Phase-in Level Shortfall $ 38,127,395 $ 51,905,964 $(13,778,569) $ 42,285,090 $ 54,710,908 $(12,425,818) $ 42,317,268 $ 59,749,290 $(17,432,022) $ 42,317,268 $ 59,606,170 $(17,288,902) $ 42,317,268 $ 56,889,215 $(14,571,947) $ 42,579,693 $ 57,754,076 $(15,174,383) $ 42,699,660 $ 59,296,055 $(16,596,395) $ 43,178,688 $ 53,814,000 $(10,635,312) $ 43,324,523 $ 52,716,600 $ (9,392,077) 5

6 Tax Cap Calculation Final filed with NYS Comptroller s Office Tax Levy : $81,884,213 Tax Base Growth Factor: x ,531,098 PILOT Revenue for : 583,700 Tax Levy for Capital for : (1,832,727) 81,282,071 Allowable Levy Growth Factor: x $81,379,609 PILOT Revenue for : (470,494) Tax Levy for Capital for : 1,865,763 Other Exclusions (ERS & TRS> 2%): 0 Available Carryover 0 Tax Levy Limit Plus Exclusions: $82,774,878 Tax Levy Limit Increase: $ 890,665 (1.09%) Potential tax levy increase on home of $100,000 BEFORE STAR $

7 Budget Status Initial Budget Deficit $ (2,062,477) Additional State Aid (Final 4/1/16) 1,221,696 Change in Tax Cap Calculation (60) Changes in Salaries and Wages: Title Grant(s) Adjustment 52,044 4 Teaching Assistant Retirements 132, Additional Secondary Teachers (87,536) 2 Additional Special Education Teachers (102,984) 2 Less Elem Positions due to Enrollment 102,984.8 less Elem Special Area due to Enrollment 41,194 2 Additional Consultant Teachers (102,984) Breakage on Retirements 209,022 Total Changes in Salaries and Wages 243,740 Net Changes in Expenditures 397,101 Additional Fund Balance Appropriation 200,000 Budget Deficit April 1,

8 Implications for NSCSD Continuation of 2.0 Teachers on Special Assignment - Instructional Technology Coaches Continuation of 1.0 Teacher on Special Assignment Instructional Coach for Writing No layoffs will be required to balance the budget No reductions in student programs The final State Aid will not allow for the restoration of critical programs and positions cut from recent budgets: Instructional, Support Services, Administration, Co-curricular and Athletics. 8

9 Estimated Revenues $155,237,936 Other Revenue $2,300,000 Sales Tax 2% $350,000 0% PILOTS $470,494 0% Interest $60,000 0% Fund Balance $950,000 1% Rent $400,000 0% Medicaid $350,000 0% Tax Levy $82,774,878 53% State Aid $67,582,564 44% 9

10 Revenue Variance Variance General Aid $56,864,117 $60,286,416 $3,422, % PILOTS $583,700 $470,494 ($113,206) (19.39%) Sales Tax $350,000 $350,000 $0 0.0% Interest $60,000 $60,000 $0 0.0% Fund Balance $750,000 $950,000 $200, % Rent $380,000 $400,000 $20, % Medicaid $300,000 $350,000 $50, % Other Revenue $2,156,610 $2,300,000 $143, % Sub Total $61,444,427 $65,166,910 $3,722, % Building Aid $7,534,084 $7,296,148 ($237,936) (3.16%) Possible Tax Levy $81,884,213 $82,774,878 $890, % Total $150,862,724 $155,237,936 $4,375, % 10

11 Estimated Expenditures $155,237,936 Salaries $71,475,175 46% Benefits $48,419,846 31% Debt Service $10,569,622 7% Equipment $475,000 0% Special Project $100,000 0% Contractual $6,745,883 5% BOCES $14,089,258 9% Supplies & Other $3,363,152 2% 11

12 Expenditure Variance Variance Salaries $68,466,507 $71,475,175 $3,008, % Benefits $47,369,846 $48,419,846 $1,050, % Debt Service $10,869,622 $10,569,622 ($300,000) (2.76%) Contractual $6,993,096 $6,745,883 ($247,213) (3.54%) BOCES $13,023,003 $14,089,258 $1,066, % Equipment $488,831 $475,000 ($13,831) (2.83%) Supplies & Other $3,551,819 $3,363,152 ($188,667) (5.31%) Special Project $100,000 $100,000 $0 0.00% Total $150,862,724 $155,237,936 $4,375, % 12

13 Additional Thoughts - Expenditure Health Benefits: While these costs will increase, we expect a lower increase due to changes in health benefits administration and concessions from bargaining units. Retirement Costs: TRS The NYS Teachers Retirement System recommends school districts use an estimated rate for employer contributions to the system of 11.72%. This is lower than the current rate of 13.26%. ERS - New York State Comptroller, Thomas P. DiNapoli, announced the average contribution rate for the Employee Retirement System (ERS) will decrease from 18.2% of salaries to 15.5% or about 15%. Salaries & Wages: Increases have averaged less than 1% for the 3 years ended June 30, Settled contracts will increase by 3% for Fuel Costs (Transportation): Although costs have been declining, this is a volatile market. We must consider net of aid savings only. Energy Costs (Gas & Electric): BOCES: Through BOCES, the district entered into a 3-year supply agreement commencing in school year. The budget has been adjusted accordingly. Continue to evaluate opportunities to control costs through BOCES services.

14 Expenditure Per Pupil OCM BOCES OCM BOCES Rank Spending Per Pupil State Rank OCM BOCES Rank Spending Per Pupil State Rank 1 $25, $23, $23, $23, $22, $21, $21, $21, $20, $20, $19, Source: NYSED School Report Card Data of 669 schools 12 $19, $19, $19, $19, $19, $18, $18, $18, $18, $17, North Syracuse $17, $16,

15 Vehicle Bonding Proposition Maintain the average age of our transportation fleet with a limited number of vehicles over 10 years old. Reduce the cost of repairs and avoid problems associated with rusting frames that prevent the vehicles from passing D.O.T. inspection. Replace Bucket Loader used by M&O for snow removal and grounds projects. Proposed purchases for : passenger diesel school buses 1-42-passenger diesel school bus with one to three wheelchair positions, hydraulic lift and air conditioning 1-48-passenger bus with air conditioning 1 - Suburban 1 - Bucket Loader Total estimated cost of all 14 vehicles is $1,566,828. Tax Impact, after Trans Aid: approximately $2.10 per year for a house assessed at $100,000 before STAR. 15

16 Projected General Fund Balance June 30, 2016 Unassigned Fund Balance June 30, 2015: $7,110,792 Used to Establish Capital Reserve October 2015: ($ 500,000) Estimated Revenue / Expense Variance : 0 Est. Appropriation to Reduce Tax Levy : ($ 950,000) Projected Unassigned Fund Balance June 30, 2016: $ 5,660,792 Estimated Budget for (Increase 3%): $155,237,936 Percentage of Budget: 3.65% Fund Balance is below the NYS target of 4% 16

17 Reserves Actual / Forecast 6/30/2015 6/30/2016 Tax Certiorari $ 652,907 (a) $ 655,000 Worker s Compensation $1,854,507 (a) $1,860,000 General Liability $ 41,670 $ 42,000 Capital Reserve $ 0 $ 500,000 (b) Total $2,549,084 $3,063,000 Percentage of Budget 1.7% 2.0% (a) BOE increased as of 6/30/15 to reflect projected increase in liabilities. (b) BOE created this reserve on October 5, 2015 to provide for future capital needs. 17

18 Summary Although GEA has been eliminated, Foundation Aid is still significantly lower than required to provide a sound basic education according to the Campaign for Fiscal Equity law suit. The Tax Cap formula does not allow for sufficient increases in the levy to enhance or even sustain current programming. State Aid and Tax Levy increases will not support the restoration of critical programs and positions cut since the Great Recession. The District s reserves and fund balance continue to be lower (as a percentage of the budget) than other districts. 18

19 Budget Process Timeline October 19 th BOE approves budget process & timeline November 2 nd Budget Assumptions November 16 th February 19 th Principals, Directors & Cabinet and BOE subcommittee develop detailed budget January 4 th Board of Education Budget Process Overview & Status January 25 th Board of Education Governor s Budget proposal February 1 st Board of Education Preliminary Tax Cap Calculation Fund Balance & Reserve Projections February 22 nd Board of Education Initial Budget March 21 st Board of Education Budget Update Final Tax Cap Approve Vehicle Bonding Proposition Approve Notice of Budget Hearing/Election April 4 th Board of Education Proposed Budget Budget Discussion & Deliberation April 18 th Adoption of Budget BOCES Election and Budget Vote May 3 rd Budget Hearing May 17 th Budget Vote 19