North Syracuse Central School District. Initial Budget February 22, 2016

Transcription

1 North Syracuse Central School District Initial Budget February 22,

2 Agenda Governor s State Aid Proposal Estimated Tax Cap Preliminary Revenue & Expense Summary Fund Balance Reserves Budget Process Timeline 2

3 Governor s State Aid Proposal According to the NYSSBA, the Governor s proposal came in below expectations with an increase of $991 million. Based on expectations set by Speaker Heastie and Majority Leader Flanagan, the NYSSBA called for increases of approximately $2.3 billion. The Governor s proposal recommends a reduction in the GEA but not total elimination until His proposal reduces our GEA by $751,388 from $1.9 million to $1.2 million. NO changes in the TAX Cap formula are proposed by the Governor. The proposal mentions a waiver process for mandates. We are not optimistic about any real savings coming from this process. The Governor s Budget Proposal and presentation highlighted Community Schools, Charter Schools and the Empire State Prekindergarten Grant Board. None of these will impact NSCSD during

4 Projected Aid vs. Governor s Proposed Aid for Approved Executive Difference Budget Budget $ % Foundation Aid 43,324,523 43,701, , % Excess Cost - Private 220, , , % Excess Cost - Public 1,676,270 2,177, , % Subtotal 45,221,343 46,301,024 1,079, % Hardware & Technology 163, ,131 (891) -0.5% Software, Library, Textbook, 751, ,899 (4,367) -0.6% Transportation (net of adjustment) 8,148,291 8,148, % BOCES 4,498,340 4,873, , % Subtotal 13,560,919 13,930, , % GAP Elimination Adjustment (1,918,145) (1,166,757) 751, % Total (Without Building Aid) 56,864,117 59,064,720 2,200, % Building Aid 7,534,084 7,296,148 (237,936) -3.2% TOTAL STATE AID 64,398,201 66,360,868 1,962, % Universal Pre-K 606, , % TOTAL STATE AID w/ Pre-K 65,004,321 66,966,988 1,962, % 4

5 Implications for NSCSD The Governor s Budget Proposal DOES NOT provide sufficient funding to allow for a balanced budget. We currently have an estimated deficit of $2.0 million. We need full restoration of the GEA ($1.2 million) AND an increase in Foundation Aid ($.8 million). Increases in Excess Cost Aid do not cover the cost increases associated with servicing our special needs population. This is due to the STAC limit. Increases in BOCES Aid does not cover the cost of additional programs due to the Salary Cap. The proposed State Aid will not allow for the restoration of critical items cut from recent budgets. 5

6 Tax Cap Calculation Estimate 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 : (470,434) Tax Levy for Capital for : 1,865,763 Other Exclusions (ERS & TRS> 2%): 0 Available Carryover 0 Tax Levy Limit Plus Exclusions: $82,774,938 Tax Levy Limit Increase: $ 890,725 (1.09%) Potential tax levy increase on home of $100,000 BEFORE STAR $

7 Estimated Revenues $153,816,240 Other Revenue $2,300,000 Sales Tax 2% $350,000 0% PILOTS $470,434 0% Interest $60,000 0% Fund Balance $750,000 1% Rent $400,000 0% Medicaid $350,000 0% Tax Levy $82,774,938 54% State Aid $66,360,868 43% 7

8 Estimated Revenue Variance Variance General Aid $56,864,117 $59,064,720 $2,200, % PILOTS $583,700 $470,434 ($113,266) (19.40%) Sales Tax $350,000 $350,000 $0 0.0% Interest $60,000 $60,000 $0 0.0% Fund Balance $750,000 $750,000 ($0) (0.0%) 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 $63,745,154 $2,300, % Building Aid $7,534,084 $7,296,148 ($237,936) (3.16%) Possible Tax Levy $81,884,213 $82,774,938 $890, % Total $150,862,724 $153,816,240 $2,953, % 8

9 Additional Thoughts - Revenue Building Aid: Recalibration of Interest which will lower building aid is not included in Governor s proposed budget. Education law requires the Commissioner to revise the assumed amortization schedule for remaining debt service payments for outstanding principal and interest at the end of each 10-year segment of an assumed amortization for Building Aid if the current interest rate is at least one quarter percent (.25) lower than the original interest rate for the assumed amortization. General State Aid: The Governor s Budget Proposal is being deliberated by the legislature. We need to share information with our representatives so that they can advocate for the elimination of the GEA and increase Foundation Aid. Real Property Taxes: Unless we ask for an above tax cap increase, which requires a super majority (60% approval by voters), our levy increase will be limited to $890,725 or 1.09%. Smart Schools Bond Act: Revenues will NOT come into the General Fund. They will either be received into the Special Aid Fund or Capital Fund.

10 Estimated Expenditures $155,878,657 Salaries $71,675,000 46% Benefits $48,419,846 31% Debt Service $10,569,622 7% Equipment $475,000 0% Special Project $100,000 0% Contractual $6,993,096 5% BOCES $14,094,274 9% Supplies & Other $3,551,819 2% 10

11 Estimated Expenditure Variance Variance Salaries $68,466,507 $71,675,000 $3,208, % Benefits $47,369,846 $48,419,846 $800, % Debt Service $10,869,622 $10,569,622 ($300,000) 2.76% Contractual $6,993,096 $6,993,096 $0 0.0% BOCES $13,023,003 $14,094,274 $1,071, % Equipment $488,831 $475,000 ($13,831) 2.83% Supplies & Other $3,551,819 $3,551,819 $0 0.0% Special Project $100,000 $100,000 $0 0.0% Est. Expenditures $150,862,724 $155,878,657 $5,015, % Deficit ($2,062,417) Est. Revenues $150,862,724 $153,816,240 11

12 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.

13 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,

14 Vehicle 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 1-39-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 $1,600,000 Tax Impact, after Trans Aid: approximately $3 per year for a house assessed at $100,000 before STAR. 14

15 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 : ($ 750,000) Projected Unassigned Fund Balance June 30, 2016: $ 5,860,792 Estimated Budget for (Increase 3%): $155,388,606 Percentage of Budget: 3.8% Fund Balance is below the NYS target of 4% 15

16 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. 16

17 Summary We are very disappointed in the Governor s Budget Proposal. We need the GEA eliminated ($1.2 million) and an increase in Foundation Aid ($.8 million). The Tax Cap formula does not allow for sufficient increases in the levy to sustain current programming. State Aid and Tax Levy increases will not support the restoration of critical programs and positions cut since the Great Recession. After years of cuts, identifying $2 million of additional cuts to close the deficit, will further degrade student programs. The District s reserves and fund balance cannot be used to support the general fund budget. 17

18 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 Bus Bond Proposition Approve Notice of Budget Hearing/Election April 4 th Board of Education Proposed Budget Presentation Budget Discussion & Deliberation April 18 th Adoption of Budget BOCES Election and Budget Vote May 3 rd Budget Hearing May 17 th Budget Vote 18