BUDGET PRESENTATION. Champlain Valley Educational Services CVES Annual Board Meeting April 11, 2018

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1 BUDGET PRESENTATION Champlain Valley Educational Services CVES Annual Board Meeting April 11, 2018

2 Budget Committee Budget Committee Members: Leisa Boise Lori Saunders Linda Gonyo Horne Dr. Mark C. Davey Dr. Hollis Palmer Reggie McDonald Michele Friedman Teri Calabrese Gray Christine Myers Agenda Welcome & Agenda Review Review Budget Calendar Budget Development Factors Health Insurance, Benefits, Salaries Governor Cuomo Executive Budget for Draft Budget Proposals CVES Capital Project Planning 2

3 CVES Budget Calendar BUDGET PROCESS/TIMELINE October 10, 2017 November 1, :00 p.m., ISC Directors Start 2017/18 Budget Reconciliation Process with Christine/Hollis Budget Committee Meets to Discuss Budget Development December 6, 2017 Budget Committee Meets to Review 2017/18 Budget Reconciliations, 7:00 p.m., ISC and Set Parameters for the Budget Development December 13, 2017 Board of Cooperative Educational Services Meeting 6:30 p.m., Spec. Ed Gym Review December 6 th Budget Committee Meeting Highlights December 21, 2017 January 22, :30 p.m., ISC January 26, 2018 Directors Submit Initial Budgets for Preliminary Review Budget Committee Meets to Review 2018/19 Draft Budgets Draft Budget Booklets Sent to Print Shop for February 14 th Board Meeting February 14, 2018 Board of Cooperative Educational Services Mtg; Presentation of Draft Budgets 6:30 p.m., ISC Review January 18 th Budget Committee Meeting Highlights February 16, 2018 Review Costs with Chief School Officers 9:00 a.m., Mineville Budget Development PowerPoint March 9, 2018 March 30, 2018 April 11, :30 p.m., ISC April 26, 2018 April 27, 2018 May 9, :30 p.m., Mineville Budget Booklet Sent to Print Shop for Printing Mail Budget Booklets to All Component School Board Members Annual Board of Cooperative Educational Services Meeting Component Districts Vote on Administrative Budget/Board Members Deadline for Component Districts to Notify CVES of Intent to Participate in Shared Services and Identify Those Services (Return Final Requests) CVES Board Considers Approving Budget 3

4 Budget Development Factors Factors Affecting Budget Development Health Insurance Premium Increases Changes in TRS & ERS Rates Contractual Salary Obligations 4

5 Factors Affecting Budget Development Health Insurance Premiums Preliminary increase of 14% used for budgets (Combined with mid year increase plus 14%, increase in costs is approx. 19.5%) CEWW Health Insurance Consortium Board approved premium increases at 13.5% on March 15 th. Change in ERS & TRS Rates (ERS = Employee Retirement System, TRS = Teacher Retirement System) ERS rate decreased from 14.50% to 14.10% TRS rates increased from 10.50% to 10.63% Contractual Salaries Average contractual salary increase 3% 5

6 Governor s Executive Budget Summary Limiting factors affecting our CVES and our Component District s Budget Development NYS Tax Cap Continuation (Challenges of 2% Cap for all districts) State Aid Foundation Aid Formula Inequity Many CVES districts appear wealthier due to high real estate values vs. low income Governor's School Aid Increases were lower than hoped for Executive Budget included a $769 million (3%) increase for education Only $338 million of the increase was for additional Foundation Aid Actual Foundation Aid after Community Schools $50 million set aside to 700 NYS districts was approx. (1.2%) There was a proposed limit for Component Districts future BOCES/State Aid Recommended capping future BOCES Aid, Transportation & Building Aid at a 2% cap starting in

7 Governor s Executive Proposal of Budget Limiting New Approach for Distribution of Proposed Limitation of Capping BOCES Aid SOURCE: NYSCOSS analysis and chart of NYSED School Aid data. 7

8 Other Contributing Budget Voices for NYS Comptroller Thomas DiNapoli (Jan. 2018) Comptroller DiNapoli predicted a NYS Budget Deficit to be $4.4 Billion Concerns highlighted about the Federal Tax changes impact on NYS for property taxes, health care, etc. Led to discussion of a potentially new NYS Payroll Tax. NYS Educational Conference Board (Dec. 2017) Provide $2 Billion in State Aid Increases for ; Update the Foundation Aid formula with an implementation timeline; Modify Tax Cap for allowable growth factors & Approve BOCES Capital Cost Exclusions NYS Rural Schools Association Budget Testimony (Jan. 2018) Provide sufficient State Aid of $1.5 Billion; Provide a Legitimate State Aid Formula including improved Foundation Aid; Allow for Reasonable Reserves for Schools NYSED Board of Regents Budget/Legislative Priorities (Dec. 2017) Proposed a $1.6 Billion increase in Funding for Schools including $1.25 Billion for Foundation Aid; Continued Phase In of Foundation Aid; Provide for Statutory Reimbursement Based Aid; also CTE Program Expansion ($25 million); Universal Pre K Increase ($20 million) 8

9 Final Approved NYS Budget Summary for Education Overall Education Increase is $859 million (3.4%) in School Aid, up from $769 million The Budget fully funds Expense Based Aids Rejects the proposal to cap growth in BOCES, Building and Transportation Aid commencing in The Foundation Aid increase is $619 million (3.7% increase) It is a +$281 million increase over the original $338 million Foundation Aid The Budget modifies and expands Governor Cuomo s Budget Authority (phased in over the next three years to all districts) Requires 15 school districts to gain approval by NYSED and the Division of Budget for the methodology they use to allocate funds among their schools, or the Districts may be denied any increases in State Aid applies to districts with 4 or more schools and 50% or more total revenue from the State; applies to all districts with 4 or more schools; applies ALL districts 9

10 FINAL NYS Budget Summary for for CVES Component Districts State Aid Changes - Based on Initial Information Comparison of Executive Budget Proposal And FINAL APPROVED STATE APPROVED BUDGET on March 29, 2018 (State Aid Runs 1/16/18 vs. 3/29/2018) FINAL JAN FINAL AMT FINAL Net Foundation Aid Incr./(Decr.) Incr./(Decr.) Incr./(Decr.) % Increase Incr. / (Decr.) W/O Building Aid W/O Building Aid Net Change Jan/FINAL vs AuSable Valley $ 312,195 $ 235,702 $ 429,468 $ 193, % Beekmantown $ 486,724 $ 629,024 $ 587,679 $ (41,345) 3.68% Chazy $ 99,623 $ 115,329 $ 162,697 $ 47, % Crown Point $ 129,060 $ 242,887 $ 282,236 $ 39, % Elizabethtown-Lewis $ 135,965 $ 133,713 $ 168,415 $ 34, % Keene $ 17,339 $ 8,659 $ 24,181 $ 15, % Moriah $ 266,018 $ 141,752 $ 364,118 $ 222, % Northeastern Clinton $ 402,965 $ 392,664 $ 581,627 $ 188, % Northern Adirondack $ 235,989 $ 190,009 $ 304,858 $ 114, % Peru $ 481,326 $ 885,893 $ 1,159,567 $ 273, % Plattsburgh City $ 269,076 $ 239,061 $ 285,366 $ 46, % Putnam $ 77,246 $ 70,680 $ 89,010 $ 18, % Saranac $ 417,596 $ 570,952 $ 752,842 $ 181, % Schroon Lake $ 28,463 $ 1,203 $ 27,748 $ 26, % Ticonderoga $ 141,386 $ 150,922 $ 259,426 $ 108, % Westport $ 29,859 $ 36,545 $ 62,518 $ 25, % Willsboro $ 32,564 $ 37,830 $ 66,269 $ 28, % $3,463,394 $ 4,082,825 $ 5,608,025 $ 1,525,200 10

11 Budgets Change in Co Ser Rates by Division Special Education Division Instructional Services Center CV TEC Management Services Administrative & Capital 11

12 Budget Costs Summary Special Education 12

13 Budget Costs Summary Instructional Services Center 13

14 Budget Costs Summary CV TEC 14

15 Budget Costs Summary Management Services 15

16 Administrative & Capital Budget Summary Administrative Budget Administrative Budget Without Retiree Health Insurance Increase of 0.95%, or $11,475 Administrative Budget With Retiree Health Insurance Increase of 22.27%, or $929,657 The total cost of increase in retiree health insurance is $918,182. Increase for existing retirees is $656,381 Increase for new retirees is $261,801 Capital Budget Capital budget decrease of 0.95%, or $5,280 RWADA Distribution of Administrative & Capital Costs 16

17 Costs Summary Administrative & Capital Budgets 17

18 Administrative Budget 18

19 Administrative Budget Retiree Health Costs 19

20 Capital Budget 20

21 Changes in District RWADA 21

22 Other Items and Next Steps Completed: Budget Talking Points were shared with the CSOs and our Component School Districts Component Board Visits In additional to our annual CVES Component District Board of Education visits, CVES offered the District s the opportunity for Budget Presentations, and Budget Question & Answer Sessions if desired. Remaining: CVES wide Component Districts Budget Vote and Board Member Elections April 26, 2018 Questions? Thank You 22