Community Budget Forum

Transcription

1 WHITE PLAINS SCHOOL DISTRICT Community Budget Forum January 23, 2014

2 Agenda for Budget Forum Introduction & Overview Preliminary Highlights of Key Issues Property Tax Cap Overview of Financial Issues Community Input Work Groups

3 Property Tax Cap Began with the school year budget In effect through at least , thereafter, it remains in effect only so long as regulation and control of residential rents and evictions (i.e., rent control) laws are in place Chapter 97 eliminates the overall contingency budget spending restriction (lesser of 120% of CPI or 4%) beginning with the budget

4 Tax Levy Cap Lesser of 2% or CPI Limits tax levy growth to the lesser of 2% or the annual increase in the CPI Tax Levy = total dollars of property taxes (including STAR) NOT a cap on budget expenditures NOT a cap on tax rate CPI released by SED in mid January for the prior calendar year was set at 1.46%

5 Tax Base Growth Factor Tax Base = assessment roll Tax Base Growth Factor = change in assessed value Released by NYS Office of Real Property Services(ORPS) in December based on information provided by tax assessors Tax Base: If tax base goes up, tax levy limit is adjusted upward If tax base goes down, there will be no adjustment

6 Exemptions Base Year Voter-approved capital expenditures (debt service, leases, capital improvements, capital equipment, etc.) Court order and torts over 5% of prior year s tax levy Pension rate increases over 2% (both TRS & ERS) and future years Voter-approved capital expenditures (debt service, leases, capital improvements, capital equipment, etc.) Court order and torts over 5% of prior year s tax levy Pension rate increase over 2% (both TRS & ERS)

7 Calculation Prior Year Tax Levy x Assessment Growth Factor + PILOTs - Exemptions x CPI or 2% - PILOTs + Carryover + Exemptions = Allowable Tax Levy for Next Year (may not = 2%)

8 Calculation of Property Tax Levy Cap Calculation of Property Tax Levy Cap Draft ) Prior Year Tax Levy 156,756, ,914,780 TIMES x 2) Growth Factor Sub-Total 157,007, ,892,269 PLUS + 3) PY PILOTS 10,135,209 8,993,385 MINUS - 4) PY Levy for Judgements over 5% of total tax levy 0 0 PY Levy for excess increases to ERS 86,093 0 PY Capital Tax Levy 6,706,586 6,317,315 EQUALS = PY TAX LEVY LIMIT 160,435, ,568,339 TIMES x 5) Allowable Levy Growth Factor (1 + inflation factor, up to 2%) Sub-Total 163,644, ,000,236 MINUS - 6) CY PILOTS 8,978,750 9,271,367 PLUS + 7) Available Carryover EQUALS = TA X LE 154,665, ,728,869 PLUS + 8) CY Levy for Judgements over 5% of total tax levy 0 0 CY Levy for excess increases to ERS 0 0 CY Levy for excess increases to TRS 1,931,277 0 CY Capital Tax Levy 6,317,315 7,223,870 MINUS - 9) Erroneous levy plus interest from prior year 0 0 EQUALS = ALLOWED TAX LEVY WITH 50% plus 1 approval 162,914, ,952,739 ALLOWABLE GROWTH OF TAX LEVY 6,157,990 4,037,959 PERCENT INCREASE IN PROPERTY TAX LEVY 3.93% 2.48%

9 Financial Consequences Tax growth related to expenditure growth Tax cap curbs tax growth, does not address expenditure growth District has cut for 5 years to absorb mandated costs within reasonable tax growth Salary gap contracts will eventually be renegotiated to fit under the limit BUT what happens in the meantime? CUT, CUT, CUT 9

10 50% vs. 60% Board Decision Voters approve the expenditure budget: Option 1: Propose a budget requiring a tax levy at or below the allowable tax levy prescribed by law (Requires a simple majority; 50% + 1 voter approval) Option 2: Propose a budget requiring a tax levy before exemptions above the allowable tax levy prescribed by law (Requires a super majority; 60% voter approval)

11 Budget Failure Two Votes First Vote May 20, 2014 If the proposed budget is not approved by the required margin: OR the district may resubmit the original budget or submit a revised budget to the voters on June 17, 2014 adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in tax levy)

12 Budget Failure Two Votes Second Vote June 17, 2014 If the proposed budget is not approved by the required margin: District must adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in tax levy) Administrative Cap is still in effect Non-contingent expenses must be removed Expenditures are no longer subject to overall contingent budget spending cap (i.e., lesser of 120% of CPI, or 4%, whichever is less)

13 WHITE PLAINS SCHOOL DISTRICT OVERVIEW OF FINANCIAL ISSUES January 23, 2014

14 Property Tax Levy Cap Cap of 1.46% provides additional $2,431,897 Growth factor of.006% another $977,489 Exemption for Capital Expenses $906,555 Changes in PILOT Agreements -$277,982 Additional revenue of $4,037,959

15 School State Aid Projected $807 million increase about 4% School Aid Increase of $603 million or 2.9% Formula adjusted by State Income Tax White Plains City School District Preliminary numbers require review Increase of $1,000,000 without Building Aid

16 Budget Expenditures Personnel Salaries 50.2% Employee Benefits 25.1% Debt Service 6.6% BOCES Services 5.3% Transportation 4.7% Utilities & Repairs 2.4% Other Expenses 5.7%

17 Salaries Teachers - Current agreement with a step increase at $1,270,000 CSEA - Current agreement an increase of $350,000 ASA and M & C an increase of $105,000 Total projected increase in salaries of $1,725,000

18 Employee Benefits Health Insurance Costs Projected increase of $1,810,000 Significant concern now and in the future Retirement System Costs Teacher Retirement increase of $1,220,000

19 Key Numbers Budget is $193,400, Revenue Cap of $198,400, Expense Trend is $199,200,000 Budget reductions of $800,000

20 Let s Think About This What are the programs and services most important to maintain for the students of the White Plains School District?

21 Work Session Questions 1. What are the programs and/or services the school district should reduce or eliminate? 2. What are some other ideas that would generate cost savings within the school district? (Consider out of the box ideas.) 3. With limited revenue, what can the district do without? 4. What areas of personnel (staffing) can be reduced or eliminated? 5. What other ideas do you have?

22 Community Response Forums. Date: March High School Room B-1 Time 7:30 p.m.

23 BUDGET CALENDAR February 10 Non-Instructional Expenditures Budget Shared with Board of Education Education House 7:30 PM February 24 Instructional Budget - Part I Shared with Board of Education Education House 7:30 PM March 10 Instruction Budget Part II Shared with Board of Education Public Hearing on Preliminary Proposed Budget Education House 7:30 PM

24 Budget Calendar April 7 Board Adoption of Proposed Budget Education House 7:30 PM May 12 Public Hearing on Board of Education s Adopted Proposed Budget Education House 7:30 PM May Budget Vote and Board of Education Election