Budget Overview. Board of Education Meeting December 11, 2012

Transcription

1 Budget Overview Board of Education Meeting December 11, 2012

2 FY Budget in Review Closed an overall budget gap of over $1Million Negotiated changes to health insurance Elimination of 14 positions Reduction in both BOCES and outside services Elimination of Elementary Summer School Program Compression of two elementary bus routes Use of Appropriated Fund Balance Maintaining the same level of staffing and services from FY school year would have required a levy increase of 9.87%

3 How Watervliet s Education Dollars are Spent Expense Category Appropriations Change Over General Support $2,018,483 ($216,800) Supervision (Curriculum, Admin & Prof Dev) 678,728 (18,572) Regular School Instruction 5,671,142 (34,286) Special Education 3,874,189 88,210 Summer School 34,752 (78,248) Student Services 1,451,310 (130,692) Extracurricular & Athletics 298,916 (12,597) Transportation 1,277,720 (120,530) Employee Benefits 5,279,236 (117,008) Debt Service & Interfund Transfers 2,551, ,703 Total Appropriations $23,136,179 $115,180

4 How Watervliet s Education Dollars are Spent Expenditure Category: Salaries ($8.9M) Expenditures As % of Total Budget Dollar Amount Benefits ($5.3M) Debt Service ($2.5M) 9% 11% 19% 38% Sped Tuition ($2.1M) 23% Other ($4.3M) Salaries Benefits Debt Service Special Ed Tuition Other

5 Salaries Salaries will increase by approximately $470,000: $2,500,000 $3,000,000 Total : Projected : $8.88M $9.35M $2,000,000 Increase to budget: $0.47M $1,500, $1,000,000 $500,000 $- WHS WES Special Ed Other

6 Retirement & Health Insurance For the school year, the ERS employer contribution rate will increase from 18.9% to 20.9%, increasing costs by approximately $30,000. The TRS rate is expected to increase from 11.84% to 16.5% for the school year, a 40% increase, costing the district approximately $410,000. The TRS/ERS employer contribution rates are determined by the State in order to ensure that the systems are fully funded in relation to future obligations. Health benefits costs are expected to increase by approximately $390,000 in SY Increased Retirement & Health Insurance Costs ERS (18.9% to 20.9%) $30,000 TRS (11.84% to 16.5%) $410,000 Health Insurance Costs $390,000 Total Increase: $830,000

7 Mandates Definition: A statute or regulation that prescribes how services should or can be provided by school districts. Usually unfunded/underfunded limits district s flexibility to allocate available resources and increases the cost of operations costs that are not directly controlled by the SD This presentation is only meant to inform; not a statement on the importance or necessity of services.

8 Mandates Examples of Unfunded Mandates: Annual Professional Performance Reviews (APPR) professional development (training), substitute teachers, materials, administrative time, etc. Special Education Mandates IEP s Individualized Education Plan - special education and related services specifically designed to meet the unique educational needs of a student with a disability Academic Intervention Services Provide additional instruction and support services that supplement the general curriculum and address barriers to improved student performance Purchasing of graphing calculators for students Under no circumstances should students be charged for a calculator or otherwise required to purchase one in order to participate in an educational program.

9 Mandates Charter School Tuition: Public school districts are required to pay tuition for resident students attending a charter school Current year appropriations include $216,292 for 23 students. Tuition paid by the district for charter school enrollment is currently above budgeted levels. We are currently being billed for 38 students at a cost of $9,404 each to attend a charter school. Our projected amount is now $357,352, a difference of $141,060 above appropriations. Charter School Tuition SY Students $216,292 SY Students $357,352 Increase in Costs $141,060

10 SY Projected Budget Gap Expense Category Budget Gap Salaries $470,000 Charter School Tuition $141,000 Increase in ERS/TRS Contributions $440,000 Increase in Health Insurance Costs $390,000 Appropriated Fund Balance* $300,000 Total Budget Gap $1,741,000 *An Appropriated Fund Balance of $300,000 was used to balance the budget. Therefore, because it was a one-shot, it needs to be backed out to determine the next year s projected budget gap.

11 Where Watervliet s Education Dollars Come From Source of Revenue Adopted Budget Revenues As % of Total Budget Total State Aid $15,420,043 1% 5% Total Federal Sources 289,000 26% School Property Taxes 6,103,762 67% Appropriated Fund Balance 300,000 1% All Other Sources 1,023,374 Total Revenue $23,136,179 State Aid Property Tax Other Federal Aid Appropriated Fund Balance

12 Gap Elimination Adjustment Refers to the gap between budgeted State expenditures and the revenue available to support those expenditures. All school districts have a percentage of their formula aid reduced to help fill this gap Since the budget year, the District has lost out on over $3.4 million in foundation aid it would have otherwise received School Year Foundation Aid GEA Net Foundation Aid $10,896,473 ($756,833) $10,139, $10,896,473 ($1,512,997) $9,383, $10,978,669 ($1,000,168) $9,978,501 Total: $32,771,615 ($3,269,998) $29,501,617

13 Property Tax Cap Not a strict 2% cap Exemptions for certain pension contributions, tort actions and certain capital costs Does not limit any individual tax rate Necessary components of formula not available until mid-january A Tax Base Growth Factor or TBGF which is determined by the Department of Tax & Finance Inflation rate as determined by the Consumer Price Index (the LOWER of the rate of inflation or 2% is used to determine levy limit) Form must be submitted to OSC by March 1 Voter approval Levies within limit simple majority Exceeding limit requires 60% supermajority Contingency Budget Two attempts, then a 0% levy growth

14 Property Tax Cap Total levy amount for : $6,103,762 (increase of 2.69% over ) Remained within limit after allowing for exclusions and growth factors Every 1% over limit would provide an additional $61,000

15 External Economic Factors Exempt Property Approximately 56% of the property within the District s limits is exempt from tax Watervliet Arsenal accounts for 70% of the exemptions (taxable assessed value in excess of $254M) The remaining 44% that is subject to taxation must account for 100% of the costs Taxable Assessed Value Has decreased by 2.7% since 2007 Limited development/commercial opportunities State Tax Receipts Comptroller DiNapoli issued a press release in late November stating that the State is more than $260M below initial estimates

16 What has the School Done for Itself? Played by the Rules: Remained within the Property Tax Levy Cap Limit One of the first districts to receive State approval for the newly-mandated teacher and principal evaluation plans (APPR) The district has recently received grants for the Strengthening Teacher and Leader Effectiveness Grant ($170k) and for the development of Virtual Advanced Placement courses ($1.2 million total allocated amongst seven SD s and Capital Region BOCES) STLE Grant will allow district teachers to return to school to earn certification in secondary science Is applying for a 21 st Century Community Learning Centers Grant to provide students with academic enrichment opportunities that complement their academic programs Strong advocacy and educational campaign to get the word out regarding the predicament school districts across the State are faced with