2018 2019 Budget Development
State Aid: Update and phase-in the Foundation Aid formula. Tax Cap: Amend the formula to support multi-year planning (Allowing for more exemptions). Mandate Relief: Maximizing Resources to benefit students ( Change your rules or fund your rules ). Reserves: Give schools tools like those available to municipalities (Creating a TRS Reserve). Bottom-line: Inaction on the tax cap formula or maximizing resources will require large state aid increases or drastic reductions in expenditures.
Major Budget Increases In the Proposed 2018-2019 Budget Plan (Expenditures For Which There is Minimal or No District Control) Item Dollar Amount Increase Percent Increase Teachers Retirement System (TRS) $248,508 16.14% Employees Retirement System (ERS) Health Insurance (Projected 11/2017) $21,215 2.66% $41,165 0.75% Negotiated Salaries $950,682 4.85% Total Increase $1,261,570 4.60%
Rank Program Amount Faculty/Staff Notes Proposed Use of Reserves Prioritized Order 1 Special Education $8,500 0.0 FTE Field Trips and Additional Supplies 2 Cayuga Heights Elementary 3 High School $15,884 0.0 FTE 4 Athletics $59,290 1.0 FTE 5 Technology $190,900 0,0 FTE $46,522 0.5 FTE Classroom Furniture, Art Kiln and Additional Café Monitor Classroom Furniture, Professional Development and Supplies and Increase Hours in Supervision Basketball Net System for High School Gymnasium, Athletic Trainer Golf Cart and JV Lacrosse Replacement and Upgrades of Servers, Switches and Chromebooks $9,000 6 Districtwide $13,200 0,0 FTE Addition of 6 Outside Building Cameras and Wiring 7 Transportation $52,896 0.0 FTE Replacement of Fuel Pumps $52,896 8 Buildings and Grounds $49,500 0.0 FTE Increase to Contractual Services, Visitor Management System, Bypass Valve Replacement and Professional Development 9 Buildings and Grounds $30,000 0.0 FTE High School Pool Filter and Cover Repairs $30,000 10 Buildings and Grounds $12,000 0.0 FTE Equipment attachments for Maintenance of Turf Fields $12,000 TOTAL: $478,692 $103,896
2018 2019 Budget Plan Major Budget Changes In the Proposed 2018-2019 Budget Plan (Revenue For Which There is Minimal or No District Control) Item Change in Dollar Amount Percent Difference NYS State Aid (Executive Budget) $444,248 2.27% Tax Levy (estimated maximum allowable tax cap) Fund Balance(compared use to current year) Reserves(compared use to current year) $327,991 1.87% $300,000 13.04% -$251,444-30.00% Total Increase $820,795 2.03%
Allowable Levy Growth Factor = the lessor of 2% or the inflationary change using the CPI-U 2.14% (Actual as of 2/1/18). Therefore, the base is 2% before exemptions. There is a formula to determine each District s Cap. 2017-2018 Tax Levy $17,558,919 Tax Base Growth Factor: X1.0048 Tax Base Growth Amount: +$84,283 2017-2018 PILOTS +251,805 8 PILOTS 2017-2018 Capital Expense within Local Budget Adjusted Current Year Levy $17,662,050 -$232,957 Per OSC Office of Real Property Tax Services Allowable Levy Growth Factor: X2.00% CPI or 2% Max Allowable Levy Growth Amount: +$353,241 EST. 2018-2019 PILOTS -$257,586 Projected 8 properties Eligible carry over from prior year $0.00 Tax Levy before Adjustments/ Exemptions $17,757,705 $198,786 / 1.1321%
Tax Levy Cap Levy Limit BEFORE Exemptions $17,757,705 $198,786 / 1.1321% Under the law, a District can utilize specific exemptions toward the Tax Levy Cap. Depew can not utilize ERS/TRS Pension, Capital Expense or Judgments. 2018-2019 Pension (ERS) > 2% + $0.00 ACTUAL 2018-2019 Pension (TRS) > 2% + $0.00 ACTUAL 2018-2019 Capital Expense within Local Budget + $129,205 ACTUAL 2018-2019 Torts/Judgments > 5% + $0.00 ACTUAL Total Levy Cap Exclusions $129,205 ACTUAL 2018-2019 Total Tax Levy with Exemptions $17,886,910 ACTUAL 2018-2019 Allowable Tax Impact Increase $327,991 ACTUAL 2018-2019 Allowable Tax Levy Increase 1.87% Maximum Levy after exemptions
Climate to go above the cap proves to be a high risk with very few districts being successful in going over the tax levy cap. Depew s Combined Wealth Ration (CWR) is.646, which is the 7 th lowest out of 23 Erie County School Districts. Depew s three year average for Free and Reduced Lunch Percentage for Kindergarten through 6 th grade is 46.9%, which is ranked 4 th highest in Erie County.
Draft Budget Draft Revenues Budget Shortfall $44,212,819 $43,656,819 $556,000
1. Protect Programming for Students 2. Protect Reasonable Class Size and at the same time adhere to Contractual Limits 3. Maximize District Resources and Efficiencies 4. Review and Evaluate Needs versus Wants 5. Review and Evaluate Budgeting and Spending 3 Year Trends
1. Identify the amount of proposed and final state aid. 2. Then reduce the amount of new budget requests, in a reverse prioritized order. 3. Then, if needed, implement further budget reductions within the current budget in a prioritized order. 4. Or, reduce a combination of both lists. 5. If, we receive more State Aid after the State finalizes their budget, we will replace any reductions in a prioritized order.
March: Submit the Tax Levy Limit to the Office of the State Comptroller Estimate tax rate Finalized revenue Finalize potential cuts Update the Board of Education on the status of Reserves April: Publicize the required legal notices Board of Education adopts the Budget, Tax Levy Limit and Proposition Language for the May Vote Prepare Board of Education resolution for the Capital Outlay project and SEQRA reporting