2019-2020 Budget Planning March 25, 2019 Board of Education Meeting - - PowerPoint PPT Presentation

2019-2020 Budget Planning

March 25, 2019 Board of Education Meeting Budget Review, Instruction & Revenue

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Factors Impacting Rollover Budget

• Health Insurance
• Contractual Salary Increases
• Retirement Systems
• Retirements*

Total Increase $2,360,000

Expenses

• Tax Levy
• State Aid
• Foundation Aid*
• Expense Driven Aids
• Other
• Rental

Total Increase $1,210,000

Revenue

*indicates that we still do not know final impact of these factors

Budget Update

Rollover Budget $55,425,000 Anticipated Revenue $54,275,000 Rollover GAP $1,150,000

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2019-2020 Budget Status

Budget Update

Rollover Budget based on maintaining all current levels of staffing and programming

Rollover GAP $1,150,000 Current Deficit $850,000 Total GAP $2,000,000

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2019-2020 Budget Status

Budget Update

The 2016-17 budget was “balanced,” which means that “true” revenue equaled “true” expenses. Since 2016-17 the District has seen the following changes:

$1.7 million deficit

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Why Do We Have a Deficit?

Budget Update

Expenses

• $2.3 million increase in

health insurance

• $2.2 million increase in

salaries TOTAL $4.5 million Revenue

• $2 million increase in tax

levy

• $800,000 increase in

Foundation Aid TOTAL $2.8 million

Impact of increased use of Fund Balance/Reserves

• Depletion of $850,000 in 2017-18
• Depletion of $850,000 projected for 2018-19, even after the

$1 million in cuts to the 2018-19 adopted budget

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District Use of Fund Balance/Reserves

Budget Update

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Fund Balance Projections*

2018-19 2019-20 2020-21 2021-22 2022-23 Beginning Reserve Balance

$6,500,000 $5,650,000 $3,650,000 $1,350,000

• $1,400,000

Net Budget Deficit

• $850,000
• $2,000,000
• $2,300,000
• $2,750,000
• $3,250,000

Ending Reserve Balance

$5,650,000 $3,650,000 $1,350,000

• $1,400,000
• $4,650,000

*Projections based on maintaining all current levels of staffing and programming

Breakdown of Budget Expenses

• Salaries

$27,000,000

• Benefits

$13,500,000

• Debt Service

$6,000,000

• SPED Placements

$2,500,000

• BOCES Services

$2,000,000

• Utilities

$1,000,000 $52,000,000 These components make up 94% of the total budget

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How to Bridge Current GAP?

Budget Update

2 Administrators 6 Elementary 3 Secondary 1 Library 1.7 Music .4 Art

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Proposed Staffing Reductions to 2019-20 Budget

2 Cleaners 2 Monitors 1 IT Tech 1 Bus Mechanic 1 Account Clerk (Central Office/Business Office) 1 Clerical

Currently many of these reductions are through attrition. The hope is that with the current retirement incentives that this will continue to increase.

Approximately $1.5 million (net) in proposed reductions would still result in a $500,000 deficit in 2019-20. This deficit would be addressed through a combination of additional retirements, an increase in Foundation Aid and use of reserves.

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2019-2020 Budget with Proposed Reductions

Budget Update

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Foundation Aid History

Year Foundation Aid Received Full Phase-In Formula Foundation Aid Amount Underfunded 2012-13 $12,561,189 $16,981,128 $4,419,939 2013-14 $12,598,712 $16,861,887 $4,263,175 2014-15 $12,775,793 $16,707,342 $3,931,549 2015-16 $12,822,430 $15,709,052 $2,886,622 2016-17 $12,898,380 $15,341,231 $2,442,851 2017-18 $13,251,691 $15,717,416 $2,465,725 2018-19 $13,602,225 $16,701,859 $3,099,634 2019-20 $13,681,549 $18,155,493 $4,473,944 Average $3,497,930

Impact on Class Sizes

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Budget Adoption

Grade Level Current Enrollment 18-19 Current Sections 18-19 Current Class Size 18-19 Projected Enrollment 19-20 Projected Sections 19-20 Projected Class Size 19-20 K 194 9 21.6 200 8 25.0 1 210 9 23.3 205 8 25.6 2 216 9 24.0 210 8 26.3 3 210 8 26.3 220 8 27.5 4 188 8 23.5 210 8 26.3 5 213 8 26.6 190 7 27.1 6 242 10 24.2 230 8 28.8 Average 210 8.7 24.1 209 7.9 26.6

History of Class Sizes

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Budget Adoption

Grade Level 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (projected) K 23.8 23.2 20.9 20.1 19.5 22.8 25.0 1 26.4 21.8 20.7 21.9 21.5 25.2 25.6 2 24.1 23.8 21.9 20.6 19.9 23.9 26.3 3 23.4 27.4 24.9 23.0 22.4 25.0 27.5 4 23.9 28.2 24.9 22.9 22.2 25.7 26.3 5 24.4 27.7 23.9 21.6 22.8 25.0 27.1 6 25.6 28.1 24.6 25.4 22.8 23.5 28.8 Average 24.5 25.8 23.0 22.1 21.5 24.4 26.6

2019-20 Expenditures With Proposed Reductions

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Budget Update

2018-19 Budget 2019-20 Projected Budget as of 3/25/19 $ Change

Instruction $27,684,825 $28,131,900 $447,075 Employee Benefits $12,496,000 $12,982,000 $486,000 Operations & Maintenance $2,662,850 $2,704,550 $41,700 Transportation $2,292,050 $2,300,750 $8,700 District Support $1,983,525 $2,034,675 $51,500 Debt Service $5,945,750 $6,122,500 $176,750 Total $53,065,000 $54,276,375 $1,211,375

2019-20 Projected Revenues

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Budget Update

2018-19 2018-19 Projected Budget (as of 3/25/19) $ Change State Aid $22,269,225 $22,663,549 $394,324 Property Tax Levy $27,322,621 $28,365,366 $1,042,745 Fund Balance Appropriation $1,200,000 $1,200,000 $0 Reserve Appropriation $850,000 $850,000 $0 BOCES Rental $592,000 $526,500 (65,500) Interfund Transfer (Debt Service) $375,000 $175,000 ($200,000) Other Revenue (Interest, Fees, Cont. Ed., Admissions, Bldg. Use) $456,154 $495,960 $39,806 Total $53,065,000 $54,276,375 $1,211,375

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Budget Update

4 - Full size 72 passenger buses - Gasoline 2 – 33 passenger buses - Gasoline Proposition Amount = $610,000 Less State Share of Trans. Aid 72.1% = ($439,810) District/Taxpayer Share over 5 years = $170,190 District/Taxpayer Impact per year = $34,038

• due to the debt that will drop off the actual new cost to taxpayers

will be approximately $10,000 Note: Need for buses is determined by the Mohonasen Bus and Vehicle Replacement/Obsolescence Schedule

Bus Proposition

What happens if the budget is rejected by voters?

If the proposed budget is not approved by the voters, the district may resubmit the

• riginal budget or submit a revised budget to the voters on the third Tuesday in June

OR adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in the tax levy). If the resubmitted/revised budget proposal is NOT approved by the required margin, the Board MUST adopt a budget that levies a tax no greater than that of the prior year (0% increase in the tax levy) AND the budget would be subject to contingent budget

• requirements. Under a Contingency Budget, some items would need to be cut from the

budget to meet the law with respect to definition of contingency appropriations. Cuts would be to student supplies, community use of buildings and grounds, certain equipment purchases and salary increases.

Contingent Budget Rules

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Budget Update

Board of Education Vacancies

• Two (2) “at large” seats
• Three-year terms
• At least 25 signatures required on petition
• Petitions are currently available in District Office
• Petitions are due back to the District by Monday, April 22 at 5 p.m.

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Budget Update

• April 8, 2019: Adoption of budget proposal; 6:30pm HS LGI
• May 13, 2019: Budget Hearing and Meet the Candidates Night;

6:00pm HS LGI

• May 21, 2019: Annual Budget Vote & BOE Election; 7:00am –

9:00pm HS Gym

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Next Steps

Budget Update

Questions?

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Budget Update