2020-21 Budget Development Board of Education Meeting April 14, - - PowerPoint PPT Presentation

2020-21 Budget Development

Board of Education Meeting

April 14, 2020

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Niskayuna Strategic Plan

Established 2016

Our Program Vision

Deeper learning experiences that focus on problem-solving Flexible spaces that enable hands-on activities Student choice & ownership of their learning; Emphasis

• n growth toward standards and progress

Incorporates modern technology Space where groups of various sizes can come together for learning, community building Greater social and emotional support; time and space for this Cross-curricular learning & teamwork Off-campus learning experiences, community service, mentors, intern/externships

The New Reality

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• The impact of COVID-19 on school budgets is likely to be

significant and lasting.

• We continue to work to identify all potential solutions to our

budget challenges. We know that reductions will be necessary, but we want to limit them to the greatest extent possible.

• The budget vote won’t take place until at least June 1.
• We are a strong community and need to do everything it takes to

support our students and their success.

What tonight is...

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• A more detailed report on how we arrived at the April 7 presentation.
• A presentation of additional information and general scenarios in light of

questions last week.

• An open conversation with the Board as we work toward the development
• f a 2020-21 budget under extraordinary circumstances.
• An opportunity for the Board to provide direction.

What tonight is not...

• A recommendation of a budget for next year.

Capital Project vs. Operating Budget

➔ The debt service from the capital project we are planning has NO impact on next year’s budget. ➔ All of the debt service in the 2020-21 budget is for projects that have already happened ➔ The capital project that we have been discussing would not have an impact on the operating budget until at least 2023-24. ➔ We are focused on a long-term plan that allows us to keep debt levels stable while improving our facilities.

Managing Debt Levels

Current Debt Service Schedule

Why “Letting the Debt Fall Off” is Not Good

We still need to maintain

• ur schools.

Tax Rate Turbulence

Debt Service Levels: Our Plan

Tax Rate Impact Steady

2020-21 Budget Our Focus

➔ Maintaining Positions to the Greatest Extent Possible ➔ Programs for Students ➔ A Budget that the Community Can Afford

Our Approach

➔ Consideration of a higher-than-usual tax levy increase ➔ Savings through attrition ➔ Potential for retirement incentive ➔ Review all areas of the budget for savings ➔ Strategic use of reserves ➔ Reductions in workforce

A Work-in-Progress

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March 9 March 24 April 7 Budget Total $92,121,091 $90,812,260 $90,118,350 Tax Levy 6.86% 4.57% 3.76% FTE Reductions 2 20 24.5

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Question: How did we get to the April 7 budget?

Total Expenditures: $90,118,350

• Additions to manage class size and meet MS special education needs
• Loss of anticipated state aid with final NYS budget
• Strategic use of reserves
• Budget reductions in all areas
• Some factored into March 9 and March 24 presentations
• Additional reductions between March 24 and April 7

Loss of Anticipated State Aid (Between 3/24 and 4/7)

• Loss of anticipated Foundation Aid increase ($362,000)
• Introduction of Pandemic Adjustment (Loss of $310,000)
• Recalculation of Transportation and BOCES Aid due to

school closure ($156,500 less in current year)

• Pandemic Adjustment is offset by federal funds in the

state aid run, but we also have to prepare for the possibility of mid-year aid cuts.

Strategic Use of Reserves

• Between 3/24 and 4/7, we identified $335,000 in reserves that

can be used toward the 2020-21 budget.

• Depleting reserves any further would cause greater fiscal

challenges in the long-run. They exist for a reason.

• Appropriating more unassigned fund balance will cause us to

enter subsequent budget years with a greater deficit. We have to be cautious about using one-time revenues for recurring

• expenses. What will support that expense next year?

Question: Can we use reserves to help address the budget?

What happens if you over-rely on reserves to balance the budget?

Expenses Revenue Using More Fund Balance G a p

This Year Start of Next Year’s Budget Process...

Expenses Revenue

Question: What reductions were accounted for in the April 7 presentation?

• All areas, including BOCES and Contractual Services, were reviewed for

budget reductions.

• A level of reductions was already factored into the March 9 presentation

(which generally maintained current staffing).

• Additional reductions were identified between March 9 and March 24 and

again between March 24 and April 7.

• All of the reductions identified were accounted for in the figures presented
• n April 7 and are listed on the next three slides.

Budget Reductions Included in 3/24 Presentation

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Category Adjustment BOCES Reduction of 1 day/week of BOCES Health and Safety Services BOCES Reduction of 1 day/week of BOCES Communications Services BOCES Reduction of 1 Tech Valley HIgh School Tuition (student returned to district) BOCES Reduced Out-of-District Placements BOCES Reduced Technology Purchase BOCES Reduced Science Kit Purchase BOCES Reduction in BOCES Transportation Budget BOCES Total $288,187 Contractual Reduced Out-of-District Tuition Contractual SCCC Lease Contractual O&M Contractual Exp Contractual Instructional Contractual Exp Contractual Administrative Contractual Exp Contractual Curriculum Contractual Exp Contractual Total $575,800 Equipment, Materials & Supplies Reductions in equipment, materials & supplies, textbooks Equipment, Materials & Supplies Reduced technology requests Equipment, Materials & Supplies Total $171,438

Budget Reductions Included in 3/24 Presentation

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Category Adjustment

Transfers Reduced transfer to support the School Lunch Fund Transfers Total $25,000 Personnel/FTE O&M Environmental Technician Vacancy - Leave Unfilled/1.0 FTE Personnel/FTE Reduction in O&M Substitute Costs Personnel/FTE Instructional Reductions/12.875 FTE Personnel/FTE Non-Instructional Reductions/2.57 FTE Personnel/FTE Administrative Reductions/ 2.0 FTE Personnel/FTE Summer Professional Development Reductions Personnel/FTE Educational Assistant - Attrition/1.0 FTE Personnel/FTE Total $1,392,214/ 19.445 FTE

Additional Budget Adjustments, 3/24 to 4/7

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Category Adjustment BOCES Communications Budget Reductions BOCES Software Adjustment BOCES Total $28,260 Contractual Transportation/Superintendent/BOE/Business/Communications/Legal Contractual Total $58,700 Equipment, Materials & Supplies Textbooks (purchase with 19-20 funds) Equipment, Materials & Supplies IT and Instructional Equipment/Transportation and Business Office Supplies Equipment, Materials & Supplies Total $115,321 Personnel/FTE Instructional Reductions/5.6 FTE Personnel/FTE Non-Instructional Reductions/.83 FTE Personnel/FTE Instructional Substitute Reduction Personnel/FTE Increased FTE/2.15 FTE Personnel/FTE Total $493,629/6.43 FTE

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Year Salary Growth Health Insurance Cost Increase Pension Cost Increase Total Budget Increase $ Total Budget Increase % 2015-16 $2,870,205 ($700,964) ($1,443,311) $771,897 1.00% 2016-17 $1,434,489 $468,331 (534,278) $2,357,752 3.02% 2017-18 $1,268,085 $589,146 ($209,222) $957,407 1.19% 2018-19 $2,002,084 $339,180 $246,700 $2,793,534 3.42% 2019-20 $1,328,681 $716,220 ($552,000) $3,274,628 3.89% 2020-21* $1,534,624 $1,719,500 $397,900 $4,652,617 5.32%

Historical Budget Perspective: Expenditures

*For 2020-21, expenditures reflect 3/9 presentation for trend comparison purposes.

Question: What are our historical budget trends?

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Year Other Revenue Increase State Aid Increase Tax Levy Increase $ Tax Levy Increase % NCSD Tax Levy Cap Total Revenue Increase 2015-16 $717,537 $2,716,128 $0 0.00% 1.23% $3,433,665 2016-17 $231,105 $1,902,470 $224,177 0.41% 0.41% $2,357,752 2017-18 ($333,235) $158,770 $1,131,872 2.08% 2.08% $957,407 2018-19 $536,508 $791,151 $1,465,875 2.64% 3.07% $2,793,534 2019-20 $819,996 $1,129,659 $1,340,473 2.35% 2.50% $3,290,128 2020-21* ($152,763) $273,073 $1,257,391* 2.15%* 2.15% $1,377,701

Historical Budget Perspective: Revenue

*For comparison purposes of revenue trends, this chart reflects state aid in the final NYS budget and a tax levy increase at the cap

• f 2.15%. A decision on the 2020-21 tax levy has not yet been made and there is the potential for a mid-year aid cut.

Investments in the Last Five Years

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➔ Implemented Elementary Class Size Management Plan ➔ Managed/balanced Middle School Class Size ➔ Significantly strengthened social emotional support districtwide ➔ Increased English as a New Language Support ➔ High School Alternative Education Program ➔ Expanded/strengthened Special Education Continuum ➔ Significantly expanded IT & Buildings and Grounds Capacity ➔ Safety Enhancements ➔ Plus: Curriculum Development & Program Reviews

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Question: What does it mean to exceed the tax cap?

Our Tax Levy Limit for 2020-21 Vote Requirement to Exceed this Limit What happens if a school budget is defeated? What happens if a district’s budget is defeated on a second vote?

2.15% 60% Voter Support

Districts may adopt a contingent budget

• r hold a second

vote on the same or revised budget. A contingent budget must be adopted -

0% Tax Levy Increase

Budget Vote Unknowns

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• When will state aid be finalized

○ First revenue review period is April 1-30.

• When will the vote be held? (Not until at least June 1)
• Will we be voting in person?

25 Date/Scenario Tax Levy Workforce Reductions Projected Tax Increase $250K Property No Workforce Reductions 6.34% $309 3/24 4.57% 20 FTE $223 4/7 3.76% 24.5 FTE $185 At the Cap 2.15% 36.5* $105

Tax Levy Scenarios

*Based on dividing remaining budget gap by an average dollar figure per FTE.

Question: What would the tax levy impact be with no workforce reductions?

Future-Focused

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✔ Continued investment in professional learning, curriculum development, program reviews ✔ Increased student access to mental health professionals ✔ Continued investment in students pursuing career & technical education, internships (CEIP) ✔ Phasing-in 1:1 Chromebooks; Increased IT capacity ✔ Continued advancements in Diversity, Equity & Inclusion ✔ World Language graduation pathway ✔ Adoption of a new grade-level configuration with academic, social, and community-building advantages

What actions are necessary to consider?

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➔ Increase tax revenue to support education in our community ➔ Slow the growth of spending

What questions might we ask?

➔ Do alternatives exist to the above actions? ➔ What happens if we deplete our reserves now to avoid the challenge? ➔ What does our community value? What can it afford?

Question: What is the path forward?