BUDGET PRESENTATION Champlain Valley Educational Services 2018 19 - - PowerPoint PPT Presentation

BUDGET PRESENTATION

Champlain Valley Educational Services 2018‐19

CVES Annual Board Meeting – April 11, 2018

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Budget Committee

Budget Committee Members:

Leisa Boise Lori Saunders Linda Gonyo‐Horne

• Dr. Mark C. Davey
• Dr. Hollis Palmer

Reggie McDonald Michele Friedman Teri Calabrese‐Gray Christine Myers

Agenda

• Welcome & Agenda Review
• Review 2018‐19 Budget Calendar
• 2018‐19 Budget Development Factors

– Health Insurance, Benefits, Salaries

• Governor Cuomo Executive Budget for

2018‐19

• 2018‐19 “Draft” Budget Proposals
• CVES Capital Project Planning

CVES Budget Calendar

3 2018-19 BUDGET PROCESS/TIMELINE

October 10, 2017 Directors Start 2017/18 Budget Reconciliation Process with Christine/Hollis November 1, 2017 Budget Committee Meets to Discuss Budget Development 7:00 p.m., ISC December 6, 2017 Budget Committee Meets to Review 2017/18 Budget Reconciliations, 7:00 p.m., ISC and Set Parameters for the 2018-19 Budget Development December 13, 2017 Board of Cooperative Educational Services Meeting 6:30 p.m., Spec. Ed Gym Review December 6th Budget Committee Meeting Highlights December 21, 2017 Directors Submit Initial Budgets for Preliminary Review January 22, 2018 Budget Committee Meets to Review 2018/19 Draft Budgets 6:30 p.m., ISC January 26, 2018 Draft Budget Booklets Sent to Print Shop for February 14th Board Meeting February 14, 2018 Board of Cooperative Educational Services Mtg; Presentation of Draft Budgets 6:30 p.m., ISC Review January 18th Budget Committee Meeting Highlights February 16, 2018 Review Costs with Chief School Officers 9:00 a.m., Mineville Budget Development PowerPoint March 9, 2018 Budget Booklet Sent to Print Shop for Printing March 30, 2018 Mail Budget Booklets to All Component School Board Members April 11, 2018 Annual Board of Cooperative Educational Services Meeting 6:30 p.m., ISC April 26, 2018 Component Districts Vote on Administrative Budget/Board Members April 27, 2018 Deadline for Component Districts to Notify CVES of Intent to Participate in Shared Services and Identify Those Services (Return Final Requests) May 9, 2018 CVES Board Considers Approving Budget 6:30 p.m., Mineville

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Budget Development Factors

Factors Affecting Budget Development

 Health Insurance Premium Increases  Changes in TRS & ERS Rates  Contractual Salary Obligations

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Factors Affecting Budget Development

Health Insurance Premiums



Preliminary increase of 14% used for budgets

(Combined with 17‐18 mid‐year increase plus 14%, increase in 18‐19 costs is approx. 19.5%)



CEWW Health Insurance Consortium Board approved 18‐19 premium increases at 13.5% on March 15th.

Change in ERS & TRS Rates (ERS = Employee Retirement System, TRS = Teacher Retirement System)



ERS rate decreased from 14.50% to 14.10%



TRS rates increased from 10.50% to 10.63%

Contractual Salaries



Average contractual salary increase – 3%

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Governor’s 18‐19 Executive Budget Summary

Limiting factors affecting our CVES’ and our Component District’s Budget Development

• NYS Tax Cap Continuation (Challenges of 2% Cap for all districts)
• State Aid Foundation Aid Formula Inequity

Many CVES districts appear wealthier due to high real estate values vs. low income

• Governor's 18‐19 School Aid Increases were lower than hoped for…

– Executive Budget included a $769 million (3%) increase for education – Only $338 million of the increase was for additional Foundation Aid – Actual Foundation Aid after Community Schools $50 million set‐aside to 700

NYS districts was approx. (1.2%)

• There was a proposed limit for Component Districts future

BOCES/State Aid ‐ Recommended capping future BOCES Aid, Transportation &

Building Aid at a 2% cap starting in 2019‐20

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Governor’s Executive Proposal of Budget Limiting New Approach for 2018‐19

Distribution of Proposed Limitation of Capping BOCES Aid

SOURCE: NYSCOSS analysis and chart of NYSED School Aid data.

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Other Contributing Budget Voices for 18‐19

• NYS Comptroller Thomas DiNapoli (Jan. 2018)

–

Comptroller DiNapoli predicted a NYS Budget Deficit to be $4.4 Billion

–

Concerns highlighted about the Federal Tax changes impact on NYS for property taxes, health care, etc. Led to discussion of a potentially new NYS Payroll Tax.

• NYS Educational Conference Board (Dec. 2017)

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Provide $2 Billion in State Aid Increases for 2018‐19; Update the Foundation Aid formula with an implementation timeline; Modify Tax Cap for allowable growth factors & Approve BOCES Capital Cost Exclusions

• NYS Rural Schools Association Budget Testimony (Jan. 2018)

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Provide sufficient State Aid of $1.5 Billion; Provide a Legitimate State Aid Formula including improved Foundation Aid; Allow for Reasonable Reserves for Schools

• NYSED Board of Regents Budget/Legislative Priorities (Dec. 2017)

–

Proposed a $1.6 Billion increase in Funding for Schools including $1.25 Billion for Foundation Aid; Continued Phase‐In of Foundation Aid; Provide for Statutory Reimbursement‐Based Aid; also…

–

CTE Program Expansion ($25 million); Universal Pre‐K Increase ($20 million)

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Final Approved 2018‐19 NYS Budget Summary for Education

• Overall Education Increase is $859 million (3.4%) in School Aid, up

from $769 million

• The Budget fully funds Expense‐Based Aids

– Rejects the proposal to cap growth in BOCES, Building and Transportation Aid

commencing in 2019‐20

• The Foundation Aid increase is $619 million (3.7% increase)

– It is a +$281 million increase over the original $338 million Foundation Aid

• The Budget modifies and expands Governor Cuomo’s Budget

Authority (phased in over the next three years to all districts)

–

Requires 15 school districts to gain approval by NYSED and the Division of Budget for the methodology they use to allocate funds among their schools, or the Districts may be denied any increases in State Aid. 2018‐19 applies to districts with 4 or more schools and 50% or more total revenue from the State; 2019‐20 applies to all districts with 4 or more schools; 2020‐21 applies ALL districts

FINAL NYS Budget Summary for 2018‐19 for CVES Component Districts

2018-2019 State Aid Changes - Based on Initial Information Comparison of Executive Budget Proposal And FINAL APPROVED 2018-19 STATE APPROVED BUDGET on March 29, 2018 (State Aid Runs 1/16/18 vs. 3/29/2018)

FINAL 2018 - 2019

• JAN. 2018-2019

FINAL AMT 2018-2019 2018-2019 FINAL Net Foundation Aid Incr./(Decr.) Incr./(Decr.) Incr./(Decr.) % Increase

• Incr. / (Decr.)

W/O Building Aid W/O Building Aid Net Change Jan/FINAL 18-19 vs. 17-18 AuSable Valley $ 312,195 $ 235,702 $ 429,468 $ 193,766 3.20% Beekmantown $ 486,724 $ 629,024 $ 587,679 $ (41,345) 3.68% Chazy $ 99,623 $ 115,329 $ 162,697 $ 47,368 4.16% Crown Point $ 129,060 $ 242,887 $ 282,236 $ 39,349 6.52% Elizabethtown-Lewis $ 135,965 $ 133,713 $ 168,415 $ 34,702 4.99% Keene $ 17,339 $ 8,659 $ 24,181 $ 15,522 3.41% Moriah $ 266,018 $ 141,752 $ 364,118 $ 222,366 3.62% Northeastern Clinton $ 402,965 $ 392,664 $ 581,627 $ 188,963 3.79% Northern Adirondack $ 235,989 $ 190,009 $ 304,858 $ 114,849 2.38% Peru $ 481,326 $ 885,893 $ 1,159,567 $ 273,674 5.19% Plattsburgh City $ 269,076 $ 239,061 $ 285,366 $ 46,305 1.70% Putnam $ 77,246 $ 70,680 $ 89,010 $ 18,330 22.84% Saranac $ 417,596 $ 570,952 $ 752,842 $ 181,890 4.34% Schroon Lake $ 28,463 $ 1,203 $ 27,748 $ 26,545 2.76% Ticonderoga $ 141,386 $ 150,922 $ 259,426 $ 108,504 4.14% Westport $ 29,859 $ 36,545 $ 62,518 $ 25,973 3.09% Willsboro $ 32,564 $ 37,830 $ 66,269 $ 28,439 3.12% $3,463,394 $ 4,082,825 $ 5,608,025 $ 1,525,200

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2018‐2019 Budgets

Change in Co‐Ser Rates by Division



Special Education Division



Instructional Services Center



CV‐TEC



Management Services



Administrative & Capital

2018‐19 Budget Costs Summary Special Education

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2018‐19 Budget Costs Summary Instructional Services Center

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2018‐19 Budget Costs Summary CV‐TEC

2018‐19 Budget Costs Summary Management Services

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2018‐19 Administrative & Capital Budget Summary

Administrative Budget

Administrative Budget Without Retiree Health Insurance

• Increase of 0.95%, or $11,475

Administrative Budget With Retiree Health Insurance

• Increase of 22.27%, or $929,657
• The total cost of increase in retiree health insurance is $918,182.
• Increase for existing retirees is $656,381
• Increase for new retirees is $261,801

Capital Budget

• Capital budget decrease of 0.95%, or $5,280

RWADA – Distribution of Administrative & Capital Costs

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2018‐19 Costs Summary Administrative & Capital Budgets

2018‐19 Administrative Budget

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2018‐19 Administrative Budget Retiree Health Costs

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2018‐19 Capital Budget

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2018‐19 Changes in District RWADA

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Other Items and Next Steps

Completed: √ 2018‐2019 Budget “Talking Points” were shared with the CSOs and our Component School Districts √ Component Board Visits – In additional to our annual CVES Component District Board of Education visits, CVES offered the District’s the opportunity for Budget Presentations, and Budget Question & Answer Sessions if desired. Remaining:

• CVES‐wide Component Districts 2018‐2019 Budget Vote and

Board Member Elections – April 26, 2018

• Questions?

Thank You