Croton-Harmon UFSD Budget 2020-2021 Update APRIL 21, 2020 BOARD OF - PowerPoint PPT Presentation

Croton-Harmon UFSD Budget 2020-2021 Update APRIL 21, 2020 BOARD OF EDUCATION MEETING

Enacted State Budget Updates Uncertainty: State can pull back any amount of State Aid at any point during 2020-21 ● Budget Vote postponed… currently set for Tuesday, June 2nd , but could change again ● No consolidation of State Aid categories (BOCES & Instructional Materials) ● STAR Income Eligibility remains at $250K ● STAR Exemption (deduct on the tax bill): frozen at 2019-20 levels ○ STAR Credit (rebate check after paying tax bill in-full): will increase by 2% ○ Cost shift of tuition/maintenance for students placed in residential facilities ● Periodic Review of State Spending and Revenue ● 3

Revenue Budget Updates State Aid Less State Aid was allocated in State’s Enacted Budget than previously anticipated ● The State will periodically review its revenues (less than 99%) and expenditures (101%), and may ● further reduce allocations to schools throughout the school year (Milestones: 4/30, 6/30, 12/31) “Pandemic Adjustment” = Reduces State’s portion of our Aid by $134K ● Federal Cares Restoration to offset “Pandemic Adjustment” in 2020-21- no safety net in future years ● Westchester County Sales Tax Loss in county sales tax due to county-wide shutdown ● Interest Income Loss of interest revenue on investments ● 4

Analysis of Revenue 2020-2021 2020-21 2020-21 ∆ in Proj % Change Description 4/1/2020 Preliminary Revenue County Sales Tax $400,000 $550,000 ($150,000) -27.27% Interest & Earnings $125,000 $210,000 ($85,000) -40.48% Building Use Fees $50,000 $50,000 $0 Other Revenue $125,000 $125,000 $0 Total Non-State Aid: $700,000 $935,000 ($235,000) -25.13% $0 State Aid $5,591,438 $5,792,103 ($200,665) -3.46% Total State Aid: $5,591,438 $5,792,103 ($200,665) -3.46% Projected Loss in Revenue ($435,665) -2.98% Fund Balance $1,738,872 $1,303,207 $435,665 33% - 35% Debt Service Fund $0 $0 $0 Reserves $400,000 $400,000 $0 Total Reserves: $2,138,872 $1,703,207 $435,665 26% $0 Tax Levy $41,344,252 $41,344,252 $0 Budget $49,774,562 $49,774,562

State Aid (as of April 21, 2020) ($200,665) Westchester County Sales Tax (150,000) Interest Income (85,000) Total Anticipated Loss in ($435, 665) Revenue Ways to Mitigate Revenue Shortfall and Reduce Impact on our Community Options for Mitigating Loss in Revenue REVENUE SIDE EXPENDITURE SIDE Override the Tax Cap Reduce Budget Increase Fund Balance Use Reserves to Offset Expenditures

Reserve Narrative 2016 2017 2018 2019 Workers' Compensation Reserve - $200,000 $400,000 $537,000 Unemployment Insurance Reserve $246,969 $246,969 $246,969 $196,969 Retirement Contribution Reserve $1,045,453 $1,145,453 $1,245,453 $1,345,453 Reserve For TRS Contributions - - - $250,000 Reserve For Liability $198,061 $198,061 $198,061 $198,061 Reserve For Tax Certiorari $4,702,993 $5,100,440 $5,000,945 $4,978,070 Reserve For Emp Benefits & Acc Liabilities $469,094 $431,796 $489,008 $492,430 Capital Reserve (2013 & 2016) $4,186,105 $6,096,936 $7,096,935 $8,140,434 Restricted Fund Balance: $10,848,675 $13,419,655 $14,677,371 $16,138,417 Assigned Appropriated (To Budget) Fund Balance $926,016 $1,125,000 $1,125,000 $1,345,836 Assigned Unappropriated Fund Balance $597,439 $411,428 $602,090 $364,351 Assigned Fund Balance: $1,523,455 $1,536,428 $1,727,090 $1,710,187 Unassigned Fund Balance $1,867,887 $1,850,960 $1,885,050 $1,940,291 Unassigned Fund Balance (4% Cap) $1,867,887 $1,850,960 $1,885,050 $1,940,291 Fund Balance: $14,240,017 $16,807,043 $18,289,511 $19,788,895

Potential Budget Options Moving Forward Scenario 2 Scenario 3 Scenario 4 Scenario 1 Scenarios $250K Budget Reduction $300K Budget Reduction $450K Budget Reduction Existing Budget & Levy 49,524,562 49,324,562 49,474,562 Expenditure Budget 49,774,562 2.08% 1.98% 1.67% Budget-to-Budget Increase 2.60% 41,344,252 41,344,252 41,344,252 Tax Levy Amount 41,344,252 2.95% 2.95% 2.95% Levy-to-Levy Increase 2.95% 1,488,871 1,438,870 1,288,869 Fund Balance (Taxpayer Give Back) 1,738,872 YES YES YES Utilize Maximum Levy YES $100,000 Reduction in LEVY 41,244,252 41,244,252 41,244,252 Tax Levy Amount 41,244,252 2.70% 2.70% 2.70% Levy-to-Levy Increase 2.70% 1,588,871 1,388,869 1,538,870 Fund Balance (Taxpayer Give Back) 1,838,872 NO (less $100K) NO (less $100K) NO (less $100K) Utilize Maximum Levy NO (less $100K)

REDUCTIONS General .45 FTE Math at HS (26,750) .6 FTE Physical Education (previously proposed position) (46,000) Benefits (26,009) Supplies & Materials (58,723) Boces Services (Conferences, PD, SPED, Finance) (50,225) Other Contractual Services (71,500) Software (32,278) Athletics (Game coverage & stipends for inactive sports) (17,065) Durable Materials (11,500) Curriculum Development (5,535) Food & Travel (2,650) Facilities and Transportation Facilities Projects (15,000) Facilities Equipment (15,000) Transportation Contracts (10,000) Transportation Projects (10,000) ADDITIONS Increase: Career & Tech CHHS 41,235 Increase: Textbooks 7,000 $(350,000) Reductions result in no recognizable impact to instructional programs. All reductions have been set forth by Principals and Directors and mutually agreed upon.

Projected Enrollment (based on March '20 Actual) # of Sections Class Size # of Sections Chg in # of Sections Jun-19 Gr. Full time Part time Total 4 5 6 Guidelines 19/20 20/21 By Grade By Cohort K 103 2 105 25.8 20.6 17.2 6 5 -1 N/A 103 Up to 22 1 117 1 118 29.3 23.4 19.5 5 6 1 0 117 Up to 22 2 109 2 111 27.3 21.8 18.2 6 5 -1 0 117 Up to 22 3 116 1 117 29.0 23.2 19.3 5 5 0 -1 110 Up to 24 4 118 2 120 29.5 23.6 19.7 5 5 0 0 121 Up to 26 568 CET Total 571 27 26 -1 140 5 111 111 27.8 22.2 18.5 5 5 0 0 Up to 26 130 6 123 123 30.8 24.6 20.5 6 6 0 1 130 7 141 141 101 8 135 135 PVC Total 501 510 11 11 134 9 123 123 123 10 105 105 135 11 129 129 114 12 125 5 130 506 CHHS Total 487 Total 1568 38 37 1575

Next Level Reductions Affecting Program Reduce Contingency at Elementary or Middle School Reduce Athletic and Curricular Components Reduce or Eliminate Electives Further Costs Across the Board

Preliminary vs Revised $350,000 Reduction Budget Comparison 2020-21 Preliminary 2020-21 Revised Description Budget Budget Variance Budget $49,774,562 $49,424,562 -$350,000 Budget to Budget % 2.60% 1.88% -0.721% Tax Levy Increase $ $1,185,061 $1,056,334 -$128,727 Tax Levy Increase % 2.95% 2.70% -0.248% Revised Proposed Revised Budget & Levy Includes $100,00 Expenditure Budget 49,424,562 Reduction to Tax Cap Budget-to-Budget Increase 1.88% with (below the ATL) Tax Levy Amount 41,244,252 Levy-to-Levy Increase 2.70% Fund Balance (Taxpayer Give Back) 1,388,872 Utilize Maximum Levy NO Balanced Budget - BELOW Tax Cap - Zero Deficit

Proposed Tax Changes Based on Revised Budget Prior Year Budget $48,513,218 Prior Year Levy $40,159,191 Budget to Budget 1.88% Levy to Levy 2.70% Budget to Budget $911,344 Levy to Levy $1,085,061 Less $100,000 in Levy Assessed Value FV Rate Est. Tax FV Rate Est. Tax Savings $400,000 19.49 $7,796 19.44 $7,776 $20 $500,000 19.49 $9,745 19.44 $9,720 $25 $600,000 19.49 $11,694 19.44 $11,664 $30

Max Tax Levy Trend Report for Croton-Harmon Union Free School District 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 ACTUAL/Original Tax Levy Prior Year 39,080,561 38,623,465 38,568,414 38,491,707 37,883,621 37,252,720 ADD: Unutilized Tax Levy from Prior Year 92,980 613,943 84,642 36,527 94,654 135,717 ADD: Compounding Adjustment which represents the diff bet P/Y unutilized amount and 999,729 363,252 273,839 236,847 137,836 - impact on subsequent years base amount Potential (Max) Tax Levy Prior Year (including P/Y's unutilized Tax Levy) 40,173,270 39,600,660 38,926,895 38,765,081 38,116,111 37,388,437 Compounding Impact of Unutilized Tax Levy Allowance 1,092,709 977,195 358,481 273,374 232,490 135,717 REVISED Maximum Allowable Tax Levy Limit (Including PY unutilized Tax Levy) 41,275,538 40,173,270 39,600,660 38,926,895 38,765,081 38,116,111 Less: Actual Tax Levy Adopted 40,159,191 39,080,561 38,623,465 38,568,414 38,491,707 37,883,621 REVISED Unutilized Tax Levy/Taxpayer Savings/Unrealized Budgetary Growth 1,116,347 1,092,709 977,195 358,481 273,374 232,490 Compounded Savings to Taxpayer through 2020-21 $ 1,142,917

History of Allowable Levy Growth Factor & Tax Based Growth Factor Year CPI ALGF TBGF Change in Growth 2014 1.46% 1.0146 1.0010 2015 1.62% 1.0162 1.0025 0.0015 2016 0.12% 1.0012 1.0005 -0.0020 2017 1.26% 1.0126 1.0007 0.0002 2018 2.13% 1.0200 1.0030 0.0023 2019 2.44% 1.0200 1.0016 -0.0014 2020 1.81% 1.0181 1.0056 0.0040 1.0147 1.0021 0.00077 Average 6 Year Growth 1.68%

2020-21 Preliminary Budget and Tax Levy Budget Tax Levy $49,774,562 $41,344,252 ↑2.60% ↑2.95%

2020-21 Revised Budget and Tax Levy Budget Tax Levy $49,424,562 $41,244,252 ↑1.88% ↑2.70%