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

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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

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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%

($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

Analysis of Revenue 2020-2021

Projected Loss in Revenue

State Aid (as of April 21, 2020) ($200,665) Westchester County Sales Tax (150,000) Interest Income (85,000) Total Anticipated Loss in Revenue ($435, 665) Options for Mitigating Loss in Revenue

REVENUE SIDE EXPENDITURE SIDE

Override the Tax Cap Reduce Budget Increase Fund Balance Use Reserves to Offset Expenditures

Ways to Mitigate Revenue Shortfall and Reduce Impact on our Community

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

$250K Budget Reduction

49,524,562 2.08% 41,344,252 2.95% 1,488,871 YES 41,244,252 2.70% 1,588,871 NO (less $100K)

Scenario 3

$300K Budget Reduction

49,474,562 1.98% 41,344,252 2.95% 1,438,870 YES 41,244,252 2.70% 1,538,870 NO (less $100K)

Scenario 4

$450K Budget Reduction

49,324,562 1.67% 41,344,252 2.95% 1,288,869 YES 41,244,252 2.70% 1,388,869 NO (less $100K)

Scenario 1 Scenarios

Existing Budget & Levy

Expenditure Budget 49,774,562 Budget-to-Budget Increase 2.60% Tax Levy Amount 41,344,252 Levy-to-Levy Increase 2.95% Fund Balance (Taxpayer Give Back) 1,738,872 Utilize Maximum Levy YES $100,000 Reduction in LEVY Tax Levy Amount 41,244,252 Levy-to-Levy Increase 2.70% Fund Balance (Taxpayer Give Back) 1,838,872 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.

Class Size 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

Up to 22

6 5

• 1

N/A 103 1 117 1 118 29.3 23.4 19.5

Up to 22

5 6 1 117 2 109 2 111 27.3 21.8 18.2

Up to 22

6 5

• 1

117 3 116 1 117 29.0 23.2 19.3

Up to 24

5 5

• 1

110 4 118 2 120 29.5 23.6 19.7

Up to 26

5 5 121 571 27 26

• 1

568

5 111 111 27.8 22.2 18.5

Up to 26

5 5

140

6 123 123 30.8 24.6 20.5 6 6 1

130

7 141 141

130

8 135 135

101

510 11 11

501

9 123 123

134

10 105 105

123

11 129 129

135

12 125 5 130

114

487

506

Total 1568 38 37 1575 CHHS Total

Projected Enrollment (based on March '20 Actual) # of Sections # of Sections Chg in # of Sections

CET Total PVC Total

Reduce Contingency at Elementary or Middle School Reduce Athletic and Curricular Components Reduce or Eliminate Electives Further Costs Across the Board

Next Level Reductions Affecting Program

Preliminary vs Revised $350,000 Reduction Budget Comparison

Balanced Budget - BELOW Tax Cap - Zero Deficit

Revised Proposed

Revised Budget & Levy

Expenditure Budget 49,424,562 Budget-to-Budget Increase 1.88% Tax Levy Amount 41,244,252 Levy-to-Levy Increase 2.70% Fund Balance (Taxpayer Give Back) 1,388,872 Utilize Maximum Levy NO

Description 2020-21 Preliminary Budget 2020-21 Revised 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%

Includes $100,00 Reduction to Tax Cap with (below the ATL)

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 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 Less $100,000 in Levy

Proposed Tax Changes Based on Revised Budget

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 impact on subsequent years base amount 999,729 363,252 273,839 236,847 137,836

• 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 Max Tax Levy Trend Report for Croton-Harmon Union Free School District

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%

Budget

$49,774,562 ↑2.60%

Tax Levy

$41,344,252 ↑2.95%

2020-21 Preliminary Budget and Tax Levy

Budget

$49,424,562 ↑1.88%

Tax Levy

$41,244,252 ↑2.70%

2020-21 Revised Budget and Tax Levy

Unknown 2020-21 Variables

Revenue

• Final State Aid Allocation-NYS Rolling Revenue Evaluation Cycle

Expenditures

• Actual Final Enrollment of incoming Kindergarten along with other K-6 sections
• Special Education classifications that require additional services, staff or OD Placements
• English as a New Language (ENL) students. One or two additional students could require

increase in staffing.

• Unexpected leave replacements
• New Mandates
• Additional cost of cleaning, supplies, technology upgrades, etc., if additional outbreaks

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Challenges Ahead

• Revenue reductions due to COVID-19 - State and Federal
• Prospective changes to State Aid for next year (Westchester could be hit harder)
• Long-term financial impact to both retirement systems and ECR
• Increased healthcare costs
• Potential need to exceed the tax cap in future years to offset loss in State Aid
• Limited ability to generate new revenue from other sources
• Unfunded mandates - current and future

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Upcoming Dates to TBD

■ Proposed 2020-2021 Budget Adoption ■ Public Budget Hearing ■ Budget Vote

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Questions…

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