Waterford-Halfmoon UFSD 2020-21 Budget Planning Board of Education Finance Committee Meeting April 2, 2020
2020-21 Budget Timeline On March 30, 2020, the Governor signed Executive Order 202.13 postponing both BOE election and budget votes until at least June 1, 2020. As of April 23, 2020, NYS has still not yet set a date for 2020-21 school budget and BOE election votes. The WHUFSD BOE may be asked to adopt the budget on May 7 th .
2020-21 Other Important Dates May 2020: Tentative assessment rolls published. Property tax report card is due within 24 hours of budget approval July 2020: Final assessment rolls published. August 2020: Adopt the tax levy and warrant.
2020-21 Finance Committee Meetings February 12: Historic Trends, Current Position Vision, Long-Term Planning 2020-21 Budget at a Glance March 5: Update 2020-21 Revenues: Detailed Review and Discussion April 2: Update NYS Budget and COVID-19 Budget Impact 2020-21 Appropriations: Detailed Review and Discussion April 23: Update 2020-21 Budget: Detailed Review and Discussion of Budget Reductions
COVID-19 & the Budget: What We Know The NYS Legislative Budget reduced foundation aid for all schools in NYS to the 2019-20 fiscal year amount. 2020-21 Executive Budget Proposal: Represented a 1.46% or $120,000 increase from 2019-20 Includes a $25,000 Community Schools Set Aside 2020-21 Legislative Budget Proposal: Approximately $100,000 less than the Executive Budget; Foundation aid was held at the 2019-20 amount The $25,000 Community School Set Aside was removed Includes a $166,000”Pandemic Adjustment” reduction in addition to the above $100,000 reduction. This amount is offset by a $166,000 addition for “Federal Cares Restoration.” This is derived from the Federal stimulus package and it is believed that we can rely on the receipt of these funds. If NYS revenues and expenditures do not meet targets – – – –
COVID-19 & the Budget: What We Know If NYS revenues and expenditures do not meet targeted goals during the below measurement periods, NYS may reduce State aid payments to schools during the fiscal year. April 1 – April 30 May 1 – June 30 July 1 – December 31 January 1 – March 31 WHUFSD MAY face additional State aid cuts in 2020-21. We anticipate that we will know more after the completion of the first measurement period (April 30 th ).
COVID- 19 & the Budget: What We Don’t Know How much our State aid may be reduced throughout the year due to State revenue shortfalls. When those reductions will occur (i.e., after certain “measurement periods”, all “measurement periods” etc.). How we will be impacted by the potential State aid reductions. Will we be forced to reduce services? Will we be forced to reduce staffing?
COVID-19 & the Budget: Moving Forward Two large financial impacts to tackle: 1. Known reduction in Foundation aid The delay of the budget vote has afforded us additional flexibility to review the budget and make changes to accommodate the reduction in State aid (Foundation aid) These proposed changes will be presented to you today. 2. Unknown potential reductions after the start of the fiscal year Such reductions are likely to occur after our budget has been approved by the voters and our warrant is adopted by the BOE. Rather than making additional reductions to our budget now, we advocate for, and have begun identifying areas to be reduced during the fiscal year – also to be presented to you today. We must be prepared to make even further reductions during the fiscal year. We must hope for the best but prepare for the worst!
Addressing Fiscal Impact # 1: Known Reductions in State Aid State aid was reduced by over $100,000. This can be addressed in one of three ways: 1) Reduction in appropriations 2) Increase the tax levy (would exceed the tax cap) 3) Combination of 1 and 2 above
2020-21 Budget at a Glance Budget 2020-21 Budget 2019-20 Updates 1 Budget 03/05/20 04/02/20 04/23/20 Total Appropriations 21,196,493 21,739,256 21,739,256 21,536,060 (203,196) Tax Levy 11,261,368 11,570,000 11,570,000 11,570,000 - Other Revenues 8,463,392 8,580,000 8,472,100 8,472,100 (107,900) Appropriated Fund 1,471,733 1,589,256 1,589,256 1,493,960 (95,296) Balance and Reserves 2 Excess of - - 107,900 - Expenditures o $107,900 reduction in State aid caused by a reduction in aid from the Executive Budget to the Legislative Budget o $203,196 reduction in appropriations to accommodate the reduced revenues. o $95,296 reduction in appropriated fund balance and reserves for the additional reduction in appropriations. 1 This column reflects changes from the March 5 th budget draft to the April 23 rd budget draft. 2 This includes $22,000 appropriated from the Retirement Contribution Reserve (NYSLRS).
2020-21 Budget at a Glance (Cont’d) Change from 2019-20 2019-20 2020-21 Budget Budget $ Change % Change Total Appropriations 21,196,493 21,536,060 339,567 1.60% Tax Levy 11,261,368 11,570,000 308,632 2.74% Other Revenues 8,463,392 8,472,100 8,708 0.10% Appropriated Fund 1,471,733 1,493,960 22,227 1.51% Balance and Reserves 2 o Total appropriations increased by less than 2% which is primarily due to budget cuts. Most recurring appropriations increased by approximately 4% o The tax levy is increasing by 2.74% and remains within the tax cap. This increase in the tax levy was caused by revenues being essentially held flat from 2019-20.
2020-21 Budget Update: Appropriations 2020-21 Budget Change from 2019-20 2019-20 Appropriation Category Budget 03/05/20 04/23/20 $Change $ Increase % Increase Salaries 9,057,644 9,063,159 9,059,864 (3,295) 2,220 0.02% Benefits 4,134,500 4,405,000 4,420,000 15,000 285,500 6.91% Contractual 2,192,335 2,518,880 2,443,159 (75,721) 250,824 11.44% BOCES 2,461,650 2,460,000 2,419,600 (40,400) (42,050) -1.71% Debt 2,284,910 2,270,420 2,270,420 - (14,490) -0.63% Other 747,966 749,697 761,517 11,820 13,551 1.81% Equipment 187,488 141,500 30,900 (110,600) (156,588) -83.52% Transfers 130,000 130,600 130,600 - 600 0.46% TOTAL 21,196,493 21,739,256 21,536,060 (203,196) 339,567 1.60%
2020-21 Budget: Appropriations Salaries: Minimal increase in the general fund due to transfer of salaries to Federal Projects fund. Reduced curriculum development by $3,295 but still left some funds in the budget for curriculum development. Benefits: Increase due to health insurance rate increase (4.25% - 6.25%) and increase in TRS contribution. Increased the unemployment insurance appropriation by $15,000 as a precaution for 2020-21.
2020-21 Budget: Appropriations Contractual: Primarily related to transportation contract and bus lease payment increases. In total, reduced $75,721 from the March 5 th budget draft. Minor increases and decreases in several accounts. Increases to appropriations tied to reductions in other appropriations. Notable changes include: $70,000 reduction in contract transportation appropriations $10,000 reduction in construction (architecture) costs which will be funded by the capital projects fund.
2020-21 Budget: Appropriations BOCES: Decrease in anticipated BOCES services costs. Reduced $40,400 over various BOCES codes. This reduction is primarily related to BOCES cost reduction steps that have been taken since April 1. Debt: Based on our actual debt service payment schedules (decrease in interest). Other: Includes primarily supplies & materials, textbooks, tuition, etc. Primarily held flat. Increase $10,800 related to decreases in other areas (i.e., athletic materials increased because athletic equipment decreased).
2020-21 Budget: Appropriations Equipment: Reduction primarily due to removal of appropriation for vehicle purchase. Reduced $100,600 Furniture purchases eliminated from budget ($20,000) Building and grounds equipment reduced $39,000 from $40,000 to $1,000 Computer equipment (hardware) reduced by $48,000 Athletic equipment reduced by $3,600 Interfund Transfers: 100k Project Transfer & Federal Projects fund transfer.
2020-21 Budget Update: Appropriations THEN & NOW
2020-21 Budget: Tax Levy and Tax Rates Remaining within the Tax Cap Tentative 2020-21 Tax Levy: $11,570,000 Is within the tax levy limit ($852 less than the limit) Tentative Tax Rate: $17.58 NOTE: The above tax rate and information illustrated below are based on 2019-20 assessed values. This information will change when final assessment rolls are released.
2020-21 Budget: Tax Levy and Tax Rates Exceeding the Tax Cap Increasing the tax levy by $100,000 would result in a tentative 2020-21 Tax Levy: $11,670,000 Exceed the tax levy limit ($99,148 over the limit) Would require a 60% supermajority vote to pass Tentative Tax Rate: $17.73 NOTE: The above tax rate and information illustrated below are based on 2019-20 assessed values. This information will change when final assessment rolls are released. Assessed Equalization Full Market Taxes Without STAR Municipality Value Rate Value 2019-20 2020-21 Increase Waterford $ 100,000 100 $ 100,000 $ 1,711.02 $ 1,773.10 $ 62.09 Halfmoon $ 57,250 57.25 $ 100,000 $ 1,711.02 $ 1,773.10 $ 62.09
Recommend
More recommend
