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2018-19 District Budget Proposal OVERVIEW & ASSUMPTIONS FEBRUARY 22, 2018
2018-19 District Budget ProposalOVERVIEW & ASSUMPTIONS
FEBRUARY 22, 2018
BUDGETAssumptions
Expenditures must EQUALRevenues
Expenditures Salaries/Contractual Projections Health Insurance Projections TRS/ERS Projections
Sources of Revenues STATEAID Federal Aid Grants PropertyTaxes Reserves
Expenditures
PRELIMINARY Projections on Salary/Contractual increases are approximately an average of 3.67% increase representing approximately $275,125 (includes new UPK teacher & aide position)
PRELIMINARY Projections of Health Insurance are approximately$3,160,000 which represents the base line cost changing to Excellus BC/BS Blue PPO Signature Copay 1 (decreasing expenditures by $230,000 to maintain comparable benefits)
ERS (Employee Retirement Rates setby State) District contribution of14.9% of payroll representing an increase of $3,776
TRS (Teacher Retirement System Rates set by State) Rates projection of11.00% of payroll representing an increase of $34,478
GST BOCES Projection of 3.48% increaseover current year costs of$192,241
District Department Needs: Instructional Program Personnel
Additional UPK full‐daysection 1 teacher, 1 teacheraide
Middle School Dean to Full Time (***No additional staff required. ***Covered by the reallocation of
existing Social Studies faculty if no cuts enacted through the budget process.)
District Department Needs:Instructional Program Equipment
Elementary: 5 standing desks, replacement furniture forRm 214 multi‐purpose room, 20 wobble chairs, P.E. SafetyEquipment
Middle: 5 Robotic Kits (BOCES COSER purchase)
High School: No Additional Equipment Requests
District Wide: AED Updates
District Department Needs: Instructional Program General
Maintain discretionary funding for conferences, building unexpected needs, technology, textbooks etc…
Consideration of expansion of the I‐Ready diagnostic program for Math Grade 6‐9 (purchase through BOCES COSER)
Athletics• Maintain current athletic programlevels
• Fitness Room Equipment Lease: Cardio equipment lease $3,200.00
• Video cameras (2) for teams $1,000.00
• Portable sound system and fixing football field sound system $3,000.00
• Cheerleading stunt mats $2,000.00
• Replacement of 10 x 20 Athletic Tent $2,000.00
Transportation Conference monies to attend theNYAPT Continue with Bus Replacement cycle (requires2 buses to bring up to date)
Update school vehicles as needed. Considerationfor leaseprogramversus outright purchase of vehicles.
1 replacement student transportation vehicle needed
Maintenance Conference monies to attend the NYSSFAManager’s Academy
General supplies/materials increase General Equipment General contractual increases (ex. service contracts)
Maintenance
Capital Outlay Project $100,000
COHEN Complex: (Tentative plan)
* additional HD Security Cameras in playground, basketball court, tennis court, softball field and parking lot areas
* Replace exterior lighting for building/parking areas
Food Service
Possible changes pending Governor’s proposed budget to include changes in lunch shaming policies/procedures, mandated outreach and breakfast after the bell programs.
Technology Services
Maximize services through BOCES Fully utilize State aid for replacementof one computer lab OR the purchase of class sets of 1 – 1 devices
BOCES Services COSER 537.008 School Curriculum Stipends – increase by $1,980
COSER 623.001 Cooperative Advertising/Recruiting ‐increase by $3,578
COSER 513.000 Library Automation Services – increase by $2,000
COSER 527.00 Instructional Material Development –increase by $250 for Robotics kits
COSER 670.00 Cross Contract with Monroe 1 BOCES ‐increase by $2,880 for Hudl Athletics program
COSER 512.000 I‐ready Math Diagnostic Grades 6‐9 –increase of $11,000
Projected Costs for Additional Needs
Instructional Program Personnel $ 111,750 Instructional Program Equipment $ 7,000 Instructional ProgramGeneral $ 1,200 Maintenance $ 37,000 Transportation $ 30,000 Athletics $ 8,000 Technology $ 20,000 BOCES $ 21,500 Capital Outlay ( net $0 change) $ 100,000*$235,380 – If additional bus purchase proposition approved
Projected ExpendituresAccount 2017‐2018
Adopted Budget
2018‐2019Proposed Budget
Dollar Difference
Percent Difference
General Support
$2,999,103 $3107,286 $108,183 3.61%
Instructional $11,083,602 $11,794509. $710,907 6.41%
Transportation $560,978 $508,773 <$52,205> <9.31%>
Employee Benefits
$5,084,319 $4,889,441 <$194,878> <3.83%>
Debt Service $1,473,146 $1,757,453 $284,307 19.30%
Interfund Transfer
$175,000 $150,000 <$25,000> <14.29%>
Total $21,376,148 $22,207,462 $831,314 3.90%
Expenditure Impact of Proposed Budget
17‐18 Adopted budget
18‐19 Preliminary Proposed Budget
$ 21,376,148
$ 22,207,462
18‐19 Expenditure Projected Increase $ 831,314
Sources of Revenue State Aid: Governor’s Proposal
Increase of 1.4% New Money Expense Driven Aid (Revenue based on current year expenditures.)
• Federal and Grant Dollars: Targeted at specific programs• Reserves: Limited flexibility in use and limited thresholds to be
discussed• Appropriated Fund Balance: Carry over monies to be discussed• Local Taxes: Threshold target to be discussed
Governor’s Proposed Budget Breakdown
New
$$$
How Foundation Aid is Negatively Impacting our District since the CFE Court Decision and Lack of Fully Funding Foundation Aid Formulas
Community Schools Set-Aside, if any:2017-18 Community Schools Set-Aside: $0 2018-19 Community Schools Set-Aside: $0
Change in Community Schools Set-Aside: $0
Foundation Aid:Proposed 2018-19 Foundation Aid: $7,280,581
Full Phase-in Foundation Aid: $9,295,716 Amount Under-funded: ($2,015,135)
SOURCE: Compiled by the Council from NYS Education Department School Aid data.
Other Governor Proposals on the Radar with Potential Financial Impacts
Special Education Cost Shift: Eliminate 80% reimbursement for educating students with disabilities during summer months ($70 million cost shift to districts)
Continues 2017-18 provision authorizing the DOB to enact mid-year cuts, absent legislative proposals, if federal revenues decline more than $850 million in Medicaid, or $850 million in other funding sources.
Proposes new authority for the DOB to reduce appropriations if annual estimate of receipts are off by $500 million. School aid exempt.
Caps on expense driven aides such as BOCES and building aid Statewide.
Changes to STAR program
Sources of Revenue (cont’d)(Federal and Grant Monies)
Federal Aid: ESSA (Every Student SucceedsAct) Projected Title I/IIA $327,369 (current funding)
*Title IIA ‐$45,000 is possibly being eliminated Projected IDEA $254,376
Grant Dollars: Targeted to specific Programs. Flow through monies where expenditures are offset with revenues. Example APEX Afterschool Grant
Sources of Revenue (cont’d) RESERVES
Our reserves areoursavings accounts Somecreated by BOE resolutionand some byvoterresolution Current Balances
Retirement Contributions Reserve $ 1,166,377 Unemployment $ 175,781 Workers Compensation $ 695,798 Employee Benefit Accrued Liability $ 258,296 Tax Certiorari $ 17,873 Capital $ (Voter) $ 300,000
Repair Reserve $ 205,155
Considerestablishing aTRS reserve IF the legislatureapproves this additional legalreserve
Sources of Revenue (cont’d)Use of Appropriated Fund Balance
HISTORICAL DATA – Appropriated Fund Balance 2011-12 $ 600,000
2012-13 $ 600,000
2013-14 $ 600,000
2014-15 $ 705,306
2015-16 $ 600,000
2017-18 $ 697,791
2018-19 $ 700,000 (Final to be determined through
budgeting process)
Sources of Revenue (cont’d) Property Taxes
PropertyTaxes: 2nd largest source of Revenue PropertyTax Cap:*Preliminary projections are the lesserof 2% or thecurrent
CPI projected at 2.1% Historical Impact onRevenues
2011‐12 $ 6,736,138 2012‐13 $ 6,997,715 2013‐14 $ 7,375,592 2014015 $ 7,440,666 2015‐16 $ 7,433,594 2016‐17 $ 7,446,383 2017‐18 $ 7,631,798Projected 2018‐19Range 0% 7,631,798 to *Projected Tax Cap 5.20% ‐ $8,028,619
PRELIMINARY Tax Cap CalculationsTax Cap – Calculations and Totals
Tax Levy Limit (cap) Before ExclusionsTax Levy Fiscal Year Ending (FYE) 06/30/2018 $ 7,631,798Total Tax Cap Reserve Amount from FYE 06/30/2018 $ 0Tax Cap Growth Factor ** 1.0056PILOTS receivable FYE 06/30/2017 $ 172,610Capital Tax Levy for FYE 06/30/2017 $ 167,506Allowable Levy Growth Factor*** 1.0200PILOTS receivable FYE 06/30/2019 $ 177,681Available Carry Over from FYE 06/30/2018 $ 0
Total Levy Limit Before Exclusions $ 7,655,552** As determined by the NYS Office of real property Tax Services (ORPTS)*** As determined by the NYS Office of the State Comptroller
PRELIMINARY Tax Cap Calculations (cont’d)
ExclusionsTax levy necessary for expenditures resulting tort orders/judgements over 5% FYE 06/30/2018 tax levy $ 0Capital Tax Levy for FYE 06/30/2019 $ 373,067Tax levy necessary for pension contributions expendituresCaused by growth in the system average acturarialcontribution rate (ERS) or normal contribution rate (TRS) In excess of 2 percentage points
ERS $ 0 TRS $ 0
Total Exclusions $ 373,067Tax Levy Limit, Plus Exclusions $ 8,028,619Tax Levy Limit, Plus Exclusions % 5.20%
PRELIMINARY Tax Cap Calculations (cont’d) DISCUSSION NEEDED
Proposed Levy for FYE 06/30/2019 $ 7,631,798Difference Between Tax Levy Limit Plus Exclusionsand Proposed Levy $ (396,821)Do you plan to override the cap in 2019? Yes No
Revenue Impact with current Assumptions
Governor’s Proposed State Aid $ 11, 663,028
Federal Grants (Flat) ESSA $ 327,369
IDEA $ 254,376
Reserves (same projections as 2017-18) $ 275,000
Appropriated Fund Balance $ 700,000
Tax Levy (Range)
0% increase to projected
tax cap of 5.20% $ 7,631,798 - $8,028,619
Other Revenue $ 1,509,026
Range of PRELIMINARY Impact on Proposed Budget
Based on proposed expenditures and funding levels included in the Governor’s Proposed Budget
Based on Tax Levy remaining same as
2017-2018
Based on Tax Levy maximum increase
of 5.20%$22,207,462 18-19 Preliminary
Proposed Budget$22,207,462
$7,631,798 Tax Levy $8,028,619$11,498,292 Projected State Aid $11,498,292$2,483,994 Other Revenues $2,483,994$593,378* Anticipated Shortfall $196,557*
*Can be decreased by the use of appropriated fund balance, reserves, or other strategic methods currently being evaluated.
Projected Expenditure to Revenue Gap
Based on 5.20% Cap Based on 2.49% Cap
(same as last year)
Proposed Budget Projections: $ 22,207,462 $ 22,207,462
Projected Revenues: $ 22,010,905 $ 21,804,116
Current Gap based on $ 196,557 $ 403,346
What is at Stake ?
If the voters reject the District’s proposed budget, theBoard of Education may do one of the following:
� Resubmit the defeated budget � Submit a revised budget or � Adopt a contingent budget If the resubmitted or revised budget is defeated the BOE
must adopt a contingent budget consisting of “teachers” salaries and ordinary contingent expenses, subject to a cap on the administrative portion of the budget, with no increase in tax levy over the prior year. (Gap increases to $ 593,378)
Parameters Needed
Budget Development Next StepsNeeding BOE Guidance
TAX CAP TARGET
Projected Use of
Reserves/Fund Balance
Potential Cuts to Expenditures
TBD
Questions
MARCH MADNESS
March 7th Updated Projections Expenditure Adjustments
(Prioritized Cut List)
March 21st Updated Projections Expenditure Adjustments
(Prioritized Cut List) Contingency Budget Implications
We are THE Elmira Heights CSD Where kids come first and
WEMATTER!
