2018-19 Budget Overview Presentation to the Bethlehem Central - PowerPoint PPT Presentation

2018-19 Budget Overview Presentation to the Bethlehem Central School District Board of Education Wednesday, February 7, 2018

DISTRICT K N O W L E D G E C H A R A C T E R V A L U E GOALS To create and maintain a To provide all students with To manage and improve the positive and safe an innovative and cohesive quality, cost-effectiveness, educational program that environment that supports and efficiency of the the learning and includes a diverse and District’s current and future development of all students, rigorous academic operations curriculum and a range of guided by the principles of co-curricular activities that respect and understanding where the dignity of all challenge students to become creative, critical students is recognized and thinkers and engaged protected. members of their community.

OSC FISCAL STRESS MONITORING REPORT • Report shows Bethlehem NOT at-risk for fiscal stress. • OSC uses the early warning system to alert local governments to respond to potential deterioration in fiscal health • Fiscal stress factors consider fund balance levels, operating deficits, cash position and reliance on short-term debt for cash flow. • Environmental stress factors consider community demographics, such as level of poverty, tax base stability, and degree of budget support. Also school operational impacts such as high numbers of English Language Learners, teacher turnover and class sizes. • Bethlehem received “no designation” of risk for either factor. 3

KEY ELEMENTS FROM NYS BUDGET PROPOSAL • Foundation Aid increases of at least .25% ($70,000). • Possible mid-year reductions (up to 3%) in aid if NYS revenue targets fall short. ($840,000) • Employer payroll tax increases, 4% or more? (> $2,000,000) • Reduced reimbursement rate for summer special education programs. ($300,000) • Growth of BOCES and Transportation reimbursements capped at 2% beginning in 2019-20. (1% of combined revenues ~ $56,000) • Statewide cap on Building Aid at 2%, apportioned between all districts if in excess of 2%, beginning in 2019-20. (NYSASBO estimates $160m impact statewide) • STAR reimbursements frozen at 2017-18 amounts. 4

SUMMER SPECIAL ED PROGRAM (ESY) NYS share BCSD share Maximum Benefit 80% 20% Effective Benefit, with 60% 40% disallowances in formulas If dropped to excess cost ratio 30% 70% of .488, with disallowances Maximum $800,000 $200,000 Current $600,000 $400,000 Potentially – phased? At once? $300,000 $700,000 5

Initial State Aid Estimate 2017-18 Est. 2017- 2018-19 Budget 18 Actual Projected Aid Foundation Aid $12,500,000 $12,503,000 $12,573,000 Transportation 4,290,000 4,362,000 4,493,000 Building Aid 7,387,000 6,974,000 6,533,000 Other Aid Items 3,933,000 4,116,000 4,088,000 TOTAL $28,110,000 $27,955,000 $27,687,000 Delay on EPC Aid (206,000) Above includes $181,000 EPC Dupl. estimate on EPC (200,000) Other aids above budget 251,000 Expected 2017-18 Aid $27,955,000 6

TAX CAP CALCULATION Budget Budget 2017-18 2018-19 Change Tax Levy at MATL $64,883,000 $66,803,000 Up 1.31% Up 3.95% Actual Levy $64,267,000, .43% TBD Tax Base Growth Factor 0.69% 0.73% Allowable levy growth factor 1.26% 2.00% Yield from factors $1,748,000 Change in PILOT’s (13,000) Increase in capital exemption 801,000 Max Increase: $2,536,000 7

SUMMARY OF BUDGETED REVENUES Budget Budget 2017-18 2018-19 School Taxes $64,267,000 $64,267,000 PILOT Payments 3,282,000 3,295,000 State Aid 28,110,000 27,687,000 Other Revenue 1,464,000 1,837,000 TOTAL $97,123,000 $97,086,000 8

INCREASE IN TRANSFER FROM DEBT SERVICE RESERVE • Debt Service Reserve contains unexpended funds from 2003 project, and an underwriter’s premium from the sale of bonds in June 2016 (for the 2013 capital project) . Balance is approximately $3.1m. • $462,000 available for 2017-18 (not in budget, drawdown analysis done after budget adoption) , $356,000 for 2018-19 (added to budget), with declining amounts thereafter, over the next 16 years. • Aligns funding with debt service payments, to fully draw down. 9

SUMMARY OF BUDGETED EXPENDITURES Budget Budget 2017-18 2018-19 Salaries $49,857,044 $50,987,179 Fringe Benefits 22,399,600 24,028,200 Debt Service 11,659,800 11,936,091 BOCES Services 4,263,869 4,706,603 Equip/Supplies & Contractual 8,592,687 8,372,927 Transfers/Capital Outlay 350,000 375,000 TOTAL $97,123,000 $100,406,000 Overall 3.38% increase 10

FRINGE BENEFITS Budget Budget 2017-18 2018-19 Insurance $12,206,880 $13,370,000 Blended rates up approx. 6.1%, plus higher trending on retiree health TRS 3,300,000 3,626,000 Rates up .83%, at 10.63% ERS 2,250,000 2,250,000 Rates down .40%, est. at 14.90% FICA/Med 3,650,000 3,675,000 W/C, Misc 992,720 1,107,200 TOTAL $22,399,600 $24,028,200 11

DEBT SERVICE PAYMENTS Budget Budget Description 2017-18 2018-19 2003-09 Projects ($93M project) $8,600,450 $8,622,410 2014-15 Projects ($20M project) 1,859,550 1,814,550 Bus Purchases 939,300 1,154,600 Energy Performance Contract 258,500 344,531 Tax Anticipation Note 2,000 0 TOTAL $11,659,800 $11,936,091 Building Aid $7,366,000 $6,533,000 Higher debt, lower aid = higher capital exemption 12

BUDGET SUMMARY BY AREA 13 2017-18 2018-19 Budget Baseline Administrative $3,107,309 $3,168,979 Instructional Programs 31,771,807 32,856,640 SESS 13,155,590 13,540,070 Transportation 6,399,091 6,227,553 Operations & Maintenance 5,440,248 5,403,711 Athletics, Technology 3,189,555 3,244,756 Fringe Benefits 22,399,600 24,028,200 Debt Service 11,659,800 11,936,091 Total $97,123,000 $100,406,000

DISTRICT WIDE ADMINISTRATIVE COSTS, p. 1 14 2017-18 2018-19 Board of Education $35,000 $40,770 District Clerk / District Meeting 12,000 12,000 Superintendent’s Office 264,344 270,765 Business Office 626,439 645,905 Tax Collection Services 30,515 30,779 Human Resources (1 FTE abolished) 357,444 326,159 Communications Office 245,726 258,392 Central Registrar 63,454 64,568 Total $1,634,922 $1,649,338 Increase $14,416

15 DISTRICT WIDE ADMINISTRATIVE COSTS, p. 2 2017-18 2018-19 Audit Services $47,000 $48,000 Legal Services 230,000 230,000 Insurance 239,140 251,100 Assessments – School Property 64,000 64,000 Refunds – Real Property Taxes 30,000 30,000 BOCES Admin Assessment 348,022 356,959 BOCES Staff Development 11,895 11,895 NYSSBA Dues 2,000 2,000 Total $972,057 $994,311 Increase $22,254

16 DISTRICT WIDE ADMINISTRATIVE COSTS, p. 3 2017-18 2018-19 SELF-SUPPORTING PROGRAMS: Continuing Ed $76,930 $76,930 Driver Ed 73,400 73,400 TRANSFERS TO OTHER FUNDS: Food Service 25,000 25,000 Extended School Year (ESY) 225,000 250,000 Capital Outlay 100,000 100,000 Total $500,330 $525,330 Increase $25,000

MULTI-YEAR BUDGET FORECAST 17 Structural Balance Maintained – from May 3, 2017 meeting 2018-19 2019-20 2020-21 Revenue (excludes levy $97,743,000 $99,749,000 $101,795,000 increase) Expenses 99,109,000 101,165,000 103,274,000 Baseline Gap ($1,366,000) ($1,416,000) ($1,479,000) Levy Increase of $1,284,000 $1,310,000 $1,336,000 2%/per year Revenue Increase/Expense ($82,000) ($106,000) ($143,000) Decrease Use of Fund Balance An option to consider, if needed. Mid-term forecast is stable and does not indicate any serious concerns.

NEXT STEPS IN BUDGET DEVELOPMENT Revise initial estimates: health insurance, BOCES’ rates, state aid Consider reductions/additions in coming weeks of specific Per 2018-19 Baseline Budget departmental areas Revenues $97,086,000 Tax Levy: increase to what extent? Expenditures (100,406,000) Use of fund balance: if ultimately needed Preliminary Gap ($3,320,000) Potential salary savings on staff retirements 18

Lynne Lenhardt BOARD OF EDUCATION ELECTION Charmaine Wijeyesinghe On May 15, voters in the Bethlehem Central School District will elect two members of the Board of Education. Nominating petitions will be available beginning February 26 from the District Clerk, Brittany Barrett. All petitions are due by April 16 at 5 p.m. Terms expiring June 30, 2021 19

Febr. 28 : Transportation, Bus Replacement Plan, Technology March 7 : Operations & Maintenance, Athletics March 21: Instructional Staffing & Programming, Special Ed and Student Services FUTURE April 10 (Tues.): Discussion, Decisions, and Adoption. MEETINGS May 1 (Tues.) : Meet the BOE Candidates Night, HS Cafeteria, 6:30 p.m. BUDGET May 2: Public Hearing on Proposed Budget DEVELOPMENT May 15: Budget Vote, 7 a.m. to 9 p.m. at the high school All meetings begin at 7 p.m. unless otherwise noted. 20