2019-2020 Budget Planning March 25, 2019 Board of Education Meeting - PowerPoint PPT Presentation

2019-2020 Budget Planning March 25, 2019 Board of Education Meeting Budget Review, Instruction & Revenue

Factors Impacting Rollover Budget Expenses Revenue - Tax Levy - Health Insurance - State Aid - Contractual Salary Increases • Foundation Aid* • Expense Driven Aids - Retirement Systems - Other - Retirements* • Rental Total Increase $1,210,000 Total Increase $2,360,000 * indicates that we still do not know final impact of these factors 1 3/25/2019 Budget Update

2019-2020 Budget Status Rollover Budget $55,425,000 Anticipated Revenue $54,275,000 Rollover GAP $1,150,000 Rollover Budget based on maintaining all current levels of staffing and programming 2 3/25/2019 Budget Update

2019-2020 Budget Status Rollover GAP $1,150,000 Current Deficit $850,000 Total GAP $2,000,000 3 3/25/2019 Budget Update

Why Do We Have a Deficit? The 2016-17 budget was “balanced,” which means that “true” revenue equaled “true” expenses. Since 2016-17 the District has seen the following changes: Expenses Revenue • $2.3 million increase in • $2 million increase in tax health insurance levy • $2.2 million increase in • $800,000 increase in salaries Foundation Aid TOTAL $4.5 million TOTAL $2.8 million $1.7 million deficit Budget Update 4 3/25/2019

District Use of Fund Balance/Reserves Impact of increased use of Fund Balance/Reserves • Depletion of $850,000 in 2017-18 • Depletion of $850,000 projected for 2018-19, even after the $1 million in cuts to the 2018-19 adopted budget Budget Update 5 3/25/2019

Fund Balance Projections* 2018-19 2019-20 2020-21 2021-22 2022-23 Beginning Reserve $6,500,000 $5,650,000 $3,650,000 $1,350,000 -$1,400,000 Balance Net Budget -$850,000 -$2,000,000 -$2,300,000 -$2,750,000 -$3,250,000 Deficit Ending Reserve $5,650,000 $3,650,000 $1,350,000 -$1,400,000 -$4,650,000 Balance *Projections based on maintaining all current levels of staffing and programming Budget Update 3/25/2019 6

How to Bridge Current GAP? Breakdown of Budget Expenses • Salaries $27,000,000 • Benefits $13,500,000 • Debt Service $6,000,000 • SPED Placements $2,500,000 • BOCES Services $2,000,000 • Utilities $1,000,000 $52,000,000 These components make up 94% of the total budget Budget Update 7 3/25/2019

Proposed Staffing Reductions to 2019-20 Budget 2 Cleaners 2 Administrators 2 Monitors 6 Elementary 1 IT Tech 3 Secondary 1 Bus Mechanic 1 Library 1 Account Clerk (Central 1.7 Music Office/Business Office) 1 Clerical .4 Art Currently many of these reductions are through attrition. The hope is that with the current retirement incentives that this will continue to increase. 3/25/2019 8 Budget Update

2019-2020 Budget with Proposed Reductions Approximately $1.5 million (net) in proposed reductions would still result in a $500,000 deficit in 2019-20. This deficit would be addressed through a combination of additional retirements, an increase in Foundation Aid and use of reserves. 9 3/25/2019 Budget Update

Foundation Aid History Full Phase-In Foundation Aid Amount Year Formula Received Underfunded Foundation Aid 2012-13 $12,561,189 $16,981,128 $4,419,939 2013-14 $12,598,712 $16,861,887 $4,263,175 2014-15 $12,775,793 $16,707,342 $3,931,549 2015-16 $12,822,430 $15,709,052 $2,886,622 2016-17 $12,898,380 $15,341,231 $2,442,851 2017-18 $13,251,691 $15,717,416 $2,465,725 2018-19 $13,602,225 $16,701,859 $3,099,634 2019-20 $13,681,549 $18,155,493 $4,473,944 Average $3,497,930 3/25/2019 Budget Update 10

Impact on Class Sizes Current Current Current Projected Projected Projected Grade Enrollment Sections Class Size Enrollment Sections Class Size Level 18-19 18-19 18-19 19-20 19-20 19-20 K 194 9 21.6 200 8 25.0 1 210 9 23.3 205 8 25.6 2 216 9 24.0 210 8 26.3 3 210 8 26.3 220 8 27.5 4 188 8 23.5 210 8 26.3 5 213 8 26.6 190 7 27.1 6 242 10 24.2 230 8 28.8 Average 210 8.7 24.1 209 7.9 26.6 11 3/25/2019 Budget Adoption

History of Class Sizes Grade 2019-20 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Level (projected) K 23.8 23.2 20.9 20.1 19.5 22.8 25.0 1 26.4 21.8 20.7 21.9 21.5 25.2 25.6 2 24.1 23.8 21.9 20.6 19.9 23.9 26.3 3 23.4 27.4 24.9 23.0 22.4 25.0 27.5 4 23.9 28.2 24.9 22.9 22.2 25.7 26.3 5 24.4 27.7 23.9 21.6 22.8 25.0 27.1 6 25.6 28.1 24.6 25.4 22.8 23.5 28.8 Average 24.5 25.8 23.0 22.1 21.5 24.4 26.6 12 3/25/2019 Budget Adoption

2019-20 Expenditures With Proposed Reductions 2019-20 Projected 2018-19 Budget $ Change Budget as of 3/25/19 Instruction $27,684,825 $28,131,900 $447,075 Employee $12,496,000 $12,982,000 $486,000 Benefits Operations & $2,662,850 $2,704,550 $41,700 Maintenance Transportation $2,292,050 $2,300,750 $8,700 District $1,983,525 $2,034,675 $51,500 Support Debt Service $5,945,750 $6,122,500 $176,750 Total $53,065,000 $54,276,375 $1,211,375 3/25/2019 13 Budget Update

2019-20 Projected Revenues 2018-19 Projected 2018-19 $ Change Budget (as of 3/25/19) State Aid $22,269,225 $22,663,549 $394,324 Property Tax Levy $27,322,621 $28,365,366 $1,042,745 Fund Balance $1,200,000 $1,200,000 $0 Appropriation Reserve Appropriation $850,000 $850,000 $0 BOCES Rental $592,000 $526,500 (65,500) Interfund Transfer (Debt $375,000 $175,000 ($200,000) Service) Other Revenue (Interest, Fees, Cont. Ed., $456,154 $495,960 $39,806 Admissions, Bldg. Use) Total $53,065,000 $54,276,375 $1,211,375 14 2/25/2019 Budget Update

Bus Proposition 4 - Full size 72 passenger buses - Gasoline 2 – 33 passenger buses - Gasoline Proposition Amount = $610,000 Less State Share of Trans. Aid 72.1% = ($439,810) District/Taxpayer Share over 5 years = $170,190 District/Taxpayer Impact per year = $34,038 - due to the debt that will drop off the actual new cost to taxpayers will be approximately $10,000 Note: Need for buses is determined by the Mohonasen Bus and Vehicle Replacement/Obsolescence Schedule 15 3/25/2019 Budget Update

Contingent Budget Rules What happens if the budget is rejected by voters? If the proposed budget is not approved by the voters, the district may resubmit the original budget or submit a revised budget to the voters on the third Tuesday in June OR adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in the tax levy). If the resubmitted/revised budget proposal is NOT approved by the required margin, the Board MUST adopt a budget that levies a tax no greater than that of the prior year (0% increase in the tax levy) AND the budget would be subject to contingent budget requirements. Under a Contingency Budget, some items would need to be cut from the budget to meet the law with respect to definition of contingency appropriations. Cuts would be to student supplies, community use of buildings and grounds, certain equipment purchases and salary increases. 16 3/25/2019 Budget Update

Board of Education Vacancies • Two (2) “at large” seats • Three-year terms • At least 25 signatures required on petition • Petitions are currently available in District Office • Petitions are due back to the District by Monday, April 22 at 5 p.m. 17 3/25/2019 Budget Update

Next Steps • April 8, 2019: Adoption of budget proposal; 6:30pm HS LGI • May 13, 2019: Budget Hearing and Meet the Candidates Night; 6:00pm HS LGI • May 21, 2019: Annual Budget Vote & BOE Election; 7:00am – 9:00pm HS Gym 3/25/19 18 Budget Update

Questions? 3/25/2019 19 Budget Update