2020-21 Budget First Draft MARCH 9, 2020
First Budget Draft - Expenditures + We began the first budget draft by rolling over the expenditure budget from 2019-20 and making these adjustments: Increasing salaries for all current positions according to contracts (retiree savings are factored into the draft budget) Applying the 20-21 Employee Retirement System (ERS) and Teachers Retirement System (TRS) required contribution rates to payroll. Applying health insurance rate increases for all current positions – RX- 0, CDPHP-5.2 Blue Shield 6.75% Adjusting program spending changes based on special education needs, BOCES services, etc. Estimating Transportation and Operations needs Adjusting debt repayments to reflect advancement on the repayment schedules
+ Changes in Budgeted Expenditures in the Draft Budget from January to April The TRS rate increase is going up from 8.86 to 9.53 The TRS rate increase will add approximately an additional $48,000 to the annual budget The ERS rate also increased by .3% and will add an additional $30, 000 to budget Drug -0.0% (expectation is all bargaining units will adopt the managed formulary by April 1 st otherwise rates will need to be increased) Blue Shield -6.75 % and CDPHP- 5.2% ( adoption of model plan reduced rate from 9.6%) Workers Compensation- 0.0% BOCES – Special education tuition rates are a 5% increase on average.
2020-21 Tax Cap The maximum levy the district can go to is 3.139% for 2020-21 this will generate $570,907.79.
Tax Levy Percent Revenue 1% $181,847 2% $363,695 3% $545,542
Expense Based Aid Aid received from the state based on prior year’s expenditures .(The more you spend the more aid you’ll receive)Each category has a predetermine aid percentage. BOCES Transportation Building +
Foundation Aid FOUNDATION AID- A FUNDING FORMULA BY NYSED IN 2006. THERE ARE FOUR FACTORS THAT GO INTO DETERMINING FOUNDATION AID. THE COST OF EDUCATING A STUDENT 1. DIFFERING LEVELS OF STUDENT NEEDS 2. DIFFERENT COSTS OF LIVING ACROSS THE STATE 3. THE VARYING FUNDING CAPACITIES OF DIFFERENT DISTRICTS 4. THIS YEAR OUR FOUNDATION AID INCREASE WAS ABOUT $10,000
First Draft of Revenues 2020-21 The revenues of the school district come from two main sources: 1. The Taxy Levy Limit for our district is 3.139% for 2020-21 We have used the 3.139% tax levy increase for the first draft of the budget 2. NY State Aid amount from the Governor’s budget proposal increase of $64,889. The district typically will see an increase in aid over the Governor’s proposed budget when the final budget is approved by the legislature We are now able to determine what revenues look like at this preliminary stage.
Total Revenues 2020-21 Tax Levy = $18,755,667 estimated Total State Aid = $6,533,948 expense based aid can fluctuate up or down Misc. Revenues (Medicaid Reimbursement, Fees, Sale of Surplus Property, Interest) = $492,500 Fund Balance Applied = $300,000 (same as 19-20 budget) Total Revenues = $26,082,115
District Evaluation and Reallocation of Resources The district has and will continue to evaluate the delivery of programs and how to maximize all resources within it. Through this process we have created cost saving measures to include part-time staffing reductions while having no impact on class size or programming Increase Elementary staffing to address increasing enrollment Looking at increasing social conditions and safety support district wide Increase professional development by $5,000 - investment in staff is an investment in students FACS teacher back to a 1.0 FTE
Major Categories of Spending in 2020-21 draft budget Spending Category Total Amount % Change $ Change from 2019-20 from 2019-20 General Support $2,684,369 1.2% $32,385 Instruction $12,939,381 2.9% $366,400 Transportation $994,218 -8.7% $ -95,782 Employee Benefits $7,843,616 5.3% $394,543 Debt Service $1,499,994 - 3.6% $ -56,815 Total Expenditures $26,082,578 2.4% $677,346
Budget Facts Budget Increase $656,882 (2.617%) down from $686,657 last year • Tax Levy Increase $570,907 (3.139%) State Aid Increase(Governor’s budget) $64,889 ($10,000 of which was foundation aid)
Revenues minus Expenditures Total Revenues = $26,062,115 Total Expenditures = $26,082,578 Budget Gap = ($20,463) The budget gap is 0.008% of total budget The legislature usually increases state aid as compared to the governor’s proposal, but given the fiscal climate in the state this year, a large increase in state aid is unlikely
Bus Proposition VCSD Maintains a multi-year plan for replacing buses Buses run approximately 10 – 12 years Plans to purchase one 65-passenger bus and two 28 – passenger buses.($236,000) Will auction off two buses Will receive State Aid on the bus purchases at approximately 60% of costs
Next Steps in the Budget Process The budget will be a discussion topic at each board meeting from now through April The Legislature is scheduled to pass the final budget by April 1 – final state aid figures will be known at that time There will be a special budget meeting on April 6th prior to the regular meeting to finalize the budget. Adoption of the budget by the board of education is anticipated to be at the April 6 regular meeting The voters will decide on the proposed budget on May 19
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