Monroe-Woodbury Central School District 2016 2017 Budget - PowerPoint PPT Presentation

Monroe-Woodbury Central School District 2016 – 2017 Budget Presentation - Book I Budget Development Process, State Aid and Tax Cap • Transportation • Operations & Maintenance • Health & Safety • Data Processing, Computer Assisted Instruction, Central • Printing & Library Media February 17, 2016 Board of Education Meeting

Review Budget T erminology ◦ Budget: A plan of financial operation outlining the estimate of proposed expenditures for a fiscal year and the proposed means of financing them. ◦ Budget Calendar: The schedule of key dates that the school district, Board of Education, and administrators follow in preparation, adoption, and administration of the budget. ◦ Budget Year: The fiscal year immediately following the current year. ◦ Fiscal Year: A fiscal year is the accounting period on which a budget is based. The New York State fiscal year runs from April 1 to March 31. The fiscal year for all New York counties and towns and for most cities is the calendar year. School districts in the State operate on July 1 through June 30 fiscal years. ◦ Fund Balance: A fund balance is created when the school district has money left over at the end of its fiscal year from either under spending the budget or taking in additional revenue. Part of the fund balance (appropriated now called assigned fund balance) may be applied as revenues to the district's following year budget. A portion may also be set aside (unappropriated or unassigned fund balance) to pay for emergencies or other unforeseen occurrences. ◦ Fundamental Operating Budget (FOB): The total amount of money required to pay for current-year programs, staffing and services at next year's prices — i.e., what the next year's budget would be if the current year's budget were simply "rolled over." ◦ Maximum Allowable Tax Levy: The Tax Levy Limit plus allowable exemptions results in the maximum allowable tax levy, which is the highest tax levy a district can propose and still only need a simple majority to pass. ◦ Proposed Budget: Also called Administrative Proposal. Spending plan developed by school administrators prior to Board adoption. School districts are required by New York State to show their proposed budgets in three categories: administrative, program, and capital. ◦ Reserves - Funds that have been set aside to satisfy legal obligations or plan for future expenditures. ◦ Revenue: Sources of income financing the operation of the school district. ◦ Tax Levy: Total sum to be raised by the school district after subtracting out all other revenues including state aid. The tax levy is used to determine the tax rate for property owners in each of the cities, towns or villages that makes up a school district. ◦ Tax Rate: The amount of tax paid for each $1,000 of assessed value of property. In districts that cover just one municipality, the tax rate is figured simply by dividing the total assessed property value by 1,000 and then dividing that again into the tax levy (the amount of money to be raised locally). In districts that encompass more than one municipality, the formula for figuring the tax rate is more complicated. It involves assigning a share of the total tax levy to each municipality and applying equalization rates to take into account different assessment practices.

2016-2017 Budget Challenges Property Tax Cap Levy Growth Factor at Historically Low Level: 0.12% • Gap Elimination Adjustment Cut in State Aid Remains: -$1,245,187 • Foundation Aid Formula – Never fully phased in and frozen for four years • Estimated Cumulative Loss to MW CSD 2007-08 - to Present: $73.2 • million Estimated loss for the 2015-2016 year: $8.46 million! • Increases in Health Insurance Premiums (+4.5%) • Property Tax Freeze Credit Program – Ending • Expiring Contracts • MWAA (administrators), MWEA (clerical, cafeteria, aides, monitors, • RNs), MWTA (teachers & TAs), CSEA (custodial and transportation) Tax Certiorari Refunds and PILOTS • Growing Need and Demand for Facilities Maintenance and Improvements • Taxpayer’s Diminished Ability to Pay •

Budget in Balance Appropriations Revenue Instructional Program

Sources of Revenue  Local Non Property Tax ◦ Tuition and health services, interest earnings, reimbursements/vendor refunds, sale of equipment, insurance recoveries, BOCES refund of prior year expenses  State Aid – Equalizes School Revenue ◦ General Aid / Foundation Aid Provides 70% of State aid  Based on complex formula taking into account district wealth and pupil need and regional costs  Created in 2007-2008 in response to the Campaign for Fiscal Equity  MW CSD 2015-16: $28.8 million; with Full Phase in: $37.3 million  ◦ Categorical Aids Designed to drive $ to certain types of programs & legislative priorities  Examples: High Tax, Textbook, Public High Cost & Private Excess Cost Aids, Computer Hardware Aid  ◦ Expense Driven Aids – “Spend to Get” Aid ratio is applied to approved expenditures to generate aid  Building Aid – based on approved project costs of purchase, renovations, reconstruction & new  construction (no Building Aid on maintenance & repairs) Transportation Aid – based on cost of day to day operation of transporting pupils to & from school  BOCES Aid – based on approved BOCES services, administrative & facilities costs (not special education or  transportation) Federal Aid  IDEA 611 and 619, Title Grants I-III (Account for in F Fund)  Medicaid  Real Property Taxes – Tax of Last Resort 

State Aid Budget Process  Regents’ Proposal ◦ Released in November/December ◦ Reflects Regents’ program priorities & initiatives ◦ Conceptual format ◦ District by district aid projections not available ◦ 2016-2017 recommended a $2 billion increase in State Aid  Executive Budget Proposal ◦ Released in January ◦ Reflects Governor’s priorities & fiscal condition of state ◦ Based on projected district data for upcoming school yr. submitted with Fall state aid claim ◦ 2016-2017 proposes a $991 million increase in State Aid  Final Budget Projections ◦ Released when Governor & Legislative leaders come to an agreement on state aid to education ◦ Formula changes drive $ to regions & priorities ◦ Timing of state budget does not coincide with district budget timelines ◦ Typically provides additional aid above the Governor’s proposal

2016-2017 Projected State Aid 2015-2016 2016-2017 $ CHG % CHG Foundation Aid 28,844,286 28,958,048 113,762 0.39% BOCES Aid 1,836,644 2,165,726 329,082 17.92% High Cost Excess Cost 2,282,677 2,408,135 125,458 5.50% Private Excess Cost 904,127 920,994 16,867 1.87% Hardware & Technology 167,567 177,257 9,690 5.78% Software, Library and Textbook 697,753 709,667 11,914 1.71% Transportation 8,006,388 8,212,671 206,283 2.58% High Tax 1,602,240 1,602,240 0 0.00% Gap Elimination Adjustment -1,867,732 -1,245,187 622,545 -33.33% Building Aid 4,940,845 5,146,248 205,403 4.16% 47,414,795 49,055,799 1,641,004 3.46%

State Aid - Percentage of Revenue Actual State Aid as % of T otal Revenue 34.0% 32.0% 30.5% 30.3% 30.3% 29.5% 30.0% 29.1% 28.9% 28.3% 28.0% 26.0% 24.0% 22.0% 20.0% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Actual Revenue Categories as Percentage of Revenue Property Taxes State Aid And "Everything Else" 1.9% 1.9% 1.2% 1.2% 2.0% 1.8% 1.3% 100% 28.3% 28.9% 30.3% 29.1% 29.5% 30.3% 30.5% 80% 60% 40% 70.4% 69.9% 69.0% 68.5% 68.6% 67.9% 67.6% 20% 0% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Property Tax Cap  What is the property tax cap? ◦ In general, the tax cap law establishes a limit on the annual growth of property taxes levied by local governments and school districts to two percent or the rate of inflation, whichever is less. Began for schools in FY 2012-2013.  Are there exclusions or exceptions to the tax cap? ◦ There are limited, narrow exclusions to the cap, including certain costs of significant judgments arising out of tort actions, unusually large year-to-year increases in pension contribution rates and the local portion of capital expenditures.  Is there an override mechanism to the tax cap? ◦ The tax levy cannot exceed the cap unless 60%+1 voters approve such an increase.

Tax Cap: It’s Not 2% Year Allowable Levy Growth Factor 2012-2013 2.00% 2013-2014 2.00% 2014-2015 1.46% 2015-2016 1.62% 2016-2017 0.12%

Maximum Allowable Tax Levy  Adjustments to the Levy Limit ◦ Tax base growth factor  Adjusts for “brick and mortar” development that increases a municipality’s taxable property. ◦ Available Carryover  If a local government levies less than the levy limit, up to 1.5 percent of that year’s tax levy limit may be added to the levy limit for the next fiscal year. ◦ Exclusions or Exemptions  Pension contributions.  Court orders or judgments (excludes tax certiorari).  Capital expenditures for school districts only.