North Syracuse Central School District Budget Proposal 2020-21 Public Hearing May 26, 2020 1
Headlines – Events Impacting Schools and School Budgets New York faces its largest budget crisis in a decade. WHO declares the coronavirus outbreak a pandemic Coronavirus Increases New York State Budget Deficit State Comptroller Tom DiNapoli says the current $6 billion deficit will grow to $10 or $13 billion. Coronavirus: New York has more cases than any country The State is Broke And Upstate Counties Are Worried 2
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Agenda Revenues State Aid Foundation Aid Funding Shortfall Tax Levy & Tax Cap Calculation Proposed Expenditure Reductions Required to Balance the Budget Proposed Additions Vehicle Bonding Proposition Fund Balance & Reserves Vote & Election Information 6
Revenue Assumptions General State Aid : Based on the Final NYS Budget approved by Legislature. State Aid subject to change quarterly based on actual state revenues. Building Aid : The 2020-21 budget is not impacted by the penalty waiver signed by the governor in August 2018. The refund was received and appropriated for the KWS Bear Road project. Building Aid is lower than last year due to the fact that our debt service is lower. Pandemic Adjustment & Cares Restoration Aid Revenues include a reduction by NYS of $1,404,329 called the Pandemic Adjustment. This amount has been offset by federal funds of the same amount called the Cares Restoration Aid. Real Property Taxes : The increase in the levy is limited to the amount of the tax cap. The largest component is inflation based on CPI as reported by the Bureau of Labor Statistics for 2019, 1.81%. Smart Schools Bond Act : We continue to use Smart Schools funds to invest in technology. Revenues will NOT impact the General Fund.
Revenues $172,567,744 Reserve Medicaid Other Revenue Fund Balance $1,000,000 Interest $550,000 $2,150,000 $4,000,000 0.58% $450,000 0.32% 1.25% 2.32% Sales Tax 0.26% Rent $350,000 $404,000 0.20% 0.23% PILOTS $424,408 0.25% State Aid Tax Levy $70,694,381 $92,544,955 40.97% 53.63% 8
Revenues 2019-2020 2020-2021 Variance General State Aid $64,945,776 $67,044,979 $2,099,203 3.23% PILOTS $379,161 $424,408 $45,247 11.93% Sales Tax $300,000 $350,000 $50,000 16.67% Interest $200,000 $450,000 $250,000 125.00% Fund Balance $3,750,000 $4,000,000 $250,000 6.67% Rent $404,000 $404,000 $0 0.00% Use of General Reserve $0 $1,000,000 $1,000,000 N/A Medicaid $450,000 $550,000 $100,000 22.22% Other Revenue $2,187,900 $2,150,000 ($37,900) (1.73%) Sub Total $72,616,837 $76,373,387 $3,756,550 5.17% Building Aid $3,934,238 $3,649,402 ($284,836) (7.24%) Tax Levy $90,209,332 $92,544,955 $2,335,623 2.59% Total $166,760,407 $172,567,744 $5,807,337 3.48% 9
State Aid as Approved by NYS Legislature Approved Approved Difference Budget Budget $ % 2019-20 2020-21 Foundation Aid 46,735,862 46,734,982 (880) 0.00% Excess Cost - Private 490,053 405,184 (84,869) -17.32% Excess Cost - Public 2,975,653 4,374,999 1,399,346 47.03% Subtotal 50,201,568 51,515,165 1,313,597 2.62% Hardware & Technology 158,087 156,093 (1,994) -1.26% Software, Library, Textbook, 706,892 690,449 (16,443) -2.33% Transportation 8,272,152 8,753,081 480,929 5.81% BOCES 5,307,077 5,930,191 623,114 11.74% Subtotal 14,444,208 15,529,814 1,085,606 7.52% Total (Without Building Aid) 64,645,776 67,044,979 2,399,203 3.71% Building Aid 3,934,238 3,649,402 (284,836) -7.24% Pandemic Adjustment - (1,404,329) (1,404,329) N/A Federal Cares Restoration - 1,404,329 1,404,329 N/A TOTAL STATE AID 68,580,014 70,694,381 2,114,367 3.08% Universal Pre-K 606,120 606,120 0 0.00% TOTAL STATE AID w/ Pre-K 69,186,134 71,300,501 2,114,367 3.06% 10
State Aid Implications for NSCSD Foundation Aid continues to be an issue. The final State Aid has NO INCREASE in Foundation Aid. We anticipated the drop off in building aid consistent with final debt payments made on older capital project debt. This timing is perfect as we begin the renovation of KWS Bear and complete roof projects over the next few years that will result in new debt. Our total projected State Aid increase under the final budget proposal is 3.06% or $2.1 million. This is all due to expense-driven aids resulting from increased spending by the District in Special Education, Transportation and BOCES. 11
Foundation Aid Funding Shortfall NYS has not fully funded Foundation Aid in accordance with the Laws of 2007 which required distribution of funds to school districts based on the cost of providing a sound basic education and adjusted to reflect regional costs. NSCSD will receive $13.1 million less in 2020-21 than the full phase in level. Since 2007-08 we have received $178 million less in Foundation Aid than contemplated by the legislated formula. The distribution of Foundation Aid to schools across the state is inequitable. School Districts with significantly higher wealth ratios receive a higher % of their Foundation Aid than NSCSD. We receive only 78% of the aid we are supposed to receive. 12
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Tax Cap Calculation Tax Levy 2019-2020: $90,209,332 Tax Base Growth Factor: x 1.0073 90,867,860 PILOT Revenue for 2019-2020: 379,161 Tax Levy for Capital for 2019-2020: (2,311,997) 88,935,024 Allowable Levy Growth Factor: x 1.0180 90,544,748 Estimated PILOT Revenue for 2020-2021: (424,408) Tax Levy for Capital for 2020-2021: 2,442,615 Other Exclusions (ERS & TRS > 2%): 0 Available Carryover: 0 Tax Levy Limit Plus Exclusions: $92,544,955 Tax Levy Limit Increase: $ 2,335,623 (2.59%) Estimated tax levy increase on a home of $100,000 BEFORE STAR is $61 14
Projected School Tax Rates & Amounts 2020-2021 (2.59% Increase) Cicero Clay Salina FULL VALUE $ 100,000 $ 100,000 $ 100,000 ASSESSED VALUE (AV) $ 100,000 $ 4,000 $ 100,000 EST. TAX RATE PER $1,000 OF AV $ 24.21 $ 605.42 $ 24.21 EST. ANNUAL SCHOOL TAX $ 2,421 $ 2,421 $ 2,421 TAX INCREASE YR./MO. $61/$5.08 $61/$5.08 $61/$5.08 These calculations exclude the benefits of STAR 15
Tax on True Value CNY Districts ($/$1,000 2018 Data from Office of NYS Comptroller) $35.00 32 21.41 22.45 23.65 23.78 24.1 24.52 24.57 24.97 25.8726.96 27.9 28.36 28.58 28.74 $30.00 $25.00 17.17 18.12 18.38 18.44 18.5 18.81 19.83 $20.00 14.52 $15.00 $10.00 $5.00 $0.00 Median $23.78 Average $23.11 16
EXPENDITURE ASSUMPTIONS Health Benefits: We are hopeful that the positive trend continues and that NSCSD will experience lower than average increases for our industry. We are projecting a 6% increase for 2020-21. Retirement Costs: TRS – The TRS Board met this fall. They estimate that the Employer Contribution Rate (ERC) for 2020-21 will be 9.53%. This will be an increase from the 8.86% for the current school year. ERS - The 2020-21 contribution rate for the Employee Retirement System (ERS) will be slightly higher, going from 15.7% to 16.0% of salaries. Salaries & Wages: Many contracts were renegotiated effective June 30, 2019 and budgeted salaries and wages reflect increases included in the new agreements. The proposed budget includes both position eliminations and new positions for 2020-21 as outlined in this presentation. Fuel Costs (Transportation): Over the past few years this has been a favorable (but volatile) market. However, we must consider “net of aid savings” only due to transportation aid (78.5%). Energy Costs (Gas & Electric): Through BOCES, the district participates in an energy consortium (NYSMEC) that enters into a 3-year supply agreement. The current agreement covers 2018-19 through 2020-21 school years. Our budget will reflect contracted rates based on estimated usage.
Expenditure Per Pupil - OCM BOCES Component Districts Only Spending Per School Spending Per Pupil State Rank School Pupil State Rank 12 $21,831 554 1 $29,485 183 2 $28,789 *213 13 $21,688 *560 14 $21,675 561 3 $28,365 *222 4 $27,525 *253 15 $21,203 589 16 $20,965 601 5 $26,194 317 17 $20,310 624 6 $24,840 *394 7 $24,685 401 North Syracuse $20,081 633 19 $19,489 *647 8 $23,844 447 9 $23,738 453 20 $19,296 *651 21 $19,224 654 10 $22,496 513 11 $22,489 512 22 $19,201 655 23 $19,114 658 Source: Forecast 5 - 5Sight data from NYSED ST-3 filings for 2018 (General Fund & Special Aid Fund only). Large Districts in BOLD * denotes districts receiving greater than full phase in level of Foundation Aid 18
Expenditures $172,567,744 Salaries Benefits $80,880,165 $53,593,785 46.87% 31.06% Debt Service $7,286,719 4.22% Supplies & Other $3,694,029 2.14% Special Project BOCES $100,000 $17,725,000 0.06% 10.27% Contractual Equipment $8,671,646 $616,400 5.03% 0.36% 19
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