School District Budget Proposal 2020-21 May 11, 2020 1 Headlines - PowerPoint PPT Presentation

North Syracuse Central School District Budget Proposal 2020-21 May 11, 2020 1

Headlines – Events Impacting Schools and School Budgets WHO declares the coronavirus outbreak a Coronavirus: New York has more pandemic cases than any country The Coronavirus Outbreak • RIGHT NOW 2 3.2 million jobless claims were filed last week, adding to more than 30 million since March.

Headlines – Events Impacting Schools and School Budgets New York faces its largest budget crisis in a decade. Cuomo faces biggest budget deficit, $6B, since taking office Coronavirus Increases New York State Budget Deficit State Comptroller Tom DiNapoli says the current $6 billion deficit will grow to $10 or $13 billion. The State is Broke And Upstate Counties Are Worried 3

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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  Vehicle Bonding Proposition  Fund Balance & Reserves  Vote & Election Information 7

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% 9

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% 10

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% 11

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 aides resulting from increased spending by the District in Special Education, Transportation and BOCES. 12

Foundation Aid Funding Shortfall  The Laws of 2007 reformed the State’s method of allocating resources to school districts by consolidating some thirty existing aid programs into a Foundation Aid formula. This formula distributes funds to school districts based on the cost of providing a sound basic education and adjusted to reflect regional costs.  Albany committed to phasing in the Foundation Aid formula over time. The promised phase in has not happened.  The Governor now wants to replace Foundation Aid with a new funding formula called the Education Equity Formula . 13

Foundation Aid Shortfall Campaign for Fiscal Equity Law Suit ($178 Million Short) Enacted State Budget/School Year Current Year Aid Full Phase-in Level Shortfall 2007-08 $38,127,395 $51,905,964 ($13,778,569) 2008-09 $42,285,090 $54,710,908 ($12,425,818) 2009-10 $42,317,268 $59,749,290 ($17,432,022) 2010-11 $42,317,268 $59,606,170 ($17,288,902) 2011-12 $42,317,268 $56,889,215 ($14,571,947) 2012-13 $42,579,693 $57,754,076 ($15,174,383) 2013-14 $42,699,660 $59,296,055 ($16,596,395) 2014-15 $43,178,688 $53,814,000 ($10,635,312) 2015-16 $43,324,523 $52,716,600 ($9,392,077) 2016-17 $43,747,558 $53,135,617 ($9,388,059) 2017-18 $44,998,315 $53,278,729 ($8,280,414) 2018-19 $45,948,242 $56,522,084 ($10,573,769) 2019-20 $46,735,862 $56,936,326 ($10,200,464) 14 2020-21 $46,734,982 $59,842,251 ($13,107,269)

Shouldn’t Districts with Lower Wealth Receive a Higher % of their Aid? Large Districts with CWR >.6 & <1 1.00 100.0% 90.4% 90.3% 0.955 0.95 90.0% 87.3% 82.9% 82.3% 82.1% 80.5% 0.90 80.0% 77.8% 77.4% 0.877 76.9% 75.9% 0.864 72.7% 0.858 0.85 0.851 70.0% 0.823 FOUNDATION AID % FUNDED 62.5% 0.80 0.784 60.0% 0.772 0.768 CWR 54.2% 0.75 51.5% 0.741 50.0% 0.70 0.684 40.0% 0.659 0.65 0.644 0.625 0.622 30.0% 0.60 20.0% 0.55 0.50 10.0% 1 North 3 4 5 6 7 8 9 10 11 12 13 14 15 Syracuse COMPARABLE DISTRICTS

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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 17

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 18

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 19