Waterford-Halfmoon UFSD 2020-21 Budget Planning Board of Education - PowerPoint PPT Presentation

Waterford-Halfmoon UFSD 2020-21 Budget Planning Board of Education Finance Committee Meeting April 2, 2020

2020-21 Budget Timeline ฀ On March 30, 2020, the Governor signed Executive Order 202.13 postponing both BOE election and budget votes until at least June 1, 2020. ฀ As of April 23, 2020, NYS has still not yet set a date for 2020-21 school budget and BOE election votes. ฀ The WHUFSD BOE may be asked to adopt the budget on May 7 th .

2020-21 Other Important Dates ฀ May 2020: ฀ Tentative assessment rolls published. ฀ Property tax report card is due within 24 hours of budget approval ฀ July 2020: Final assessment rolls published. ฀ August 2020: Adopt the tax levy and warrant.

2020-21 Finance Committee Meetings ฀ February 12: Historic Trends, Current Position ฀ Vision, Long-Term Planning ฀ 2020-21 Budget at a Glance ฀ ฀ March 5: Update ฀ 2020-21 Revenues: Detailed Review and Discussion ฀ ฀ April 2: Update ฀ NYS Budget and COVID-19 Budget Impact ฀ 2020-21 Appropriations: Detailed Review and Discussion ฀ ฀ April 23: Update ฀ 2020-21 Budget: Detailed Review and Discussion of Budget Reductions ฀

COVID-19 & the Budget: What We Know ฀ The NYS Legislative Budget reduced foundation aid for all schools in NYS to the 2019-20 fiscal year amount. ฀ 2020-21 Executive Budget Proposal: Represented a 1.46% or $120,000 increase from 2019-20 ฀ Includes a $25,000 Community Schools Set Aside ฀ ฀ 2020-21 Legislative Budget Proposal: ฀ Approximately $100,000 less than the Executive Budget; Foundation aid was held at the 2019-20 amount The $25,000 Community School Set Aside was removed ฀ Includes a $166,000”Pandemic Adjustment” reduction in addition ฀ to the above $100,000 reduction. This amount is offset by a $166,000 addition for “Federal Cares Restoration.” This is derived from the Federal stimulus package and it is believed that we can rely on the receipt of these funds. ฀ If NYS revenues and expenditures do not meet targets – ฀ – ฀ – ฀ – ฀ ฀

COVID-19 & the Budget: What We Know ฀ If NYS revenues and expenditures do not meet targeted goals during the below measurement periods, NYS may reduce State aid payments to schools during the fiscal year. ฀ April 1 – April 30 ฀ May 1 – June 30 ฀ July 1 – December 31 ฀ January 1 – March 31 ฀ WHUFSD MAY face additional State aid cuts in 2020-21. We anticipate that we will know more after the completion of the first measurement period (April 30 th ).

COVID- 19 & the Budget: What We Don’t Know ฀ How much our State aid may be reduced throughout the year due to State revenue shortfalls. ฀ When those reductions will occur (i.e., after certain “measurement periods”, all “measurement periods” etc.). ฀ How we will be impacted by the potential State aid reductions. ฀ Will we be forced to reduce services? ฀ Will we be forced to reduce staffing?

COVID-19 & the Budget: Moving Forward Two large financial impacts to tackle: 1. Known reduction in Foundation aid The delay of the budget vote has afforded us additional flexibility to ฀ review the budget and make changes to accommodate the reduction in State aid (Foundation aid) These proposed changes will be presented to you today. ฀ 2. Unknown potential reductions after the start of the fiscal year Such reductions are likely to occur after our budget has been approved ฀ by the voters and our warrant is adopted by the BOE. Rather than making additional reductions to our budget now, we ฀ advocate for, and have begun identifying areas to be reduced during the fiscal year – also to be presented to you today. We must be prepared to make even further reductions during the fiscal ฀ year. We must hope for the best but prepare for the worst!

Addressing Fiscal Impact # 1: Known Reductions in State Aid State aid was reduced by over $100,000. This can be addressed in one of three ways: 1) Reduction in appropriations 2) Increase the tax levy (would exceed the tax cap) 3) Combination of 1 and 2 above

2020-21 Budget at a Glance Budget 2020-21 Budget 2019-20 Updates 1 Budget 03/05/20 04/02/20 04/23/20 Total Appropriations 21,196,493 21,739,256 21,739,256 21,536,060 (203,196) Tax Levy 11,261,368 11,570,000 11,570,000 11,570,000 - Other Revenues 8,463,392 8,580,000 8,472,100 8,472,100 (107,900) Appropriated Fund 1,471,733 1,589,256 1,589,256 1,493,960 (95,296) Balance and Reserves 2 Excess of - - 107,900 - Expenditures o $107,900 reduction in State aid caused by a reduction in aid from the Executive Budget to the Legislative Budget o $203,196 reduction in appropriations to accommodate the reduced revenues. o $95,296 reduction in appropriated fund balance and reserves for the additional reduction in appropriations. 1 This column reflects changes from the March 5 th budget draft to the April 23 rd budget draft. 2 This includes $22,000 appropriated from the Retirement Contribution Reserve (NYSLRS).

2020-21 Budget at a Glance (Cont’d) Change from 2019-20 2019-20 2020-21 Budget Budget $ Change % Change Total Appropriations 21,196,493 21,536,060 339,567 1.60% Tax Levy 11,261,368 11,570,000 308,632 2.74% Other Revenues 8,463,392 8,472,100 8,708 0.10% Appropriated Fund 1,471,733 1,493,960 22,227 1.51% Balance and Reserves 2 o Total appropriations increased by less than 2% which is primarily due to budget cuts. Most recurring appropriations increased by approximately 4% o The tax levy is increasing by 2.74% and remains within the tax cap. This increase in the tax levy was caused by revenues being essentially held flat from 2019-20.

2020-21 Budget Update: Appropriations 2020-21 Budget Change from 2019-20 2019-20 Appropriation Category Budget 03/05/20 04/23/20 $Change $ Increase % Increase Salaries 9,057,644 9,063,159 9,059,864 (3,295) 2,220 0.02% Benefits 4,134,500 4,405,000 4,420,000 15,000 285,500 6.91% Contractual 2,192,335 2,518,880 2,443,159 (75,721) 250,824 11.44% BOCES 2,461,650 2,460,000 2,419,600 (40,400) (42,050) -1.71% Debt 2,284,910 2,270,420 2,270,420 - (14,490) -0.63% Other 747,966 749,697 761,517 11,820 13,551 1.81% Equipment 187,488 141,500 30,900 (110,600) (156,588) -83.52% Transfers 130,000 130,600 130,600 - 600 0.46% TOTAL 21,196,493 21,739,256 21,536,060 (203,196) 339,567 1.60%

2020-21 Budget: Appropriations ฀ Salaries: Minimal increase in the general fund due to transfer of salaries to Federal Projects fund. ฀ Reduced curriculum development by $3,295 but still left some funds in the budget for curriculum development. ฀ Benefits: Increase due to health insurance rate increase (4.25% - 6.25%) and increase in TRS contribution. ฀ Increased the unemployment insurance appropriation by $15,000 as a precaution for 2020-21.

2020-21 Budget: Appropriations ฀ Contractual: Primarily related to transportation contract and bus lease payment increases. ฀ In total, reduced $75,721 from the March 5 th budget draft. ฀ Minor increases and decreases in several accounts. Increases to appropriations tied to reductions in other appropriations. ฀ Notable changes include: ฀ $70,000 reduction in contract transportation appropriations ฀ $10,000 reduction in construction (architecture) costs which will be funded by the capital projects fund.

2020-21 Budget: Appropriations ฀ BOCES: Decrease in anticipated BOCES services costs. ฀ Reduced $40,400 over various BOCES codes. This reduction is primarily related to BOCES cost reduction steps that have been taken since April 1. ฀ Debt: Based on our actual debt service payment schedules (decrease in interest). ฀ Other: Includes primarily supplies & materials, textbooks, tuition, etc. Primarily held flat. ฀ Increase $10,800 related to decreases in other areas (i.e., athletic materials increased because athletic equipment decreased).

2020-21 Budget: Appropriations ฀ Equipment: Reduction primarily due to removal of appropriation for vehicle purchase. ฀ Reduced $100,600 ฀ Furniture purchases eliminated from budget ($20,000) ฀ Building and grounds equipment reduced $39,000 from $40,000 to $1,000 ฀ Computer equipment (hardware) reduced by $48,000 ฀ Athletic equipment reduced by $3,600 ฀ Interfund Transfers: 100k Project Transfer & Federal Projects fund transfer.

2020-21 Budget Update: Appropriations THEN & NOW

2020-21 Budget: Tax Levy and Tax Rates Remaining within the Tax Cap ฀ Tentative 2020-21 Tax Levy: $11,570,000 ฀ Is within the tax levy limit ($852 less than the limit) ฀ Tentative Tax Rate: $17.58 ฀ NOTE: The above tax rate and information illustrated below are based on 2019-20 assessed values. This information will change when final assessment rolls are released.

2020-21 Budget: Tax Levy and Tax Rates Exceeding the Tax Cap ฀ Increasing the tax levy by $100,000 would result in a tentative 2020-21 Tax Levy: $11,670,000 ฀ Exceed the tax levy limit ($99,148 over the limit) ฀ Would require a 60% supermajority vote to pass ฀ Tentative Tax Rate: $17.73 ฀ NOTE: The above tax rate and information illustrated below are based on 2019-20 assessed values. This information will change when final assessment rolls are released. Assessed Equalization Full Market Taxes Without STAR Municipality Value Rate Value 2019-20 2020-21 Increase Waterford $ 100,000 100 $ 100,000 $ 1,711.02 $ 1,773.10 $ 62.09 Halfmoon $ 57,250 57.25 $ 100,000 $ 1,711.02 $ 1,773.10 $ 62.09