Budget Workshop Feb. 11, 2019

Budget Reminders

  • We will budget from the perspective of what we know to be true in the present moment.
  • Though we will be cautiously optimistic about decreases in expenditures or increases in revenue, we will not make assumptions.

What We Now 

  • What the governor has proposed for state aid
  • Our analysis of changes to this proposal
  • Our tax cap calculation based on current figures
  • Draft 1 of the budget

The Governor’s Proposal

The district received $984,201 in aid for the 2018-2019 school year. The Governor’s Office proposed an increase of $333,548 or 33.89 percent in the 2019-2020 school year, or a proposal of $1,317,749.

The following figures show the amount the district received in 2018-2019, and how much the Governor’s Office has proposed for 2019-2020.

  • Foundation Aid
    • 2018-19: $406,839
    • 2019-20: $409,390
  • BOCES
    • 2018-2019: $150,591
    • 2019-2020: $156,787
  • High-Cost Excess Cost
    • 2019-2020: $1,659
  • Private Excess Cost
    • 2018-2019: $14,818
    • 2019-2020: $28,987
  • Hardware & Technology
    • 2018-2019: $2,426
    • 2019-2020: $3,259
  • Software, Library, Textbook
    • 2018-2019: $30,971
    • 2019-2020: $34,913
  • Transportation
    • 2018-2019: $254,494
    • 2019-2020: $302,760
  • Building Aid
    • 2018-2019: $83,574
    • 2019-2020: $348,508
  • Charter School Transitional
    • 2018-2019: $40,488
    • 2019-2020: $31,586
  • TOTAL
    • 2018-2019: $984,201
    • 2019-2020: $1,317,749

Why the governor’s proposal is NOT accurate

The calculations under this proposal are derived using assumptions and projections to predict expense-drive aids. They are not based on what we know to be true in the present moment.

The following figures show our adjustments to the proposal as of today, and how much of a change that is. In 2018-19, the district received $984,201. As we reflect on his proposal this year, we understand it to, in reality, be a decrease of $47,675, or 5 percent.

  • Foundation Aid
    • 2018-19: $406,839
    • 2019-20: $409,390
    • As of today: $409,390
    • Change: $2,551
  • BOCES
    • 2018-2019: $150,591
    • 2019-2020: $156,787
    • As of today: $156,787
    • Change: $6,196
  • High-Cost Excess Cost
    • 2019-2020: $1,659
    • As of today: $38,346
    • Change: $38,346
  • Private Excess Cost
    • 2018-2019: $14,818
    • 2019-2020: $28,987
    • As of today:
    • Change: $(14,818)
  • Hardware & Technology
    • 2018-2019: $2,426
    • 2019-2020: $3,259
    • As of today: $3,259
    • Change: $833
  • Software, Library, Textbook
    • 2018-2019: $30,971
    • 2019-2020: $34,913
    • As of today: $34,913
    • Change: $3,942
  • Transportation
    • 2018-2019: $254,494
    • 2019-2020: $302,760
    • As of today: $252,714
    • Change: $(1,780)
  • Building Aid
    • 2018-2019: $83,574
    • 2019-2020: $348,508
    • As of today: $9,531
    • Change: $(74,043)
  • Charter School Transitional
    • 2018-2019: $40,488
    • 2019-2020: $31,586
    • As of today: $31,586
    • Change: $(8,902)
  • TOTAL
    • 2018-2019: $984,201
    • 2019-2020: $1,317,749
    • As of today: $936,526
    • Change: $(47,675)

Further Impacts

Current aid proposals are not providing full funding:

Foundation Aid

  • 2018-19 proposed Foundation Aid: $406,839
  • Full Phase-In Foundation Aid: $917,196
  • Amount Underfunded: $510,357

Tax Cap: A review

The calculation is based on a formula dictated by New York state. The formula is driven by the Consumer Price Index (this year 2 percent) and the Tax Base Growth (this year 1.7 percent)

Results of the formula determines the amount that property taxes can increase setting a threshold for voter approval.

Below the threshold requires a simple majority. Beyond the threshold requires a supermajority (60 percent.)

Tax Cap Calculation 2019-2020

  • 2019-2020 Levy: $7,131,473
  • 2018-2019 Levy: $6,748,122
  • Change: $383,351 or 5.68 percent

2019-2020 Budget Draft 1 at the Allowable Cap

  • Draft 1 Revenue Budget: $8,249,089
  • Draft 1 Expenditure Budget: $9,369,905
  • Result in Gap: ($1,120,816)
  • Result with Historic Adjustments: ($255,774)
    • Historic adjustments have included:
      • $815,042 of assigned fund balance
      • $50,000 transfer from reserve
      • Resulting gap would be $255,774

Major Factors Driving Cost Increases

  • Instructional salary and benefits
  • Tuition: Special Education, character and high hschool
  • McKinney-Vento expenses
  • Non-instructional salary and benefits
  • Legal fees

Draft 1 Budget: Revenue & Expense

Revenue

  • Maximum Allowable Tax Cap
  • Aid based on what we know to be true at this moment in time

Expenses

  • Maintains all existing instructional staff
  • Additional positions to support social-emotional well-being and safety of students:
    • Full-time psychologist/CSE chair
    • School Resource Officer
  • Increase of part-time non-instructional staff to full-time

What We Still Don’t Know

  • Adjustments to the governor’s proposal
  • Special Education placements
  • Transportation costs

What We Can Expect At Next Board Meeting

  • NYS Budget update and any impacts
  • Expenditure and revenue updates
  • Comprehensive review of fund balance
  • Continune discussion on closing the gap

Next budget workshop is March 11, 2019