schalmont school district budget presentation

7/29/2019 Schalmont School District Budget Presentation

1/47

--ra u ge roposa

Presented to Board of Education

,J oe Lenz, Business AdministratorCarol Pallas, Superintendent


2/47

Budget PresentationBudget Presentation

Budget Landscape Current State

Budget Development: 2013-14Next Steps


3/47

OverviewofFiscalEnvironmentE ucat ona

Program

Academics:

Expandingthegapbetween

wealthy

highwealthandlowwealth

districts

districtsthatmust

makedrasticchoices.

Schalmonts Mission

Non

MandatedEconomicRecession

Statein

Fiscal

Distress

ThestaffandcommunityofSchalmontCentralSchoolDistrict

willprovideprograms,resourcesandfacilitiestofostera

positivelearningenvironment.Eachindividualwillbe

encouragedand

assisted

to

grow

emotionally,

intellectually,

physically,andsociallytomeetthechallengesofthefuture.

GeneralClimateof

Uncertainty/Lackof

TrustinGovernment

EnrichmentExperiences

CharacterDevelopment

Social Emotional Su ort

Property

Tax

Fatigue

andTax

T isiscarrie over

totheschools.

ExtraCurricular

Activities

SCHOOLBUDGET

Unprecedented

ReductionsinState

andFederalAid

Thisisthe6thFiscally

BalancesStudentNeedswith

Affordability

for

Community

consecut veyear

withflatorminimal

stateaid.

SchoolDistrict


4/47

Budget LandscapeBudget Landscape

JeffersonElementarySchool

Grade Students Sections Students

PerSection

K 113 6 19

1 123 6 20.5

3 132 6 22

4 147 6 24.5

AsofFebruary2013


5/47


SchalmontMiddleSchoolGrade Students Sections Students PerSection

5 138 6 23.

7 160 6 26.6

8 157 6 26

Aso Februar 2013


6/47


SchalmontHighSchool

Grade Students

9 134

10 153

11 156

12 169

AsofFebruary2013


7/47


8/47

Budget LandscapeBudget Landscape-

State Aid = 29%

Local (school tax levy) =69%

Fund Balance/Reserves =2%


9/47


SchoolYear Schalmont StateAid

200910 $11,273,390(includes federalaid)

, ,

201112 $11,212,470(includesFederalJobsBill)

201213 $11,278,588

201314 11 478 588 Governors Pro osal


10/47


Revenue Summary PreviousYearBudget

CurrentYearBudget

PercentChange

(201112) (201213)

State andFederalAid $11,212,470 $11,278,588 0.59%

, , .

Interfund Transfers $324,243 $224,243 30.84%

Interest Earnings/Building $647,411 $514,250 20.57%

Payment inLieuofTaxes

(SIGroup)

$390,876 $390,876 0%

roper y ax evy or u ge , , , , .

Total Revenue $41,770,000 $41,925,000 0.37%


11/47


WithGEstax a mentcomin o thetaxrolls,thedistrictstaxlev wouldbereducedb $2,848,748,or

9.88percent.However,GEsfirstyearPILOTpaymentamountof$3,033,120morethancompensates

forthelossofGEstaxdollarsinthetaxlevy,resultinginanincreaseoftotallocalrevenues.


12/47


Expenditure Summary PreviousYearBudget

CurrentYearBudget

PercentChange

(201112) (201213)

Instruction $19,322,940 $19,750,748 2.17%

, , , , .

Operations &

Maintenance

$2,453,890 $2,477,965 0.97%

Transportation 2,618,829 2,560,5232.28%

District Support $1,327,291 $1,354,399 2.00%

Debt Service&Transfer 3 957 103 3 918 424 0.99%

Total Expenditures $41,770,000 $41,925,000 0.37%


13/47


$3.8 million in past three years

u - me equva en pos ons a eve s

2012-13: 8.23 FTE- .

2010-11: 16.9 FTE

Elimination of various offerings and programs,

Reduced budget for equipment, supplies/services


14/47


School Tax Levy History

7.85%

6%

7%

8%

9%

ase

.

4.50%

2.99%

2%

3%

4%

5%

PercentIncr

0.00%0.50%

0.00%0.78%

0%

1%

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

School Year

Schalmonts maximumtaxlevythresholdisyettobedeterminedfor201314under

the

states

property

tax

levy

cap.


15/47


Financial Operations/Fiscal OversightDirect supervision by NYS Education Dept. &applicable NYS municipal laws

2005 Fiscal Accountability Law compliance Mandates school board fiscal oversight

Establishment of district audit committee

Ongoing audits of financials/internal controls


16/47


Fiscal ResponsibilityPrepared for anticipated expenses andunexpected emergencies

Fund BalanceTax Certiorari Reserve Fund

Em lo ees Retirement S stem

Employee Accrued Benefits


17/47


2 500 000

$3,000,000

SchalmontERS&TRSContibutions

ERSContribution

TRSContribution

$2,000,000

unt

2,362,482

$1,000,000

, ,

Amo

$1,059,944

$0

$500,000

Year


18/47


Fund Balance & ReservesUnemployment Insurance: $300,000

Retirement Contributions: $1,548,486

Em lo ee BenefitAccrued Liabilit : 1 359 249

Tax Certiorari: $728,921

, ,


19/47

Budget LandscapeBudget Landscape-

An annual board goal

He ps reasona y pro ect uture u get c anges

and assist in budget decision-makingEnsures adequate reserves

Sufficient undesignated fund balance

Credit rating Clean audit reports

Ability to operate within vote -approved budgets


20/47


2162

2095

2200

20322014 2013

1996

1953

18771894

195919121900

2000201213

YearofStabilization

18741855 1847 1845

18221786

1753

1600

1700

1800c ua

Projected

1500

SchoolYear

Projections

from

Sept.

2010,

Advisory

Solutions

Study.


21/47


Administrators

Security

1Clerical

11Nonaligned

12.

BusDrivers

26.18

39.61

166

Nurses

Teaching

Assistants/Aides

30.19

.

FTE=FullTimeEquivalent*Cleaners,custodians,foodservice staff,

grounds,maintenance,mechanics&

monitors


22/47

Current fiscal environmentCurrent fiscal environment-

Fundamental flaw in school funding formula

Our combined wealth ratio average is 1.049

Cannot merel address s m toms

District budget always lean

Lack of mandate relie

Expecting minimal state aid for 2013-14

State property tax levy cap


23/47


24/47

20132013--14 Governors Proposal14 Governors Proposal

The governor proposed $75 million tosuppor e o ow ng:

Full-Day Pre-Kindergarten Program ($25 million)Extended Learning Time ($20 million)

Community Schools ($15 million)

Reward High Performing Teachers ($11 million)Early College High School Programs ($4 million)


25/47

Budget CHALLENGEBudget CHALLENGE

Chapter 97 of the Laws of 2011o rea y a cap

Sets a higher threshold for voter approval ofu x vy xtax levy limit

.

Tax levy limit calculated and varies by district

support required


26/47

ENTER DATA ONLY IN CELLS SHADED IN YELLOW

Calculate " Adjusted" Current Year Tax L evy Threshold:

1 Tax Lev 2012-13 28 823 265 00 2012-13 Lev

Proper ty Tax Cap Calculation under Chapter 97 of the Laws of 2011(This analysis calculates the al low able tax levy for 2013-14 school year)

, , .

2% increase 102%

Multiply: 2) x 1.0022 Old Method w/ 2% = -

sub-total = 28,886,676.18$ Chg -

Add: 3) PILOTS - 2012-13 + 390,876.00

sub-total = 29,277,552.18

TaxBaseGrowthFactor (ProvidedbyTaxandFinance)

- .

4b) Local share after aid of current (2012-13) allowable capital expenses - 512,275.74

Equals: Adj usted 2012-2013 Current Year Tax Levy = 28,765,276.45

Calculate Projected Tax Levy Threshold 2013-2014

Multiply: 5) Allowable Levy Growth Factor (1 + inflation factor, up to 2%) x 1.02sub-total = 29,340,581.97

Subtract: 6) Projected PILOTS for 2013-2014 - 3,475,550.00

Add: 7) Available Carryover + 0.00

Equals: = 25,865,031.97Determines simple/super majority vote

2013-2014 TAX LEVY LIMIT (to be submitted to State Comptroller, Commissioner of Tax &

Finance and the Commissioner of Education by March 1st) =

Add: 8a) Value of any claims and/or judgements greater than 5% for 2013-14 year + -

8b) ERS Employer Contribution Amount + -

8c) TRS Employer Contribution Amount + 349,450

8d) Local share after aid of 2013-14 allowable capital expenditures + 343,847.00

Equals: sub-total = 26,558,328.97

Calculate Coming Year Exe mptions:

Subtract: 9) Erroneous levy plus interest from prior year - 0 2013-2014 Adj Levy = 26,558,328.97

2012-2013 Levy = 28,823,265.00

Equals: Maximum Tax Levy Threshold for 2013-2014 = 26,558,328.97 $ Change = -2,264,936.03

(requiring a simple m ajority vote) % change = -7.86%


27/47


School board considerations

p on : ropose a u ge requrng a ax evybefore exemptions at or below the tax levy limit

Requires a simple majority (50% + voter approval)

before exemptions above the tax levy limit

Requires a super majority (60% voter approval)

Requires a statement on ballot


28/47


Schalmonts BudgetVoteHistoryYear Proposed

Budget

Vote

Result

Yes No Tax Levy

Increase

, , .

200809 $41,550,000 Passed 52% 48% 2.99%

200910 $42,325,000 Passed 62% 38% 0%

2010

11 $42,325,000

Passed 60% 40% 0.5%201112 $41,770,000 Passed 74% 26% 0%

201213 $41,925,000 Passed 70% 30% 0.78%*


29/47


What happens if budget is not approved?

c oo oar may ec e o su m e orgnabudget; submit a revised budget to be voted on in

What happens if a resubmitted budget is not

School board must adopt a contingency budgetwith a tax lev no reater than that of the rior ear(a 0% increase in the tax levy)


30/47


Key Points

The law applies to the school district levy, NOT the individual tax bill of

resident taxpayerse ax evy m ac ua a owa e ax evy ncrease requrng ony a

simple majority) will vary by district

The formula allows for certain expenses to be exempt from the cap,

perceived limit

BOEs can present a budget that has a tax levy above the limit, but will

Voters are approving the budget (spending plan), not the tax levy


31/47

Looking ForwardLooking Forward

Each year, board goals focus on academics,, ,

facil ities and finances:

Continue academic improvementMaintain current programs and extracurriculars

Comply with federal mandates/changes in state funding

Gain a better understanding of and compliance with theproperty tax levy cap

-


32/47

Budget DevelopmentBudget Development

Create a budget that meets the needs of students

Considerations:

External influences Governors executive bud etproperty tax cap)

District priorities and vision

Budget outlook Superintendents budget recommendations


33/47


u ng a a ance u getRequirements

NYS requires the expense budget to equaloffsetting budgeted revenues

Each budget iscal year must be approved bythe school board and community

s rc s mus o ow app ca e s a e awregarding the budget process (e.g. restrictions,,


34/47


at er ng ee ac

Previous budget vote exit survey results

Results from other relevant surveys

Board of Education meetin sBudget Advisory Committee meetings

- -, ,communications


35/47


Of the 1,080 residents who voted in May 2012, 842 completedan exit survey. Respondents cited top funding priorities as:

College and AP courses (55%)

K-8 enrichment/accelerated courses (44%)Interscholastic athletics (43%)

Honors/other electives (42%)

Classroom technology (41%)Music electives (35%)

Staff development (32%)


36/47


District Goalson rac ua ga ons

Reform Agenda (APPR, CCLS,DDI) Professional Development

Curriculum Alignment

Materials/Resources (e.g. textbooks)


37/47


Technology(related to new generation assessments)

Quality Services, Operations and FacilitiesClass Size

Energy Management


38/47

Budget Outlook: 2013Budget Outlook: 2013--1414

o over u getExpenses:

Maintains all current programs and services

Increasing expenses anticipated

Revenue:

Minimal state aid likely

c oo ax evy mConsistent use of fund balance and reserves as in


39/47


PossibleBudgetScenario

, ,

EstimatedRollover Budgetfor201314 $43,188,717

Revenue $42,979,631Potential Budget Gap

DesignedtobeunderSchalmonts maximum

$184,378

,

approval.


40/47


Goals:

Be sensitive to taxpayers, employees and the

Maintain the integrity of educational programs

Preserve ro rams es eciall at the hi h school

Continue to address declining enrollment

Discuss and ex lore otential cuts to non-mandatedprograms and services


41/47


Maintain funding levels from 2012-13 for

Reduce any personnel through attrition, ormnmze cu s roug re uc on ony

Meet contractual obligations, TRS, ERS

Sustain community priorities indicated inexit surve


42/47


Made through attrition. ore gn anguage

0.5 FTE Psychologist0.3 FTE Home Economics

=. ,

-


43/47

Budget Outlook: 2013Budget Outlook: 2013--1414-

0.2 FTE Mechanic

0.4 FTE HS Library Aide

0.5 FTE Monito0.25 FTE Transportation Router

.2.35 FTE = $75,984 Total Savings


44/47


Breakage through instructional and administrative

Business Administrator

5 Teachers

,

May see additional retirements


45/47


0.5 FTE Speech Teacher

+ $24,708


46/47


$79,702 Instructional

$75,984 Non-Instructional

$55,600 Breakage=$211,086 (Reductions Sub-Total)

+$24,708 (Speech Teacher)

=$186,578 (Total Reductions)


47/47

Your participationYour participation

Stay tuned for budget information via:

Complete Budget Calendar Available on District Website

Board of Education meetings/minutes/agendas Budget section ofwww.schalmont.org

School News Notifier (district alert)

ace oo an w e

Budget newsletter/communications

schalmont school district budget presentation

Documents