2019-2020 Budget

First Look

December 11, 2018

Historical Budget Data

School Year Budget

Amount Percent Increase

Tax Levy Amount

Percent Increase

2010-2011 $77,759,349 2.11% $57,938,037 1.87%

2011-2012 $79,111,079 1.74% $59,629,828 2.92%

2012-2013 $80,832,817 2.18% $61,120,249 *2.50%

2013-2014 $82,874,728 2.53% $63,259,458 *3.50%

2014-2015 $83,562,788 0.83% $64,344,245 *1.71%

2015-2016 $84,729,293 1.40% $65,631,130 *2.00%

2016-2017 $86,655,918 2.27% $66,420,917 *1.20%

2017-2018 $88,548,072 2.18% $67,801,784 *2.08%

2018-2019 $92,168,700 4.09% $69,653,384 *2.73%

*Denotes years in which the tax cap law was in effect

Budgeting in a “Tax Cap Era” Signed into law in June, 2011

The 2018-2019 school year will mark the seventh year of New York State’s tax cap

The tax cap has certainly slowed the growth of school district tax levys

KPCSD has stayed within the tax cap limit each year

The cap is on the tax levy not the budget

The cap is 2% or CPI, whichever is LESS (CPI was < 2% for the past four years)

The levy is determined through a not so transparent multistep formula, with exclusions

Allowable Levy Growth Factor by Year

Source: Office of New York State Comptroller and The Smithtown News 12/7/17.

We do anticipate that the growth factor will continue to be 2.00% for 2019-2020.

Budgeting in a “Tax Cap Era”

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Budget – First Look

Expenditures – Needs/wants for the upcoming school year

Versus

Revenues – Funds available for the upcoming school year

Initial Budget Expenditure Projections Our current 2018-2019 budget is: $92,168,700

First Look 2019-2020 budget total is: $95,001,552

Represents a 3.12% budget-to-budget increase

Assumes no change in programs or staffing

Includes known and/or planned budget items as of December 7, 2018

Budgetary Expenditure Changes Major Increases

Salaries

Health Insurance

Employee Benefits

Bond principal and interest payments related to 2015 bond vote capital projects

Favorable Impacts CPI is anticipated to be greater than 2.00%

Lower Retirement Fund Contributions (ERS/TRS)

Potential union contract settlements that provide for sustainable increases (KPCTA and CSEA)

Budget efficiencies

About 73% of the Budget

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

2000-2001 2005-2006 2010-2011 2015-2016

2018-2019 10.63%

TRS Rates 2000-2001 Through 2018-2019

*In November, TRS released an anticipated range for 2019-2020 of 8.5% - 9.5%.

Open Items – Revenue

Tax Levy:

CPI available mid-January (anticipated to be above 2.00%)

Legislative change to the tax cap formula?

Other budgetary decisions may impact the levy throughout the budget process

Capital expenditures such as bus purchases

Bond project borrowings (Bond anticipation notes and bonds)

State Aid:

It is not clear how the shift in power in the NYS Senate will impact budget negotiations and state aid to Long Island school districts

Executive Proposal (Governor) should be available in January

Legislative Proposal should be available by April 1

Open Items – Expenditures

Additional Needs: Currently being determined and evaluated for inclusion in the first draft budget to be presented on January 22nd

Contract Negotiations: Both CSEA and KPCTA contracts will expire on June 30, 2019

TRS Contribution Rate: Current estimate is a range of 8.5%-9.5%

Kindergarten Registration

Retirement Notifications (should be known in February)

Other external factors

Effect of potential federal budget cuts on New York State

Effect on 2018 taxes and newly enacted Federal Tax Plan

Effect of looming New York State deficit

Effect of November 2018 mid-term elections on state aid

So…What Does This All Mean?? The 2019-2020 budget may require some reductions

Significant uncertainties during budget development (State Aid, negotiations, federal budget/changes)

Although it is still early in the budget process, we anticipate: Maintaining the curriculum and programs that support

academic excellence and the District’s mission

Maintaining extracurricular activities, art, music, and sports

Proposing a tax levy increase that is within the tax cap limitations

NYS/KPCSD Budget Timeline November

TRS estimates (a range) are released from NYS ERS figures are released [~1.6% of budget] from NYS

December Healthcare (2019) figures are released [benefits ~14% of budget]

January Governor’s budget and preliminary state aid figures CPI for budgeting purposes is set by NYS [tax levy is ~80% of budget]

February Staff notify district of intent to retire [potential savings] Final TRS figures are released [~3.8% of budget] from NYS

April 1 NYS Budget is due with final state aid “runs” [~20% of budget revenue] District’s draft budget is finalized

Budget Workshop Topics

January 22, 2019 Technology

School Budgets

February 12, 2019 Athletics

Art/Music

Extracurricular

B&G/Facilities

Transportation

PPS

March 5, 2019

Curriculum

Human Resources

Class Size & Staffing

Business Office

Superintendent’s Office

Board of Education

April 2, 2019

Updates & Discussion

Important Dates Next Budget Workshop Tuesday, January 22, 2019

Third Budget Workshop Tuesday, February 12, 2019

Fourth Budget Workshop Tuesday, March 5, 2019

Fifth Budget Workshop Tuesday, April 2, 2019

Budget Adoption Tuesday, April 16, 2019

Budget Hearing Tuesday, May 14, 2019

Budget Vote Tuesday, May 21, 2019

KINGS PARK SCHOOLS, A SMART INVESTMENT

KPCSD PRIDE

Athletics

Heritage

Museum

Transportation

Aides & Security

WTRMS

Teachers

Special Education

kpHS

Clericals

Fort Salonga

PTA

TA’s & Nurses