2020-21 budget developmentf… · tier 1 reductions (4/21) 3.69% 22.4 fte recommended approach...
TRANSCRIPT
2020-21 Budget DevelopmentBoard of Education
May 11, 2020
Tonight➔ What’s the Story of our Budget?
➔ Budget Status Report
➔ Pre-COVID-19: Reductions
➔ COVID-19 Impact: Savings & Potential State Aid Reduction
➔ Reserve Management
➔ Budget Vote Process
➔ Recommended Approach
3
Niskayuna Strategic PlanEstablished 2016
Our Program VisionDeeper learning experiences that focus on problem-solving
Flexible spaces that enable hands-on activities
Student choice & ownership of their learning; Emphasis on growth toward standards and progress
Incorporates modern technology
Space where groups of various sizes can come together for learning, community building
Greater social and emotional support; time and space for this
Cross-curricular learning & teamwork
Off-campus learning experiences, community service, mentors, intern/externships
➔ The last several years have been good. We’ve been able to add many positions keep the average tax levy increase at 1.5% in the last five years in particular.
➔ We’ve been planning for the future. We added social-emotional support, technology, expanded programs and learning opportunities for all students and , conducted extensive professional development. As things went well financially, we were also able to set aside money for future facilities improvements in the newly voter-approved capital reserve fund.
➔ As we approached the 2020-21 budget, things looked different. As costs grew, minimal growth in state aid and a restrictive 2.15% tax cap would not provide the revenue to support everything we are currently doing. We had to look at cost reductions.
Continued >
What is the story of our budget?
➔ The good news is that we have a budget that allows us to continue many of the investments we have made in our students and future in recent years, albeit not at the same level in some areas. Forward progress will continue.
➔ Further, we also have options to bring down the tax levy for our community, recognizing there is uncertainty ahead.
What is the story of our budget, continued…➔ While we would never minimize the loss of any position, we have gone
about the reductions carefully with the goal of mitigating the impact on students and the ability of the organization as a whole to move forward.
Investing in Our Students, Our Future
7
In the last five years, we have:
➔ Implemented an Elementary Class Size Management Plan
➔ Significantly strengthened social emotional support In all schools
➔ Increased English as a New Language Support
➔ Implemented a High School Alternative Education Program
➔ Expanded & strengthened our Special Education continuum
➔ Increased IT & Buildings and Grounds Capacity, Safety Enhancements
➔ Implemented a tiered Response to Intervention Plan to support individual academic progress
➔ Implemented Professional Development, Curriculum Development, Program Reviews
➔ Added extracurricular and athletic opportunities and increased necessary support for student athletes
➔ Maintained and enhanced world-class visual and performing art programs
2020-21 Budget Development
8
Where We StartedMarch 9
$92,121,091
$2.7 Million Budget Gap Identified
2 FTE Reductions
6.86% Tax Levy Increase to Close the Gap
This had nothing do with COVID-19
Budget StatusApril 21
$90,369,225
Reductions in All Budget Areas
22.4 FTE Reductions
Use of $390,000 in additional reservesLoss of $359,213 anticipated Foundation Aid
Funding for Class Size Management Plan MS Special Education Needs
Many Initiatives & Investments Preserved
4.09% Tax Levy Increase
Except for the loss of Foundation Aid, this had nothing do with COVID-19
Building the Budget From Scratch➔ Work with Leadership, faculty members, Advisory
committees to develop program, student support and professional development goals
➔ Identify desired staffing levels and resources to address priorities
➔ Build a budget aligned with those priorities as well as other known costs (e.g. salary, benefits, insurance, legal fees, utilities, etc.).
➔ Adjust based on revenues
Spending Category2019-20
Budget
2020-21
March 9
2020-21
April 21
Salaries and Benefits $62,068,661 $65,771,485 $64,392,455
Equipment, Books, & Materials $2,781,661 $2,897,709 $2,767,203
Contractual Items $10,891,414 $11,735,802 $11,498,272
Other Items
(Includes Debt Service)$11,726,738 $11,716,095 $11,711,095
Totals $87,468,474 $92,121,091 $90,369,225
Summary of Reductions
Area/Category FTE Savings
Non-FTE Reductions – $1,502,340
BOCES – $316,447
Contractual – $660,960
Equipment/Materials/Supplies – $342,544
Transfers – $25,000
Personnel (Non-FTE) – $157,389
FTE Reductions 22.4 $1,518,168
Administrative/Trans/O&M 4.0 $411,279
CA/SCA/EA/TA 4.69 $129,107
Teaching 13.693 $977,782
Total Reductions 22.4 $3,020,508
Expenditure Breakdown
12
% of Budget (4/21) % Reduced
BOCES 6.4% 5.2%
Contractual Expenses 7.2% 9.3%
Equipment 0.8% 20.5%
Materials and Supplies 2.4% 7.2%
Transfers 0.3% 8.3%
FTE/Personnel 71.1% 2.9%
Debt Service 11.8% 0.0%
We Don’t Want to Reduce Personnel.
$1.5 Million was reduced from 30% of the budget
And, $1.5 Million was reduced from 70% of the budget.
ContractualBOCES
Equipment, Materials, Supplies
Salaries & Benefits
14
Scenario Tax Levy WorkforceReductions
No Workforce Reductions 6.69% 0
4/21 Budget Status 4.09% 22.4 FTE
At the Tax Cap 2.15% 35.35 FTE
Tax Levy Scenarios - 4/21 Meeting
COVID-19Nothing on the previous slides except the loss of $360,000 in anticipated state aid had to do with COVID-19. Yet the pandemic will continue to have an impact on school budgets.
➔ Planning for Re-Opening
➔ Anticipated State Aid Reduction (May 15)
➔ Closure Savings 2019-20
➔ Updated Tax Levy Scenarios
➔ Budget Vote Process
Back to School: Assessing and Addressing the Impact of COVID-19
Compensatory Education: Planning for going Back to School, Summer 2020 & the Long-Term➔ Assessing individual student gaps and providing targeted support➔ Credit recovery ➔ Supporting students with varied needs
Mental Health Considerations➔ Students, Family, Staff
Technology
➔ Planning to be 1:1 Grades 3-12
Facilities & Transportation
➔ Social distancing
➔ Cleaning procedures
The actions on this page will take place
within available resources.
Impact of COVID-19 on State Aid• New “Pandemic Adjustment” Aid Reduction, offset for now by federal
stimulus funding.
• Recent report indicates that the economic impact of COVID-19 on the state is likely to be worse than post-9/11 and the Great Recession.
• NYS budget calls for periodic review of actual state expenditures and revenues during 2020-21 with the potential for subsequent aid cuts.
– 1st Review Period: April 1 - April 30, 2020– 2nd Review Period: May 1 - June 30, 2020– 3rd Review Period: July 1 - Dec. 31, 2020
State Aid Reduction: We Should Know More by May 15
“This week, we're going to do a state forecast, if they exclude
state government again, our state forecast will project - without
any federal funds, you can't spend what you don't have - if you
were to allocate the shortfall relatively on a flat basis across
need, you would be cutting schools 20 percent, local
governments 20 percent and hospitals 20 percent. This is the
worst time to do this.”
- Gov. Andrew Cuomo, 4/20/20 Press Briefing
Potential State Aid Reduction Scenarios
Reduction Levels Amount
10% Reduction $1,083,541
15% Reduction $1,625,312
20% Reduction $2,167,082
Without federal help, this can only be covered by additional spending reductions or greater use of fund balance.
20-21 Foundation Aid $10,835,411
Savings from the Closure
Updated Projections Based on Closure
Projected Expenditures under (over) Budget $3,067,000
Actual Receipts over (under) Projections $322,000
Total $3,389,000
2020-21 Budget
Assigned $1,548,000
Balance $1,841,000
Projected Surplus - March 2020(Pre-Closure)
$2,160,000
Using fund balance to close budget gaps.
Fund balance represents the ability to sustainably provide opportunities for students and to guard against larger tax increases in the future.
This Year Next Year The Year After That
State Aid+
Property Taxes
RecurringExpenses
State Aid+
Property Taxes
RecurringExpenses
State Aid+
Property Taxes
RecurringExpenses
Fund BalanceFund
Balance
No More Fund Balance
Recommended Approach
22
➔ Plan for the loss of state aid: It would be irresponsible to not use the limited time we have to plan for the loss of more state aid. We are using the 10% or $1.1 million figure.
➔ We can’t plan on federal stimulus funds: This is best-case scenario, but it would be imprudent to plan on them in light of current uncertainty.
➔ Use savings and additional spending reductions to bring down the tax levy and weather the potential for mid-year cuts.
Balancing the Budget at the Tax Cap
Use of Additional Fund Balance
10% Loss of State AidTax Revenue Reduction
Levy from 4.09% to 2.15%
Tier 2Spending Reductions
Recommended ApproachOffset State Aid Reduction & Bring the Tax Levy to the Limit
24
Expenditures Revenue
Current Budget Status $90,369,225
Projected Revenue @ 2.15 Tax Levy Limit $390,000 in Reserves, $1,548,000 in Fund Balance $1,083,541 State Aid Loss
$88,152,634
Tier 2 Reductions $897,080 Additional Fund Balance Reflects Closure Savings $1,319,511
Budget Total $89,472,145 Total Revenue $89,472,145
Tier 2 ReductionsAdditional Reductions in these Areas:
● Administration● Faculty & Student Services● Support Staff● District Operations
2020-21 Budget Vote Process
26
Budget vote and board election will be June 9 by absentee ballot only
➔ May 12: First Postcard Mailing
➔ May 15: State Aid Update - Anticipated Cut
➔ May 19: BOE Budget Adoption
➔ May 26: Budget Hearing
➔ May 27: Budget Newsletter Mailing
➔ By June 1: Absentee Ballots Mailed to community
➔ June 9: Absentee Ballot Vote
Exceeding the Tax Cap
27
● Requires the support of 60% of voters
● Under usual circumstances:
○ If the budget is defeated, the district can revise the budget and hold a second vote on a designated day statewide.
○ If a second vote is defeated, the district must adopt a contingent budget - with no allowable tax levy increase ($0).
● We don’t know if there will be a second vote day this year.
Contingent Budget = 0% Tax Levy Increase
28
Current Year Tax Levy2019-20 $58,381,872
Tax Levy at the CapRecommended Approach $59,639,263
DifferenceAt Contingency, This Would Need to be
Made Up by Further Reductions in Workforce$1,257,391
29
Scenario Tax Levy Workforce Reductions
No Workforce Reductions 6.29% 0
Tier 1 Reductions (4/21) 3.69% 22.4 FTE
Recommended Approach 2.15% 35.35 FTE
Contingent Budget 0% 53.35 FTE*
Updated Tax Levy Scenarios$1.1 Million State Aid Reduction & Additional $1.3 Million in Fund Balance
*Based on dividing remaining budget gap by an average dollar figure per FTE.
30
Projected Tax Increase$250K Property
Projected Tax Increase$350K Property
Projected Tax Increase$500K Property
Tax Levy Increase Annual Monthly Annual Monthly Annual Monthly
2.15% $105 $9 $147 $12 $210 $18
Tax Levy Increase with the Recommended Approach
We are a future-focused community.
✔ Unwavering commitment to students and learning
✔ Equity
✔ Multiple pathways
✔ Mental health of all
✔ The new three C’s: Compassion, Connections, Civility
✔ Being flexible and understanding; Learning together from every situation
Supplemental InformationItemized Budget Reductions & Impact 4/21
Responsible Debt Service Management & Facilities Stewardship
Prudent Management of Fiscal Reserves
Tier 1 Budget Reductions by Area
33
Category Adjustment
BOCES Reduction of 1 day/week of BOCES Health and Safety Services
BOCES Reduction of 1 day/week of BOCES Communications Services, Additional Service & Printing Reductions
BOCES Reduction of 1 Tech Valley HIgh School Tuition (student returned to district)
BOCES Reduced Out-of-District Placements
BOCES Reduced Technology Purchase
BOCES Reduced Science Kit Purchase
BOCES Reduction in BOCES Transportation Budget
BOCES Software Adjustment
BOCES Total $316,447
Contractual Reduced Out-of-District Tuition
Contractual SCCC Lease
Contractual O&M Contractual Exp
Contractual Instructional Contractual Exp
Contractual Administrative Contractual Exp
Contractual Curriculum Contractual Exp
Contractual Transportation/Superintendent/BOE/Business/Communications/Legal
Contractual 4/21-Instructional/O&M/Business/Superintendent/Equity
Contractual Total $660,960
Tier 1 Budget Reductions by Area
34
Category Adjustment
Equipment, Materials & Supplies Reductions in equipment, materials & supplies, textbooks
Equipment, Materials & Supplies Reduced technology requests
Equipment, Materials & Supplies Textbooks (purchase with 19-20 funds)
Equipment, Materials & Supplies IT and Instructional Equipment/Transportation and Business Office Supplies
Equipment, Materials & Supplies4/21-Instructional equipment/Textbooks/Instructional supplies /O&M supplies/Business office supplies/HR supplies
Equipment, Materials & Supplies Total $342,544
Transfers Reduced transfer to support the School Lunch Fund
Transfers Total $25,000
Tier 1 Budget Reductions by Area
35
Category Adjustment
Personnel Reduction in O&M Substitute Costs/Transportation Salaries
Personnel Summer Professional Development Reductions
Personnel Instructional Substitute Reduction
Personnel 4/21-Superintendent Wage Freeze
Personnel (Non-FTE) Total $157,389
Tier 1 Staffing Reductions
Department/Area Position FTE Savings Impact
Admin HR Director 1 $171,755 Redistribution of duties
Admin PPS Director 1 $142,269 Redistribution of duties
Total Administration 2 $314,025
Transportation Utility 1 $42,242 Work will be redistributed to other staff
Total Transportation 1 $42,242
O&M Environmental Tech 1 $55,013
Work will be redistributed to other staff and outside contractors will be used if
needed
Total O&M 1 $55,013
Tier 1 Staffing Reductions
Position FTE Savings Impact
Supervisory Clerical Assistant (SCA) 0.85 $19,221 Redistribution of responsibilities
Clerical Assistant (CA) 1.4 $16,742 Redistribution of responsibilities
Teaching Assistant 1.84 $50,391 Redistribution of responsibilities
Educational Assistant (attrition) 1 $24,457 No redistribution required
Total TA/SCA/EA 4.69 $129,107
Tier 1 Staffing Reductions
Subject FTE ELEM FTE MS FTE NHS Net FTE Reduction Savings Impact
Art
0.08 GC 0.08 CR 0.04 RO
Net after staffing for
new sections
0.05 VA0.05 IRO
0.8 1.1 $73,611HS Adv. Studio, Dig. Photo, combine Film I, Film II, Adv. Film,
combine Combine Adv. Photo with 2, Animation, Cpr Arts, K-12 scheduling, IRO and VA gr. 7, elem. reductions
Business 0.6 0.6 $52,819 HS combine GWEP into CEIP, reduce law, other reductions taken at sectioning
Counselor 1 1 $120,332 Redistribution of caseload to counselor, teacher leader
ELA 0.2 IRO 1.3 1.3 $114,624 IRO gr. 7, HS teacher leader, HS AIS, 9H, 10H, 11H and Drama and Creative Writing sections reduced
Library 0.2 VA 0.2 $12,477 Decreased availability of LMS
Math0.2 IRO
+0.41.2 1.0 $72,547
IRO gr. 7, HS teacher leader, Geometry, Comp Sci, other section reductions taken at sectioning; MS increase to meet Special
Education needs
Music
0.075 BW0.175 CR0.175 GC0.075 HI0.125 RO
0.05 VA0.05 IRO
.45 1.175 $92,165Larger lessons, cancel HS Orchestra Winds, combine Music Theory
I/II, MIDI I/II, accomp., K-12 scheduling, , IRO and VA gr. 7, elem. reductions
Tier 1 Staffing Reductions
Subject FTE ELEM FTE MS FTE NHSNet FTE
Reduction Savings Impact
PE
+0.132
Net after staffing for
new sections 0.1 IRO 1.3 1.268 $82,568IRO gr. 7, HS teacher leader, lifeguarding, adventure, girls
lifetime sports
Science 0.2 IRO 1.0 1.2 $90,105IRO gr. 7, HS teacher leader, Nano, Environmental, Physics
sections reduced
Social Studies 0.2 IRO 1.3 1.5 $105,591
IRO gr. 7, HS teacher leader, Soc., Psych., US, Global 10, Civil Rights sections reduced
Tech0.1 VA0.1 IRO 1.2 1.4 $72,664
DDP, Adv. Manu., Robotics, Electronics, Senior R & D, Civil Engineering, IRO and VA gr. 7
WL0.2 IRO0.4 VA 1.0 1.8 $92,245 IRO .2, VA .4, HS teacher leader, HS Chinese program
Culinary0.1 VA
0.05 IRO 0.15 $8,744 Grade 7- .05 at IRO. .1 at VA
Health 0.05 IRO +.3 +0.25 -- Grade 7 IRO; Add meets HS Special Ed needs
Total Teaching Positions 13.693 $977,782
Capital Project vs. Operating Budget
➔ The debt service from the capital project we are planning has NO impact on next year’s budget.
➔ All of the debt service in the 2020-21 budget is for projects that have already happened
➔ The capital project that we have been discussing would not have an impact on the operating budget until at least 2023-24.
➔ We are focused on a long-term plan that allows us to keep debt levels stable while improving our facilities.
Managing Debt LevelsCurrent Debt
Service Schedule
Why “Letting the Debt Fall Off” is Not Good
We still need to maintain our schools.
Tax Rate Turbulence
Debt Service Levels: Our PlanTax Rate Impact Steady
Management of Fiscal Reserves (4/21)
● We have identified an additional $390,000 from our original plan that will be used toward the budget.
● Depleting reserves any further would cause greater fiscal challenges in the long-run. They exist for a reason.
● Appropriating more unassigned fund balance will cause us to enter subsequent budget years with a greater deficit. We have to be cautious about using one-time revenues for recurring expenses. What will support that expense next year?
Fund Balance & Reserves: April 21 Information
45
6/30/19 BalanceProjected Balance
6/30/20
Planned Use2020-21(4/21)
Workers' Compensation Reserve $284,068 $284,068 $50,000
Unemployment Insurance Reserve $58,267 $208,267 $30,000
Retirement Contribution Reserve (ERS) $402,876 $502,876 $100,000
Retirement Contribution Reserve (TRS) $650,000 $850,000 $200,000
Insurance Reserve $252,396 $552,396 $0
Tax Certiorari Reserve $1,947,062 $1,947,062 $10,000
Employee Benefits and Accrued Liability Reserve $355,745 $355,745 $0
Total - Planned Use of Reserves in 2020-21 $390,000
Appropriated Fund Balance $1,548,000 $1,548,000 $1,548,000
Unappropriated Fund Balance (4%) $3,497,673 $3,612,673 $0
Capital Reserve $7,647,416 $7,647,416