schalmont school district budget presentation
TRANSCRIPT
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--ra u ge roposa
Presented to Board of Education
,J oe Lenz, Business AdministratorCarol Pallas, Superintendent
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Budget PresentationBudget Presentation
Budget Landscape Current State
Budget Development: 2013-14Next Steps
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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
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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
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Budget LandscapeBudget Landscape
SchalmontMiddleSchoolGrade Students Sections Students PerSection
5 138 6 23.
7 160 6 26.6
8 157 6 26
Aso Februar 2013
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Budget LandscapeBudget Landscape
SchalmontHighSchool
Grade Students
9 134
10 153
11 156
12 169
AsofFebruary2013
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Budget LandscapeBudget Landscape-
State Aid = 29%
Local (school tax levy) =69%
Fund Balance/Reserves =2%
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Budget LandscapeBudget Landscape
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
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Budget LandscapeBudget Landscape
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%
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Budget LandscapeBudget Landscape
WithGEstax a mentcomin o thetaxrolls,thedistrictstaxlev wouldbereducedb $2,848,748,or
9.88percent.However,GEsfirstyearPILOTpaymentamountof$3,033,120morethancompensates
forthelossofGEstaxdollarsinthetaxlevy,resultinginanincreaseoftotallocalrevenues.
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Budget LandscapeBudget Landscape
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%
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Budget LandscapeBudget Landscape
$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
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Budget LandscapeBudget Landscape
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.
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Budget LandscapeBudget Landscape
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
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Budget LandscapeBudget Landscape
Fiscal ResponsibilityPrepared for anticipated expenses andunexpected emergencies
Fund BalanceTax Certiorari Reserve Fund
Em lo ees Retirement S stem
Employee Accrued Benefits
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Budget LandscapeBudget Landscape
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
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Budget LandscapeBudget Landscape
Fund Balance & ReservesUnemployment Insurance: $300,000
Retirement Contributions: $1,548,486
Em lo ee BenefitAccrued Liabilit : 1 359 249
Tax Certiorari: $728,921
, ,
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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
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Budget LandscapeBudget Landscape
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.
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Budget LandscapeBudget Landscape
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
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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
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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 ($4 million)
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Budget CHALLENGEBudget CHALLENGE
Chapter 97 of the Laws of 2011o rea y a cap
Sets a higher threshold for voter approval ofu x vy xtax levy limit
.
Tax levy limit calculated and varies by district
support required
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ENTER DATA ONLY IN CELLS SHADED IN YELLOW
Calculate " Adjusted" Current Year Tax L evy Threshold:
1 Tax Lev 2012-13 28 823 265 00 2012-13 Lev
Proper ty Tax Cap Calculation under Chapter 97 of the Laws of 2011(This analysis calculates the al low able tax levy for 2013-14 school year)
, , .
2% increase 102%
Multiply: 2) x 1.0022 Old Method w/ 2% = -
sub-total = 28,886,676.18$ 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%
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Budget CHALLENGEBudget CHALLENGE
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
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Budget CHALLENGEBudget CHALLENGE
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%*
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Budget CHALLENGEBudget CHALLENGE
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)
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Budget CHALLENGEBudget CHALLENGE
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
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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
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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
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Budget DevelopmentBudget Development
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,,
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Budget DevelopmentBudget Development
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
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Budget DevelopmentBudget Development
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%)
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Budget DevelopmentBudget Development
District Goalson rac ua ga ons
Reform Agenda (APPR, CCLS,DDI) Professional Development
Curriculum Alignment
Materials/Resources (e.g. textbooks)
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Budget DevelopmentBudget Development
Technology(related to new generation assessments)
Quality Services, Operations and FacilitiesClass Size
Energy Management
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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
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Budget Outlook: 2013Budget Outlook: 2013--1414
PossibleBudgetScenario
, ,
EstimatedRollover Budgetfor201314 $43,188,717
Revenue $42,979,631Potential Budget Gap
DesignedtobeunderSchalmonts maximum
$184,378
,
approval.
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Budget Outlook: 2013Budget Outlook: 2013--1414
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
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Budget Outlook: 2013Budget Outlook: 2013--1414
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
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Budget Outlook: 2013Budget Outlook: 2013--1414
Made through attrition. ore gn anguage
0.5 FTE Psychologist0.3 FTE Home Economics
=. ,
-
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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
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Budget Outlook: 2013Budget Outlook: 2013--1414
Breakage through instructional and administrative
Business Administrator
5 Teachers
,
May see additional retirements
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Budget Outlook: 2013Budget Outlook: 2013--1414
0.5 FTE Speech Teacher
+ $24,708
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Budget Outlook: 2013Budget Outlook: 2013--1414
$79,702 Instructional
$75,984 Non-Instructional
$55,600 Breakage=$211,086 (Reductions Sub-Total)
+$24,708 (Speech Teacher)
=$186,578 (Total Reductions)
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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