2015-2016 budget proposal board of education meeting tuesday, april 14, 2015 2015-2016 budget...

2015-2016 Budget ProposalBoard of Education meeting

Tuesday, April 14, 2015

2015-2016 Budget Development

2015-2016 Proposed Budget Presentation Overview

Board of Education Budget Development Goals

Timelines

Work to Date

Overview of Presentation


Board of Education Budget Development Goals

1. Keep present tax levy at or below the cap

2. Preserve and improve core instructional programming to promote student achievement

3. Provide a foundation for future budgets

4. Maintain co-curricular opportunities (clubs, athletics, fine & performing arts)

5. Maintain the physical plants


Fundamental Problem For the last five years Frontier expenses have exceeded its revenues. Frontier has used its savings account (fund balance) to make up the difference.


$26 million withheld by New York GEA 39 positions eliminated 56 student clubs eliminated Athletic reductions 6 teams & 125 students

Consequences of Fundamental ProblemStudent programming Student servicesSchool cultureBuildings in disrepairCash flow for summer obligations Job layoffsMoody credit downgrade increases interest rateDe-stabilize tax rates & property values


Stakeholders Budget InputSell District vacant property and FEC Building.Outsource food service, transportation, and/or grounds.Extend transportation pickup distance.Eliminate and/or reduce professional growth funds.Seek green energy grants.Charge students a fee to participate in a musical or play; play an instrument; be a member of a chorus; play in a sport and/or intramurals; use of athletic facilities; be in a club.Go paperless or set a goal of 80% reduction in paper.Eliminate sick bank and/or sick buy back.


Board of Education Budget Development Timeline

1. Determined budget goals

2. Determined 2015-2016 expenses based upon a program continuation model, i.e. no new programming.

3. Determined property levy tax cap at 2.12%

4. Determined potential revenue scenarios based upon Gov. Cuomo’s proposed budget with best scenario presenting $4,491,790 of expenses exceeding revenue.

5. March 24th Board reviewed $1,550,619 in reductions and retirements, leaving a $2,941,171 gap. Increasing Middle School teacher staff would be an additional $317,000.


6. March 30th NYS Budget adopted and 2015-16 aid projections were made available.

7. April 7th Fund Balance review determines an estimate of $803,650 assigned and $1,522,502 unassigned fund balance.

8. April 14th Board reviews and discusses budget presented by Superintendent.

9. April 21st Final 2015-16 Budget adopted by the Board of Education.


Board of Education Budget Development Timeline

2015-2016 Budget Summary: Expenditures $77,032,339


3.72% increase over 2014-2015 budget

16.09 fewer FTE positions, budget to budget

4 additional FTE teachers at the Middle School

Print shop transition to copy center

10% reduction in materials & supplies

Employee BenefitsNew York State Retirement System Contributions in 2015-2016

• Employees’ Retirement System (ERS) rate decreases from 20.1% to 18.2%

• Teachers’ Retirement System (TRS) rate decreases from 17.53% to 13.5%


Capital Budget2014-2015 2015-2016 $ Change % Change

Bus Purchases $867,290 $881,353 +$14,063 +1.6%

Debt Service $3,854,936 $4,574,110 +$719,174 +18.7%


Revenue: Major SourcesState AidProperty TaxSales TaxMiscellaneous


Summary of Revenues


Summary of Revenues

2012-2013Budget

2013-2014Budget

2014-2015Budget

2015-2016 Budget

Real Property Tax $33,782,538 $34,976,578 $36,227,031 $36,996,183

State Aid $26,967,702 $27,825,430 $28,576,205 $31,452,434

Erie County Sales Tax $5,296,875 $5,373,017 $5,458,741 $5,375,000

Miscellaneous $3,106,512 $2,630,920 $2,630,424 $2,405,072

Appropriated Fund Balance $1,723,099 $438,036 $392,513 $803,650

Total $70,876,726 $71,243,981 $73,284,914 $77,032,339

Revenue: Gap Elimination Adjustment


Frontier Gap Elimination Adjustment

2010-2011 $6,312,7462011-2012 $6,208,4982012-2013 $5,335,1382013-2014 $4,658,5192014-2015 $3,553,328Subtotal $26,068,2292015-16 Proposed $1,299,327Total $27,367,556

Revenue: Property Tax2014-15Actual

2015-16Budget

$ Change % Change

Property Tax Levy $36,227,031 $36,996,183 $769,152 2.12%

Payments in Lieu of Taxes (PILOT)

$668,291 $677,739 $9,448 1.41%

Interest on Tax Collections $2,529 $2,400

($129) (5.1%)

Total Property Tax Items $36,897,851 $37,676,322

$778,471 2.11%


Original budget appropriation of Fund Balance to balance the budget


YEAR AMOUNT

2011-2012 $5,731,9092012-2013 $2,811,7902013-2014 $2,611,0752014-2015 $1,464,1882015-2016 $ 803,650

Fund Balance & Reserves used to support budget

2012-13 Actual

2013-14 Actual 2014-15 Est Actual

2015-16 Budget

Total Budget $72,285,048 $73,215,727 $74,271,938 $77,032,339

Total Revenues $69,153,627 $70,805,945 $72,892,401 $76,228,689

Appropriated FundBalance/Reserves carried over from prior year

$1,723,099 $438,036 $392,513 $803,650

Revenue + Fund Balance& Reserves

$70,876,726 $71,243,981 $73,284,914 $77,032,339

Appropriated Fund Balance & Reserves as % of Budget

2.4% .6% .5% 1%


Tax Rate2014-15 Actual

2015-16 Budget $ Change % Change

Tax Rate/$1000Assessed Value $26.03 $26.52 $ .49 1.9%


Tax rate is based on preliminary assessed valuation

Historical Perspective2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

School Budget

$73,023,152 $74,625,064 $72,285,048 $73,215,727 $74,271,938 $77,032,339

Tax Levy

$31,850,000 $32,889,500 $33,778,041 $34,969,020 $36,227,031 $36,996,183

Tax Rate

$23.29 Hamburg

$23.95 Hamburg

$24.44 Hamburg

$25.18 Hamburg

$26.03 Hamburg

$26.52 Hamburg

$21.86 Eden

$21.17 Eden

$22.22 Eden

$22.13 Eden

$23.02 Eden

$23.46 Eden


Budget Scenario The 2015-16 budget being proposed is a 2.12% property tax levy increase. If the budget is defeated there can be a revote. If the second vote results in a defeat then the levy is frozen at the previous levy. This would result in an additional reduction of $769,152. WHAT DOES THIS MEAN? There would be additional teachers and staff cut, elimination of clubs and sports, no equipment purchases, and institute use of facilities fee. i.e. Girl & Boy Scouts, PTAs, etc…


2015-2016 budget proposal board of education meeting tuesday, april 14, 2015 2015-2016 budget...

Documents

budget development slide

budget goals

budget summary

th nys budget

th board reviews

student clubs

new programming

th fund balance review