Elmira Heights Central School District

2019-2020 District Budget Proposal

Overview & Assumptions

February 6, 2019

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Budget Assumptions Expenditures and Revenues must equal

Expenditures Salaries/Contractual Projections

Health Insurance Projections

TRS & ERS Projections

Sources of Revenue State Aid

Federal Aid

Grants

Property Taxes

Reserves

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Expenditures PRELIMINARY Projections for Salaries/Contractual increases

average 4.5% representing $362,348

(Projected increase includes new Special Education Teacher & Reading Specialist)

PRELIMINARY Projections for Health Insurance are approximately $3,480,412 increasing 9.9%. This is the cap on premium increase contracted with Excellus.

ERS – remains constant at approximately 15.9%. District contribution will increase approximately $4,633.

TRS – rate projected rate of 8.86% which represents a decrease of approximately $76,140.

GST BOCES – Initial Service Budget of $5,523,864, increase of $486,658 or 9.66% over current budget.

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District Department NeedsInstructional Program Additional Staffing

Special Education Teacher – Secondary

Reading Specialist – Secondary

Teaching Assistant – Secondary

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District Department NeedsInstructional Program Equipment

ElementarySet Student Chairs – 2-3 level

Furniture & Carpet – Rm 214 Multi Purpose Room

Laminator

Library Furniture

5 Standing Desks & 15 Wobble Chairs

MiddleReception Chairs, Office Chairs, & Conference Room Chairs

Nurse Cots (2)

TV/LED Monitors for Cafeteria & Lobby for announcements

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District Department NeedsInstructional Program Equipment

High School

Set of Classroom Desks

Specialty Desks

Office Chairs (3)

TV/LED Monitors for Cafeteria & Lobby

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District Department NeedsInstructional Program General

Maintain discretionary funds for conferences, building level unexpected needs, technology, and textbooks

Maintain current field trip funding (1 field trip per grade level)

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Athletics

Maintain current athletic program levels

New Pads for Football Sleds

Replace Volleyball Pole System & Padding

Beam Clay – need approximately 150 Ton for field maintenance

Video Cameras (2) for teams

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Transportation

Conference Monies to attend NYAPT

Continue Bus Replacement cycle – 1 65 passenger bus and one wheel chair accessible bus

Update School Vehicle as needed– update plan & consider leasing versus purchase.

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Maintenance

Conference monies to attend NYSSFA Manager’s Academy

General material & supplies increase

Service Contracts for Security Cameras, Gym Divider Door, Generators, and Water Softener.

Floor Mats Cohen Middle School Entrance

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Maintenance Capital Outlay Project $100,000 - Potential

scope of work to be completed at TAE. All work dependent upon cost constraints.

Upgrade lighting board in auditorium

Reset 2 catch basin within south east parking lot

Upgrade locks at front entrance doors to be current with keying system

Handrail extensions at stairs in Auditorium

Relocate Art Room kiln

Rake out & provide new mortar at front entrance concrete panels.

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Technology

Classroom set of laptop computers

TAE Sound Board upgrade

Cohen Auditorium Lighting Board upgrade

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District Wide

Building Condition Survey – required every 5 years

Fixed Assets – physical inventory required every 5 years

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Projected Expenditures

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Account 2018-2019Adopted Budget

2019-2020Proposed

Budget

DollarDifference

PercentDifference

General Support 3,107,286 3,276,102 168,816 5.43%

Instructional 11,826,252 12,024,249 197,997 1.67%

Transportation 508,773 521,626 12,853 2.53%Employee Benefits 4,889,441 5,093,560 204,119 4.17%

Debt Service 2,044,106 2,112,554 68,448 3.35%InterfundTransfer 150,000 150,000 - 0.00%

Total 22,525,858 23,178,091 652,233 2.90%

Expenditure Impact of Proposed Budget

18-19 Adopted Budget $22,525,858

19-20 Preliminary Proposed Budget $23,178,091

19-20 Projected Expenditure Increase $ 652,233

reflects a 2.90% increase

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Sources of Revenue

State Aid – Governor’s Proposal Foundation Aid – Increase of $114,890 or 1.6%

Expense Based Aid – Building, Transportation, & BOCES

Revenue is based on current year expenditures.

Building Aid increase of $316,020 or 2.23% due to completion of Capital Project and filing Final Cost Reports

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Governor’s Proposed Budget

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The Impact of the Lack of Fully Funding Foundation Aid Formulas

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Other Governor Proposals on the Radar with Potential Financial Impact

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• The governor proposes consolidating 11 expense based and categorical aid formulas (in including both BOCES and transportation aids) into a new “Services Aid.”. This proposal would not go into effect until 2020-2021. We are currently analyzing the potential impact of the proposal.

• The governor proposes creating a new tier of building aid for projects first approved by voters or other local authorities (in the case of fiscally dependent districts) on or after July 1, 2019. For now, this does not cause any variance what districts receive from the governor's proposal versus current law.

• UPK funding now represents both UPK programs for three-year-olds, expanded UPK programs for three and four-year-olds, and traditional UPK programs. Our UPK projections have not changed.

• The teacher evaluation proposal would extend the use of transitional scores that were established as part of the moratorium enacted by the Board of Regents until a new APPR agreement is locally negotiated and approved by the Education Department.

• Federal funding for school breakfast and lunch programs is still at risk.

Sources of RevenueReserves

Our reserves are our savings accounts. Reserves are created By BOE resolution or by voter resolution

Current BalancesRetirement Contributions Reserve $ 1,168,006Unemployment $ 176,026Workers Compensation $ 695,937Employee Benefit Accrued Liability $ 258,656Tax Certiorari $ 7,237Capital $ 600,419Repair Reserve $ 205,442

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Sources of Revenue Use of Appropriated Fund Balance

HISTORICAL DATA – Appropriated Fund Balance

2011-12 $ 600,000

2012-13 $ 600,000

2013-14 $ 600,000

2014-15 $ 705,306

2015-16 $ 600,000

2017-18 $ 697,791

2018-19 $ 803,834

2019-20 $ 800,000

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Sources of RevenueProperty Taxes

Property Taxes: 2nd largest source of Revenue Historical Impact on Revenues

2011-12 $ 6,736,1382012-13 $ 6,997,7152013-14 $ 7,375,5922014015 $ 7,440,6662015-16 $ 7,433,5942016-17 $ 7,446,3832017-18 $ 7,631,7982018-19 $ 7,811,997

Range 0% 7,811,997 to Projected Tax Cap 2.01% - $7,969,265

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Preliminary Tax Cap Calculations

Tax Levy Cap - Calculations and Totals

Tax Levy Limit (Cap) Before Exclusions

Tax Levy Fiscal Year Ending (FYE) 06/30/2019 $7,811,997 Total Tax Cap Reserve Amount from FYE 06/30/2019 $0 Tax Base Growth Factor** 1.0000 PILOTS receivable FYE 06/30/2019 $177,681 Capital Tax Levy for FYE 06/30/2019 $426,017 Allowable levy growth factor*** 1.0200 PILOTS receivable FYE 06/30/2020 $180,181 Available Carryover from FYE 06/30/2019 $0 Total Levy Limit Before Exclusions $7,534,753 ** As determined by the NYS Office of Real Property Tax Services (ORPTS)

*** As determined by the NYS Office of the State Comptroller

Exclusions

Tax levy necessary for expenditures resulting from tort orders/judgments over 5% FYE 06/30/2019 tax levy

$0

Capital Tax Levy for FYE 06/30/2020 $434,512

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Preliminary Tax CapCalculations Cont’d

Tax levy necessary for pension contribution expenditures casued by growth in the system average actuarial contribution rate (ERS) or normal contribution rate (TRS) in excess of 2 percentage points:

ERS $0

TRS $0

Total Exclusions $434,512

Tax Levy Limit, Plus Exclusions $7,969,265

Tax Levy Limit, Plus Exclusions % 2.01%

Proposed Levy for FYE 06/30/2020 $7,969,265

Difference Between Tax Levy Limit Plus Exclusions and Proposed Levy (0)

Do you plan to override the cap in 2020? No

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Projected Expenditure to Revenue Gap

Proposed Budget Projections $23,178,091

Projected Revenues $22,719,599

based on 2.01% Cap

Current Gap $ 458,492

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What is at stake? If the Voters reject the District’s proposed budget the Board of

Education may do one of the following: Resubmit the defeated budget Submit a revised budget Adopt a contingent budget

If the resubmitted or revised budget is defeated the BOE must adopt a contingent budget consisting of “teachers” salaries & ordinary contingent expenses, subject to a cap on the administrative portion of the budget, with no increase in tax levy over the prior year.

The Gap increases to $615,760

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Questions

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What’s Next?

March 6th Updated Projections

Expenditure Adjustments

(Prioritized Cut List)

March 27th Final Budget Adoption if complete

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We are THE Elmira Heights CSD Where kids come first and

WE MATTER!

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