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1
North Merrick Public Schools Citizens Budget Advisory Committee
Meeting #1
Budget Development Process and
Projected Revenues
February 29, 2016
2
Camp Avenue – est. 1923
Harold D. Fayette – est. 1950
OLD MILL ROAD – EST. 1953
3
THANK YOU LAY BUDGET
COMMITTEE
Board of Education
Jonathan Butler , President
Steve Enella , Vice-President
Neil Brown
Linda Fuller
Wendy Gargiulo
Skip Haile
Lisa Katz
Superintendent of Schools
David S. Feller
2016-2017 BUDGET DEVELOPMENT CALENDAR
Monday 2/29 7:00pm - Budget Advisory Meeting #1 Overview and Projected Revenue
Tuesday 3/8 7:00 pm –Budget Advisory Meeting #2. Review of Admin and Capital Component
Tuesday 3/8 8:00 pm – Monthly Board Meeting
Tuesday 3/22 7:00 pm – Budget Advisory Meeting #3 Review of Instructional Component
Thursday 3/31 First of four legal notices regarding Budget Hearing and Annual Budget Vote to
be published by this date, 45 days before vote.
Tuesday 4/12 Monthly Board Meeting/Anticipated Budget Adoption
Wednesday 4/13 Submission of Property Tax Report Card on SED State Website
Tuesday 4/19 BOE Meeting: BOCES Special Budget Vote
Week of 5/2 Budget Brochure mailed and proposed budget ready for distribution
Tuesday 5/3 Meet the Candidates Night (If Necessary)
Wednesday 5/4 Voter Registration 4 – 8 p.m.
Tuesday 5/10 Monthly Board Meeting /Budget Hearing
Wednesday 5/11 Budget Notice postcard mailed to voters
Thursday 5/12 Absentee List is available for public inspection by District Clerk
Tuesday 5/17 Budget Vote and Trustee Election
5
Board of Education, Superintendent, and Central Administration
reviews impact of new laws and regulations (Federal and State)
District receives Governor’s proposal for state aid
Assistant Superintendent for Business calculates the tax cap limit
Principals in consultation with staff and community, identify programmatic needs and develop draft budgets
Central Office Administrators identify district program, staffing, and facility needs
6
Administrators review their draft budgets with the
Superintendent and Assistant Superintendent for Business
Superintendent and Assistant Superintendent for Business
develop composite draft budget for deliberation by BOE
BOE reviews draft budget with Lay Budget Committee
BOE considers suggestions and determines the proposed budget
for voter approval
7
BUDGET ADVISORY COMMITTEE
Review rules pertaining to the tax levy cap
Discuss district needs and priorities
Present Recent List of Unfunded Mandates
Review Draft Budget
Make Recommendations
Suggest Modifications
2015-2016
CURRENT BUDGET INFORMATION
9
2015-2016 FINANCIAL BUDGET ACCOMPLISHMENTS
1. The Proposed Tax Levy was Tax Cap Compliant
2. The Proposed Tax Levy was over 48% less than allowable
Tax Levy Maximum
3. Submitted a Joint Government Efficiency Plan that illustrated
a Savings of 1% of 2014-15 Tax Levy
As a result, eligible North Merrick Community members
will/have received the 2015 tax rebate check.
10
2015-2016 School Budget Vote
Thank You North Merrick Community
The North Merrick community supported the
2015-16 Budget with 72.80% voter approval
and Bond Vote with 69.50% voter approval
2016-2017
CURRENT BUDGET INFORMATION
EDUCATIONAL
PROGRAM
GOALS
EXPENDITURE
BUDGET
TAX LEVY
&
PROJECTED
REVENUES
12
13
• Inform and involve the public & staff about the budget
• Keep Tax levy within the Tax cap while still maintaining quality programs, appropriate staffing levels, and meeting State and Federal mandates
• Maintain reasonable class size
• Maintain services that meet the needs of all students.
• Increase technology provided to students and staff
• Keep up with facility maintenance.
• Increase security at schools.
2016-2017 Budgetary Goals
2016-2017 BUDGET UNKNOWNS
As of February 29, 2016
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• Final State Aid
• LIPA Litigation
• Validation of Maximum Tax Cap Increase
• Final Student Enrollment
• Classified Student Needs
• English Language Learner Needs
• State Mandated Student Remediation/Intervention Needs
• New Mandates
15
Requirements
Resident must receive STAR exemption
Must make $275,000 or less
District must have Tax Cap Compliant Tax Levy
New Tax Rebate of $130 for 2016-2017
16
17
1. 2015-2016 Tax Levy:
$21,100,460*
2. Tax Base Growth Factor: multiply by 1.0033
+$69,632
* Pending LIPA Litigation related to PILOT
18
3. Add 2015/2016 PILOT Receivable:
$273,627*
4. Subtract Prior Year Excluded Expenditures:
$0 **
* Pending LIPA Litigation related to PILOT
** There were no allowable Exclusions for the 2015/16 school year
19
5. 2016-2017 Allowable Levy Growth Factor
[Add CPI 0.12% ] = ($21,443,719 x 0.12%)
+$25,732
6. Subtract 2016/2017 Estimated PILOT =
- $253,322*
Pending LIPA Litigation related to PILOT and currently the amount is unknown.
Amount used on advice of Counsel.
20
7. Add Prior Year Available Carryover
+$225,000
Total Tax Levy Limit Prior to Excluded Expenditures
$21,441,129
21
8. Take the “Tax Levy Limit” ($21,441,129) and Add in Excluded Expenditures
• Add transfer of government function = $0 (per OSC)
• Add the 2016-2017 “Excluded Expenditures”=
i. Court orders/judgments > 5% tax levy = $0
ii. TRS above 2% rate increase =$0
iii. ERS above 2% rate increase = $0
iv. Estimated capital levy = $0**
* Capital Exclusion is $0, as the District is receiving more Building aid that
Estimated Capital Expenditures. ($75,000 transfer to Capital + $50,000 debt
service payment - $322,844 building aid.
Calculation Of The 2016-2017
“Tax Levy Maximum Increase”
22
2016-2017 Maximum Allowable Tax Levy =
$21,441,129
Corresponding Dollar Increase =
$340,669
Levy-to-Levy % Increase =
1.61%
23
24
TREND OF STATE AID AS A % OF BUDGET
25
North Merrick Gap Elimination Adjustment History
26
Under-funded Foundation Aid
As per the Council of Superintendents if the Foundation Aid Formula was
updated the North Merrick UFSD could receive an additional
$608,576
Calculating the Allowable Budget
Under the Tax Cap Provisions
27
Take the 2016-2017 Maximum Allowable Tax Levy of $21,441,129
Add all anticipated Revenues to the Maximum Allowable Tax:
State Aid:
+ $6,702,098
2016/2017 Estimated PILOT:
+ $253,322* (Decrease of $20,305 as of 2/29/16*)
*Pending LIPA Litigation related to PILOT and currently the amount is
unknown. Amount used on advice of Counsel
Calculating the Allowable Budget
Under the Tax Cap Provisions
28
District Generated Revenue
+344,988 (Decrease of $87,137 as of 2/29/16*)
Applied Reserves
+$739,000** (Decrease of $67,000)
Appropriated Fund Balance
+720,000 (No Increase or Decease)
*Decrease due to Tuition Students aging out of program
**Decrease due to decreases in ERS expenditures
29
Projected 2016-2017 Revenue
ACCOUNT DESCRIPTION
2015-16 BUDGET
REVENUES
2016-17 ESTIMATED
REVENUES $ DIFFERENCE % DIFFERENCE
A 1001 REAL PROPERTY TAXES $21,100,460 $21,441,129 $340,669 1.61%
A 1081 PILOTS * $273,627 $253,322 -$20,305 -7.42%
A 1090 INTEREST & PENALTIES ON PROPERTY TAX $2,000 $2,000 $0 0.00%
A 2230 TUITION - OTHER DISTRICTS $240,000 $156,988 -$83,012 -34.59%
A 2280 HEALTH SERVICES - OTHER DISTRICTS $95,000 $95,000 $0 0.00%
A 2401 INTEREST AND EARNINGS $1,000 $500 -$500 -50.00%
A 2403 EMPLOYEE BENEFIT RESERVE INTEREST $500 $500 $0 0.00%
A2404 ERS RESERVE INTEREST $1,000 $500 -$500 -50.00%
A 2410 RENTAL REAL PROPERTY $17,625 $18,000 $375 2.13%
A 2705 GIFTS AND DONATIONS $15,000 $15,000 $0 0.00%
A 2770 OTHER UNCLASSIFIED REVENUE $40,000 $45,000 $5,000 12.50%
A 2816 DIAGNOSTIC SCREENING $10,000 $1,500 -$8,500 -85.00%
A 3101 STATE AID - BASIC FORMULA $4,984,719 $4,987,285 $2,566 0.05%
GAP ELMINATION ADJUSTMENT -$406,824 -$279,503 $127,321 31.30%
GEA RESTORATION $0 $0 $0 0.0%
A 3103 BOCES OPERATING AID $486,754 $485,790 -$964 -0.20%
A 3260 TEXTBOOK AID $100,804 $98,312 -$2,492 -2.47%
A 3261 COMPUTER HARDWARE AID $18,480 $19,503 $1,023 5.54%
A 3288 EXCESS AID $62,730 $169,380 $106,650 170.01%
A 3289 OTHER STATE AID $1,357,125 $1,221,331 -$135,794 -10.01%
A 4601 MEDICAID REVENUE $10,000 $10,000 $0 0.00%
SUBTOTAL INCOME & STATE AID $28,410,000 $28,741,537 $331,537 1.17%
RESERVES $806,000 $739,000 -$67,000 -8.31%
APROPRIATED FUND BALANCE $720,000 $720,000 $0 0.00%
TOTAL REVENUES $29,936,000 $30,200,537 $264,537 0.88%
Calculating the Allowable Budget
Under the Tax Cap Provisions
30
Projected 2016-2017 Revenue (as of 2/29/16)
$30,200,537
Corresponding Dollar Increase
$264,537
Budget to Budget Revenue % Increase =
0.88%
31
INFLUENCES ON EXPENDITURES
The Instructional Program
Personnel, Supplies
Enrollment
Building and Grounds
Maintenance and Repair and Related Personnel
School Security
State and Local Mandates:
Unfunded and Under-funded
Technology
Auditing and Legal Services
Liability Insurance
Employee Benefits, i.e. Health Insurance, Social Security, Retirement System Contribution
32
UNFUNDED AND UNDER-FUNDED MANDATES
Annual Professional Performance Review (APPR)
Implementation of State Mandated Learning Standards
Dignity for All Students Act (DASA)
Mandated Professional Development
Most high cost special education services/placements
Academic Intervention Services & Response to Intervention
English Language Instruction for English Language Learners
State Assessment Program
Auditing
Administration of Special Education services for non-residents
attending private schools in North Merrick
NEW YORK STATE FORMAT
33
General Fund Appropriation Budget
Administrative Program Capital
Three Components
34
Administrative Component
Board of Education
Central Administration
Finance
Legal Services
Insurance
Curriculum Development and School Supervision
Staff Development
Benefits directly attributable to employees in the above categories
BOCES Administrative Fees
35
Capital Component
Central Services
Operation of Plant
Custodial Services
Maintenance of Plant
Lease/Purchase of Vehicle
Benefits related to central service employees
Debt Service
36
Teaching and Assessment
Instructional Media
Library and Multimedia
Computer Assisted Instruction
Pupil Personnel Services
Health Services
Special Education
Academic Intervention Services
Psychological Services
Co-curricular Activities
Pupil Transportation
Benefits for employees in these categories
Program Component
37
Preliminary 2016-2017 Budget (as of 2/29/16)
$30,586,332
Corresponding Dollar Increase
$650,332
Budget % Increase =
2.17%
PRELIMINARY BUDGET INCREASE
Projected Revenue Increase
38
Projected 2016-2017 Revenue (as of 2/29/16)
$30,200,537
Corresponding Dollar Increase
$264,537
Revenue % Increase =
0.88%
39
AS OF 2/29/2016
ESTIMATED
NORTH MERRICK UFSD
2016/2017 BUDGET SHORTFALL
$385,795
40
Possible Shortfall Offsets
• Increase revenue?
• State Aid Increase?
• Apply Additional Fund Balance
• Decrease Expenses
• Combination
2016-2017 BUDGET DEVELOPMENT CALENDAR
Monday 2/29 7:00pm - Budget Advisory Meeting #1 Overview and Projected Revenue
Tuesday 3/8 7:00 pm –Budget Advisory Meeting #2. Review of Admin and Capital Component
Tuesday 3/8 8:00 pm – Monthly Board Meeting
Tuesday 3/22 7:00 pm – Budget Advisory Meeting #3 Review of Instructional Component
Thursday 3/31 First of four legal notices regarding Budget Hearing and Annual Budget Vote to
be published by this date, 45 days before vote.
Tuesday 4/12 Monthly Board Meeting/Anticipated Budget Adoption
Wednesday 4/13 Submission of Property Tax Report Card on SED State Website
Tuesday 4/19 BOE Meeting: BOCES Special Budget Vote
Week of 5/2 Budget Brochure mailed and proposed budget ready for distribution
Tuesday 5/3 Meet the Candidates Night (If Necessary)
Wednesday 5/4 Voter Registration 4 – 8 p.m.
Tuesday 5/10 Monthly Board Meeting /Budget Hearing
Wednesday 5/11 Budget Notice postcard mailed to voters
Thursday 5/12 Absentee List is available for public inspection by District Clerk
Tuesday 5/17 Budget Vote and Trustee Election