North Syracuse CentralSchool District

Initial Budget 2020-21

February 24, 2020

1

Agenda Estimated Revenues

Governor’s State Aid Proposal

Foundation Aid Funding Shortfall

Tax Cap Calculation

Initial Expenses

Major Initiatives in Support of Vision 2020

Vehicle Bond Proposition

Fund Balance & Reserves

Vote & Election Information

Budget Process Timeline2

Estimated Revenues $171,844,153

State Aid$71,601,885

41.67%

Tax Levy$92,559,107

53.86%

PILOTS$379,161

0.22%

Sales Tax$300,000

0.17%

Other Revenue$2,200,000

1.28%

Interest$200,000

0.12%

Fund Balance$3,750,000

2.18%

Medicaid$450,000

0.26%

Rent$404,000

0.24%

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Estimated RevenuesInadequate by $4.7 million due to State Aid

2019-2020 2020-2021 Variance

General State Aid $64,945,776 $67,952,483 $3,006,707 4.63%

PILOTS $379,161 $379,161 $0 0.00%

Sales Tax $300,000 $300,000 $0 0.00%

Interest $200,000 $200,000 $0 0.00%

Fund Balance $3,750,000 $3,750,000 $0 0.00%

Rent $404,000 $404,000 $0 0.00%

Medicaid $450,000 $450,000 $0 0.00%

Other Revenue $2,187,900 $2,200,000 $12,100 0.55%

Sub Total $72,616,837 $75,635,644 $3,018,807 4.16%

Building Aid $3,934,238 $3,649,402 ($284,836) (7.24%)

Tax Levy $90,209,332 $92,559,107 $2,349,775 2.60%

Total $166,760,407 $171,844,153 $5,083,746 3.05%4

General State Aid:

Based on the Governor’s Budget Proposal.

We are hopeful that aid will increase when the state budget is finalized (4/1).

Real Property Taxes:

The increase in the levy will be limited to the amount of the tax cap. The largest component is inflation based on CPI as reported by the Bureau of Labor Statistics for 2019 1.81%.

Building Aid:

The 2020-21 budget is not impacted by the penalty waiver signed by the governor in August 2018. The refund was received and appropriated for the KWS Bear Road project.

Building Aid is lower than last year due to the fact that our debt service is lower.

Education law requires the Commissioner to revise the assumed amortization schedule for remaining debt service payments for outstanding principal and interest at the end of each 10-year segment of an assumed amortization for Building Aid if the current interest rate is at least one quarter percent (.25%) lower than the original interest rate for the assumed amortization.

Smart Schools Bond Act:

We continue to use Smart Schools funds to invest in technology. Revenues will NOT impact the General Fund.

Revenue Assumptions

Governor’s Budget ProposalSchool Aid Highlights

The governor’s proposal increases education funding by $826 million, or 3%, for the 2020-21 fiscal year, bringing the total education budget up to $28.5 billion. Of that total, a $504 million boost in Foundation Aid, plus a $200 million allocation dedicated for "targeted high-need district Foundation Aid.“ (NSCSD is not a targeted high-need district)

The proposal is short of the $2 billion increase in funding state education officials requested in December.

Apparently the governor has proposed some changes to special education funding and the consolidation of a number of the reimbursements (transportation, construction, and other expenses). These were not reflected in the aid runs. We need to learn more about these so we can understand the potential impact on NSCSD.

The aid runs received did reflect the Governor's proposal to consolidate certain expense-based aids, including BOCES Aid and instructional material aids (hardware, software, library and textbooks aids into Foundation Aid.

The governor’s proposal also increases charter-school tuition in alignment with public-school spending, and provide New York City charter schools with a total per-pupil funding increase of 5.3%.

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Projected 2019-20 vs. Proposed 2020-21

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Gen Rpt Executive Difference

Aid Projection Budget $ %

2019-20 2020-21

Foundation Aid 46,734,982 54,409,522 7,674,540 16.4%

Excess Cost - Private 397,437 406,037 8,600 2.2%

Excess Cost - Public 4,684,912 4,383,843 -301,069 -6.4%

Subtotal 51,817,331 59,199,402 7,382,071 14.2%

Hardware & Technology 143,741 0 -143,741 -100.0%

Software, Library, Textbook, 707,686 0 -707,686 -100.0%

Transportation 8,501,629 8,753,081 251,452 3.0%

BOCES 5,204,155 0 -5,204,155 -100.0%

Subtotal 14,557,211 8,753,081 -5,804,130 -39.9%

Total (Without Building Aid) 66,374,542 67,952,483 1,577,941 2.4%

Building Aid 3,769,063 3,649,402 -119,661 -3.2%

TOTAL STATE AID 70,143,605 71,601,885 1,458,280 2.1%

Universal Pre-K 606,120 606,120 0 0.0%

TOTAL STATE AID w/ Pre-K 70,749,725 72,208,005 1,458,280 2.1%

Approved 2019-20 vs. Proposed 2020-21

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Approved Executive Difference

Budget Budget $ %

2019-20 2020-21

Foundation Aid 46,735,862 54,409,522 7,673,660 16.4%

Excess Cost - Private 490,053 406,037 -84,016 -17.1%

Excess Cost - Public 2,975,653 4,383,843 1,408,190 47.3%

Subtotal 50,201,568 59,199,402 8,997,834 17.9%

Hardware & Technology 158,087 - -158,087 -100.0%

Software, Library, Textbook, 706,892 - -706,892 -100.0%

Transportation 8,272,152 8,753,081 480,929 5.8%

BOCES 5,307,077 - -5,307,077 -100.0%

Subtotal 14,444,208 8,753,081 -5,691,127 -39.4%

Total (Without Building Aid) 64,645,776 67,952,483 3,306,707 5.1%

Building Aid 3,934,238 3,649,402 -284,836 -7.2%

TOTAL STATE AID 68,580,014 71,601,885 3,021,871 4.4%

Universal Pre-K 606,120 606,120 0 0.0%

TOTAL STATE AID w/ Pre-K 69,186,134 72,208,005 3,021,871 4.4%

Foundation AidFunding Shortfall

The Laws of 2007 reformed the State’s method of allocating resources to school districts by consolidating some thirty existing aid programs into a Foundation Aid formula. This formula distributes funds to school districts based on the cost of providing a sound basic education and adjusted to reflect regional costs.

Albany committed to phasing in the Foundation Aid formula over time. The promised phase in has not happened.

The Governor now wants to replace Foundation Aid with a new funding formula called the Education Equity Formula.

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Foundation Aid ShortfallCampaign for Fiscal Equity Law Suit ($165 Million Short)

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Enacted State Budget/School Year Current Year Aid Full Phase-in Level Shortfall

2007-08 $38,127,395 $51,905,964 ($13,778,569)

2008-09 $42,285,090 $54,710,908 ($12,425,818)

2009-10 $42,317,268 $59,749,290 ($17,432,022)

2010-11 $42,317,268 $59,606,170 ($17,288,902)

2011-12 $42,317,268 $56,889,215 ($14,571,947)

2012-13 $42,579,693 $57,754,076 ($15,174,383)

2013-14 $42,699,660 $59,296,055 ($16,596,395)

2014-15 $43,178,688 $53,814,000 ($10,635,312)

2015-16 $43,324,523 $52,716,600 ($9,392,077)

2016-17 $43,747,558 $53,135,617 ($9,388,059)

2017-18 $44,998,315 $53,278,729 ($8,280,414)

2018-19 $45,948,242 $56,522,084 ($10,573,769)

2019-20 $46,735,862 $56,936,326 ($10,200,464)

©2018 Forecast5 Analytics. All Rights Reserved.

CWR (Combined Wealth Ratio) & Foundation Aid Shortfall %

Big 7 Suburban Districts in OCM

NSCSD

17.92%

20.60%

9.60%

39.39%

36.38%

19.04%

23.08%

State Aid Implications for NSCSD

Foundation Aid continues to be an issue. The governor’s proposal to consolidate other aids into foundation aid only confuses the issue further.

We anticipated the drop off in building aid consistent with final debt payments made on older capital project debt. This timing is perfect as we begin the renovation of KWS Bear and complete roof projects over the next few years that will result in new debt.

Our total projected state aid increase under the governor’s proposal is 2.1% or $1.5 million. This will not be adequate to balance the 2020-21 budget.

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Tax Cap CalculationPreliminary Estimate

Tax Levy 2019-2020: $90,209,332Tax Base Growth Factor: x 1.0073

90,867,860PILOT Revenue for 2019-2020: 379,161Tax Levy for Capital for 2019-2020: (2,311,997)

88,935,024Allowable Levy Growth Factor: x 1.0180

90,544,748Estimated PILOT Revenue for 2020-2021: (379,161)Tax Levy for Capital for 2020-2021: 2,393,520Other Exclusions (ERS & TRS > 2%): 0Available Carryover: 0 Tax Levy Limit Plus Exclusions: $92,559,107Tax Levy Limit Increase: $ 2,349,775 (2.60%)

Estimated tax levy increase on a home of $100,000 BEFORE STAR is $61

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Initial Expenditures $176,563,937

Benefits$54,309,395

30.76%Debt Service$6,729,254

3.81%

Supplies & Other$4,227,137

2.39%

BOCES$18,000,000

10.19%Contractual$7,925,451

4.49%

Equipment$650,000

0.37%

Special Project$100,000

0.06%

Salaries$84,622,700

47.93%

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Initial Expenditures Inadequate by $4.7 million due to State Aid

2019-2020 2020-2021 Variance

Salaries $79,660,373 $84,622,700 $4,962,327 6.23%

Benefits $51,176,731 $54,309,395 $3,132,664 6.12%

Debt Service $7,583,653 $6,729,254 ($854,399) (11.27%)

Contractual $7,259,062 $7,925,451 $666,389 9.18%

BOCES $16,827,615 $18,000,000 $1,172,385 6.97%

Equipment $616,840 $650,000 $33,160 5.38%

Supplies & Other $3,536,133 $4,227,137 $691,004 19.54%

Special Project $100,000 $100,000 $0 0.00%

Total $166,760,407 $176,563,937 $9,803,530 5.88%

Deficit ($4,719,784)

Estimated Revenues $166,760,407 $171,844,153 $5,083,746 3.05%15

Health Benefits:

We are hopeful that the positive trend continues and that NSCSD will experience lower than average increases for our industry. We are projecting a 6% increase for 2020-21.

Retirement Costs:

TRS – The TRS Board met this fall. They estimate that the ECR for 2020-21 will be in the 9.53%. This will be an increase from the 8.86% for the current school year.

ERS - The 2020-21 contribution rate for the Employee Retirement System (ERS) will be slightly higher, going from 15.7% to 16.0% of salaries.

Salaries & Wages:

Many contracts were renegotiated effective June 30, 2019. Contractual terms will result in a 3.65% increase for the 2020-21 school year. The initial budget includes new positions for 2020-21.

Fuel Costs (Transportation):

Over the past few years this has been a favorable (but volatile) market. However, we must consider “net of aid savings” only due to transportation aid (78.5%).

Energy Costs (Gas & Electric):

Through BOCES, the district participates in an energy consortium (NYSMEC) that enters into a 3-year supply agreement. The current agreement covers 2018-19 through 2020-21 school years. Our budget will reflect contracted rates based on estimated usage.

EXPENDITURE ASSUMPTIONS

Vision 2020 InitiativeInclusive Educational Settings

Over the past several years we have invested heavily in supporting the new Inclusive Special Education model.

Teachers

Teaching assistants

Service providers

The number of classified students (students with IEPs) has increased despite declining overall enrollment.

During 2020-21 we will assess the model to better understand the impact on students and staff.

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Vision 2020 InitiativeMiddle School Schedule – Will Continue in 2020-21

Allows for WIN time for students to meet with teachers to get extra help during the school day.

Provides time for teachers to meet in PLC’s. (Professional Learning Communities).

Offers new CTE (Career Technical Education) courses.

Orchestra, band & chorus opportunities are offered during WIN time.

No change to the school day hours or transportation schedule was required by the new schedule.

We continue to work through the implementation challenges.

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Vision 2020 InitiativeSocial Emotional Learning

Increase Social Emotional support for students at C-NS and NSJH.

Additional Dean at C-NS to meet the increased needs of the building.

Provide additional social worker or counselor support for Cicero Elementary and Allen Road.

Continue partnerships with Liberty Resources and Contact

The proposed increase in counselor staffing will allow ADAPEP to function with greater focus

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Vision 2020 Initiative Career & Technical Education

Additional course offerings at C-NS, NSJH, RRMS & GRMS. Expand Live Event Production courses.

Courses under development for new technologies such as drones.

C-NS Career Center continues to provide opportunities for students to explore career options.

Continue to foster opportunities for students through BOCES programs – 47 students earned CTE indorsements on their HS diplomas in 2019.

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BOCES CTE & New Visions Programs

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©2018 Forecast5 Analytics. All Rights Reserved.

Enrollment Continues to Decline Modestly

Expenditure Per Pupil - OCM BOCESComponent Districts Only

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Source: Forecast 5 - 5Sight data from NYSED ST-3 filings for 2018 (General Fund & Special Aid Fund only).Large Districts in BOLD * denotes districts receiving greater than full phase in level of Foundation Aid

School Spending Per Pupil State Rank

1 $29,485 183

2 $28,789 *213

3 $28,365 *222

4 $27,525 *253

5 $26,194 317

6 $24,840 *394

7 $24,685 401

8 $23,844 447

9 $23,738 453

10 $22,496 513

11 $22,489 512

SchoolSpending Per

Pupil State Rank

12 $21,831 554

13 $21,688 *560

14 $21,675 561

15 $21,203 589

16 $20,965 601

17 $20,310 624

North Syracuse $20,081 633

19 $19,489 *647

20 $19,296 *651

21 $19,224 654

22 $19,201 655

23 $19,114 658

Vehicle Bonding Proposition Maintain the average age of our transportation fleet with a limited number of

vehicles over 10 years old.

Purchasing gasoline engines again (first purchased in 2019-20).

Reduce the cost of repairs and avoid problems associated with rusting frames that prevent the vehicles from passing D.O.T. inspection.

Proposed purchases for 2020-21:

10 - 65-passenger gasoline engine school buses

2 - 42-passenger gasoline engine school bus with one to three wheelchair positions, hydraulic lift and air conditioning

7- trucks / Vans for M&O to replace 15 year old vehicles

1-tow truck for transportation to replace 30 year old cable tow truck

Total estimated cost of all 20 vehicles is $2,113,295.

Tax Impact, after Trans Aid: approximately $2.38 per year for a house assessed at $100,000 before STAR.

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Summary Foundation Aid for NSCSD is still over $10 million lower than the amount required to

provide a sound basic education according to the Campaign for Fiscal Equity law suit.

The Preliminary Tax Levy increase of 2.60% is at the tax cap.

The Tax Levy vote will only require a simple majority and tax payers will receive their rebate checks.

The Initial Budget includes total revenues of $171,844,153, which increased by $5,083,746 or 3.05%. The Initial Budget includes total expenditures of $176,563,937, which increased by $9,803,530 or 5.88%.

Programmatic enhancements proposed in the initial budget are in line with Vision 2020.

Unfortunately, current State Aid increases are insufficient and don’t support the programs and positions that are critical to achieving our mission as described in Vision 2020. We currently have a deficit of $4.7 million.

We are still working on several key items that will impact the budget and will be meeting with all of our directors over the next few weeks to discuss their budget proposals.

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Vote & Election Tuesday, May 19, 2020 from 6:00 AM to 9:00 PM

Polling Places: For residents living NORTH of Route 481, Cicero Elementary School (5979 Route 31)

For residents living SOUTH of Route 481, Jerome F. Melvin Administrative Office Building (5355 West Taft Road) in North Syracuse

Registration: If you are not registered to vote with Onondaga County or the North Syracuse Central School

District, you must pre-register.

The District will hold a special evening registration on Tuesday, May 5th , from 4:00 PM to 8:00 PM at the District Office and at Cicero Elementary School.

Residents may also register at the District Offices, Monday through Friday from 8:00 AM to 4:00 PM until Thursday, May 14th.

If you are not sure whether or not you are registered with the County or the District, or wish to obtain an application for an absentee ballot, please call Connie Gibson at 218-2131 or e-mail cgibson@nscsd.org.

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UNASSIGNED FUND BALANCEProjected June 30, 2020

Unassigned Fund Balance at 6/30/19 (5.34% of Budget) $ 8,904,768

Refund from NYS for Final Cost Report Penalties $(2,235,295)(1)

Estimated Revenue in Excess Budget 2019-20 $ 1,563,000 (2)

Estimated Expenditures in Excess of Budget 2019-20 $(1,650,000)(3)

Projected Unassigned Fund Balance – 6/30/20 $ 6,582,473

Estimated Budget for 2020-2021: $ 176,563,937

Estimated Percentage of Budget: 3.7%

(1) Voters approved the appropriation of $2.3 million of Fund Balance to the KWS Bear renovation project in a referendum on December 17, 2019.

(2) This amount represents additional state aid due primarily to higher than planned Excess Cost Aid (special education).

(3) This amount represents additional special education costs of $2.4 million, which generated the additional state aid revenue, plus additional compensation costs due to recent contract negotiations, partially offset by favorable expense variances in medical, retirement and utilities.

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Projected RESERVES June 30, 2020

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July 1, 2019 June 30, 2020

Tax Certiorari $2,023,592 $2,051,922

Worker’s Compensation $2,131,529 $2,161,370

General Liability $1,011,727 $1,025,891

Debt Service $1,939,084 $1,966,231

Capital (a) $2,506,211 $ 523,438

Total $9,612,143 $7,728,852

(a) Voters authorized the establishment and funding of $2.5 million in September 2015. Approximately $2 million of these funds will be used in connection with roof projects approved by the voters in September of 2017.

2020-2021 BUDGET PROCESS TIMELINE

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October 7th

BOE Approval of Budget Calendar

December 16th - Board of Education

Budget Assumptions

December 18th – February 21st

Principals, Directors & Cabinet and BOE subcommittee develop initial budget

January 27th – Board of Education

Governor’s Budget proposal

Preliminary Tax Cap Calculation

Fund Balance & Reserve Projections

February 24th – Board of Education

Initial Budget

March 16th – Board of Education

Budget Update

Final Tax Cap

Approve Bus Bond Proposition

Approve Notice of Budget Hearing/Election

April 6th

Proposed Budget Presentation

Budget Discussion & Deliberation

BOE Adoption of Budget

April 20th

BOCES Election and Budget Vote

May 5th

Budget Hearing

May 19th

Budget Vote