Transcript 2015-2016 Proposed Budget - Frontier Central School

2015-2016 Budget Proposal
BOARD 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
2015-2016 BUDGET DEVELOPMENT
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
2015-2016 BUDGET DEVELOPMENT
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
2015-2016 BUDGET DEVELOPMENT
Consequences of Fundamental Problem
Student programming
Student services
School culture
Buildings in disrepair
Cash flow for summer obligations
Job layoffs
Moody credit downgrade increases
interest rate
De-stabilize tax rates & property values
2015-2016 BUDGET DEVELOPMENT
Stakeholders Budget Input
Sell 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.
2015-2016 BUDGET DEVELOPMENT
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.
2015-2016 BUDGET DEVELOPMENT
Board of Education Budget Development Timeline
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.
2015-2016 BUDGET DEVELOPMENT
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
2015-2016 BUDGET DEVELOPMENT
Employee Benefits
New York State Retirement System Contributions in 20152016
• Employees’ Retirement System (ERS) rate decreases from
20.1% to 18.2%
• Teachers’ Retirement System (TRS) rate decreases from
17.53% to 13.5%
2015-2016 BUDGET DEVELOPMENT
Capital Budget
Bus Purchases
Debt Service
2014-2015
2015-2016
$ Change
% Change
$867,290
$881,353
+$14,063
+1.6%
$3,854,936
$4,574,110
+$719,174
+18.7%
2015-2016 BUDGET DEVELOPMENT
Revenue: Major Sources
State Aid
Property Tax
Sales Tax
Miscellaneous
2015-2016 BUDGET DEVELOPMENT
Summary of Revenues
Summary of
Revenues
2012-2013
Budget
2013-2014
Budget
2014-2015
Budget
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
$70,876,726
$71,243,981
$73,284,914
$77,032,339
Total
2015-2016 BUDGET DEVELOPMENT
Revenue: Gap Elimination Adjustment
Frontier
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
Subtotal
2015-16 Proposed
Total
Gap Elimination Adjustment
$6,312,746
$6,208,498
$5,335,138
$4,658,519
$3,553,328
$26,068,229
$1,299,327
$27,367,556
2015-2016 BUDGET DEVELOPMENT
Revenue: Property Tax
2014-15
Actual
Property Tax Levy
Payments in Lieu
of Taxes (PILOT)
Interest on Tax
Collections
Total Property Tax
Items
2015-16
Budget
$ Change
% Change
$36,227,031
$36,996,183
$769,152
2.12%
$668,291
$677,739
$9,448
1.41%
$2,529
$2,400
($129)
(5.1%)
$36,897,851
$37,676,322
$778,471
2.11%
2015-2016 BUDGET DEVELOPMENT
Original budget appropriation of Fund
Balance to balance the budget
YEAR
AMOUNT
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
$5,731,909
$2,811,790
$2,611,075
$1,464,188
$ 803,650
2015-2016 BUDGET DEVELOPMENT
Fund Balance & Reserves used to support
budget
2012-13
Actual
Total Budget
Total Revenues
Appropriated Fund
Balance/Reserves carried
over from prior year
Revenue + Fund Balance
& Reserves
Appropriated Fund Balance
& Reserves as % of Budget
2013-14 Actual
2014-15
Est Actual
$74,271,938
2015-16 Budget
$72,285,048
$73,215,727
$69,153,627
$70,805,945
$72,892,401
$76,228,689
$1,723,099
$438,036
$392,513
$803,650
$70,876,726
$71,243,981
$73,284,914
$77,032,339
2.4%
.6%
.5%
1%
2015-2016 BUDGET DEVELOPMENT
$77,032,339
Tax Rate
Tax Rate/$1000
Assessed Value
2014-15
Actual
2015-16
Budget
$26.03
$26.52
$ Change
% Change
$ .49
1.9%
Tax rate is based on preliminary assessed valuation
2015-2016 BUDGET DEVELOPMENT
Historical Perspective
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
$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
School
Budget
Tax
Rate
$23.29
Hamburg
$21.86
Eden
$23.95
Hamburg
$24.44
Hamburg
$25.18
Hamburg
$26.03
Hamburg
$26.52
Hamburg
$21.17
Eden
$22.22
Eden
$22.13
Eden
$23.02
Eden
$23.46
Eden
2015-2016 BUDGET DEVELOPMENT
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 DEVELOPMENT