001[laughter] All right, everyone. Welcome to our February uh budget workshop. Um without further ado, I'm going to turn it over to Christine. Good evening everyone. Um so tonight's presentation is going to focus on our revenue side of our budget uh and our tax cap calculation. Um, as usual, we talk about the goals of our budget. Um, uh, we're going to go through the tax cap calculation, not in detail, but I'll give you'll see that information in detail. Um, we're going to look at our tax cap and tax levy history. Take a look at our preliminary state aid. Um, an overall preliminary revenue when you combine the two. Uh, take a look at our fund some fund balance history information. Talk about our next steps. and uh take another look at our budget calendar items that
002are left uh in this season. So um our goal is to maintain um a comprehensive ed uh excellent education uh that the community expects while aligning every dollar um of our uh with our strategic plan. Um, we're always focused on stabilizing our reserves for the future and maximizing our ability to generate aid, of course, all while maintaining transparency. Um, the tax cap calculation, this is actually an image right from our uh, submittal site. This year, the uh, tax levy increase for 2627 is 4.29 29 uh% or 2,596989. Um New York State has an allowable growth factor, but that's capped at 2%. So even though that know there's that uh everyone thinks of the tax cap being 2% every year, that's only one element in here, and I'll I'll describe that on the next slide. Factors
003that are uh impacting our tax cap this year. uh the taxbased growth factor uh that actually slowed slightly from 1.0117 it's down to 1.0095. Slight change in that but the impact on our uh tax levy is uh downward pressure um reducing the potential levy by about uh $135,000. Our pilots actually are decreasing in 2627. Those are payments in lie of taxes. that's going down by $214,230. That [clears throat] actually has a positive impact on on the tax cap. So, it the the loss of that revenue allows us to uh increase our levy um accordingly. Our capital exclusion is changing slightly. Um we have a few factors that uh are driving that. Um our current capital project, we have our first interest payment coming on next year relevant to that. Um, we do have the new
004capital outlay expenditure for the $100,000 that we talked about that is shifting from our Boseies line into a capital outlay project line. Um, we will get state aid on that that line. Uh, but it does factor into our capital exclusion calculation. And that state aid comes in the next year. So next year that impact of that $100,000 project will be the net of state aid. That's right. Uh and then our bus borrowings um that that um bus ban bond anticipation note that actually is going up slightly next year. It's just a factor of the buses that we the prices of the buses going up. A couple of other things on the bottom of this that I want to draw your attention to would be the um consumer price index. Our consumer price index is at
0052.63% for 2627. Uh this time last year it was 2.95%. Um but that's the factor in the tax cap calculation. That's what they talk about when that's capped at 2%. So it's the allowable levy growth factor is basically the cap of CPI. Okay. And then our cap again is 4.29%. Last year it was 3.04%. Uh just a quick look at our tax uh levy history. On the 2223 school year, we were at $55 million and this uh with in uh we were at 60 million. So it's about um not quite a full um $5 million increase. Um and you see next year's number there as well. And can I just add that uh if you do the math, the average yearly increase is approximately 3.75%. Uh in terms of our tax levy during the time
006between 2223 and next year >> and this actually talks to what uh Dr. Teranova just mentioned. Uh this is our tax cap history. This is the percentage over um the since the inception of the tax cap legislation in 2012. Um as you can see from the um the yellow line is what we actually raised the levy at and the blue line is the allowable levy increase per the tax cap calculation that formula that I just showed you. Um so the blue line you can see um most years we stayed below that or at that um you had a couple of years where you um did exceed the tax cap but I think when I show you a slide further down you're going to see why that why that happened during those years. So taking a
007look at our preliminary state aid. Um lots of information on this slide so I'll I'll try to talk you through it. Um, state aid represents about 38% of our budget. Um, the governor's proposal that's comes out in January and that is the third column of numbers um is coming in at about $41,490,380. Um when you compare that to last year's adopted budget, which is the first column, um you'll see that we have about a a 1 million dollar increase in total from the 2526 budget adop adopted budget to um what the governor is proposing in January of this year. um if you compare it to what we are actually projected to receive during the 2526 school year. So uh at the end of the fiscal year 2425 there's some things we go through an audit
008we have our final numbers and we submit those in the fall about December we get what we call output reports from the state and that tells us uh based on the numbers that we submitted um what our aid will be actually for this year. So, for example, um one here we budgeted in the in the springtime $3 million for Bosey's aid. We ended up with $3.8 million in Bosey's aid because our Bosey's aid expenses have been going up and we knew that. We talked about that last year. Um and we're trying to rightsize some of some of those lines, but that's what's driving um that. So, um so let's I'm going to cycle back a little bit here to to the foundation aid number. So last year we projected 27,87,119. Uh based on the output
009reports it's 20 we are projected to get 27,100,118. The 1% that is in the governor's recommended budget is 271,000. It's based on that 27 million the 27100 million. So that's the 1% that we're getting. The reason it's 1.05 is because we're on this slide is because we're comparing it to budget, not to what we're actually supposed to get. But when you're looking at the reports from the state that are printed out, they're using the 271000118 as the base for their calculation. Um, so another good thing about um, when you're looking at these numbers, and I think I pointed this out in one of our prior presentations, um, we thought we would get 40,433. We're actually going to get 40,970. So that is an increase um, from [clears throat] uh, that will be helpful in closing
010our our budget gap. Remember last year we appropriated fund balance. We're not going to need to use all of that because we did get extra revenue. Um the other three I I mentioned Bosey's aid, but building aid, Bosey's aid, and transportation aid. Those are all our expensed based aids. That's money that the state pays us back for expenses in those categories. Um so, um like I said, the Boseies aid is going up. Transportation aid, we had a a 9.31% increase. Uh that really is being driven due to our uh increased use of outside contractors for our transportation and overtime salaries for our bus drivers. Uh really due to our bus driver shortage. Um building aid on on the contrary is going down a little bit. Um and that's natural as as um projects get paid
011off. We try and keep our um uh building aid and our debt service for the capital projects kind of le um level over time. Sometimes there's fluctuations in that, but um I'm not concerned about that. That was something that was anticipated. So when you roll everything up together and you look at our tax levy increase of 4.29%, our state aid increase of 2.61%, 61% because if you look bottom line when you compare it to our budget uh it's 2.61%. Um we're keeping our federal aid flat. That is just our Medicaid reimbursements for the services that we provide uh related services we provide our students. Um the other local revenues um there was a little I took a little deep dive into that. We have you know it fluctuated um minimally. Um it was a look
012at history um where we think we'll be on interest. Um so that's going down slightly. Um so if you take a if you take a look and we compare um obviously we don't know 100% of what our expenses are going to be. We're going to be looking at our um personnel [clears throat] side of our budget a little more closer over the next month. So we'll know more about our expense side of the budget. So right now the revenue that we have towards the expense side of our budget is the at this at this stage. Now we know obviously that this 41,49380 that we're anticipating from the governor or from the state right now is based on the the governor's budget uh that was released in January. um they are now in negotiations with um
013uh the other legislators and once that legislative budget comes out and they all they have an agreement and that gets published we're hoping early April. It doesn't always happen. Um we'll know more about whether that number how solid that number is. And I would just say that that's the really the only flexibility we have right now in revenue based upon the tax cap calculation already being completed. The local revenue and the federal aid being pretty pretty pretty set. So that 20 that's not on there, but the slide before the 27 million in foundation aid, which is only a 1% increase, that's that's what we need to really focus on. And that's why we appreciate all the advocacy from the board of education with a variety of legislators in New York State between now and April
0141st to try to drive that number up to a more appropriate number, which would increase our overall revenue. >> To to be clear, that number can't go down. Correct. Is the governor's locked into that at least >> allegedly? >> I I I can't see them because my understand they could move it but it's unlikely. Historically it normally has >> that's what I mean is >> not that I'm aware of. I think the only thing that can be a driving factor in that later on is it's it's based on combined uh wealth in the community and the two biggest factors of that if you saw the formula it would make your head spin right there's [clears throat] h like a lot of factors in there. The two biggest things that drive that are enrollment and com
015and and wealth in the community. So increased wealth in the community. The state thinks that you don't need as much money from us, which is kind of odd because they cap you on the tax cap and your tax cap's already calculated. Um but the other thing that can factor that in is is enrollment. So um uh I'll give it if you lose students, yes, that could go down. Um, but that would be I the only thing that would at this point in time. >> There's also a provision, sorry to interrupt, the in the governor's law and the law within New York State that the governor could theoretically halfway through a fiscal year take money away from us school districts if they were in a budget crisis. And the budget crisis is defined by a certain
016number certain amount of deficit. So unfortunately, yes, the governor could not even this. They we could get the whole thing approved, but theoretically halfway through the year, if the governor needed [clears throat] money, she could take it, the governor could take it from school districts that would cause mid-year cuts and things like that. Do I think that would be politically sane? No. But >> no, >> that is an actual new law that was passed for whatever reason. Is enrollment an eligibility number or actual? >> Say that again. >> For enrollment or actual enrolled >> actual enrollment question. >> Yeah. >> If you're at a charter school or private school or >> don't [clears throat] they don't count towards the enrollment, >> right? They they don't count that. They might count in other state aid factors.
017So say the um instructional material aid, they do count in those >> account for that. Yeah. because of the library loan program and the the uh textbook software hardware library loan. >> Do you so if we have students who >> out of district >> are out of district placements they >> count right >> for for those other for those other ones in the district. >> That's what I'm saying. That's why for watching >> correct >> they [clears throat] count for us >> correct? >> So not charter not private but out of district placement that we designate as part of our enrollment. >> Correct. That counts in that foundation a good >> Yeah. I I I asked that question only because and this is probably not the right forum for us to answer it, but it's
018just a question with regard to those who may not be enrolled. Are they still taking advantage of the services that we provide here at the school? And is has that case ever been made to the state ever? And I guess I don't know the answer and I'm not sure, but it just makes me wonder if that's ever been >> part of the conversation. >> You're talking about families of who students go to private school. >> Yeah. >> But they use it. Yeah. They use our services of the district >> or what have you, right? >> Compared that I think they would say they pay the taxes, so they should be able to use the services. >> Okay. So, that's the offset, but we're going to cap. >> I'm just telling you what >> I'm not.
019Yeah. >> Can you use a mesh? >> All good questions, though. >> Thanks. >> You're just looking for extra revenue, Ryan. And I'm >> I'm squeezing every >> I love that >> thing I can. >> But do we still get transportation for them? [clears throat] >> Correct. Because we're transporting them. So, the way that's reported is is that way. >> Yeah. uh through the cost of train the driver, the bus, all of that. >> Really, what we're talking about is foundation aid as opposed to some of the other aid costs that Okay. All right. So, >> gotcha. >> That's what I wanted to make clear is talking about foundation aid from an enrollment standpoint, but the other services are covered in other aid areas, right? >> Like specific to transportation. Carol and I were just
020talking about it. [clears throat] Since since we pay the taxes for school legally, the district has to provide transportation to out of district placements. So then therefore the government has to figure that in to get it. >> So there are restrictions on that. [clears throat] So as long as um there's a lot of them, but the basic one is 15 mile radius. So, if that other district is uh or the the school that they're placed in is outside the 15 mile radius, we don't transport. >> Are most within the 15 miles? >> There's one that's not. And I I get asked probably three at least since I've been here at least three times to explore that option. And it's it's too far outside the the area. Yeah, you have you have >> but the other
021ones are and >> be one person in the district that is 15 miles door to door >> as long as one is then we would we would have a central pickup spot and generally they would have to come to the campus and and that would be the the the the pickup drop off spot >> and just for the benefit of I mean I'm talking about the slide on preliminary state aid where there's a it looks like Boseis has a considerable change. >> Yep. So what are the indicators on that? The need for more programming or the governor is making up. I guess I'm >> Nope. That's that is really an expense-based aid. So it's based on what we submit and say that we we did and we've been uh and I think we've been very
022open about how we're trying to shift costs to the that line. So um you know that's where all of our technology goes through. That's a big portion of that um that generates aid. this even though we have students with disabilities that might go to us that that that is not factored into Bosey's aid that's actually high cost aid outside of that but the Bosey's aid in and of itself so I'll give you the example we talked the about the hundred [laughter] $100,000 capital outlay project last year um that we're moving money from the Boseies line down to the capital outlay we did the the work through Boseies because we got Bosey's aid on that work through their safety cer so it was the the um some security um keying projects in in the um in
023the district. So we were able to get Bose's aid on that. So we try and find opportunities and different ways to get um to get aid any opportunity that we can to shift a cost into Boseies um and generate aid on it. So, one of the things that's you're going to see on the budget for next year and we're we're going to be presenting a little more on the Bosey's aid um and the upcoming budgets, but or upcoming sessions, but um the um early college access costs for um the student tuition and the Gemini courses and >> uh Karen's a little more adept at talking about what that is, but um we are shifting those costs into there, so we'll see a big bump in those costs, but that'll generate aid that very next year.
024So we will have a little overage on those Boseies lines this year as we shift those costs. So we will see those. So right now that's not probably reflected in that $3.8 million. So I do expect that our actual will be up. I'd rather be conservative at the time of budgeting and let that be an opportunity for us to keep whittling away at that when you're looking at this next slide. that big increase can help us whittle away at how much we need to appropriate in fund balance. So that increase in state aid, you know, I I I don't want to assume that this is going to happen and and god forbid that there be something that gets denied at the state level. I would prefer to be conservative on on that. Uh it's a
025new program um and it'll be our first submission on on all of it. So I anticipate that our Bosey's aid will actually be higher for next year than what was showing on that line. So >> yeah, >> and this is probably looking too far ahead, but the CTE itself, will that present any opportunities? >> The career technical education program. So um we aren't budgeting in 20 2720 or 2627, but that program will start in 2728. So as we develop that and we have opportunities to maybe tuition out, that could be another revenue source for us as well. and the subcommittee that Karen Finter is facilitating from the community partners around shared shared expenses and opportunities would talk about that. >> Yeah. Yeah. Good. >> Great questions. >> Thank you. >> You're welcome. >> I try.
026[laughter] >> Okay. So, one of the things I I I promised you earlier on in the slide to talk about why we we exceeded the tax cap in those those two fiscal years that you saw that that line that yellow line go up above the blue line. Uh so this is our fund balance history um for um where the revenue is that green line and the orange line is our expenses. And as you notice, pretty much all the way up through 2020, those two lines were in lock step with each other. There was actually a year where you've got your expenses exceeding your revenues in those years. And it um interesting to note on it as well uh is during that time the blue shaded area at the bottom that is that represents our fund
027balance as a district during those years. So if you noticed all those years, we weren't saving uh for the future. Um what shifted that in 2020 through um through 2024 is is a few factors. Um one was um the districts intentional intentionally started creating a um contingency gap uh so that we could build our reserves uh and address some some critical needs in the district. Uh we received our uh increase in foundation aid during those years when foundation aid became fully funded um after years of of losing about $110 million to the the our towards our budget uh cumulative accumulatively over those years. Um also during that time you had the influx of the pandemic era aid. So once now that that pandemic era aid is gone, um foundation aid is now flat, um it's
028even more important for us to be protecting that cushion. Uh so we'll be looking very closely um at current year expenditures. I've already got been looking for about two months, two and a half months at our current year projections to see where we think we might be uh to see where we can whittle away at the use of fund balance for next year. um or that we used this year. Uh maybe not expend as much. We already saw where we got a little more revenue. Now maybe if we uh can hold our expenses uh to a level that can help us um reduce the use of of appropriated fund balance, but we want to maintain that cushion and and and I I I know I may have probably said it several times before and you've
029heard it from Dr. Terteranova. you know, it's very important for us, you know, to have that that 3 to 5% cushion to be able to fund reserves so that in say every five years you can do a capital project and maintain your buildings and get state aid for those projects. So, it's it's critically important to have money in reserves to to help you through unstable positions where you have an opportunity. So you see a couple of those years where that orange line goes above the green and you uh expended more than than you had in revenue revenue coming in. Those reserves are critically important for times when when things get lean. Um and again really important for saving for um repairs to and uh renovations to your infrastructure on campus. So, um, going forward, our
030immediate priority today is to submit, well, tomorrow is to submit the tax cap. Uh, it's due by the 1st, which obviously tomorrow's the 27th. We're in, um, February, so we are don't make quite make it to the 31st. Uh, so we'll be doing that. Um, we are going to continue to meet uh, with the budget stakeholders to refine expenditures. Um, obviously I talked to you about the, you know, personnel budgets. Um we're going to look at that next month and present to you. Um and obviously the incre continue advocacy for increased state aid. Um we're going to provide the personnel update the first one on March 11th. Uh and again on the the 26 we'll provide an update on that and then over look at our overall expenditures. Um on April 16th is when that
031we will present the final budget to you and that needs will be adopted at that point in time. uh so we can go through the rest of the budget season and and end up at May 19th with the budget vote and the board of ed election. Would anybody like to have any more questions? Just a comment in our advocacy. I'm sure Dr. Tanovas told you, but most of the people we've spoken with, they are very optimistic about an on-time budget. So hopefully that's a good thing. I would appreciate that because it's not always it makes it very difficult to um pin down a moving target. >> Yeah. >> You know, when you don't know what that's going to be and you have to make estimates, you know, and you're presenting things uh to the community,
032um to have that come in late and and have to scramble would be is is not easy. >> Yes. Yes. And it definitely we're hearing that, you know, education is obviously a bipartisan um interest. So like nobody wants to cut stuff, but there are a lot of areas that are unknown whether federal aid's going to come in and um so there are lots of things out there, but um we are hearing that there's not as many attachments to the budget. So they're hoping that it'll be on time. So >> very good news. [clears throat] >> We'd like it to be on time and higher. right? More money. >> Well, in a one what one that 1% floor on on when you know you're looking at foundation aid, that's what funds our operational budget, right? You
033know, that's the big a big portion. And 1% is is not realistic. Not at all. When you have health insurance going up 15, 18%, utilities going up, I mean, school districts are feeling that impact just like homeowners are feeling that impact. So, um it's just not realistic, um unfortunately. So, hopefully they'll they'll make some movement on that as well. >> We're hearing it better than zero. >> Yes, they started at one this year, not at zero. >> Yeah. >> Great. >> Sure. Did you get this email call to action for the capital outlay increase? >> When did it come in today? >> Uh I got an email from one of my friends about this. >> So they're are they is that trying to increase to $250,000 and >> 50 to 500 which would be incredible.
034But it is they're asking people to write to their congressman. So maybe I can forward this on >> well and I think the other the other window on that thing that that has come up in in prior years um and advocating to increase that and also to extend the period of time to finish them because a one-year window is pretty tight. Um you'll see on the March agenda a seeker for our board um or for the capital outlay project for next year. uh that has to happen before you guys vote on the budget to say it's okay to move forward with it. There's timelines of things and to make sure that you have the goods you need and the windows of opportunity to do the work that you're you're thinking of doing that year. Think
035about when you can do that work in a school district, right? Over the summer, over maybe winter break, maybe spring break. And then the work has to be done by June 30th because this the final cost reports have to be submitted to the state. So there is a call as well if um increasing it and maybe making it a two-year um process so that if you get everything approved, if there's any delay during the school year, you can extend into that next summer and get things done and and not >> you do it once a year, but you could finish the job within two >> in two years. And just remember too, this is the pessimistic part. [clears throat] It'd be a real challenge for us to do a greater capital outlay than 100,000 because
036the foundation aid's so low. So when push comes to shove, the first thing we've got to emphasize with the state is we need more foundation aid, which will give us more money to be able to keep up with our expenses, which would then allow the flexibility to use more money in a capital outlay if that was given to us. But it seems like the state that people are advocating for a lot of different things, but nothing really matters if they don't fix the foundation aid. That's the problem. >> That's my opinion, by the way. But >> yeah, there's still a local share that goes along with the capital outlays, whether they're $100,000 or 200 or 500. You know, if we're 72% aided on those project, there's still 28% that needs to be carried in our
037budget. Um if we keep it level and we stay there, we're okay. Um it's when you that first year you take a little bit of a hit, which is why you see the the a capital exclusion going up this year. It next year that net impact is is different because it'll be $100,000 that's level, but I'll have $72,000 in aid hitting um building aid next year. and the capital outlays, you get that aid 100% that very next year. You don't have that isn't expended over a period of time. >> Just to clear up, you get a h 100,000 or >> you get 72% of your total expenditure. So that $100,000 uh we submit a final cost report, we'll get $72,000 in aid in that next year, next fiscal year, provided the work's done and you
038do your final cost report on time and great. A lot of nuances, a lot of nuances. [laughter] >> Any other questions? All right. Uh just a reminder, our board of education meeting is on Wednesday next me next week, not Thursday or two weeks, sorry. Um not Thursday. Uh so that parents and others can go enjoy the district orchestra concert. Um anything else before we close out? >> Just thank you >> as always, Christine. So much. You're welcome. >> All right. Great. We'll see everyone again in two weeks.