2018-19 Preliminary Budget Overview

  • Deborah A. Coder, Assistant Superintendent for Finance and Management Services
    January 24, 2018

    Preliminary Expenditure Budget Base

    • As of January 19, 2018 – The “Roll-Over” Budget was:
    • $100,952,427, which is an increase of $4,133,960 or a 4.27% budget to budget increase.
    • This “roll-over” budget figure includes estimates for vendor increases, anticipated contractual obligations, benefit increases and building/department level budget requests.

    Components of the 2018-19 Budget as of January 19, 2018

    Projections

    Revenue Projections:

    1. State Aid increase is currently at $ 1,332,600
    2. Reserves to be used (Debt Service, Employee Retirement (ERS) & Employee Benefit Reserve) decreased ($ 39,708) over 2017-18 use

    Expenditure Projections:

    1. Union contracts & Employee Benefits increased $2,057,270 over 2017-18
    2. Contractual Expenses w/o agency tuitions increased $107,173 over 2017-18
    3. Debt Service (Principal & Interest) increased $479,735 over 2017-18
    4. BOCES Services increased $ 931,808 over 2017-18
    5. SWD and Agency Tuitions increased $ 502,194 over 2017-2018

    Unknowns

    • Retirements
    • Students with Disabilities transfers into the district
    • Building/Facilities emergencies
    • Additional transportation expenses for change in student IEPs
    • Impact of additional federal or state mandates
    • Any other unknowns


    Major Factors Causing the Increase are:

    • Wages and Related Benefits that are mandated under Union Bargaining Agreements
    • BOCES Services
    • SWD Agency Tuitions

    Why Salary & Benefit Increases?

    • Salary increases are in alignment with negotiated agreements among the collective bargaining units in the district. 
      Additionally, salary codes represent substitute personnel as well as supplemental salary items such as longevity, attendance bonus and health insurance opt-out.
    • Pension expenses have increased slightly for the first time in two years, while other employee benefits such as health insurance are still being analyzed.

    Total Amount Budgeted in 2018-19 Salary Codes: $43,346,573

    Why BOCES Services Increases?

    • This budget reflects increased usage for specialized programs and services for students and staff using the Orleans/Niagara, Erie 1, Nassau, Eastern Suffolk, Genesee Valley and Capital Region BOCES. The majority of these expenses will receive either BOCES Aid or Public Excess Cost Aid.
    • Projected BOCES aid is $3,131,634
    • Projected BOCES SWD Public Excess Cost Aid is $753,676

    Why Contractual Cost Increases?

    • Tuition for SWD agency schools is projected to increase $454,581 in 2018-2019. This brings the total estimated budget expenditure for agency schools to $3,531,172. Private Excess Cost Aid from the State for 2018-2019 is estimated at $2,102,087.
    • Enrollment in local charter schools has increased. The district must send the basic operating aid per pupil to the charter school. This budget line increased $47,613.

    Summary of Changes to Expenditure Categories

    • Employee Salaries inc  $1,781,513
    • Employee Benefits inc  $275,757
    • BOCES Services inc  $931,808 (eligible for BOCES/public excess cost aid)
    • Agency/Charter Tuitions inc $502,194 (agency eligible for private excess cost aid)
    • Debt Service Payments inc $479,735 (will be offset by building aid revenue)
    • Contractual Expenses inc $107,173
    • Supplies, Equip., Books, etc $1,205 (will receive some categorical aids)
    • Equipment $172,879
    • Interfund Transfers $(118,304)
    • Expenditure Budget Increase $4,133,960 or 4.27%

    Projected Revenue Budget Overview

    • Projected State Aid (2018-2019)  $53,011,513
    • Estimated “Other Revenue”  $2,847,103
    • Anticipated Reserve Usage  $2,145,958
    • Appropriated Fund Balance  $2,292,777
    • Total Projected Revenues  $60,297,351

    2018-2019 Tax Levy Impact

    • Preliminary Expenditure Budget $100,952,427
    • Preliminary Revenue Budget  $60,297,351
    • Preliminary 2018-19 Tax Levy Needed $40,655,076
    • 2017-2018 Current Tax Levy $37,658,476
    • Preliminary Tax Levy Increase $2,996,600

    2018-2019 Tax Levy Limit Calculation

    • Simple Majority Limit is 2.014941873739130% or $38,417,272
    • Projected 2018-2019 Tax Levy Amount is: $40,655,076
    • This budget is OVER the Tax Levy Limit by $2,237,804

    Budget Discussion Opportunity