Mohonasen Budget Presentation

7/29/2019 Mohonasen Budget Presentation

1/20

2013-2014 Budget Update

March 18, 2013

Board of Education Presentation

Working Budget Topics:Tax levy limit calculation & scenarios


2/20

Given all known factors: We currently have a $1.3 mil lion gap between expensesand known revenues for next year.

Based on the Governors proposed budget, Mohonasen is planning for an actualincrease of $252,000 in aid for basic operating expenses (less than 1.5%).

Costs continue to rise:

Planning for a 37% increase in TRS costs

New mandates: APPR, DASA

What wil l the enacted state budget br ing?

Senate and Assembly proposals calling for larger increases in aid for education. The Governor had called for a $203 million fiscal stabilization fund and pension

smoothing proposal.

Few details are known at this time; We expect a state budget this week

Budget Factors & Challenges

3/18/13 1Budget Update


3/20

Weve cut $6 mil lion and 70 FTE posit ions in the last three years. Weve reduced or eliminated teaching positions: music, art, reading, math, English,

science, social studies, foreign language, business, physical education, family andconsumer science, and technology.

Weve reduced the number of elementary teachers and librarians we have.

Weve cut administrators, teaching assistants and clerical staff

Class sizes have increased; The number of electives has decreased

Weve reduced field trips, made cuts to athletics, made cuts to operations andmaintenance, and reduced the general administration budget.

Weve reduced the number of days late buses are available to students, andconsolidated regular bus runs.

What is left to cut w ithout severely impacting the quality of educationwe can provide?




4/20

We continue to have one of the lowest per pupi l expenditures in the state, and arestil l looking for ways to save money and be more efficient.

Bargaining Units teachers, administrators & support staff have givenconcessions, saving money and positions.

Applied for DOS Efficiency Grant funding with Schalmont to study possiblemerger/shared services.

We have looked for and applied for additional funding, leaving no stone unturned:Performance Improvement Grant, Strengthening Teacher & Leader Grant, PEP Grant; VAPGrant; Will continue to look for grant funding and apply for both large and small grants.

Other proactive measures include: Consolidation of services, transportation andpurchasing through BOCES; Locking into pricing for gas, electricity and general liabilityinsurance; Our energy curtailment program; Participating in the NYSMEC consortium forelectricity; Consolidated supply bid packages; and Utilizing Auctions International togenerate revenue for old/obsolete equipment.




5/20

This is the 2nd year of the tax levy limit or cap Based on the states formula, our maximum allowable limit is a

4.21 percent increase over the current years tax levy.

As you can see, its not 2 percent

This figure is a threshold that determines what level of votersupport is needed

If the proposed tax levy increase is within the threshold, a simplemajority (more than 50 percent) is needed.

If the proposed increase exceeds the threshold, 60 percent voterapproval is required.

Is this a tax levy increase our community would support?




6/20


Current Budget Worksheet: Given all we know NOW

Rollover Budget: $47,492,512 Starting Point

Adjusted/Working Budget: $46,398,119 As of March 18, 2013Current (12-13) Budget: $44,082,355

$2,315,764$700,000 NYS Performance Grant

(includes $100,000 in carry over funds from 12-13)

Gap $1,615,764

$252,000 GEA Reduction (increase in aid)

$270,000 Estimated decrease in other revenues(including building aid recalculation)

$300,000 PotentialDebt Service Appropriation

Adjusted Gap $1,333,764 Gap with 0% tax levy increase

*Unknown factor at this time: Enacted state budget


7/20

Tax Levy Limit/Maximum Allowable Tax Levy Based on the state formula, this is the highest allowable tax levy that a

district can propose and need the approval of only a simple majority ofvoters (more than 50 percent) to pass a budget.

Tax levy limit PLUS certain exclusions

Proposed Tax Levy

The tax levy called for by a school districts proposed budget.

This is the number we have control over.

The tax levy is the total amount of money to be raised by a municipality afterfactoring in all other available revenues.

Tax levy numbers under the cap law



8/20

Taxes that school districts levy to pay for certain expenses are exemptfrom the lax levy limit calculation.

After a school district calculates its limit, it is then required to add theseexclusions to that amount to get to the maximum allowable tax levy.

Exclusions in the formula include:

Voter-approved local capital expenditures

Increases in the state-mandated employer contribution rates forteacher and employee pensions that exceed two percentage points.

Court orders/judgments resulting from tort actions of any amountthat exceeds 5 percent of a districts current tax levy. Tax certiorarisare not exempt.

Exclusions in the formula



9/20

The only exclusion available to Mohonasen for 2013-14 is the increase in thestate-mandated employer contribution rate for teacher pensions (TeachersRetirement System).

The TRS Contribution Rate is increasing from 11.84 percent of payroll in the

current year to 16.25 percent for next year (4.41 percentage points).

The amount over 2 percentage points 2.41 percent is the exclusion.

At this time, 2.41 percent of the TRS salary base for 2013-2014 is $448,422

$448,422 is the allowable exclusion that must be factored into the taxlevy limit calculation.

Exclusions in the formula



10/20


PROJECTED Mohonasen Tax Levy Limit CalculationPrior year tax levy $22,938,507

Tax base growth factor (if any)* X 1.0025

Payments in lieu of taxes (PILOTs) receivable during prior year +0

Taxes levied for exemptions dur ing prior year (not ERS & TRS) - 0

Adjusted Prior Year Tax Levy =$22,995,853

Allowab le levy growth factor (lesser of 2% or CPI) X 1.02

Payments in l ieu of taxes (PILOTs) receivable in coming year - 0

Available car ryover (i f any) +0

Tax Levy Limit = $23,455,770

Coming School Year Exclusions** +$448,422

Maximum Allowable Tax Levy(requiring simple majority approval of more than 50% of voters)

= $23,904,192

Maximum allowable tax levy increase (percentage) 4.21%

*provided by NYS Tax & Finance Dept. **Increase in the state-mandated employer contribution rate for teacher pensions (TRS) that exceed two percentage points.


11/20

Maximum Allowable Tax Levy = $23,904,192(a 4.21% increase over the current year)

Proposed Tax Levy = ?

This is what we need to decide

What level of tax levy increase will our community support?

What is left to cut from programs and services without

severely impacting the quality of education Mohonasensprovides?

Mohonasens tax levy numbers



12/20

How do we close a $1.33 mill ion gap?


There are essentially two main ways to close a gap: Tax Levy Increase & Budget Cuts

Possible Tax Levy Scenarios

% Tax Levy Increase $ Increase Remaining

Budget Gap

Positions Eliminated to

Close Gap/Balance Budget

0% $0 $1,333,764 21.2 FTE

2% $458,770 $874,994 13.9 FTE

3% $688,155 $645,609 10.2 FTE

4.21%(Projected tax levy limit or cap for

2013-14 based on the state formula)

$965,685 $368,079 5.8 FTE


13/20

Assessed Value vs. Full Value


Town Assessed Value EqualizationRate

FullValue/Market

Value

Tax Rate(per $1,000 of

assessedvalue)

Total Taxes

Rotterdam $150,000 100% $150,000 $15.89 $2,384

Guilderland $131,580 87.72% $150,000 $18.11 $2,384

Colonie $104,625 69.75% $150,000 $22.77 $2,384


14/20

ESTIMATED impact on a household*Given current assessments/equalization rates


Town Current Tax Rate(per $1,000 of

assessed value)

0%Tax LevyIncrease

2%Tax LevyIncrease

3%Tax LevyIncrease

4.21%Tax LevyIncrease

Rotterdam $15.89 + $0.00 +$0.32 +$0.48 +$0.67

Guilderland $18.11 + $0.00 +$0.37 +$0.55 +$0.76

Colonie $22.77 + $0.00 +$0.46 +$0.69 +$0.97

Impact on a home will a full-valueof $150,000

$0/year +$47.68/yearOR

+$3.97/month

+$71.52/yearOR

+5.96/month

+$100.36/yearOR

+8.36/month

*These numbers are only estimates.All figures assume no change in equalization rates and assessments (informationthat is typically finalized and made available to districts during the summer). Figures include no state or local taxexemptions, including STAR.


15/20

Maximum Allowable Tax Levy = $23,904,192(a 4.21% increase over the current year)

Proposed Tax Levy = ?

This is what we need to decide

What level of tax levy increase will our community support?

What is left to cut from programs and services without

severely impacting the quality of education Mohonasenprovides?

Mohonasens tax levy numbers



16/20

What happens if the budget is rejected by voters?

If the proposed budget is not approved by the voters, the district may resubmit theoriginal budget or submit a revised budget to the voters on the third Tuesday in J uneOR adopt a contingency budget that levies a tax no greater than that of the prior

year (0% increase in the tax levy).

If the resubmitted/revised budget proposal is NOT approved by the required margin, theBoard MUST adopt a budget that levies a tax no greater than that of the prior year(0% increase in the tax levy) AND the budget would be subject to contingent budgetrequirements. Under a Contingency Budget, some items would need to be cut from thebudget to meet the law with respect to definition of contingency appropriations. Cuts

would be to student supplies, community use of buildings and grounds, certainequipment purchases and salary increases.

Contingent Budget Rules



17/20


2013-14 PROPOSED Bus Purchase Requests

4 - Full size 66 passenger buses

Proposition Amount = $460,000

Less State Share of Trans. Aid .717% = ($329,820)

Est. Budget Impact District Share over 5 years = $130,180(approx. $26,036.00 per year)

No impact to 2013-14 budget - Debt/bond payments and stateaid payments begin school year following a bus purchase, inthis case 2014-15.

Pupil Transportation


18/20

Board of Education Vacancies Two (2) at large seats

Three-year terms

At least 40 signatures required on petition

Petitions are now available in the District Office Petitions are due back to the District by Monday, April 22th at 5 p.m.



19/20

Questions and Discussion



20/20

State budget expected later this week

Next BOE Meeting: April 8, 7 p.m.

Working Budget Topics: Instructional programs & budget reductions

Contact your elected representatives

Need tips? Ideas? Contact info? Pick up an advocacy toolkit or go towww.mohonasen.org/budget.

April 23, 2013: Adoption of budget proposal

May 13, 2013: Budget Hearing & Meet the Candidates Night

May 21, 2013: Annual Budget Vote & BOE Elect ion

Next Steps

http://www.mohonasen.org/budgethttp://www.mohonasen.org/budget

Mohonasen Budget Presentation

Documents

Transcript of Mohonasen Budget Presentation