2018-19 budget development · politics impacting education & local control foundation aid...

2018-19 Budget Development

Budgetary Climate &

Operations and Finance February 6, 2018

Vision for Tomorrow

Our vision is to be an ever stronger district:

● supporting each student's academic and social emotional growth with continually improving programs

● in safe, well-maintained, flexible learning facilities

● in which our staff is supported with consistent high-quality professional development and fair contracts

● and our fiscal health is sustainable because ○ budgets are under the tax cap ○ occasional tax neutral capital bonds are approved ○ and IUFSD is able to withstand occasional challenges

by controlling expenses maintaining strong reserves

All while being mindful of the tax rate

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Guiding our work are our Strategic Objectives:

To achieve its mission and vision, and to provide for the future of its students, the Irvington Union Free School District will:

1. Provide students with a rigorous, comprehensive, enriched and diversified curricula that will prepare students to achieve their personal best, and will integrate technology in their learning.

2. Encourage innovation, creativity and risk taking to inspire a dynamic learning environment.

3. Foster the social and emotional growth of all students and promote a culture where students are active participants in society.

4. Support educators through targeted professional learning and opportunities for collaboration.

5. Strengthen local connections to and ownership of our schools.

6. Ensure the fiscal health of the district and provide for a high quality learning environment.

The Strategic Objectives will underpin all budgetary recommendations

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Vision for Tomorrow

Aligning the Vision & Budget

As the District plans for the future, our fiscal initiatives will align with our Strategic Objectives.

Even when faced with fiscal challenges, we will continue to focus on the District’s priorities.

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Navigating Challenges

● National and State political landscape o Tax Law changes

● Government continues to issue mandates without financial relief ○ K-12 Guidance; ENL; ESSA

● State Aid Uncertainty ○ Foundation Aid underfunded; modest increase but formula still not running ○ Concern of shifting aid to Upstate/NYC/Big 5 ○ Proposed caps on growth of Transportation/BOCES/Building Aid ○ Proposed increased local contribution for Summer Special Ed (currently 20%)

● Tax levy cap formula is flawed and is hindering districts’ ability to plan for the future ○ Carry over basically prohibited

● Unpredictable Tax certioraris and timing of refund payments

● Changes in enrollment

● Special Education needs ○ Out-of-District Tuition ○ New Enrollment ○ Least restrictive environment

● Contractual obligations beyond our control - such as pension contributions, health insurance costs, utility cost increases, BOCES fees

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Politics Impacting Education & Local Control

Foundation Aid History – past 10 years

* The amount of aid the district should receive based on the current formula calculations

Formula Aid * Paid % Paid Lost Aid

2007-08 2,232,267 1,428,407 64% 803,860

2008-09 2,232,267 1,623,213 73% 609,054

2009-10 2,296,694 1,623,313 71% 673,381

2010-11 2,210,305 1,623,313 73% 586,992

2011-12 2,265,155 1,623,313 72% 641,842

2012-13 2,306,624 1,623,313 70% 683,311

2013-14 2,607,804 1,639,734 63% 968,070

2014-15 2,830,119 1,691,039 60% 1,139,080

2015-16 2,716,741 1,701,296 63% 1,015,445

2016-17 2,852,328 1,701,296 60% 1,151,032

2017-18 3,252,791 1,754,900 54% 1,497,891

27,803,095 18,033,137 65% 9,769,958

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IUFSD Recent Budget History So where have we been?

● Prior to the 2013-14 budget, the aftermath of the recession led to large-scale reductions and program eliminations ○ Program and staff reductions 2009-13 included:

• 19.6 teaching positions eliminated • 15.3 additional staff: administrators, clerical, custodial, maintenance, etc. • 18 high school electives • Elementary and middle school programs

● In 2013-14 to protect student experiences, in the face of large mandated increases and a new tax levy cap, the community voted to override the tax levy cap

● Since 2013-14, we have invested in our students and their future by building new experiences and enhancing those that existed

• 13.1 teacher positions restored/added • 14.7 additional staff restored/added; administrators, clerical, maintenance,

Instructional support, speech, psychologist, library

● Over the past 4 years, the District budget was at or below the tax levy cap

● Enrollment is steady this decade and projected to remain constant, if not slightly up

● Moving forward, we continue to have challenges as a result of the tax levy cap and limits on local control

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10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

General Fund Expenditures Tax Cert

Debt

Benefits

Transportation

Extra Curricular/Athletics

Technology

Ed Support

Spec Ed

Reg Ed (2110)

Facilities

General Support (LessTax Cert,B&G)

* Budget

IUFSD Recent Budget History So where have we been?

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Irvington School Budget Trends

Year Budget % Budget Increase

Tax Rate per M Increase

2011-12 $50,324,892 0.91% $592.19 3.54%

2012-13 $51,156,000 1.65% $613.84 3.66%

2013-14 $54,070,000 5.70% $645.81 5.21%

2014-15 $56,294,000 4.11% $665.35 3.03%

2015-16 $57,664,000 2.43% $690.14 3.73%

2016-17 $58,330,000 1.15% $698.79 1.25%

2017-18 $59,100,494 1.32% $19.13 n/a

2018-19 TBD TBD TBD TBD

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Demystifying the Fund Balance

● What is the fund balance? ○ State allows 4% of budget to be retained by school districts ○ End of year difference between expenses & revenue is transferred to fund balance

or reserves where appropriate

● How is it used? ○ To cover emergency (unbudgeted) necessities ○ Used for cash flow from July 1 until October (when District receives tax revenue) to

pay bills and salaries; reduces interest expense by not needing to borrow via a Tax Anticipation Note (TAN)

● What are the ramifications for using it? ○ Not a sustainable source to balance budgets ○ Could lower bond rating, resulting in higher interest rates ○ District could receive “Fiscal Stress” designation from NYS

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Budget Process December Identification of needs January-February State budget data released January 23, 2018 BOE-Administrative Roundtable February 6, 2018 Operations and Finance March 6, 2018 Curriculum and Instruction March 20, 2018 Proposed Budget April 10, 2018 Budget Discussion/Adjustments April 17, 2018 Budget Adoption May 15, 2018 Budget Vote & Trustee Election

Responsibility of the Board

● The Board must determine: ○ Determine budgetary ceiling - responsible growth ○ If we should maintain/increase fund balance appropriation level ○ Maintain a sustainable financial future

● Critical discussions: ○ Each of the upcoming meetings are important ○ Board to provide Administration with budget direction

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Operations & Finance Budget

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Our Vision for Tomorrow

To achieve it mission and vision, and to provide for the future of its students, the Irvington Union Free School District will:

1. Provide students with a rigorous, comprehensive, enriched and diversified curricula that will prepare students to achieve their personal best, and will integrate technology in their learning.

2. Encourage innovation, creativity and risk taking to inspire a dynamic learning environment.

3. Foster the social and emotional growth of all students and promote a culture where students are active participants in society.

4. Support educators through targeted professional learning and opportunities for collaboration.

5. Strengthen local connections to and ownership of our schools.

6. Ensure the fiscal health of the district and provide for a high quality learning environment.

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Budget Development Focus

This budget presentation will focus primarily on the following Strategic Objective:

#6 “Ensure the fiscal health of the District and provide for a high quality learning environment.”

Therefore, we will:

● Develop a fiscally responsible budget that is mindful of the impact of the school budget on the entire school community

● Outline needs for our facilities

● Define future needs

● Invest in our infrastructure

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Business and Operations The Business and Operations component of the budget includes:

● Board of Education ○ Costs of Board, District Clerk, District Meeting (Budget Votes)

● Chief School Administrator ○ Superintendent, Secretary to Superintendent, Office Expenses

● Finance ○ Assistant Superintendent for Business & Operations, Purchasing, Treasurer,

Payroll, Benefits, Accounts Payable and Receivable, Facility Use Scheduling, Auditing, Food Service account reconciliation

● Legal, Human Resources, Public Information, Central Printing & Mailing ○ Hiring and staff management, Website hosting, Communications to the public

● Facilities and Operations

● Central Data Processing (Administrative/Infrastructure Technology)

● Special Items ○ Insurance, BOCES Admin/Capital, Sewer Tax, Tax Certiorari refunds

● Transportation

● Debt Service

● Transfer to Other Funds

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Business and Operations

General Support, not including Facilities, comprises 4% of our current budget. Facilities is 7% and Transportation is 4%. Finally Debt obligations comprise 8%. The combined proposed budget for these areas is currently $14,354,523.

4% 7%

4%

8%

77%

General Support

Facilities

Transportation

Debt

Instruction/Benefits

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Year-to-Year Budget Variances

Without any new initiatives, the following budget variances will occur: • Salaries

• Increase in Board Size

• Cost for potential capital project vote o District meeting, fiscal advisor, bond counsel

• External auditor RFP

• Internal auditor – intensive area review requirement

• Facilities o Increased cost of plumbing and electrical repairs on aging infrastructure o Necessary tree removal o Support of current recycling initiatives

• BOCES o Cost of Services, Administrative Charge

• Technology Infrastructure Equipment/Bandwidth

• Transportation CPI factor and contract

• Probable need for route to VOTEC program

• Debt Service – per actual schedule of amounts due

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New Considerations

Consideration Amount Primary Strategic Plan Objective

Part time District Clerk with additional responsibilities for Public Records and Registration

$31,500 Strengthen local connections to and ownership of our schools

Annual Community-based Surveys

$20,000 Strengthen local connections to and ownership of our schools

Recycling supplies – Dows/Middle School

$11,300 Foster the creation of a culture where students are active participants in society

Late Bus Transport students from after school activities

$25,800 Encourage innovation, creativity and risk taking to inspire a dynamic learning environment

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New Considerations


Additional Maintenance Mechanic with HVAC/plumbing expertise

$78,600 salary and benefits offset by reduced operation costs of $67,200 for a net cost of $11,400. Additional savings of $43,000 for non scheduled projects.

Ensure the fiscal health of the district and provide for a high quality learning environment

Contractual Maintenance: Second window cleaning; Rain gutter cleaning

$12,000 Ensure the fiscal health of the district and provide for a high quality learning environment

Contractual Maintenance: Preventive Maintenance for hot water heaters; air handlers and pumps

$28,000 (less $11,000 if handled with new Maintenance position)

Ensure the fiscal health of the district and provide for a high quality learning environment

Architect Fees: Capital project planning


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New Considerations


Funding of Tax Certiorari Claims Current financing expired


Transfer to Capital Fund Planned contribution to Capital for future needs (voter approval required to use funds)


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Proposed Board of Education Budget

Key Push Ahead Variances: Increase of 2 Board members Costs for second vote for potential capital project

2017-18 Budget

2018-19 Proposed

Budget Variance

Board of Education 44,740 50,520 5,780

District Clerk 23,995 55,495 31,500

District Meeting 14,925 27,625 12,700

Office of Chief School Administrator 366,907 359,692 (7,215)

Total Board of Education/CSA 450,567 493,332 42,765

New Considerations: Add Part time District Clerk

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Proposed Finance Budget

2017-18 Budget

2018-19 Proposed

Budget Variance

Salaries 391,779 413,644 21,865

Equipment, Supplies, Contractual 66,075 72,500 6,425

BOCES - Financial Software 63,156 68,223 5,067

Auditing 55,100 76,400 21,300

Total Finance 576,110 630,767 54,657

Key Push Ahead Variances: Additional costs for fiscal advisor for bond preparation Increase in auditing fees (held constant last 5 years)

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Human Resources, Legal, Public Info, Messenger, Mailing Proposed Budget

New Considerations: Annual Survey

2017-18 Budget

2018-19 Proposed

Budget Variance

Legal 332,300 343,500 11,200

Human Resources 87,058 93,558 6,500

Public Information 35,493 63,350 27,857

Messenger/Mailing 47,080 47,850 770

Total 501,931 548,258 46,327

Key Push Ahead Variances: Increase for Bond Counsel, other legal

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Facilities Operations & Maintenance Proposed Budget

2017-18 Budget

2018-19 Proposed

Budget* Variance

Salaries 1,967,090 2,142,196 175,106

Equipment 66,325 76,500 10,175

Contractual 228,150 356,400 128,250

Supplies 213,700 259,076 45,376

Security 200,000 200,000 -

Utilities 918,870 903,800 (15,070)

BOCES 38,650 45,250 6,600

Building Repair 217,525 183,400 (34,125)

Capital Repair 188,350 194,000 5,650

Total 4,038,660 4,360,622 321,962

New Considerations: Additional Maintenance Worker Window cleaning to twice per year Preventive maintenance - HVAC Recycling supplies; architect fees

Push Ahead Variances Contractual: Electrical, Plumbing, Tree removal, HVAC/boiler maintenance

* Assumes new maintenance worker 23

Each year, the following areas are budgeted starting from $0 based on identified needs on a priority level:

• Facilities Equipment

• Capital Repair Projects

• Building Repair Projects

Not all items will make it into the proposed budget. Some can wait for a future year. Others are simply too costly to include in the budget and require a bonded capital project. All remain on the “To- Do” list and monitored!

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Included in Proposed Budget: Facilities Equipment: • Carpet Extractors; Auto Scrubber; Van for Maintenance Mechanic; Vehicle

for Facilities Director

Capital Repair Projects: • Replace electrical transformer at Dows

• Repair concrete walls & window well at MSS

• Replace exterior backstage doors – TG building

• Install security bollards (phase 1)

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Building Repair Projects Included in Proposed Budget:

Dows:

• Replace interior doors to MPR

• Replace ceramic tile floor in boy’s bathroom

• Upgrade/replace work parts on playground equipment

• Install padding on basketball court poles

• Create office space for Social Worker

• Install air conditioner in main office conference room

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Main Street School:

• Upgrade stairwell and corridor lighting

• Replace partitions in 2nd floor boys and girls bathrooms

• Replace carpet in the main office suite

• Install padding on basketball court poles

• Replace insert on message board

• Install electrical circuit for outdoor use

• Install fencing around playground

• Paint 2nd & 3rd floor corridors

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Middle School:

• Replace carpet in conference room

• Add benches around trees in quad area

• Replace damaged and worn picnic tables

• Replace wall padding in Maher Gym

• Screen and recoat Maher Gym floor

• Continue outdoor beautification with plants and shrubs in planters and by buildings

• Replace cafeteria tables (shared with HS)

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High School:

• Replace interior glass on garden level rooms (last phase)

• Repair drop ceilings in Campus/Maher gym boys locker rooms

• Renovate Guidance Office area to create more privacy

• Electrical infrastructure to add white board in H216

• Screen and recoat Campus Gym floor

• Paint corridor leading to Main Office

• Paint Band room

• Lighting/Stage Rigging repairs (TG)

• Replace window shades in Campus Library

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Building Repair Projects Not included in the Proposed Budget:

• Classroom, corridor and bathroom painting (all buildings)

• Replace Main Office conference room and exterior gym doors (Dows)

• Replace outdoor wall padding on Upper Dows

• Carpet replacement (MSS)

• Resurface and restripe basketball court; add picnic tables and benches (MSS)

• Install lighting for school letters (MSS)

• Add bottle filling stations (District-wide)

• Replace stairwell light fixtures with LED (MS)

• Install washer and dryer in Home & Careers classroom (changes to room required to accommodate)

• Replace conference room furniture and create a lost and found unit (MS)

• Replace rusted radiator covers in CMS and MS buildings

• Replace wall padding in Campus Gym

• Sound proof testing rooms (HS)

If budget flexibility permits, some may be attended to.

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Capital Repair Projects Not Included in the Proposed 2018-19 Budget:

• Paving; concrete work

• Door locking hardware; Window and door replacements

• Floor and carpet replacements

• Security enhancements and camera needs; upgrade lighting

• Rain gutter installations; Replacement of roof panels

• Renovation of bathrooms

• Art/music room casework

• HVAC/boiler upgrades and electrical panels

• Storage – indoor and outdoor

• Meszaros Field fencing/bleachers

• Classroom upgrades

• Air conditioning

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Additional non budgeted Projects with New Maintenance Mechanic

• Additional Painting – classrooms, bathrooms

• Resurface and restripe MSS basketball court

• Build lost and found unit at MS

• Replacement of more doors and hardware

Total additional savings of $43,000 versus utilizing outside contractors

Summary

• Total Salary & Benefits: $78,600

• Reduction to contractors for included projects: $67,200

• Reduction to contractors for non budgeted projects $43,000

• Net cost: ($31,600)

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Central Data Processing Proposed Budget

Push Ahead Variances • Equipment includes CMS Chassis switch, TG and HS second floor switches, and

HS/MS wireless access points saturation • Contractual includes cost of increased bandwidth

2017-18 Budget

2018-19 Proposed

Budget Variance

Equipment 85,000 170,000 85,000

Contractual 302,100 317,800 15,700

BOCES 115,353 119,745 4,392

Total 502,453 607,545 105,092

Note: Equipment cost is offset by reduction in Installment Debt and Instructional Technology equipment as needs vary year to year

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Special Items Proposed Budget

New Consideration:

Budget for Tax Cert Refunds from expiring debt

2017-18 Budget

2018-19 Proposed

Budget Variance

Insurance 188,000 195,000 7,000

Sewer Tax 60,000 60,000 -

Refund of Property Tax - 400,000 400,000

BOCES Admin/Capital Charges 214,398 236,299 21,901

Total 462,398 891,299 428,901

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Transportation Proposed Budget

New Consideration: Late Bus

2017-18 Budget

2018-19 Proposed

Budget Variance

Transportation Coordination 152,288 156,387 4,099

In District 850,000 906,650 56,650

Private Schools/Special Education 1,049,500 1,125,025 75,525

Field Trips/Athletics 165,000 168,500 3,500

Total 2,216,788 2,356,562 139,774

Push Ahead Variances: CPI increase, fuel costs VOTEC busing needs Note: Out of district Transportation contract is out to bid, may affect estimates

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Other Fiscal: Debt Service, Inter-fund Transfers

New Consideration:

Transfer to Capital Fund

2017-18 Budget

2018-19 Proposed

Budget Variance

Debt Service 4,987,587 4,218,138

(769,449)

Inter-fund Transfer - Special Aid 42,000 48,000

6,000

Inter-fund Transfer - Capital Fund - 200,000 200,000

Total 5,029,587 4,466,138 (563,449)

Governor’s State Aid Proposal creates risk to Transfer to Special Aid Fund estimate. Proposal reduces 80% reimbursement to 25%! This variance does not consider that change.

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Budget Summary

Description

2017-18 Approved

Budget

2018-19 Push Ahead

Budget Change %

Variance

2018-19 New Budget

Considerations

2018-19 Proposed Budget

Total Change

% Variance

Board of Education 83,660 102,140 18,480 22.1% 31,500 133,640 49,980 59.7%

Chief School Admin. 366,907 359,692 (7,215) -2.0% - 359,692 (7,215) -2.0%

Finance 576,110 630,767 54,657 9.5% - 630,767 54,657 9.5%

Legal/Personnel/ Public Info

454,851 480,408 25,557 5.6% 20,000

500,408 45,557 10.0%

Operation & Maint. 4,038,660 4,288,396 249,736 6.2% 72,226 4,360,622 321,962 8.0%

Messenger/Mailing 47,080 47,850 770 1.6% - 47,850 770 1.6%

Central Data Processing

502,453

607,545 105,092 20.9%

-

607,545 105,092 20.9%

Special Items 462,398 491,299 28,901 6.3% 400,000 891,299 428,901 92.8%

Transportation 2,216,788 2,330,762 113,974 5.1% 25,800 2,356,562 139,774 6.3%

Debt Service

4,987,587

4,218,138 (769,449) -15.4%

-

4,218,138 (769,449) -15.4%

Interfund Transfers 42,000 48,000 6,000 14.3% 200,000 248,000 206,000 490.5%

TOTAL BUDGET $13,778,494 $13,604,997 ($173,497) -1.3% $749,526 $14,354,523 576,029 4.2%

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Recap of Proposals

The proposals discussed tonight:

● Align with our Strategic Goals

● Demonstrate how facility and maintenance relate to student learning experiences

● Represent our commitment to maintaining our facilities

● Address important infrastructure needs

● Communicate the District’s obligations in the areas of debt service

● Support long-ranged fiscal planning through the support of responsible reserves

● Will be under consideration and will be modified throughout the budget process as the balance of the budget remains in development

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Future Budget Discussions

Date Meeting Topic

Tuesday, Mar 6, 2018 BOE meeting - Budget presentation on curriculum, technology, athletics, special education/pupil personnel services

Tuesday, Mar 20, 2018 BOE meeting – Superintendent’s Proposed 2018-19 Budget and revenue presentation

Tuesday, Apr 10, 2018 BOE meeting – Budget Discussion & Revision

Tuesday, Apr 17, 2018 BOE meeting - Budget adoption -– Additional Meeting

Tuesday, May 1, 2018 BOE Budget Hearing followed by regular meeting

Tuesday, May 15, 2018 Annual Meeting - BUDGET VOTE

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Discussion

[email protected]

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2018-19 budget development · politics impacting education & local control foundation aid...

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