2014-15 Projected Budget Gap - Canton Central School District

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2014-15 Projected Budget Gap - Canton Central School District
Fiscal Update and Budget Overview
Presented to…
Canton Central School
Board of Education
William Gregory
Superintendent
Canton Central School District
April 8, 2014
State Aid Summary: Governor vs Final
Type Aid
Base Foundation Aid
Universal Pre-K
Canton
Final Legislative
Governor’s
2014-15
Amount
2014-15 Proposal
Budget
Change
% Change
11,100,413
244,845
11,194,766
244,845
94,353
0
0.85
0.00
1,057,135
1,053,687
-3,448
-0.33
503,001
503,209
208
0.04
Private Excess Cost
66,088
65,565
-523
-0.79
Hardware and Technology
26,091
25,198
-893
-3.42
Software, library, textbooks
109,391
105,110
-4,281
-3.91
Transportation
1,645,980
1,645,980
0
0.00
Supplemental Public Excess
Building Aid
26,193
2,176,497
26,193
2,176,497
0
0
0.00
0.00
Total Gross Aid
16,955,634
17,041,050
85,416
0.50
Gap Elimination Adjustment
-1,381,778
-1,161,325
220,453
15.95
TOTAL NET AID
15,573,856
15,879,725
305,869
1.96%
BOCES
High Cost Excess Cost
State Aid Summary: Year to Year
Canton
Canton
2013-14
2014-15
Type Aid
Legislative Budget Legislative Budget
Base Foundation Aid
11,100,413
11,194,766
Universal Pre-K
241,213
244,845
BOCES
1,021,322
1,053,687
High Cost Excess Cost
550,647
503,209
Private Excess Cost
55,199
65,565
Hardware and Technology
25,007
25,198
Software, library, textbooks
107,793
105,110
Transportation
1,579,688
1,645,980
Supplemental Public Excess
26,193
26,193
Building Aid
1,160,022
2,176,497
Total Gross Aid
15,867,497
17,041,050
Gap Elimination Adjustment
-1,548,828
-1,161,325
Total Net Aid
14,318,669
15,879,725
Total Net Aid Less Building Aid
13,158,647
13,703,228
Amount
%
Change Change
94,353
0.85
3,632
1.51
32,365
3.17
-47,438
-8.61
10,366
18.78
191
0.76
-2,683
-2.49
66,292
4.20
0
0.00
1,016,475 87.63
1,173,553
7.40
387,503
-25.02
1,561,056 10.90%
544,581
4.14%
Net increase less Building Aid: 4.14%
Change in Canton School Aid since 2008-09
(excluding Building Aids)
$14,500,000
$14,101,574
$13,703,228
$14,000,000
$13,500,000
$13,000,000
$12,500,000
$12,000,000
$11,500,000
$11,000,000
$10,500,000
2008-09
2014-15
Change in School Aid 2008-09 to 2014-15: (-$398,346) or (-2.8%)
(excluding Building Aids)
Source: New York State Council of Superintendents
2014-15 Budget Summary
2013-14
Component
2014-15
Change
General and Special Education
9,540,410
9,942,091
General Support
Operations and Maintenance
Transportation
1,204,865
1,604,450
1,231,490
1,213,462
1,616,341
1,276,440
528,391
537,055
326,501
8,275,490
1,591,527
329,656
8,872,433
2,735,099
1.6%
1.0%
7.2%
71.0%
$24,303,124 $26,522,577
9.1%
School Administration/Staff
Development
Athletics and Extracurriculars
Employee Benefits
Debt Service/Interfund Transfers
BUDGET TOTALS
4.2%
0.7%
0.7%
3.7%
Year-to-year increase less debt service: 4.7 %
DRAFT-SUBJECT TO CHANGE
5
Budget Gap Analysis
REVENUES
Estimated State Aid
(Legislative budget less Universal Pre-K
aid, accounted for separately)
Estimated Other Revenue
Current Tax Levy
ESTIMATED REVENUES LESS TAX
INCREASE
EXPENDITURES
Draft 2014-15 Budget
(including debt service for capital project)
Year-to-Year increase
Draft budget net % increase
15,634,880
400,000
8,432,390
$24,467,270
$26,552,577
$2,219,453
9.13%
2014-15 Projected Budget Gap
2014-15 Projected Budget Gap
Draft 2014-15 Budget
Total Projected Revenues
Projected Budget Gap #1
26,552,577
-24,467,270
2,085,307
• This illustrates that projected revenues for 2014-15 fall
significantly short of funding our expected minimum needs
• This type of gap has occurred for the past several years,
forcing the District to dramatically:
> cut programs and staff
> propose maximum “to-the-cap”tax increases
> commit significant fund balance and reserve funds to
bridge these gaps.
We do not have these options going forward. Here’s why…
The Local Property Tax Picture




A 1% increase in Canton Central School’s property tax
generates about $84,000 in additional revenue.
To erase this gap requires a tax increase of 24.8%
This obviously won’t work, even if there were not a tax
cap.
Given a tax cap of 2.56%, Canton may raise a maximum of
$216,038 in additional property taxes.
Let’s see where that leaves us.
Apply Estimated Tax Revenue
Apply Tax Revenue
Projected Budget Gap #1
Less additional projected tax
revenue
Adjusted Budget Gap #2
$2,085,307
-216,038
$1,869,269
• The next option is to commit reserve funds to bridge the
gap.
• As of June 30, 2013, Canton’s unreserved fund balance
was $782,108
• Let’s consider this in the equation.
Apply Undesignated Fund Balance
Apply Undesignated Fund Balance
Adjusted Budget Gap #2
Apply Fund Balance
Adjusted Budget Gap #3
$1,869,269
-782,108
$1,087,161
• As indicated above, despite the assumed use of the entire
undesignated fund balances, there would still be huge
deficits to address.
• As noted by the Comptroller’s office in its audit of Canton
Central School, such use of fund balances as shown here
places the districts at significant risk.
• Given the extent of this crisis, we must also consider use of
other reserve funds that can legitimately be applied.
Reserve Funds
Reserve Funds (Restricted)
Reserve for Employee Benefits
and Accrued Liability
Balance
6/30/2013
Apply to
Remaining
2014-15
Balance
Budget
346,336
0
346,336
79,278
0
79,278
390,040
390,040
0
Capital Reserve
0
0
0
Tax Certiorari Reserve
0
0
0
$815,654
$390,040
$425,614
Unemployment Insurance
Debt Reserve
Totals
11
Apply Reserve Funds
Apply Reserve Funds
Adjusted Budget Gap #3
$1,087,161
Apply Reserve Funds
-390,040
Adjusted Budget Gap #4
$697,121
• As a final measure, we can consider using any end-of-year
unspent funds from the current school year’s budget
• By limiting our expenditures to “mission essential” items
for the remaining 2.5 months of this fiscal year, we may
realize an additional $775,000 that may reasonably be
applied to the equation.
Apply Unspent Year-end Funds
Apply Unspent Year-End Funds
Projected available unspent funds
$775,000
Adjusted Budget Gap #4
-697,121
Remaining Balance
(to Fund Balance)
+77,879
This translates to a minimum level of fund balance to
deal with emergencies and be available for use next
year.
It is a risk we must take, if we are to continue to
provided a viable, comprehensive educational program
for our students.
Budget Gap Reduction Synopsis
Element
2014-15
Draft Budget
$26,522,577
- Revised projected Revenues
-24,467,270
= Balance remaining
2,085,307
- Amount to be offset by tax levy increase (2.56%)
-216,038
= Balance remaining
1,869,269
-Apply unappropriated fund balance
= Balance remaining
-Apply reserve funds
-782,108
1,087,165
-390,040
= Balance remaining
-Apply estimated year-end unspent funds
= Balance remaining
697,121
-697,121
0
14
Administrative Recommendation--Recap
Support the proposed budget of $26,522,577
This will necessitate:
1. A proposed tax levy increase of 2.56%
2. Commitment of $782,108 from the undesignated
fund balance
3. Commitment of $390,040 in reserve funds.
4. Commitment of estimated $697,121 in unspent
year-end funds
15
Our Unattractive Alternative
The alternative to the proposed budget is to consider additional
program and staff reductions, beginning with non-mandated programs.
•
•
•
•
•
•
•
•
•
•
•
•
Elimination of entire athletic and extracurricular programs
PreKindergarten (elimination/reduction of 72-student program)
Kindergarten (elimination or reduction from full-day to half-day)
Art (elementary art and secondary electives)
Music (elementary music and secondary electives)
Guidance services (no elementary counselor mandated)
Information and Technology Sciences (all non-mandated instruction)
Languages Other Than English (French or Spanish?)
Family Consumer Science (all non-mandated instruction)
Agriculture program
Transportation (no busing within specified distance from school)
School pool (curricular, extracurricular, community programs)
We don’t want to go here. Unfortunately, we may find ourselves facing
a similar, or even worse dilemma next year if our fiscal outlook does not
change—and change dramatically.
Remaining Budget Calendar
April 10
BOCES Annual Meeting
April 24
Budget Adoption
April 28
BOCES Administrative Budget Vote and Election
May 8
Budget Hearing
May 20
Board Election and Budget Vote
17
Board Discussion
18