2009-2010 Budget
Budget Review: Revenues & Budget Recap
April 7, 2009
At the March 9 Mohonasen budget review session, Assistant Superintendent for Business Denise Swezey presented the expected revenues for the 2009-2010 school year along with a recap of the 2009-2010 budget picture. See powerpoint presentation (PDF)
Swezey presented a proposed budget of $42,383,693 for next year, however she noted that this is not a final number as the board is not expected to adopt a final budget proposal until April 20. The $42.38 million is $448,079 more than the $41,935,614 budget for the current year, which represents a 1.068 percent budget-to-budget increase.
Swezey said that this is the lowest budget increase the district has had in 15 years.
Revenues
School budgets are funded in three ways: state aid (which is slated to remain flat for next year), property taxes and "other." These other revenues include things like interest income, BOCES classroom rentals, use of facilities, admissions at sporting events, Medicaid and Medicare Part D.
The table below shows the state aid Mohonasen is slated to get this year, the aid that was proposed under the Governor's budget (that was presented in December) and the aid that is included in the legislature's budget proposal. It is expected that the legislature's proposal will be adopted by the state any day now. The increase/decrease shown in the last column is the difference between the aid that is in the legislature's proposal and what the district is slated to get this year.
| Analysis of State Aid Proposal | ||||
| Category of Aid | Projected 08-09 as of 4/1/09 | Governor's proposed budget from 12/16/08 for 2009-10 | Legislature's proposal for 2009-10 | Incr./Decr. |
| Foundation Aid | $12,484,751 | $12,484,751 | $12,484,751 | - |
| BOCES | $1,075,969 | $1,230,980 | $1,230,980 | $152,011 |
| High Cost Excess | $590,420 | $557,565 | $557,652 | $(32,768) |
| Private Excess Cost | $347,701 | $342,376 | $364,583 | $16,882 |
| Hardware & Tech. | $70,097 | $57,927 | $56,687 | $(13,410) |
| Software, Library & Textbooks | $278,399 | $258,205 | $258,996 | $(19,403) |
| Transportation Aid | $1,732,003 | $1,939,942 | $1,942,316 | $210,313 |
| Deficit Reduction | - | $(1,544,669) | - | - |
| Subtotal | $16,582,340 | $15,327,077 | $16,895,965 | $313,625 |
| Building Aid | $2,568,998 | $2,691,061 | $2,691,061 | $122,063 |
| Total | $19,151,338 | $18,018,138 | $19,587,026 | $435,688 |
Swezey pointed out that most of the aid categories, in fact all of them besides foundation aid and building aid, are estimates based on state formulas. The numbers shown in the legislature's proposal are actually a bit higher that what the district actually expects to receive. Therefore, you'll see that the state aid number for 2009-10 that is listed in the table below is a little lower than the number released by the state.
"Historically, we're not going to spend all of our budget," Swezey said. "So we don't want to budget everything the state says we're going to get."
| Proposed Revenues | ||||||
| Revenues | Budget 2008-09 | % of Budget | Proposed Budget 2009-10 | % of Budget | Dollar Incr./Dec. | % change |
| State Aid | $18,924,201 | 45.1% | $19,290,541 | 45.5% | $366,340 | 1.94% |
| Property Taxes | $21,262,913 | 50.7% | $21,437,652 | 50.6% | $174,739 | 0.82% |
| All other sources | $1,748,500 | 4.2% | $1,655,500 | 4% | $(93,000) | -5.32% |
| Total General Fund | $41,935,614 | $42,383,693 | $448,079 | 1.068% | ||
Financial Health
"The most
important reason for managing a school district's financial
condition is to sustain the education of students on a long-term
basis. The socioeconomic environment and how management adapts to
the climate are major factors that influence the fiscal health of
the district. District wealth is a key determinant of its capacity
to generate revenues. The district leadership alone has minimal
influence to improve the wealth of a district. However, it can
control how it adapts to the economic environment. Recognizing
potential financial stress, making hard choices with programs and
services, developing realistic budgets and making timely decisions
when faced with stress are all within the capability of the
district."
- Source: Fiscal Fitness, a Guide to Monitoring Your School
District's Budget, February 2004
Swezey presented the quote above, saying that this is the way the board of education and administration have approached budgeting in the last couple years. Evidence of this, she said, is that Mohonasen maintains quality educational programs while at the same time having the fifth lowest per pupil expenditure out of the 667 districts in the state.
"We've worked hard to get to a situation where we are fiscally stable," Swezey said. "We've worked hard to maintain programs and balance that with what the community can bear."
Restoration of $1.5 million Deficit Reduction Aid/Implementation of Full-Day Kindergarten
In his budget proposal, Governor David Paterson had proposed a one-time Deficit Reduction Assessment. For Mohonasen, this would have meant a $1.5 million reduction in state aid for next year. As district officials considered the possibility of this drastic reduction in state aid they had proposed several staffing cuts to the board and the public.
Because of the federal stimulus money, the $1.5 million in funding has been restored. The district is also set to receive an increase in the amount of Title I and IDEA grant funding it will receive next year. The table below shows the proposed staffing cuts and which positions have been eliminated. Some of the positions are set to be funded by the general fund budget, while others will be funded through the additional grant monies. Please note that the addition of five kindergarten teachers at Bradt school is due to the implementation of full-day kindergarten for next year.
| Administration | |||
| Human Resources Position | -1.0 | Middle School | |
| Social Studies Academic Admin | -0.5 | 6th Grade | -1.0 |
| Central Registrar | -1.0 | 7th Grade | -3.0 FTEs |
| Music | some portion restored | ||
| Support Staff | AIS ELA | add 0.6 (grant funding) | |
| Custodian | -1.0 | AIS Math | add 0.6 (grant funding) |
| Maintenance | restore | ||
| Technology | -1.0 | ||
| Pinewood | |||
| High School | 5th Grade | -1.0 | |
| Math | restore | 4th Grade | restore |
| Business | restore | 3rd Grade | restore |
| Counselor | add .5 (grant funding) | AIS Reading | add 1.0 (grant funding) |
| Foreign Language | add .2 | Counselor | increase .5 (grant funding) |
| Science | add .2 | AIS Math | add 0.5 (grant funding) |
| Mo Tech/AIS | add 1.0 | TA Math | -1.0 |
| Spec. Ed. | -1.0 | ||
| Bradt | |||
| 2nd Grade | -1.0 | ||
| Kindergarten | add 5.0 | ||
| Total Positions: -2.9 | |||
| Approx. General Fund Reduction: -$545,000 | |||
The staffing changes listed above are based on the enrollment projections for next year, which are shown in the table below.
| 2004-2005 | 2008-09 Current | Sections | 2009-10 Projected | Sections | Class size | |
| K | 193 | 197 | 11+ Dev. K | Currently 150 registered | 11 | |
| 1 | 222 | 201 | 10+Trans. 1st | 197 | 10 | |
| 2 | 192 | 202 | 10 | 201 | 9 | |
| 3 | 232 | 225 | 10 | 202 | 10 | |
| 4 | 249 | 223 | 10 | 223 | 10 | |
| 5 | 256 | 244 | 11 | 223 | 10 | |
| 6 | 276 | 225 | 12 | 243 | 11 | |
| 7 | 308 | 256 (3 teams) | 226 | 2 teams | 23 | |
| 8 | 290 | 279 (3 teams) | 256 | 204 | 21-22 | |
| 9 | 294 | 286 | 280 | |||
| 10 | 264 | 296 | 288 | |||
| 11 | 245 | 265 | 297 | |||
| 12 | 246 | 256 | 265 | |||
| Total | 3355 | 3155 | 3051 |
Proposed Budget/Impact on Taxes
Because the board of education has not yet adopted the final budget proposal, which will go before voters on May 19, it's hard to say what impact the budget will have on taxes. Other than the final budget, factors that affect the final tax rates are:
-
Assessed values of property within the town.
-
An increase in assessments will reduce the tax increase.
-
A decease in assessments will increase the tax rate.
-
Change in equalization rate, set by Office of Real Property Tax Service (ORPS).
-
Appropriated fund balance.
Comparison of budget and tax levy increases
Swezey presented the following table, showing a comparison of the tax levy and budget increases over the last five years.
Contingency Budget
If voters do not approve the proposed budget on May 19, the district can put the same budget up for a second vote; put a revised budget up for a second vote; or adopt a contingency budget. If the budget is defeated a second time, the district must adopt a contingency budget. Historically, Swezey said, the Mohonasen Board of Education has gone directly to a contingency budget if the proposal is voted down the first time.
The proposed 2009-10 budget of $42,383,693 is less than the 4.0 percent expenditure cap allowed under a contingency budget by $1,154,366.
If the district adopted a contingency budget, cuts would not have to be made to meet the budget cap. However, cuts would need to be made to meet the law with respect to the definition of contingency appropriations. The cuts would include student supplies, community use of buildings and grounds, certain equipment purchases and certain salary increases. These cuts would total $78,727, leaving the budget at $42,304,966.
Board of Education Vacancies
At the end of the budget review session, Swezey addressed the Board of Education election, which is held the same day as the budget vote. There are currently three "at large" seats open on the board and each seat is for a three-year term. Petitions, which must be signed by 35 qualified voters, are available in the district office. The petitions are due by April 20, 2009 at 5 p.m. All candidates must be a resident of the district for at least one year.
Meet the candidates night will be held on May 11 at 5:30 p.m. in the high school's Farnsworth Technology Center (LGI). More information on the candidates will be in the district newsletter and on the district Web site.
Budget Adoption
The Mohonasen Board of Education is scheduled to adopt the proposed 2009-2010 budget on April 20 during its 7 p.m. meeting. The budget public hearing will be held on May 11 at 6 p.m. The budget vote is scheduled for Tuesday, May 19 from 7 a.m. to 9 p.m. at Mohonasen High School.
