main content starts hereMulti-Year Financial Plan

Assistant Superintendent for Business Christopher Ruberti presented a Multi-Year Financial Plan at the Dec. 16 Board of Education meeting.

2019-20 Budget Process

Projected 2019-20 Operating Deficit

After all revenue and expense information was received the District faced a $2 million operating deficit for 2019-20

Staffing Reductions

Over 21 positions were reduced, either through cuts or attrition, in the adopted budget

Final Projected Deficit

After all reductions, both staffing and other reductions, budget was adopted with an estimated $500,000 operating deficit

    What did the last five years look like?

    • 2014-15 (Including GEA restoration)
      • Revenue: $44,830,657
      • Expenses: $44,310,166
      • Net position: $520,491
    • 2015-16 (Including GEA restoration)
      • Revenue: $46,278,285
      • Expenses: $45,825,780
      • Net position: $452,505
    • 2016-17 (Including GEA restoration)
      • Revenue: $46,744,421
      • Expenses: $46,867,973
      • Net position: ($123,552)
    • 2017-18 (Including GEA restoration)
      • Revenue: $49,737,774
      • Expenses: $50,579,983
      • Net position: (-$842,209)
    • 2018-19
      • Revenue: $51,850,000
      • Expenses: $52,180,000
      • Net position: (-$330,000)
    • 2019-20 Projected
      • Revenue: $52,440,000
      • Expenses: $53,050,000
      • Net position: (-$610,000)

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    Votality of Major Budget Components

    District Expenses

    TRS

    • 2014-15
      • Dollar Change: $61,385
      • Percent Change: 2.07%
    • 2015-16
      • Dollar Change: ($543,969)
      • Percent Change: (17.96%)
    • 2016-17
      • Dollar Change: (-$182,327)
      • Percent Change: (-7.34%)
    • 2017-18
      • Dollar Change: (-$277,747)
      • Percent Change: (-12.06%)
    • 2018-19
      • Dollar Change: $254,982
      • Percent Change: 12.59%
    • 2019-20*
      • Dollar Change: (-$350,000)
      • Percent Change: (-16.30%)

    Health Insurance (includes medical and prescription)

    • 2014-15
      • Dollar Change: $265,374
      • Percent Change: 5.36%
    • 2015-16
      • Dollar Change: $155,175
      • Percent Change: 2.98%
    • 2016-17
      • Dollar Change: $179,357
      • Percent Change: 3.34%
    • 2017-18
      • Dollar Change: $580,823
      • Percent Change: 10.47%
    • 2018-19
      • Dollar Change: $637,476
      • Percent Change: 10.40%
    • 2019-20*
      • Dollar Change: $775,000
      • Percent Change: 11.17%

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    Votality of Major Budget Components

    “True” Revenues

    Taxes (without capital exclusion or building aid)

    • 2014-15 (GEA restoration)
      • Dollar Change: $461,837
      • Percent Change: 1.93%
    • 2015-16 (GEA restoration)
      • Dollar Change: ($489,256)
      • Percent Change: 2.00%
    • 2016-17 (GEA restoration)
      • Dollar Change: $170,000
      • Percent Change: 0.72%
    • 2017-18
      • Dollar Change: $525,000
      • Percent Change: 2.07%
    • 2018-19
      • Dollar Change: $625,000
      • Percent Change: 2.42%
    • 2019-20
      • Dollar Change: $840,000
      • Percent Change: 3.17%

    State Aid (without capital exclusion or building aid)

    • 2014-15 (GEA restoration)
      • Dollar Change: $996,000
      • Percent Change: 7.02%
    • 2015-16 (GEA restoration)
      • Dollar Change: $1,375,000
      • Percent Change: 9.05%
    • 2016-17 (GEA restoration)
      • Dollar Change: $709,000
      • Percent Change: 4.28%
    • 2017-18
      • Dollar Change: $339,000
      • Percent Change: 1.96%
    • 2018-19
      • Dollar Change: $364,000
      • Percent Change: 2.07%
    • 2019-20*
      • Dollar Change: $200,000
      • Percent Change: 1.10%

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    State Aid: A Deeper Look

    • 2014-15
      • Year-to-year changes
        • Total Dollar: $996,000
        • Percent: 7.02 percent
      • Major Components
        • GEA Restoration: $770,000
        • Foundation Aid Increase: $177,000
    • 2015-16
      • Year-to-year changes
        • Total Dollar: $1,375,000
        • Percent: 9.05 percent
      • Major Components
        • GEA Restoration: $1,170,000
        • Foundation Aid Increase: $46,000
    • 2016-17
      • Year-to-year changes
        • Total Dollar: $709,000
        • Percent: 4.28 percent
      • Major Components
        • GEA Restoration: $660,000
        • Foundation Aid Increase: $75,000
    • 2017-18
      • Year-to-year changes
        • Total Dollar: $339,000
        • Percent: 1.96 percent
      • Major Components
        • GEA Restoration: $0
        • Foundation Aid Increase: $353,000
    • 2018-19
      • Average increase in foundation aid in the past two years is 2.7 percent
      • Year-to-year changes
        • Total Dollar: $364,000
        • Percent: 2.07 percent
      • Major Components
        • GEA Restoration: $0
        • Foundation Aid Increase: $351,000
    • 2019-20
      • Average increase in foundation aid in the past two years is 2.7 percent
      • Year-to-year changes
        • Total Dollar: $200,000
        • Percent: 1.10 percent
      • Major Components
        • GEA Restoration: $0
        • Foundation Aid Increase: $136,000

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    Foundation Aid History

    • 2012-13
      • Foundation Aid Received: $12,561,189
      • Full Phase-in Formula Foundation Aid: $16,981,128
      • Amount Underfunded: $4,419,939
    • 2013-14
      • Foundation Aid Received: $12,598,712
      • Full Phase-in Formula Foundation Aid: $16,861,887
      • Amount Underfunded: $4,263,175
    • 2014-15
      • Foundation Aid Received: $12,775,793
      • Full Phase-in Formula Foundation Aid: $16,707,342
      • Amount Underfunded: $3,931,549
    • 2015-16
      • Foundation Aid Received: $12,822,430
      • Full Phase-in Formula Foundation Aid: $15,709,052
      • Amount Underfunded: $2,886,622
    • 2016-17
      • Foundation Aid Received: $12,898,380
      • Full Phase-in Formula Foundation Aid: $15,341,231
      • Amount Underfunded: $2,442,851
    • 2017-18
      • Foundation Aid Received: $13,251,691
      • Full Phase-in Formula Foundation Aid: $15,717,416
      • Amount Underfunded: $2,465,725
    • 2018-19
      • Foundation Aid Received: $13,602,225
      • Full Phase-in Formula Foundation Aid: $16,701,859
      • Amount Underfunded: $3,099,634
    • 2019-2020
      • Foundation Aid Received: $13,738,077
      • Full Phase-in Formula Foundation Aid: $17,727,189
      • Amount Underfunded: $3,989,112
    • Average Underfunded: $3,437,326

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    Looking Forward: Assumptions

    Projected Average Expenses

    • TRS Contract Salaries (Admin, Teacher, TA): Increase 2.75 percent per year.
    • ERS Contract Salaries (Transportation, Facilities, Other Support Staff): Increase 2.75 percent per year.
    • Pensions: Increase by 5 percent- 2.75 percent per year due to salary increases, and another 2.25 percent for an increase in contribution rate.
    • Utilities: Increase 2 percent per year.
    • Special Education Placements: Increase 2 percent per year.
    • BOCES: Increase 3 percent per year.
    • Health Insurance: Increase 7.5 percent per year.
    • Other Insurance and Benefits: Increase 2.5 percent per year.

    Projected Average Revenue

    • Tax Levy: Will increase by 2.5 percent per year based on growth factors only
    • State Aid:
      • 1%, increase in Foundation Aid, total from last year after final budget
      • 2% for expense driven aids (transportation, excess cost and BOCES)
    • Rental: 2 percent increase per year, based on use of space and current rental agreements
    • Other: All other revenues will increase by 1 percent per year.

    Recurring vs. One-time Expenses and Revenues

    Recurring Expenses and Revenues

    • Our projections include all recurring expenses and revenues
    • Main recurring expenses are salaries and benefits
    • Main recurring revenues are the tax levy and state aid

    One-Time Expenses and Revenues

    • Our projections DO NOT include any one-time expenses and revenues
    • Since one-time expenses and revenues are often unforeseen it would difficult to figure them into long-term projections
    • One-time expenses can include retirement incentives, tax certiorari settlements and major unanticipated repairs
    • One-time revenues can include sale of district property, additional bullet aid from the state, refund from a prior expense or payment of a district held life insurance policy

    Current Assumptions

    Total revenue increases by approximately 2.3 percent while expenses increase by about 3 percent per year. This creates a wider gap each year.

    • 2019-20
      • Revenue: $52,440,000
      • Expenses: $53,050,000
      • Net position: (-$610,000)
    • 2020-2021
      • Revenue: $53,550,000
      • Expenses: $54,375,000
      • Net position: (-$825,000)
    • 2021-22
      • Revenue: $54,500,000
      • Expenses: $56,100,000
      • Net position: (-$1,600,000)
    • 2022-23
      • Revenue: $55,465,000
      • Expenses: $57,875,000
      • Net position: (-$2,410,000)
    • 2023-24
      • Revenue: $56,450,000
      • Expenses: $59,750,000
      • Net position: (-$3,300,000)
    • 2024-25
      • Revenue: $57,470,000
      • Expenses: $61,700,000
      • Net Position: -($4,230,000)

    Total revenue increases by approximately 1.8% per year while expenses increase by about 3.2% per year.  This creates a larger deficit each year.

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    Chart: Revenue and Expense Projections

    Total revenue increases by approximately 1.8% per year while expenses increase by about 3.2% per year.  This creates a larger deficit each year.

    Total revenue increases by approximately 1.8% per year while expenses increase by about 3.2% per year. This creates a larger deficit each year.

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    What if…

    Revenue: …the tax levy average increase was 3 percent per year instead of 2.5 percent and the Foundation Aid average increase was 3 percent per year instead of 1 percent?

    Expenses: …health insurance increased by an average of 5 percent per year instead of 7.5 percent and pension contributions remained flat, so contributions increase an average of 2.75% per year based on salaries?

    These are not predictions of future aid, tax revenue or expenses, but simply illustrate the impact of changing assumptions.

    • 2019-20
      • Revenue: $52,440,000
      • Expenses: $53,050,000
      • Net position: (-$610,000)
    • 2020-21
      • Revenue: $53,820,000
      • Expenses: $55,820,000
      • Net position: (-$620,000)
    • 2021-22
      • Revenue: $55,200,000
      • Expenses: $56,290,000
      • Net position: (-$650,000)
    • 2022-23
      • Revenue: $56,600,000
      • Expenses: $57,310,000
      • Net position: (-$710,000)
    • 2023-24
      • Revenue: $58,050,000
      • Expenses: $58,850,000
      • Net position: (-$800,000)
    • 2024-25
      • Revenue: $59,550,000
      • Expenses: $60,450,000
      • Net position: -($900,000)

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    What would the next five years look like with full Foundation Aid?

    This scenario looks at if the district was given close to Full Foundation Adi for the next five years.

    • 2019-20
      • Original Assumptions: (-$1,350,000)
      • Full Foundation Aid: $3,000,000
      • Change in Net Position: $1,650,000
    • 2020-21
      • Original Assumptions: (-$1,665,000)
      • Full Foundation Aid: $3,000,000
      • Change in Net Position: $1,335,000
    • 2021-22
      • Original Assumptions: (-$2,115,000)
      • Full Foundation Aid: $3,000,000
      • Change in Net Position: $885,000
    • 2022-23
      • Original Assumptions: (-$2,615,000)
      • Full Foundation Aid: $3,000,000
      • Change in Net Position: $385,000
    • 2023-24
      • Original Assumptions: (-$3,215,000)
      • Full Foundation Aid: $3,000,000
      • Change in Net Position: (-$215,000)

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    Foundation Aid History

    • 2012-13
      • Foundation Aid received: $12,561,189
      • Full Phase-in Formula Foundation Aid: $16,981,128
      • Amount underfunded: $4,419,939
    • 2013-14
      • Foundation Aid received: $12,598,712
      • Full Phase-in Formula Foundation Aid: $16,861,887
      • Amount underfunded: $4,263,175
    • 2014-15
      • Foundation Aid received: $12,775,793
      • Full Phase-in Formula Foundation Aid: $16,707,342
      • Amount underfunded: $3,931,549
    • 2015-16
      • Foundation Aid received: $12,822,430
      • Full Phase-in Formula Foundation Aid: $15,709,052
      • Amount underfunded: $2,886,622
    • 2016-17
      • Foundation Aid received: $12,898,380
      • Full Phase-in Formula Foundation Aid: $15,341,231
      • Amount underfunded: $2,442,851
    • 2017-18
      • Foundation Aid received: $13,251,691
      • Full Phase-in Formula Foundation Aid: $15,717,416
      • Amount underfunded: $2,465,725
    • 2018-19
      • Foundation Aid received: $13,602,225
      • Full Phase-in Formula Foundation Aid: $16,701,859
      • Amount underfunded: $3,099,634
    • 2019-20
      • Foundation Aid received: $13,738,077
      • Full Phase-in Formula Foundation Aid: $17,727,189
      • Amount underfunded: $3,989,112
    • Average: $3,437,326

    What would the next five years look like with full Foundation Aid?

    • 2020-21
      • Original assumptions: (-$825,000)
      • Full Foundation Aid: $4,000,000
      • Change in net position: $3,175,000
    • 2021-22
      • Original assumptions: (-$1,600,000)
      • Full Foundation Aid: $4,000,000
      • Change in net position: $2,400,000
    • 2022-23
      • Original assumptions: (-$2,410,000)
      • Full Foundation Aid: $4,000,000
      • Change in net position: $1,590,000
    • 2023-24
      • Original assumptions: (-$3,300,000)
      • Full Foundation Aid: $4,000,000
      • Change in net position: $700,000
    • 2024-25
      • Original assumptions: (-$4,230,000)
      • Full Foundation Aid: $4,000,000
      • Change in net position: (-$230,000)

    What we know and don’t know for 2020-2021

    Major Revenue Factors

    • Tax Levy: We know that projected growth factors, state and local, total 3.1 percent.
    • State Aid: We will not know the amount of state aid until later in the budget season. However, last year we received a 1 percent increase in Foundation Aid after average increases of 2.7 percent the past two years.

    Major Expense Factors

    • TRS: The rate range has been released and will be an increase from last year. It is estimated to be between 9.25 percent and 10.25 percent, up from 8.86 percent in 2019-20. This calculates to an increase for the district of $100,000 to $300,000.
    • Health Insurance: Preliminary renewal rates for medical are between 5 and 10 percent. Although we know that prescription costs have leveled out this year, “trend” is still approximately 13 percent per year. We will not have final rates until February/March.

    Reserves

    The District has continued to use reserves and fund balance to try and smooth the volatility of various budget factors. Use of reserves will be discussed throughout the budget process.

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    BOE Budget Presentations

    • December 16, 2019: BOE – Multiyear Financial Plan
    • January 27, 2020: BOE State Budget Update
    • February 24, 2020: Tax Levy, Debt Service and Bus Proposition
    • March 9, 2020: BOCES, Employee Benefits and General Support
    • March 23, 2020: Instruction, Revenue and Budget Recap
    • April 6, 2020: Budget Adoption
    • May 11, 2020: Budget Hearing and Meet the Candidates
    • May 19, 2020: Budget Vote

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