NYS Public School Budgeting 101: Understanding the Basics of a School Budget

Transcription

1 NYS Public School Budgeting 101: Understanding the Basics of a School Budget Dr. Karen Geelan, Superintendent Mr. Michael Watson, Business Official Allegany-Limestone Central School District

2 Agenda Welcome and Introductions Why Create a Budget? When is a Budget Prepared? What is in a School Budget? How is a Budget Prepared? Terms and Definitions Changes in

3 Why Create a Budget? NYS Education Law requires schools districts* to present an annual budget to the voters ( 1608, 1716, 1804(4), 2601-a) Budgets should be built upon district goals and priorities. *except the Big 5 city school districts

4 When is a Budget Prepared? Board of Education must complete the proposed budget document at least 7 days before the public hearing. The public hearing must be held 7-14 days before the annual meeting and election (May 15, 2012).

5 What is in a School Budget? Components Program Teachers & administrators Transportation operating expenses Capital Transportation capital, debt service, etc. Facilities costs Administrative Office & central administrative expenses School board expenses

6 NYS School Spending

7 Allegany-Limestone s Budget Revenues Fund Balance 3% Tax Items 37% Tax Items $ 7,604,276 Miscellaneous $ 165,200 State Aid $ 11,976,204 Fund Balance $ 590,000 Total $ 20,335,680 State Aid 59% Miscellaneous 1% Expenditures Interfund Transfers 13% Employee Benefits 19% Transportation 4% General Support 14% Instruction 50% General Support $ 2,777,250 Instruction $ 10,070,430 Transportation $ 876,320 Employee Benefits $ 3,947,620 Interfund Transfers $ 2,664,060 Total $ 20,335,680

8 How is a Budget Prepared? Current budget review Data gathering Condition surveys & reports Demographic, trend Academic Needs and priorities Financial indicators

9 Terms and Definitions Document 1 ALCS Budget Report Document 2 - Definitions Document 3 NYS Office of the Comptroller s Formula for Determining Tax Levy Limit

10 Changes in Tax Levy Limit Calculation General Support to Public Schools (GSPS) determined by the rate of growth in personal income in NYS State Aid $805 M $940 M $835 M

11 ERS Exemption $ 11, TAX LEVY LIMIT $ 7,620, (Reported to NYS Comptroller by March 1st) TRS Salaries $ - Growth > 2% x Coming School Year Exemptions + $ 11, TRS Exemption $ - Maximum Allowable Levy $ 7,632, TAX LEVY LIMIT $ CHANGE $ 144, TAX LEVY LIMIT % CHANGE 1.94% Maximum Allowable Levy $ Change $ 156, Maximum Allowable Levy % Change 2.09% For demonstration purposes only. Numbers may not be the actual figures in the ALCS budget.

12 Tax Levy Limit Calculation (Example for Allegany-Limestone School District) Tax Levy Limit Before Adjustments and Exclusions Tax levy FYE ,475,556 x Tax base growth factor PILOTS receivable in FYE ,179 x Allowable levy growth factor PILOTS receivable in FYE ,765 Total Levy Limit before Adjustments/Exclusions 7,620,285 Adjustments for Transfer of Local Government Functions + Cost incurred from transfer of local government functions 0 - Savings realized from transfer of local government functions 0 Total Adjustments 0 Tax Levy Limit, Adjusted for Transfer of Local Government Functions 7,620, % Exclusions Tax levy necessary for expenditures arising out of tort orders/judgments over 5% FYE 2011 tax levy 0 Tax levy necessary for pention contributions expenditures caused by growth in the system + average actuarial or normal contributribution rate in excess of 2 percentage points: State and local employees' retirement system (ERS) 11,851 Police and fire retirment system (PFRS) 0 Teachers' retiement system (TRS) 0 Total Exclusions 11,851 Adjusted Tax Levey Limit 7,632, % For demonstration purposes only. Numbers may not be actual figures in the ALSC budget.

13 Tax Levy Limit Calculation (Example for Allegany-Limestone School District) Tax Levy Limit Before Adjustments and Exclusions Tax levy FYE ,475,556 x Tax base growth factor PILOTS receivable in FYE ,179 x Allowable levy growth factor PILOTS receivable in FYE ,765 Total Levy Limit before Adjustments/Exclusions 7,620,285 Adjustments for Transfer of Local Government Functions + Cost incurred from transfer of local government functions 0 - Savings realized from transfer of local government functions 0 Total Adjustments 0 Tax Levy Limit, Adjusted for Transfer of Local Government Functions 7,620, % Exclusions Tax levy necessary for expenditures arising out of tort orders/judgments over 5% FYE 2011 tax levy 0 Tax levy necessary for pention contributions expenditures caused by growth in the system + average actuarial or normal contributribution rate in excess of 2 percentage points: State and local employees' retirement system (ERS) 11,851 Police and fire retirment system (PFRS) 0 Teachers' retiement system (TRS) 0 Total Exclusions 11,851 Adjusted Tax Levey Limit 7,632, % For demonstration purposes only. Numbers may not be actual figures in the ALSC budget.

14 New York State

15 Federal Funding Cliff More than $5 Billion in one-time infusions of federal American Recovery and Reinvestment Act (ARRA) funding: Additional Title I funds Additional IDEA funds Education Stabilization Funds Education Jobs Fund The inability of the economy to restore state revenues has created problems for school districts as they attempt to continue current educational programs. NYSED School Finance Symposium, September, 2011

16 New York State

17 New York State Roza,Marguerite (September, 2011), NYSED Financial Symposium

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19 New York State

20 What Happens Next? Attend the ALCS Budget Input Meeting on January 31 st at 6:30 PM, MS/HS Theater Let your voice be heard in NYS Budget Advocacy Toolkit Budget Presentations Feb. Board Mtgs. Attend a Budget Forum February 28 at 6:30 PM, MS/HS Theater Limestone School TBD Remember the NYS School Budget Vote on May 15, 2012