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
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 2012-2013
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
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).
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
NYS School Spending
Allegany-Limestone s Budget 2011-2012 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% 2011-2012 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
How is a Budget Prepared? Current budget review Data gathering Condition surveys & reports Demographic, trend Academic Needs and priorities Financial indicators
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
Changes in 2012-2013 Tax Levy Limit Calculation General Support to Public Schools (GSPS) determined by the rate of growth in personal income in NYS State Aid 2012-2013 2013-2014 2014-2015 $805 M $940 M $835 M
ERS Exemption $ 11,850.98 TAX LEVY LIMIT $ 7,620,284.70 (Reported to NYS Comptroller by March 1st) TRS Salaries $ - Growth > 2% x Coming School Year Exemptions + $ 11,850.98 TRS Exemption $ - Maximum Allowable Levy $ 7,632,135.68 TAX LEVY LIMIT $ CHANGE $ 144,728.70 TAX LEVY LIMIT % CHANGE 1.94% Maximum Allowable Levy $ Change $ 156,579.68 Maximum Allowable Levy % Change 2.09% For demonstration purposes only. Numbers may not be the actual figures in the ALCS budget.
Tax Levy Limit Calculation (Example for Allegany-Limestone School District) Tax Levy Limit Before Adjustments and Exclusions Tax levy FYE 2011 7,475,556 x Tax base growth factor 1.0000 + PILOTS receivable in FYE 2011 90,179 x Allowable levy growth factor 1.02 - PILOTS receivable in FYE 2012 96,765 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 7,620,285 1.94% 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 7,632,136 2.09% For demonstration purposes only. Numbers may not be actual figures in the ALSC budget.
Tax Levy Limit Calculation (Example for Allegany-Limestone School District) Tax Levy Limit Before Adjustments and Exclusions Tax levy FYE 2011 7,475,556 x Tax base growth factor 1.0000 + PILOTS receivable in FYE 2011 90,179 x Allowable levy growth factor 1.02 - PILOTS receivable in FYE 2012 96,765 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 7,620,285 1.94% 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 7,632,136 2.09% For demonstration purposes only. Numbers may not be actual figures in the ALSC budget.
New York State
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
New York State
New York State Roza,Marguerite (September, 2011), NYSED Financial Symposium
New York State
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 www.alcsny.org 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