Key Budget Data Points Overview January 7, 2020 Cynthia Hawthorne - - PowerPoint PPT Presentation

Bedford Central School District Inspiring and Challenging Our Students

Key Budget Data Points Overview

January 7, 2020 Cynthia Hawthorne

Assistant Supt. for Business and Administrative Services

Bedford Central School District Inspiring and Challenging Our Students

Balancing the Budget

Expenses

• General Support
• Instruction
• Transportation
• Employee Benefits
• Debt Service & Transfers

to Other Funds

Revenues

• Real Property Taxes
• State Aid
• Other Miscellaneous

Revenues

• Appropriated Fund

Balance

Bedford Central School District Inspiring and Challenging Our Students

Revenue Drivers 2019-20

Bedford Central School District Inspiring and Challenging Our Students

Revenue Drivers

• Real Property Taxes

○ 91% of our revenue comes from the tax levy ○ The NYS Real Property Tax Cap limits the amount the District can increase the tax levy to the lower of 2% or the rate of inflation ■ The Tax Cap is not always 2%. The District is allowed certain exclusions and adjustments ■ In 2019-20 the allowable tax levy increase was 3.81%

• State Aid

○

This funding is set by NYS ○ Formulas are based on District wealth, needs, enrollment.

• Miscellaneous Revenues

○ Revenues from non-resident tuition, interest earning, use of facilities, donations and other non-recurring revenues.

• Appropriated Fund Balance

○ Planned use of accumulated savings

Bedford Central School District Inspiring and Challenging Our Students

Tax Cap Calculation 2019-20

Bedford Central School District Inspiring and Challenging Our Students

State Aid

Bedford Central School District Inspiring and Challenging Our Students

Expense Drivers 2019-20

Bedford Central School District Inspiring and Challenging Our Students

Expense Drivers

• General Support

○

Includes costs for Board of Education, Superintendent Office, Business Office, Legal Services, Operations & Maintenance, Data Processing, Insurance and Refund of Real Property Taxes

• Instruction

○ Includes costs for Supervision, Planning, Training, Teaching & Instructional Services, Special Education, Library, Media, Computer Assisted Instruction, Pupil Personnel & Athletics/Co-Curricular Activities

• Transportation

○ Home to School ○ Private School Transportation ○ Athletic Trips

• Employee Benefits

○ Health Insurance & Pension costs

• Debt Service & Transfers to Other Funds

Bedford Central School District Inspiring and Challenging Our Students

Expenditure Components

Bedford Central School District Inspiring and Challenging Our Students

Salaries & Benefits

• Salaries & Benefits represent 77% of spending

○ Salaries are determined by negotiated collective bargaining agreements

○

The District operates a self insured health plan

■

The District pays for the cost of medical claims directly as

• pposed to paying an insurance company monthly

premiums.

■

NYS Comptroller's Office recommends self insured plans to municipalities as a cost saving measure.

• https://www.osc.state.ny.us/localgov/costsavings/emphealth.htm

○

The District participates in the NYS Teachers Retirement System (TRS) and NYS Employees Retirement System (ERS)

■

TRS and ERS rates are set by NYS

■

2019-20 rates are as follows:

• TRS - 8.86%
• ERS - 14.6%

Bedford Central School District Inspiring and Challenging Our Students

Negotiations

• The District made a significant change to compensation

package for teachers hired after 07/01/2013.

○ Average cost of step is now about 2%, most districts are higher.

• Increasing employee contributions to health insurance.
• Bedford used to be ranked in the top 5 in pay scale, we

have since dropped to a ranking of 33 in Putnam, Rockland and Westchester Counties.

• Only incremental changes are allowed to contracts by

law.

Bedford Central School District Inspiring and Challenging Our Students

Salaries & Benefits by Category

Bedford Central School District Inspiring and Challenging Our Students

Expense Drivers

• Self Insured Health Plan Costs

○ While self insurance is less costly than consortium plans, it carries the risk of volatility

Bedford Central School District Inspiring and Challenging Our Students

Employer Pension Contribution Rates

Bedford Central School District Inspiring and Challenging Our Students

Expense Drivers

• Special Education Costs

○ Based on student needs & Committee on Special Education Recommendations

○

We have seen an increase in special education costs of 38.1%

• ver the past 5 years.

Bedford Central School District Inspiring and Challenging Our Students

Expense Drivers

• English for Speakers of Other Languages (ESOL)

○ We have seen a 27.2% increase in ESOL expenses over the past 5 years.

Bedford Central School District Inspiring and Challenging Our Students

Impacts on 2020-21 Revenue

• Consumer Price Index (CPI) is expected to be lower

than the 2019-20 CPI of 2%

• Tax Base Growth Factor increased from 1.0069 to

1.0074

• Increase County Sales Tax Revenue
• State Aid projections will be available sometime in

January 2020

Bedford Central School District Inspiring and Challenging Our Students

Impacts on 2020-21 Budget

• For 2020-21 the TRS rate is expected to increase

from 8.86% of salaries to approximately 10.25% of salaries

• For 2020-21 the ERS rate is expected to remain flat

at an estimated 14.6% of salaries

• Two Bargaining Units Contracts up for renewal in

2020

• Approval of Health Insurance Reserve Fund
• A Building Condition Review is in process which will

help determine priority of repairs to facilities

• State Mandates

Bedford Central School District Inspiring and Challenging Our Students

Community Input

• 1. Are there areas of the BCSD budget that you feel

should be prioritized?

• 2. What aspects of the budget have you most

concerned?

• 3. Other questions?

Bedford Central School District Inspiring and Challenging Our Students

Questions

Bedford Central School District Inspiring and Challenging Our Students

Thank you!