BOE Budget Workshop Tuesday March 7, 2017 2017-18 Budget Development
Overall Budget Goals, Priorities and Considerations • Use of Strategic Plan to drive programmatic improvements for students • Reallocation of resources in response to enrollment and demographic trends • Plan to address ongoing building capital and infrastructure needs • Determine continued impact of assessment changes within the District
• • • •
Proposed Budget: What’s New For Students? New elective opportunities at Suffern High School and Suffern Middle School Pre-Kindergarten Pilot New Special Education classes and courses for English as a New Language (ENL) students Modernization of learning spaces, Districtwide
• • • •
Proposed Budget: Operations and Facilities Improvements Wireless computer network upgrades and incorporation of cameras and doors New Public Address system for Viola Elementary Replacement of roof over the High School pool Refurbishing of High School pool
Ramapo CSD Tax Levy Limit Calculation 2017-18
Prior year tax levy Tax base growth factor
106,888,160 x 1.0000 106,888,160 Prior year PILOTs +1,968,128 108,856,288 2015-2016 exemptions (debt service – building aid) -2,811,093 Adjusted Prior Year Levy 106,045,195 Allowable Growth Factor (lesser of CPI or 2%) x 1.0126 107,381,364 PILOTs for coming year 2016-17 est - 1,968,128 105,413,236 Available Carryover + 0 TAX LEVY LIMIT 105,413,236 2017-18 Exemptions +2,764,281 Maximum Allowable Tax Levy 108,177,517
+1.2% +1,289,357 5
Anticipated Expenditures 2017-18 Adopted 2016-17 Salaries Benefits Special Education Debt Service Transportation Building & Grounds Technology BOCES w/o Spec Ed & Tech Supplies & Equipment Other Planned Balance
Proposed Budget 2017-18
61,719,050 62,890,347 30,684,971 31,154,698 11,444,750 11,236,535 6,949,507 6,949,558 8,249,001 8,139,500 2,921,914 3,418,864 2,447,436 2,743,128 2,796,264 2,926,899 2,491,390 2,695,175 2,776,598 2,944,969 2,100,000 2,100,000 134,580,881 137,199,673
Difference
Percent Change
1,171,297 1.90% 469,727 1.53% -208,215 -1.82% 51 0.00% -109,501 -1.33% 496,950 17.01% 295,692 12.08% 130,635 4.67% 203,785 8.18% 168,371 6.06% 2,618,792 1.95%
Anticipated Expenditures 2017-18 Adopted 2016-17 Salaries Benefits Special Education Debt Service Transportation Building & Grounds Technology BOCES w/o Spec Ed & Tech Supplies & Equipment Other Planned Balance
Proposed Budget 2017-18
61,719,050 62,890,347 30,684,971 31,154,698 11,444,750 11,236,535 6,949,507 6,949,558 8,249,001 8,139,500 2,921,914 3,418,864 2,447,436 2,743,128 2,796,264 2,926,899 2,491,390 2,695,175 2,776,598 2,944,969 2,100,000 2,100,000 134,580,881 137,199,673
Difference
Percent Change
1,171,297 1.90% 469,727 1.53% -208,215 -1.82% 51 0.00% -109,501 -1.33% 496,950 17.01% 295,692 12.08% 130,635 4.67% 203,785 8.18% 168,371 6.06% 2,618,792 1.95%
BENEFITS • Decrease in Teacher Retirement System (TRS) rates (from 11.72% to 9.8%) • Slight decrease in Employee Retirement System (ERS) rates (from 15.7% to 15.3%) • Large increase in Health Insurance premiums (11.5% increase, on average)
2017-18 Budgeted Benefits Adopted 2016-17
Proposed 2017-18
Difference
Percentage Change
Teachers’ Retirement
6,417,427 5,864,682
-552,745
-8.61%
Employees’ Retirement
1,548,593
1,493,725
-54,868
-3.54%
Health
16,584,549
17,755,800
1,171,251
7.06%
FICA/Medicare
5,060,204
4,972,991
-87,213
-1.72%
Other Benefits
1,084,198
1,067,500
-16,698
-1.54%
TOTAL
30,694,971
31,154,698
459,727
2.21%
2016-17 Adjusted for Planned Balance
Teachers’ Retirement
2016-17 & 2017-18 Budgeted amounts
Employees’ Retirement
2016-17 & 2017-18 Budgeted amounts
Health Insurance
2016-17 & 2017-18 Budgeted amounts
HEALTH INSURANCE COSTS Rates as of 1/1/2017: Individual: $11,470 per year Family: $26,265 per year District average cost per employee 85% of cost: Individual : $ 9,750 Family: $22,325
Anticipated Expenditures 2017-18 Adopted 2016-17 Salaries Benefits Special Education Debt Service Transportation Building & Grounds Technology BOCES w/o Spec Ed & Tech Supplies & Equipment Other Planned Balance
Proposed Budget 2017-18
61,719,050 62,890,347 30,684,971 31,154,698 11,444,750 11,236,535 6,949,507 6,949,558 8,249,001 8,139,500 2,921,914 3,418,864 2,447,436 2,743,128 2,796,264 2,926,899 2,491,390 2,695,175 2,776,598 2,944,969 2,100,000 2,100,000 134,580,881 137,199,673
Difference
Percent Change
1,171,297 1.90% 469,727 1.53% -208,215 -1.82% 51 0.00% -109,501 -1.33% 496,950 17.01% 295,692 12.08% 130,635 4.67% 203,785 8.18% 168,371 6.06% 2,618,792 1.95%
SPECIAL EDUCATION • Addition of 2 special education classrooms indistrict for students currently served in BOCES/private settings • Addition of Physical Therapist to district staff and elimination of BOCES contractual expense • Changes result in a net savings
SPECIAL EDUCATION EXPENDITURES FISCAL YEAR
EXPENSE
2011-12
$10,313,236
2012-13
$10,359,486
2013-14
$9,847,646
2014-15
$10,221,689
2015-16
$11,605,430
2016-17
$11,444,750
2017-18
$11,236,535
2016-17 & 2017-18 Budgeted amounts
Special Education Cost Comparison 12,000,000
11,605,430
11,444,750
11,236,535
11,000,000 10,313,236
10,359,486
10,221,689 9,847,646
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000 2011-2012 Actual
2012-13 Actual
2013-14 Actual
2014-2015 Actual
2015-2016 Actual
2016-2017 Budget
2017-2018 Budget
Anticipated Expenditures 2017-18 Adopted 2016-17 Salaries Benefits Special Education Debt Service Transportation Building & Grounds Technology BOCES w/o Spec Ed & Tech Supplies & Equipment Other Planned Balance
Proposed Budget 2017-18
61,719,050 62,890,347 30,684,971 31,154,698 11,444,750 11,236,535 6,949,507 6,949,558 8,249,001 8,139,500 2,921,914 3,418,864 2,447,436 2,743,128 2,796,264 2,926,899 2,491,390 2,695,175 2,776,598 2,944,969 2,100,000 2,100,000 134,580,881 137,199,673
Difference
Percent Change
1,171,297 1.90% 469,727 1.53% -208,215 -1.82% 51 0.00% -109,501 -1.33% 496,950 17.01% 295,692 12.08% 130,635 4.67% 203,785 8.18% 168,371 6.06% 2,618,792 1.95%
TRANSPORTATION • Elimination of transportation on days RCSD is not in session • Elimination of multiple bell times • Consolidation of some non-public and special education routes with BOCES
TRANSPORTATION EXPENDITURES FISCAL YEAR
CONTRACTED BUS EXPENSE
2011-12
$5,878,175
2012-13
$6,012,419
2013-14
$6,139,097
2014-15
$6,602,992
2015-16
$7,141,461
2016-17
$7,610,501
2017-18
$7,491,000
2016-17 & 2017-18 Budgeted amounts
Anticipated Expenditures 2017-18 Adopted 2016-17 Salaries Benefits Special Education Debt Service Transportation Building & Grounds Technology BOCES w/o Spec Ed & Tech Supplies & Equipment Other Planned Balance
Proposed Budget 2017-18
61,719,050 62,890,347 30,684,971 31,154,698 11,444,750 11,236,535 6,949,507 6,949,558 8,249,001 8,139,500 2,921,914 3,418,864 2,447,436 2,743,128 2,796,264 2,926,899 2,491,390 2,695,175 2,776,598 2,944,969 2,100,000 2,100,000 134,580,881 137,199,673
Difference
Percent Change
1,171,297 1.90% 469,727 1.53% -208,215 -1.82% 51 0.00% -109,501 -1.33% 496,950 17.01% 295,692 12.08% 130,635 4.67% 203,785 8.18% 168,371 6.06% 2,618,792 1.95%
BUILDINGS & GROUNDS • Increase in building repair costs due to ongoing projects and anticipated repairs as buildings age • Ensuring budgeted figures are in line with ongoing expenditures over the past few years • Large ticket items such as pool repair and painting of HS gym and pool
Anticipated Expenditures 2017-18 Adopted 2016-17 Salaries Benefits Special Education Debt Service Transportation Building & Grounds Technology BOCES w/o Spec Ed & Tech Supplies & Equipment Other Planned Balance
Proposed Budget 2017-18
61,719,050 62,890,347 30,684,971 31,154,698 11,444,750 11,236,535 6,949,507 6,949,558 8,249,001 8,139,500 2,921,914 3,418,864 2,447,436 2,743,128 2,796,264 2,926,899 2,491,390 2,695,175 2,776,598 2,944,969 2,100,000 2,100,000 134,580,881 137,199,673
Difference
Percent Change
1,171,297 1.90% 469,727 1.53% -208,215 -1.82% 51 0.00% -109,501 -1.33% 496,950 17.01% 295,692 12.08% 130,635 4.67% 203,785 8.18% 168,371 6.06% 2,618,792 1.95%
TECHNOLOGY • One time costs associated with hardware installation to complete network upgrade to a wireless infrastructure
Anticipated Expenditures 2017-18 Adopted 2016-17 Salaries Benefits Special Education Debt Service Transportation Building & Grounds Technology BOCES w/o Spec Ed & Tech Supplies & Equipment Other Planned Balance
Proposed Budget 2017-18
61,719,050 62,890,347 30,684,971 31,154,698 11,444,750 11,236,535 6,949,507 6,949,558 8,249,001 8,139,500 2,921,914 3,418,864 2,447,436 2,743,128 2,796,264 2,926,899 2,491,390 2,695,175 2,776,598 2,944,969 2,100,000 2,100,000 134,580,881 137,199,673
Difference
Percent Change
1,171,297 1.90% 469,727 1.53% -208,215 -1.82% 51 0.00% -109,501 -1.33% 496,950 17.01% 295,692 12.08% 130,635 4.67% 203,785 8.18% 168,371 6.06% 2,618,792 1.95%
PLANNED BALANCE • Planned Balance as separate line in the budget • Avoids the District having to issue annual debt to cover the expenses for the summer months and first payroll in September
Anticipated Revenues 2017-18 Adopted 2016-17 2,627,306 Planned Balance Health Services 400,000 Interest on Investments 50,000 School Lunch Fund Revenue 400,000 Unclassified Revenues/rentals 2,800,000 State Aid 14,757,174 Building Aid 3,821,693 BOCES Aid 2,474,085 Use of Reserves 262,463 Tax Levy 106,888,160 Total Revenue
134,580,881
Proposed 2017-18 2,100,000 400,000 75,000 0 3,030,000 15,823,510 4,096,362 2,357,081 313,017 108,177,517 136,622,487
This includes a shortfall of revenue of $577,186
Dollar Difference -527,306 25,000 400,000 230,000 1,166,336 274,669 -117,004 50,554 1,289,357 2,041,606
Percent Difference
-20.07% 50.00% 8.21% 7.90% 7.19% -4.73% 19.26% 1.21% 1.52%
PLANNED BALANCE • Back to the previous amount • No anticipated surplus in 2016-17
Anticipated Revenues 2017-18 Adopted 2016-17 2,627,306 Planned Balance Health Services 400,000 Interest on Investments 50,000 School Lunch Fund Revenue 400,000 Unclassified Revenues/rentals 2,900,000 State Aid 14,757,174 Building Aid 3,821,693 BOCES Aid 2,474,085 Use of Reserves 262,463 Tax Levy 106,888,160 Total Revenue
134,580,881
Proposed 2017-18 2,100,000 400,000 75,000 0 3,180,000 15,823,510 4,096,362 2,357,081 313,017 108,177,517 136,622,487
This includes a shortfall of revenue of $577,186
Dollar Difference -527,306 25,000 400,000 280,000 1,166,336 274,669 -117,004 50,554 1,289,357 2,041,606
Percent Difference
-20.07% 50.00% 9.66% 7.90% 7.19% -4.73% 19.26% 1.21% 1.52%
Anticipated Revenues 2017-18 Adopted 2016-17 2,627,306 Planned Balance Health Services 400,000 Interest on Investments 50,000 School Lunch Fund Revenue 400,000 Unclassified Revenues/rentals 2,900,000 State Aid 14,757,174 Building Aid 3,821,693 BOCES Aid 2,474,085 Use of Reserves 262,463 Tax Levy 106,888,160 Total Revenue
134,580,881
Proposed 2017-18 2,100,000 400,000 75,000 0 3,180,000 15,823,510 4,096,362 2,357,081 313,017 108,177,517 136,622,487
This includes a shortfall of revenue of $577,186
Dollar Difference -527,306 25,000 400,000 280,000 1,166,336 274,669 -117,004 50,554 1,289,357 2,041,606
Percent Difference
-20.07% 50.00% 9.66% 7.90% 7.19% -4.73% 19.26% 1.21% 1.52%
UNCLASSIFIED REVENUES • Anticipated increase in rental income • Anticipated one-time insurance recovery for the roof repairs at Suffern High School
Anticipated Revenues 2017-18 Adopted 2016-17 2,627,306 Planned Balance Health Services 400,000 Interest on Investments 50,000 School Lunch Fund Revenue 400,000 Unclassified Revenues/rentals 2,900,000 State Aid 14,757,174 Building Aid 3,821,693 BOCES Aid 2,474,085 Use of Reserves 262,463 Tax Levy 106,888,160 Total Revenue
134,580,881
Proposed 2017-18 2,100,000 400,000 75,000 0 3,180,000 15,823,510 4,096,362 2,357,081 313,017 108,177,517 136,622,487
This includes a shortfall of revenue of $577,186
Dollar Difference -527,306 25,000 400,000 280,000 1,166,336 274,669 -117,004 50,554 1,289,357 2,041,606
Percent Difference
-20.07% 50.00% 9.66% 7.90% 7.19% -4.73% 19.26% 1.21% 1.52%
STATE AID • Numbers based on the Governor’s proposed budget • Increase in Building Aid due to the aid for reserve projects no longer used to fund capital reserve
Anticipated Revenues 2017-18 Adopted 2016-17 2,627,306 Planned Balance Health Services 400,000 Interest on Investments 50,000 School Lunch Fund Revenue 400,000 Unclassified Revenues/rentals 2,900,000 State Aid 14,757,174 Building Aid 3,821,693 BOCES Aid 2,474,085 Use of Reserves 262,463 Tax Levy 106,888,160 Total Revenue
134,580,881
Proposed 2017-18 2,100,000 400,000 75,000 0 3,180,000 15,823,510 4,096,362 2,357,081 313,017 108,177,517 136,622,487
This includes a shortfall of revenue of $577,186
Dollar Difference -527,306 25,000 400,000 280,000 1,166,336 274,669 -117,004 50,554 1,289,357 2,041,606
Percent Difference
-20.07% 50.00% 9.66% 7.90% 7.19% -4.73% 19.26% 1.21% 1.52%
Unrestricted Reserve Type
Unrestricted Tax Certiorari
Balance July 1, 2016 $575,480
Planned Budget Balance for use Usage 2016-17 in 2017-18 Budget $262,463
$313,017
CAPITAL COSTS CONSIDERATIONS
District Capital Project Reserves: A Timeline • 2007: District voters approved a Capital Reserve to be funded in the amount of $8 million over 10 years • Reserve funded the following projects: – Viola Courtyard – Turf Fields at Suffern Middle School – Roofing at Sloatsburg and Connor Elementary Schools – Storage Sheds
District Capital Project Reserves: A Timeline • 2017: Approximately $1.7 million remains in the Capital Reserve • Remaining funds to be spent as follows: – Air handlers at High School – Generators at SHS, SMS and District Office
District Capital Project Reserves: What’s Next • Review of Building Condition Survey indicates continued Capital Project needs over the next ten years • Total recommended expenditures: $17 million • Maintain and Improve 7 schools and District Office
District Capital Project Reserves: What’s Next 2017 - 2027 •
Examples of Recommended Future Projects – Roof replacement at SHS, SMS and Cherry Lane ($7 million) – Generators at all elementary schools ($750,000) – Fire alarm and emergency lighting at all schools ($850,000) – Electrical upgrades at all schools ($900,000) – Additional SHS and SMS cafeteria renovations ($1.6 million) – Track resurfacing at SHS and SMS ($1 million) – Plumbing upgrade at SMS ($500,000)
Proposal to Fund Needed Capital Improvements • Fund at least $700,000 per year in the budget (beginning in the 2017-2018 school year) – $700,000 x 10 years = $7 million • Establish new Capital Reserve Fund in the amount of $10 million over ten years, through voter approval – Proposition on ballot for May vote – No additional cost to taxpayers • Total Need: $17 million – $7 million through budget over 10 years – $10 million through new Capital Reserve over 10 years
Other Options to Fund Needed Capital Improvements • Separate bonding for full $17 million – No funds set aside in annual budget – Addition of further debt over 20 year period • Establish new Capital Reserve Fund in the amount of $17 million over ten years – Requires setting aside $1.7 million annually to fund the needed amount over 10 years
Budget Development: Next Steps • Review revenues after new State budget • More information on potential retirements and other cost reductions • Close current funding gap of $577,186 by April 4th meeting • Capital Project Propositions – Expenditure of remaining $1.7 million in current Capital Reserve Fund – Establishment of new Capital Reserve Fund for future needs
2017-18 Preliminary Budget: At A Glance As of 3/7/17
1.2% Tax Levy Increase
1.95% Budget-to-Budget Increase
$137,199,673 Total Proposed Budget
Questions For further information regarding the 2017-18 Budget, please visit the District webpage at: www.ramapocentral.net
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