2018-19 Budget Overview

Presentation to the Bethlehem Central School District Board of Education

Tuesday, April 10, 2018

HIGHLIGHTS: ADOPTION OF THE BUDGET

DISTRICT

GOALS

*Technically not revenue, but may be used in some instances to help balance the budget.

Tuesday, May 15, 2018

is

School Budget Vote Day

SUMMARY BUDGETED REVENUES

Budget

2017-18

Budget

2018-19

School Taxes $64,267,000 $64,267,000

PILOT Payments 3,282,000 3,295,000

State Aid 28,110,000 27,687,000

Other Revenue 1,464,000 1,837,000

TOTAL $97,123,000 $97,086,000

4

Good News!$161,000 in additionalstate aid

BUDGET DEVELOPMENT AS OF 3/21/18

5

Expenditures Revenue Gap

Baseline as of 2/8/18 $100,406,000 $97,086,000 ($3,320,000)

Athletics 6,000

Salary Savings, Retirements (840,000)

Updated Health Insurance (400,000)

Reduce Transportation OT Estimate (30,000)

Instructional Program (111,060)

Special Ed & Student Services (140,800)

Adjusted Baseline as of 3/21/18 $98,890,140 $97,086,000 ($1,804,140)

O & M BUDGET OVERVIEW – UTILITY COSTS

Act.

2016-17

Est.

2017-18

Init. Bud.

2018-19

Rvsd.Bud.

2018-19

Electricity $500,991 $500,000 $600,000 520,000

Gas & Propane 199,261 175,000 220,000 200,000

Water 72,462 71,000 74,000 74,000

Communications

(cell/radio/fiber)

51,610 50,000 54,000 54,000

Total Utility Costs $824,324 $796,000 $948,000 $848,000

Vs. Budget $931,000 $936,000Reduce Baseline $100,000

Under-budget ($106,676) ($140,000)

6

O & M BUDGET OVERVIEW

2017-18 2018-19

Salaries $3,326,148 $3,290,461

Equipment/Vehicles 231,900 200,900

Utility Costs 936,000 848,000

Contracted Services 391,500 351,500

Special Projects 107,000 134,000

Custodial/Maintenance Supplies 367,300 373,100

BOCES 80,400 100,000

Total $5,440,248 $5,297,961

Decrease ($142,287)

7

BUDGET DEVELOPMENT AS OF 3/31/18

8

Expenditures Revenue Gap

Baseline as of 2/8/18 $100,406,000 $97,086,000 ($3,320,000)

Athletics 6,000

Salary Savings, Retirements (840,000)

Updated Health Insurance (400,000)

Reduce Transportation OT Estimate (30,000)

Instructional Program (111,060)

Special Ed & Student Services (140,940)

O&M Utility Savings (100,000)

Additional state aid 161,000

Adjusted Baseline as of 3/31/18 $98,790,000 $97,247,000 ($1,543,000)

9

QUICK RECAP

INSTRUCTIONAL/SESS CHANGES TO

BASELINE BUDGET

10

ELEMENTARY SCHOOLS

NET ADDITIONS FTE Cost

Reading Teacher 1.00 $75,700

Additional Music Teacher 0.05 3,785

Additional 15 minutes for six noon hour aides for coverage at Hamagrael

5,000

Additional 30 minutes for one noon hour aide for coverage at Glenmont

1,500

Science Kits 30,000

Less: Elementary Teacher (Slingerlands Elementary) (1.00) (75,700)

ELEMENTARY CLASSROOM SUBTOTAL $40,285

11

MIDDLE SCHOOL

NET REDUCTIONS FTE (Savings) Cost

Mohawk 8 (ELA, Math, Science, Social Studies) 0.8 $(60,560)

World Languages (French 1) 0.2 (15,140)

Art 8 0.2 (15,140)

Health 8 0.1 (7,570)

Physical Education 8 0.1 (7,570)

Technology 8 0.4 (30,280)

Music 8 0.2 (15,140)

Plus: GROW Aide Support 2.0 73,000

Plus: Noon Hour Aide Support 8,400

MIDDLE SCHOOL SUBTOTAL $(70,000)

12

HIGH SCHOOL

NET REDUCTIONS FTE Savings

English Language Arts 0.2 $(15,140)

Social Studies 0.4 (30,280)

Science 0.25 (18,925)

World Languages 0.4 (30,280)

Art 0.1 (7,570)

Health 0.2 (15,140)

Physical Education 0.1 (7,570)

Technology 0.2 (15,140)

CISCO Networking Materials (21,000)

Plus: Mathematics 1.0 75,700

HIGH SCHOOL SUBTOTAL ($85,345)

13

MISCELLANEOUS

NET ADDITIONS Cost

Middle School and High School Friday Late Bus Runs $14,000

Less: Discontinue use of PDP Premier (10,000)

Athletics: baseball field rental fees 6,000

MISCELLANEOUS SUBTOTAL $10,000

14

SPECIAL EDUCATION & STUDENT SERVICES

NET ADDITIONS FTE (Savings) Cost

Add service buffer to BOCES programs $200,000

Speech Teacher 1.0 (75,700)

Special Education Teachers K-12 3.0 (192,100)

Aides to Students with Disabilities 2.0 (73,000)

SESS SUBTOTAL $140,800

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SUGGESTED OPTIONS

TO BALANCE THE 2018-19 BUDGET

THE “CULTURE OF RESTRAINT” CONTINUES

• Supervisors reduce costs through program reviews and modifications

• Software alternatives, tech reconfigurations, transportation fuel/supplies reductions, energy savings, reductions in special needs supports when students surpass expected progress

• Budget allotments preserved – no “use it or lose it” practices

• $650,000 of unfilled program requests for 2018-19, including Technology Support,

STEM Coaching, additional resources for students, classroom furniture, and student

activities and clubs

16

TRENDING ON LEVY AND RATES

Fiscal

Year

Levy

Increase

Tax Cap

MATL

Budget to

Budget +/-

Level of

Community

Support

2012-13 3.99% 2.94% 1.58% 62.66%

2013-14 3.59% 3.64% 2.51% 65.85%

2014-15 2.99% 3.12% 2.45% 68.65%

2015-16 0.45% 0.45% 1.66% 77.49%

2016-17 0.81% 1.34% 2.53% 81.91%

2017-18 0.43% 1.31% 0.60% 82.34%

2018-19 TBD 3.95% TBD TBD

17

Why 3.95%? 2.0% inflation factor, 0.7% tax base growth factor, 1.25% capital exemption

MULTI-YEAR BUDGET FORECAST

2019-20 2020-21 2021-22

Revenue (excludes levy increase)

$99,316,000 $101,255,000 $103,142,000

Expenses 100,755,000 102,844,000 104,449,000

Baseline Gap (1,439,000) (1,589,000) (1,307,000)

Levy Increase of 2% per year

1,317,000 1,344,000 1,371,000

Revenue Increase/ Expense Decrease

($122,000) ($245,000) $64,000

Use of Fund Balance An option to consider, if needed (but not recommended).

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Mid-term forecast is stable and does not indicate any serious concerns.

Est. 2017-18 surplus: $2.2m 6/30/16 6/30/17 Est. 6/30/18

Encumbrances $61,068 $257,462 $200,630

Workers’ Comp 1,440,000 1,440,000 1,440,000

Employee Benefits 1,400,000 1,400,000 1,400,000

Tax Certiorari 500,000 300,000 300,000

Retirement (ERS) 2,677,000 2,677,000 2,677,000

Mandatory Res. For Debt 272,878 227,747 182,370

Capital Reserve 4,900,000 7,200,000 9,339,000

Undesignated 3,641,047 3,736,774 3,900,000

Total $14,891,993 $17,238,983 $19,439,000

Subs. Yr. Bud. $96,540,000 $97,123,000 $98,500,000

Undesignated % (max 4%) 3.77% 3.85% 3.96%

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FUND BALANCE & RESERVES GENERAL FUND

+1.78% Bethlehem

-1.29% New Scotland

OPTIONS FOR CLOSING BUDGET GAP

ESTIMATED TAX RATE IMPACT*

Option #12.40% tax levy increase,

Budget of $98,790,000

BUDGET ADJUSTMENTS

None.

+1.52% Bethlehem

-1.55% New Scotland

BUDGET ADJUSTMENTS

REMOVE: $174,000 from Special Ed.

buffer. Maintains all identified

savings/reductions

All other identified

savings/reductions would remain

+1.39% Bethlehem

-1.68% New Scotland

BUDGET ADJUSTMENTS

All other identified

savings/reductions would remain

Option #22.13% tax levy increase,

Budget of $98,616,000

Option #32.00% tax levy increase,

Budget of $98,532,000

ESTIMATED TAX RATE IMPACT* ESTIMATED TAX RATE IMPACT*

* Estimated tax rates reflect decreased equalization rates

of 95% in Town of Bethlehem and 96% in Town of New

Scotland and increases in assessment values of $24

million in Bethlehem and $1 million in New Scotland.

REMOVE: $191,000 from

Special Ed buffer, science

kits, 1 GROW aide.

BUDGET DEVELOPMENT IF OPT. 1 ADOPTED

21

Expenditures Revenue Gap

Baseline as of 2/8/18 $100,406,000 $97,086,000 ($3,320,000)

Athletics 6,000

Salary Savings, Retirements (840,000)

Updated Health Insurance (400,000)

Reduce Transportation OT Estimate (30,000)

Instructional Program (111,060)

Special Ed & Student Services (140,940)

O&M Utility Savings (100,000)

Additional state aid 161,000

Levy Amount, No change in expenses 0 1,543,000

Adjusted Baseline as of 4/10/18 $98,790,000 $98,790,000 0

BUDGET DEVELOPMENT IF OPT. 2 ADOPTED

23

Expenditures Revenue Gap

Baseline as of 2/8/18 $100,406,000 $97,086,000 ($3,320,000)

Athletics 6,000

Salary Savings, Retirements (840,000)

Updated Health Insurance (400,000)

Reduce Transportation OT Estimate (30,000)

Instructional Program (111,060)

Special Ed & Student Services (140,940)

O&M Utility Savings (100,000)

Additional state aid 161,000

Levy Amount, SESS reduction (174,000) 1,369,000

Adjusted Baseline as of 4/10/18 $98,616,000 $98,616,000 0

BUDGET DEVELOPMENT IF OPT. 3 ADOPTED

24

Expenditures Revenue Gap

Baseline as of 2/8/18 $100,406,000 $97,086,000 ($3,320,000)

Athletics 6,000

Salary Savings, Retirements (840,000)

Updated Health Insurance (400,000)

Reduce Transportation OT Estimate (30,000)

Instructional Program (111,060)

Special Ed & Student Services (140,940)

O&M Utility Savings (100,000)

Additional state aid 161,000

Levy Amount, SESS 191k, sci kits, 1 GROW aide (258,000) 1,285,000

Adjusted Baseline as of 4/10/18 $98,532,000 $98,532,000 0

• Replaces 18-year old unit

• New unit will be in sound

deadening room with general

storage above

• $100,000 in budget (as

transfer to capital fund)

26

CAPITAL

OUTLAY

Transportation Air

Compressor

Replacement &

Sound Deadening

Room

6 large buses

Avg. 12 years serviceAvg. 88,000 miles

20052005 2005

27

PROPOSED: 15 Replacement Buses | Cost not to exceed $1,190,000

3 8-passenger buses

Avg. 9 years serviceAvg. 94,000 miles

6 30-passenger buses

Avg. 9 years serviceAvg. 87,000 miles

20052005 2005

BOARD OF

EDUCATION

ELECTION

Lynne Lenhardt

Charmaine Wijeyesinghe

Terms for incoming board members

will expire June 30, 2021

On May 15, voters in the Bethlehem Central School District will elect two

members of the Board of Education. Nominating petitions are

available from the District Clerk, Brittany Barrett. All petitions are due

by April 16 at 5 p.m. 28

Ms. Lenhardt is not seeking re-election. She has served on the board 30 years (since 1988) and is currently the vice-president.

Dr. Wijeyesinghe is not seeking re-election. She has served on the board for nine years (since 2009).

Thank you to Lynne and Charmaine,

for their devoted service!!

FUTURE

MEETINGS

BUDGET

DEVELOPMENT

29

April 25: Regular Meeting, 7:00 p.m.

May 1 (Tues): Meet the BOE Candidates Night, HS Cafeteria, 6:30 p.m.

May 2: Public Hearing on Proposed Budget, 7:00 p.m.

May 15: BUDGET VOTE, 7:00 a.m. to 9:00 p.m. at the high school