Tentative 2013-‐2014 Budget - East Aurora Union Free School

2013-­‐2014 Preliminary Budget Presentation
Board of Education Meeting
Brian D. Russ, Superintendent
Paul Blowers, School Business Manager
March 6, 2013

Key Components of the Budget
Preparation Framework
ü The first draft of the budget should include a 2 % tax levy increase.
ü Maintaining educational programs at current class sizes
ü Staffing adjustments/reductions should be based upon enrollment
projections.
ü The focus should be on preservation of programs for a broad range of
students and the preservation of programs that directly impact
achievement, thereby avoiding the reduction in opportunities for
students.
ü Teachers should be involved in the budget development process.
ü Non-­‐instructional elements of the budget should be analyzed for
potential savings.
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Challenges in the Development of the
2013-­‐2014 School Budget
ü Increase in collective bargaining obligations
ü Double digit increases in retirement system
contributions
ü Foundation Aid frozen at 2012-­‐2013 level
ü Continuation of the GEA
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State Aid Outlook
A Quick Look at the Deficit
Projected budget deficit that the Executive Budget proposal needs to
close:
Total Projected Four Year Deficit
Governor’s Projections
2013-­‐2014
2014-­‐2015
2015-­‐2016
2016-­‐2017
$1.35 Billion
$4.0 Billion
$5.2 Billion
$5.7 Billion
$16.3 Billion
Executive Budget Proposal eliminates the 2013-­‐2014 budget gap, and
significantly reduces the 2014-­‐2015 deficit from $4 billion to $1.95 billion.
• Combined four year budget gap is reduced from $16.3 billion to $10.1 billion
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State Aid Outlook
Proposed Spending for 2013-­‐2014
Proposed 2013-­‐2014 K-­‐12 Education Funding
2012-­‐2013
Actual
2013-­‐2014
Proposal
GSPS* $20.196 Billion $21.085 Billion (+4.4%)
*General Support for Public Schools (GSPS): Includes
calculated aids and selected categorical programs.
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State Aid Outlook
Proposed Funding for Education for 2013-­‐2014
How is the Increase in Aid Distributed?
In Millions of Dollars
2012-­‐2013 2013-­‐2014 Change
Formula Based Aids
(Excluding Building)
$19,295.72 $19,455.26 $159.54
Building 2,714.11 $2,783.33 $69.22
GEA (2,156.28) (1,834.73) $321.55
Grants Programs/Other $29.270 $302.69 $9.99
Competitive Grants $50.00 $100.00 $50.00
Fiscal Stabilization & Reform 0.00 $278.05 $278.05
TOTALS $20.196 $21.085 $888.35
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2013-­‐2014 Governor’s Budget
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2013-­‐2014 Governor’s Budget
No Formula Change
Ê The Governor recommends no change in the formula for the following aids:
Ê Public High Cost Excess Cost Aid -­‐ $532.04 million (+79.79 million)
Ê Private Excess Cost Aid -­‐ $358.98 million (+38.89 million)
Ê Textbook Aid -­‐ $181.34 million (+2.29 million)
Ê Computer Software Aid -­‐ $46.69 m illion (+0.96 million)
Ê Library Materials Aid -­‐ $19.48 million (+0.47 million)
Ê Computer Hardware Aid -­‐ $38.86 million (+0.84 million)
Ê Full Day K Conversion Aid -­‐ $13.83 million (+6.56 million)
Ê Charter School Transitional Aid -­‐ $33.47 million (-­‐1.14 million)
Ê Building Aid/Reorg. Incentive Building Aid -­‐ $2.783 billion (+69.22 million)
Ê BOCES Aid -­‐ $724.86 million (+20.73 million)
Ê Transportation Aid -­‐ $1.723 billion (+60.87 million)
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2013-­‐2014 Governor’s Budget
Frozen Aids
Ê The Governor proposes to freeze the following aids
for the 2013-­‐2014 school year:
Ê Foundation Aid -­‐ $15.005 billion
Ê Frozen at 2012-­‐2013 school year amounts
Ê Supplemental Public Excess Cost Aid -­‐ $4.31 million
Ê Frozen at 2010-­‐2011 level for the 2013-­‐2014 school year
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East Aurora’s Gap Elimination Amount
ü Gap Elimination Adjustment will be in place for
2013-­‐2014.
ü 4-­‐year history of the Gap Elimination :
• 2010-­‐2011 $1,431,892
• 2011-­‐2012 $1,517,056
• 2012-­‐2013 $1,437,247
• 2013-­‐2014 $1,397,617
Total loss in State Aid over a three year period as a result
of the Gap Elimination Adjustment -­‐ $5,783,812
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Projected Revenues
2013-­‐2014
CATEGORY
Tax Levy
Sales Tax
State Aid
Appropriated Reserves
Appropriated Fund Balance
Other Sources
$17,752,257
1,850,000
7,422,454
825,000
1,100,000
552,580
TOTALS $ 29,502,291
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Estimated Revenues
ü Estimated revenues for 2013-­‐2014 total $29,502,291.
ü The appropriated reserves have been increased $175,000 from
2012-­‐2013.
ü The appropriated fund balance has been increased $25,000
from 2012-­‐2013
ü The Governor’s Proposal for State Aid is used in the revenue
estimate.
ü The revenue estimates include an increase in the tax levy of
$348,083 or 2%.
ü Sales Tax revenues increased by $111,710.
ü Full Day Kindergarten Conversion aid totaling $119,160
deferred to 2013-­‐2014.
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Tentative 2013-­‐2014 Budget
ü 2013-­‐2014 Budget Draft #1 totals
$29,902,825
ü Represents an Increase of $791,438
from 2012-­‐2013 or 2.72%
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Components of the
2013-­‐2014 Budget
CATEGORY
2012-2013
APPROPRIATIONS
2013-2014
APPROPRIATIONS
INCREASE
(DECREASE)
PERCENT
CHANGE
SALARIES $12,965,999 $13,310,221 $344,222 2.65
FRINGE BENEFITS 5,918,272 6,597,002 678,730 11.47
SUPPLIES & EQUIPMENT 843,540 798,500 (45,040) (5.34)
CONTRACTUAL 2,496,037 2,336,230 (159,807) (6.40)
BOCES 2,667,007 2,863,984 196,977 7.39
TRANSPORTATION 1,555,500 1,625,500 70,000 4.50
DEBT SERVICE/
TRANSFERS 2,665,032 2,371,388 (293,644) (11.02)
TOTALS $ 29,111,387 $29,902,825 $791,438 2.72
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Budget gap estimate
2013-­‐2014
Draft #1 Budget
Projected Revenues
$29,902,825
29,502,291
Budget Gap $ 400,534
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Opportunities to Close the Budget Gap
Budget Gap
Anticipated Health Insurance Savings
Expenditure Savings From Drop In
Enrollment
Additional State Aid from Fiscal
Stabilization Allocation
$400,000
(100,000)
(100,000)
(50,000)
Revised Budget Gap $150,000
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Items Included in the Preliminary
2013-­‐2014 Budget
ü Staffing at 2012-­‐2013 levels
ü Equipment for technology, instruction and buildings and grounds
ü New Textbook purchases
ü Athletic programs supported at 2012-­‐2013 funding levels
ü Clubs supported at 2012-­‐2013 funding levels
ü Advanced Placement courses
ü Music, Art and electives
ü Transportation Program services remain unchanged from
2012-­‐2013 levels
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Items Currently NOT Included in the
Preliminary 2013-­‐2014 Budget
ü Increase Special Education Support at Parkdale by 1.0 FTE
ü Increase Special Education Aide Support at Parkdale by
2.0 FTE
ü Increase upper class electives at the High School by 0.4 FTE
ü Increase Aide Support at the High School by 0.5 FTE
ü Increase School Counselor Support at Middle School by 0.5 FTE
ü Increase Aide Support at Middle School by 1.0 FTE
ü Professional Development funding needed for instructional
resources and curriculum alignment
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Budget Development Calendar
ü March 20 – Review Draft #2 of the 2013-­‐2014 budget and
review recommendations
ü March 27
• Review Draft #3 and make recommendations
• Finalize 2013-­‐2014 budget and revenue estimates
• Hold Public Budget Forum
ü April 10 – Adopt the 2013-­‐2014 budget
ü April 24 – Final budget discussion (if necessary)
ü April 25 -­‐ Submit Property Tax Report Card to SED
ü April 30 – Make the three part budget available to the public
ü May 8 – Hold Public Hearing on the proposed budget
ü May 10 – Mail out the Budget Notice
ü May 21 – Annual Budget Vote
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