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2013-14 Budget Recommendation

2013-14 Budget Recommendation. Kenmore-Town of Tonawanda UFSD Board of Education Meeting April 9, 2013. Major Impact Items. State Aid Uncertainty Asset Sale Reduction – Green Acres Reduction in Fund Balance/Reserve use Property Tax Cap Reduction of Tax Base Contractual increases

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2013-14 Budget Recommendation

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  1. 2013-14 Budget Recommendation Kenmore-Town of Tonawanda UFSD Board of Education Meeting April 9, 2013

  2. Major Impact Items • State Aid Uncertainty • Asset Sale Reduction – Green Acres • Reduction in Fund Balance/Reserve use • Property Tax Cap • Reduction of Tax Base • Contractual increases • Retirement System Contribution Increases • Focus District Designation • Disproportionality Designation • Annual Professional Performance Review • Possible sequestration legislation

  3. Budget Review • Philosophy: No further harm to programs • No educational programs are cut • No extra-curricular programs are cut • No athletic programs are cut • Continues Multiple Pathways: Project Lead the Way, Project Gateway, Big Picture School, Career & Technical Education and International Baccalaureate Program • Class size guidelines remain at current levels

  4. Class Size Comparison

  5. Summary Results for Audit of Additional Adults in K-8 Classrooms

  6. Developments Since 3/26/13 Budget Work Session • New York State 2013-14 budget passed • Estimated school district aid runs received • Notified of special aid from Assemblyman Schimminger amounting to $50,000 • Allowed for a revenue increase of $725,000 • Remaining deficit eliminated • Reduces the use of Unappropriated Fund Balance • Eliminates 1 of the 3-section waivers

  7. State Aid Comparison Approximately the same aid as 2006-07 In Millions of Dollars

  8. State Aid Comparison $8.1 Million reduction since 2008-09 In Millions of Dollars

  9. Changes in Budget Since 3/26/13

  10. Changes in Budget Since 3/26/13

  11. Current Budget Status: Deficit Reduction Progress

  12. Recommended Budget Summary

  13. Historical Budget % Increase Avg. = 3.00%

  14. Use of Fund Balance and Reserves

  15. Other Considerations: TRS Pension Smoothing Option • “Stable” rate option for a period of 7 years • The rate is 14% for 2013-14 • May be adjusted up to 2% in Years 3 and 5 • The difference between the stable rate and the actuarial rate will be paid back with interest • The difference with interest for Years 1-5 starts to be paid back in Year 6 (for 5 years) in addition to the stable rate

  16. Other Considerations: TRS Pension Smoothing Option • Return to the actuarial rate in Year 8 • The difference with interest for Years 6-7 starts to be paid back in Year 8 (for 5 years) in addition to the actuarial rate and the continuing payments for Years 1-5 • While it may save money in the first year, the total amount paid in the long run will be more due to the interest payments • In essence, it “kicks the can down the road” and is not recommended

  17. Other Considerations: Sequestration • The effects of the federal sequestration legislation are not yet known • The general fund budget has not been increased for sequestration • If accommodations must be made, the 2014 year-end fund balance will be adjusted for the 2014-15 school year • The structure of the budget allows for dealing with this eventuality

  18. On the Horizon: • NRG-Huntley approached the County, Town, and School District to renegotiate its PILOT (Payment In-Lieu-Of Taxes) agreement beginning in 2014-15 • This could result in significant revenue loss in the 2014-15 school year • Beginning in 2014-15, our Tax Cap percentage increase will be significantly lower

  19. Questions?

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