January 24 2018
With the governor's budget release, Schenectady would receive an additional $1.6 million more, in Foundation Aid, than the current year. This is significantly less than the prescribed amount that the district should be receiving in order to meet the needs of Schenectady's students.
If we apply the $1.6 million to our first rollover projection, the budget gap is reduced to - $5.2 million. Again, this is based on the governor's school aid proposal. This figure can, and usually does change, before the state budget is adopted.
Districts learn what the state aid projection is when the NYS Budget is approved (anticipated April 1) and, at that time, can better prepare a 2018-19 budget proposal.
Superintendent Larry Spring expects to present a draft budget to the board of education on April 11 and a final budget the following week, April 18.
Throughout the month of February, district leaders will be analyzing existing programs and services, academic needs and gathering feedback from stakeholders, including the Schenectady community. Four community engagement sessions are scheduled at which Schenectady residents are encouraged to ask questions, learn about the budget process and provide feedback on what is important to them. Information gathered from these meetings and discussions will be used to inform budget development decisions including areas of reduction - which will be necessary to close the gap and balance the budget.
Revenue
The latest overview budget presentation was an update and an overview of Revenue, presented at the January 24 board of education meeting. The budget calendar lists the dates of presentations and topics featured.
The revenue budget of $213.8 million comes to us from five sources: state aid, tax levy/STAR/Pilots, grants, federal aid and other local revenue.
NYS Aid - 58%
Tax Levy/STAR/PILOTS - 26%
Grants - 10%
Other Local Revenue - 3%
Federal Aid - 3%
The vast majority of aid comes in the form of NYS School Aid otherwise known as Foundation Aid. This aid is not tied to any specific expenditure.
Reserve Funds & Fund Balance
At the end of each year, after expenses are paid, money left over is called "fund balance." These funds can be placed into restricted purpose accounts for specific expenses such as employee benefits, insurance, unemployment, repairs, etc. These reserve funds are restricted to their purpose.
Districts can also, however, put funds in an account without designating them for a specific purpose. This is called "unreserved" or "undesignated" fund balance. It is capped at 4 percent of the overall budget.
The reason districts set money aside is so that it is there at a later time when needed. This is sometimes informally referred to as a "rainy day" fund. The reserve fund earns interest like a saving account.
As of June 30, 2017, SCSD had $7.2 million in the unreserved, unrestricted fund balance account.
The projected gap of -$5.2 million considers contractual salary increases, pension rate change estimates, and projected percentage increases in other areas. It also considers the $1.6 million in Foundation Aid proposed by the governor. This does not include any increase to the tax levy or use of fund balance.
NEXT PRESENTATION: February 7 - Operations and Maintenance Budget and the Food Service Fund
Questions?
If you have questions, concerns, ideas or comments, click here.
ROLLOVER BUDGET PROJECTION
January 10 2018
If the district keeps all programs, services and staffing as it is in 2017-18, the projected gap at this time is -$6,849,479.
This is a rough projection that considers contractual salary increases, pension rate changes, projected percentage increases in other areas, no increase in Foundation Aid (NYS school aid) or tax and without use of fund balance.
Over time, figures will be further refined and projections will become more precise. Updates will be posted.
Questions?
If you have questions, concerns, ideas or comments, click here.
​