Newark CSD Board of Education February 15, 2017 2017-18 Budget Discussion

Agenda: Unknowns Tax Cap Local Revenue State Aid – Governor’s Proposal Questions

Unknowns: BOCES Costs Workers Compensation costs

2% Tax Cap Misconception: The June 2011 law limits the amount that a school district can raise it’s tax levy in any year to 2%. Fact: -The growth in the property tax levy is capped at 2%. -Voter approval if at or below tax cap is 50% +1 -Voter approval if above the tax cap is a supermajority (60%)

2% Tax Cap Prior School-Year Tax Levy Tax Base Growth Factor PILOTS received in prior school year Tax levy to pay for some court orders/judgments Tax levy to pay for local capital costs Allowable levy growth factor Pilots for the 2017-2018 school year Available Carry-over from 2016-17 = Tax Levy Limit before Exclusions

2% Tax Cap Prior School Tax Levy: ---------------------- $12,567,974 X Tax Base Growth Factor: -------------------------- 1.0052 + Pilots Received Prior School Year: -------- $51,000 - Court Orders/judgments: --------------------------- $0 - Local Capital Costs: --------------------------------- $0 X Growth Factor (2%): ---------------------------- 1.0126 - Pilots for 2017-2018: ----------------------------- $50,000 + Available Carry-over from 2016-2017: $0 = Tax Levy Limit before Exclusions: $12,794,150 `

2% Tax Cap Exclusions Court Orders/Judgments: $0 Capital Tax Levy: $0 Pension Exclusions: ERS: $0 15.3% TRS: $0 9.8% Total Exclusions: $0

What does it mean? = 1.8% Tax Levy Limit: $12,567,974 Total Exclusions: $0______ Tax Levy Limit plus Exclusions: $12,567,974 Percent Increase: = ($12,567,974-$12,794,149) $12,567,974 = 1.8%

Tax Levy History 2011-12: $11,712,882 2012-13: $11,712,882 Cap: $12,002,534 2013-14: $11,947,139 Cap: $12,500,127 2014-15: $12,186,083 Cap: $12,335,680 2015-16: $12,429,805 Cap: $12,541,497 2016-17: $12,567,974 Cap: $12,567,974 2017-18: $12,567,974* Cap: $12,794,149 7.3% ($855,092) increase in the tax levy from 2011to 2017

Anticipated Local Revenue 2017-18 Pilots $50,000 Sales Tax $800,000 Rental of Real Property $390,000 Penalties $24,000 Interest $15,000 Admissions $17,000 BOCES Transportation $34,000 Health Services $6,500 Other $200,700 Totals $1.537,200

Governor’s Proposal 2016-17 2017-18 Foundation $19,822,453 $20,187,057 2016-17 2017-18 Foundation $19,822,453 $20,187,057 BOCES & Special Services $2,252,283 $1,510,462 High Cost, Excess Cost $1,261,528 $1,488,395 Private Excess Cost $27,849 $28,226 Hardware & Technology $42,314 $41,817 Software, Library, Textbook $171,878 $169,266 Transportation $1,828,758 $1,953,050 Building $6,023,154 $6,020,769 Medicaid Reimbursement $150,000 $125,000 Community School Set Aside $137,556* $137,556 Totals $31,580,217 $31,661,598 *included in the Foundation Aid number in 2016-17.

What is next? State Aid Budget Finalization Refining Program And Staffing Use of Fund Balance/Reserve Tax Levy

Questions