Newark CSD Board of Education February 14, 2018 2018-19 Budget Discussion

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

Unknowns: BOCES Costs Staffing decisions Contract negotiations

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 2018-2019 school year Available Carry-over from 2017-18 = Tax Levy Limit before Exclusions

2% Tax Cap Prior School Tax Levy: ---------------------- $12,567,974 X Tax Base Growth Factor: -------------------------- 1.0062 + Pilots Received Prior School Year: -------- $50,000 - Court Orders/judgments: --------------------------- $0 - Local Capital Costs: --------------------------------- $0 X Growth Factor (Cap at 2%): ------------------- 1.02 - Pilots for 2018-2019: ----------------------------- $50,000 + Available Carry-over* from 2017-2018: $191,912 = Tax Levy Limit before Exclusions: $13,091,725 `

2% Tax Cap Exclusions Court Orders/Judgments: $0 Capital Tax Levy: $0 Pension Exclusions: ERS: $0 15.0% TRS: $0 10.63% Total Exclusions: $0

What does it mean? = 4.2% Tax Levy Limit: $13,091,725 Total Exclusions: $0______ Tax Levy Limit plus Exclusions: $13,091,725 Percent Increase: = ($13,091,725-$12,567,974) $12,567,974 = 4.2%

Anticipated Local Revenue 2018-19 Pilots $50,000 Sales Tax $800,000 Rental of Real Property $390,000 Penalties $24,000 Interest $15,000 Admissions $18,000 BOCES Transportation $30,000 Health Services $8,000 Other $237,000 Totals $1.572,000

Governor’s Proposal 2017-18 2018-19 Foundation $20,187,057 $20,753,118 2017-18 2018-19 Foundation $20,187,057 $20,753,118 Universal Pre-Kindergarten $305,968 $305,968 BOCES & Special Services $1,510,462 $2,085,085 High Cost, Excess Cost $1,488,395 $1,530,149 Private Excess Cost $28,226 $49,578 Hardware & Technology $41,817 $42,712 Software, Library, Textbook $169,266 $171,746 Transportation $1,953,050 $1,956,113 Building $6,020,769 $2,640,624 Medicaid Reimbursement $125,000 $125,000 Community School Set Aside $137,556 $137,556 Totals $31,967,566 $29,797,649

State Aid Run 2017-18 Actual 2018-19 Foundation $20,484,241 $20,753,118 Universal Pre-Kindergarten $305,968 $305,968 BOCES & Special Services $2,613,243 $2,085,085 High Cost, Excess Cost $1,580,734 $1,530,149 Private Excess Cost $54,461 $49,578 Hardware & Technology $41,777 $42,712 Software, Library, Textbook $171,029 $171,746 Transportation $1,626,030 $1,956,113 Building $5,990,648 $2,640,624 Medicaid Reimbursement $125,000 $125,000 Community School Set Aside $137,556 $137,556 Totals $33,130,687 $29,797,649

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

Questions