2024-25 Tax Cap & Governor’s Budget Proposal February 13, 2024 Webster Central School District
Let’s Review the Formula
Major Points of Calculation ●
Tax Base Growth Factor ○ ○
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PILOTS ○ ○
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Payments in Lieu of Taxes Balance out unless there is a change year to year (budgeted number)
“The Cap” ○ ○ ○
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Comes from NYS Tax & Finance Changes in taxable property in a district
Based on inflation, 2% or lower Inflation has ranged from 0.12%-8.0% Currently trending at 4.1%
Pension Exclusions ○ ○ ○
The pension change must exceed an increase of 2% for the exclusion to kick in The ERS system will have a small exclusion for next year First time in almost a decade there has been a pension exclusion added to the calculation
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Major Points of Calculation ● Capital Exclusions (Capital Expenses-Aid) ○ Total Budget Capital Expenses ■ ■ ■ ■ ■
Principal and Interest for Construction and Buses Transfers to Capital Fund Energy Performance Contracts Capital Leases BOCES expenses for rent and capital expenditures
○ Total Aid ■ ■ ■
Building Aid (Some exemptions) Transportation Aid BOCES Aid for Rent and Capital 4
Average = 1.0080
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Tax Levy Limit
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2024-25 State Budget Proposal ✘
The executive budget proposes an increase in aid for districts that totals just over $825 million more than 2023-24 ✗
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2.4% increase
Foundation Aid ✗ ✗
Would be the first year where the formula is allowed to run Not so fast my friends! ✗ Inflation factor changed from 4.1% to 2.4%
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✗ Reduction for all school districts ✗ $629,767 for Webster Elimination of Save Harmless ✗ No longer guarantee the same level as the previous year (337 districts) ✗ “Transition Adjustment” applied instead based on wealth factors
Expense Based Aids ✗
Fully funds all formula aids (BOCES, Transportation, Building, etc.) 7
Highest $ Increase $2.7 Million Highest % Increase 8.73%
Average $ Increase = $913,014
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Average % Increase = 2.36%
2024-25 State Budget Proposal Other Budget Items of Note ✗
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$10 million for the NYSUT Trust to support reading training for elementary teachers ✗ Reporting requirements for districts on K-3 reading curriculum No funding for prior year adjustments that are owed to districts ✗ Owed $843,372 in back aid payments $100 million in “additional funding” for UPK ✗ Federal funding is expiring $35,000 Salary Waiver ✗ Not included ✗ Could be an extreme hardship for districts that rely on active retirees
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2024-25 State Budget Proposal Other Budget Items of Note School Meals ✗ $11 million to continue state subsidy for Community Eligibility program ✗ We may be eligible for next year ✗ Career and Technical Education Funding ✗ Cap on aid for salaries a real problem in program expansions at BOCES ✗ Zero Emission Bus Mandate Grants ✗ Any grants would reduce the local share cost, not the transportation aid ✗ Special Education Residential Placement Cost Shift ✗ Pushes state share for room and board onto districts ✗
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Governor’s Numbers What Does it Mean for Webster?
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State Aid Changes-Deviations from Governor’s Projections Excess Cost Aids (56.1% and 87.1%) ✗ ✗ ✗
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BOCES Aid (64.7%) ✗ ✗
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Based on Fall projections for total expenditures, Governor’s projection is always high Aid ratio has gone down since last year due to wealth factors going up
Building Aid (74.7%) ✗ ✗ ✗ ✗
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Based on projected student counts at a snapshot in time Spring release with legislature is a little more accurate Total aid is projecting higher due to a few more enrolled students at BOCES programs
Based on fall projections (October 15) when final reports for each project are due Timing of project completion for final reports (December 31st) Governor’s projection is usually lower than projected for the final numbers because of that timing Impacts tax cap as well for capital exclusions as aid ratio is lower than last year
Transportation Aid (69.2%) ✗ ✗ ✗
Based on project expenditures in the fall Will update in March/April with a more accurate expense projection for this year Projecting right now to remain the same as 2023-24 with aid ratio lower than last year 12
THANK You!
Questions 13