2023-24 Draft Tax Cap & Governor’s Budget Proposal February 14, 2023 Webster Central School District
Let’s Review the Formula
Major Points of Calculation ●
Tax Base Growth Factor ○ ○
●
PILOTS ○ ○
●
Payments in Lieu of Taxes Balance out unless there is a change year to year (budgeted number)
“The Cap” ○ ○ ○
●
Comes from NYS Tax & Finance Changes in taxable property in a district
Based on inflation, 2% or lower Inflation has ranged from 0.12%-4.7% Currently trending at 8%
Pension Exclusions ○ ○
The pension change must exceed 2% for exclusion Both pension systems will not meet that threshold next year
3
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
Amazon
Average = 1.0076
5
Tax Levy Limit
6
2023-24 State Budget Proposal
✘
The executive budget proposes an increase in aid for districts that totals just over $2.7 billion more than 2022-23 ✗
✘
13% increase
Foundation Aid ✗ ✗
✗
Final phase in this year to fully fund the formula Guaranteed minimum of 3% for all districts NEW - Set aside for “high impact tutoring” in grades 3-8 ✗ ✗ ✗ ✗
✘
Small group/Individual tutoring in Math/Reading During, Before, or After school, including summer 2x per week, no less than 30 minutes until student is no longer designated at risk Funds shall only be use to SUPPLEMENT, not SUPPLANT current funding
Expense Based Aids ✗
Fully funds all formula aids (BOCES, Transportation, Building, etc.) 7
Highest $ Increase $19 Million
Average $ Increase = $5,705,137
Highest % Increase 45%
8
Average % Increase = 23.11%
2023-24 State Budget Proposal
✘
Universal PreKindergarten
Additional Funding for seats ✗ Each student (seat) represents $5,400 allotment ✗ Currently we have 2 separate grants ✗ $1,080,000 in federal funding ✗ $450,900 is state funding ✗ Total = $1,530,900- 284 UPK seats based on this ✗ Budget adds $853,200 to the grant ✗ 158 more seats with this increase So why are you complaining Brian? ✗ Well, this doesn’t make sense right now ✗ Grant requires 10% to go to community based programs ✗ $5,400 per student is a struggle for them ✗ District based classes -we have no wait list ✗ Would it increase if we changed hours (wrap care #1 concern) ✗ Could utilize an increase in per 9pupil to add more services to the program ✗
✘
2023-24 State Budget Proposal
Other Budget Items of Note
✗
✗ ✗ ✗
✗
$30 million in competitive grants - will we qualify for them? New reporting requirements for UPK Extends building level financial transparency reporting until 2028 Annually submit to SED progress report on implementation of zero-emission buses ✗ Electrical grid capacity ✗ # of charging stations available ✗ Workforce training ✗ Numbers of buses purchased already ✗ Number of anticipated to be purchased Retiree income waiver extended until 2024
10
Governor’s Numbers What Does it Mean for Webster?
State Aid Changes ✘
Excess Cost Aids (56.0% and 87.1%) ✗ ✗
✘
BOCES Aid (66.4%) ✗ ✗
✘
Based on Fall projections for total expenditures, Governor’s projection is always high Aid ratio is almost the same as last year
Building Aid (76.4%) ✗ ✗ ✗
✘
Based on projected student counts, with a clearer picture in Spring to more accurately project an aid number Total aid will be lower than 22-23 based on reduction in high cost student programs at BOCES
Based on fall projections (October 15) when final reports for each project are due Timing of project completion for final reports - Governor’s projection is usually lower than projected for the final numbers Impacts tax cap as well
Transportation Aid (70.7%) ✗ ✗ ✗
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 2022-23 12
THANK You!
Questions 13