2022-23 Draft Tax Cap & Governor’s Budget Proposal February 1, 2022 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
“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%-2.44% Currently above 4% which would be the highest since the inception of the cap
Pension Exclusions ○ ○
The pension change must exceed 2% for exclusion Both pension systems will not meet that threshold next year
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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
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Average is 1.0071
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Tax Levy Limit
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2022-23 State Budget Proposal
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The executive budget proposes an increase in aid for districts that totals just over $2.1 billion more than 2021-22 ✗
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Foundation Aid ✗ ✗
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Fully funds all formula aids (BOCES, Transportation, Building, etc.) Previous years the executive always manipulated these
Grant funding ✗
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Continues the 3 year phase in to fully fund the formula Guaranteed minimum of 3%, or 50% of the difference between formula calculation and aid received last year
Expense Based Aids ✗
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7.1% increase
Still TBD if we would qualify for them
Universal PreKindergarten ✗
Continues the funding for full day UPK that began last year 7
2022-23 State Budget Proposal
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Building and Transportation Aid Forgiveness ✗ ✗
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Property Tax Credit Program ✗ ✗ ✗
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Similar to program that expired a couple years ago Follows the STAR exemption patterns More information to follow
Retiree Income Waiver ✗
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Authorizes SED to forgive aid penalties for clerical errors Surprisingly now funding for prior year aid claims this would create
Public sector retirees to work for a school without a waiver or retirement benefit reduction regardless of amount earned through June of 2024
Clean Green Schools Initiative ✗ ✗
Capital outlays for school building energy projections Authorized under NYSERDA 8
2022-23 State Budget Proposal ✘
Electronic School Buses ✗ ✗ ✗
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By 2027 all school bus purchases be zero emissions By 2035 all buses on the road be zero emissions State funding for infrastructure, including charging stations and the purchasing of electric buses Expands financing to be allowable to ten years (currently five)
Issues with this Proposal ✗ ✗ ✗ ✗
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Electric Buses Cost 3 times as much as traditional buses ($420,000 each) Could be about a 40% increase after aid Infrastructure cost-From the road to the building Supply concerns - roughly 5,000 buses would need to replaced annually ✗ Already told manufacturers can do 200 a year Personnel concerns - mechanics to work on them Mileage demands - some districts that are spaced may not be able to make a full trip on the mileage 9
Governor’s Numbers What Does it Mean for Webster?
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Does not look like Aid ratios changed that much Excess Cost Aids (56.1% and 87.1%) ✗ ✗
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BOCES Aid (66.6%) ✗ ✗
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A large portion is for the Monroe 1 capital project Funding goes into a separate account to pay the next years installment
Building Aid (76.6%) ✗ ✗
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Based on projected student counts Clearer picture in Spring to more accurately project an aid number
Based on fall projections when final reports for each project are due Impacts tax cap as well
Transportation Aid (70.9%) ✗ ✗
Based on project expenditures in the fall Will update in March/April with a more accurate expense projection for this year 12
THANK You!
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