2025-26 Long Range Financial Plan
AGENDA
✓ State Aid Updates ✓ Fund Balance Activity ✓ Reserve Plan Overview ✓ Enrollment Updates ✓ Tax Cap & Data Dive ✓ Budget and Revenue Projections 2
Foundation Aid 2026-27 Projection = November Database
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State Aid ✓ ✓ ✓
✓
This would be if there are no changes to the formula for next year Aid ratios trending down for expense based state aid Wealth factors up to 0.905, which accounts for the aid ratios going down No longer on the “hold harmless” ❏ Economically disadvantaged numbers increased 4
“The time to repair the roof is when the sun is shining” John F. Kennedy
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Fund Balance-What Is It? ✓ ✓ ✓ ✓
More than just reserves Includes non-general funds Includes commodities and purchase order encumbrances How does Webster compare to other districts?
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Fund Balance-Why Do We Need It?
Fund Balance is there to be a “Financial Bridge”
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What is the lesson we can take away from this example and apply to district financial operations?
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Reserve Plan
Enrollment
Why Start With Enrollment?
✓ ✓ ✓ ✓
Enrollment projections are the basis for all planning It is needed for facilities planning at SED Needed to plan out for class sizes, catchment changes Utilize the cohort-survival methodology ❏ Based on weighted averages over a 10-year period ❏ A few tweaks to take into account known changes
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What Does Enrollment Change in Monroe County Look Like?
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Four financial comparisons for thought generation
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“By failing to prepare, you are preparing to fail” Benjamin Franklin
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Expenditure and Revenue Projection
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Revenue Themes
Tax Levy ✓
✓ ✓
State Aid
The growth factor has some ✓ fluctuation due to assessment variability and town ✓ reassessments CPI remaining at 2% ✓ Capital exemptions changing slightly as interest rates vary as we borrow funds
Miscellaneous
Foundation Aid-expecting minimal increases Expense based aids should remain stable Aid ratios are trending lower for expense based aids as the district has wealth factors increasing
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✓ ✓ ✓
✓
PILOT payments coming down then stabilizing Sales tax remain stable for now Interest earnings create a lot of volatility quarter to quarter Revenues such as tuitions, continuing education programs, facilities rentals are projected to remain flat to minimal increases.
Expenditure Themes
Salaries ✓
✓ ✓
Salaries for support staff are trending high due to no slowing down of minimum wage increases Domino impact on FICA/Pension costs Potential breakage from retirements factored into instructional salaries
Debt Service ✓
You will now see a three year impact in the projection for EV Bus conversion costs just on the bus expenditure side
Benefits ✓ ✓
✓
Pension
Double digit increases Adjusted impact to outgoing years for RASHP 1 & 2 cost increase factors Medical trend impacts projections immensely in the outgoing years!
BOCES Services ✓
✓
Tuition costs for BOCES program dependent on labor shortage predicted a higher trend Software and Infrastructure needs not slowing down
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✓
✓ ✓
Reassessed the projection for ERS as there was another increase TRS decreased Will the stock market change in the next five years
Supplies/Contractuals ✓
✓
With per pupil formulas for budgeting these costs are more readily containable based on enrollment fluctuations Cuts to this area in 2025-26 will lessen the increases in the future
THANKS! Any questions?
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