2025-26 Budget Kick-Off
Agenda! 1. State Updates 2. Rockefeller Updates 3. State Aid Predictions 4. Budget Area Updates a. Pensions b. Benefits 2
Big Changes Coming?
3
State Aid Support Continuing?
4
It’s tough to make predictions, especially about the future. - Yogi Berra
5
Foundation Aid 2025-26 DISTRICT
2025-26 FOUNDATION AID (ESTIMATED)
2024-25 FOUNDATION AID
$ DIFFERENCE IN FOUNDATION AID
% DIFFERENCE IN FOUNDATION AID
BRIGHTON
$ 19,877,630
$ 19,877,630
$-
0.00%
E. IRONDEQUOIT
$ 24,734,911
$ 24,734,911
$-
0.00%
W. IRONDEQUOIT
$ 34,265,785
$ 33,255,233
$ 1,010,552
3.04%
HONEOYE FALLS
$ 11,955,110
$ 11,674,134
$ 280,976
2.41%
PENFIELD
$ 30,497,417
$ 28,005,423
$ 2,491,994
8.90%
FAIRPORT
$ 32,056,963
$ 32,056,963
$-
0.00%
EAST ROCHESTER
$ 9,155,001
$ 9,155,001
$-
0.00%
PITTSFORD
$ 21,380,917
$ 21,091,130
$ 289,787
1.37%
RUSH HENRIETTA
$ 42,306,064
$ 40,238,988
$ 2,067,076
5.14%
WEBSTER 6
$ 47,555,026
$ 46,688,815
$ 866,211
1.86%
Rockefeller Center Report Takeaways ✘
7
Healthcare IncreasesA Two Part Explanation
Part 1: Medicare-Aetna Plans Impacted by Inflation Reduction Act ✘ Includes major investments in clean energy, child care, health care, education, and tax cuts for the middle class. ✘ Most significant change to Medicare Rx rules since Part D was introduced in 2005 ✗ Reduce seniors’ out-of-pocket Rx costs ✗ Shift manufacturer subsidies to future Rx price negotiation ✗ Shift federal subsidies from reinsurance to per enrollee ✘ Net result for 2025 ✗ Significant retiree benefit improvement ✗ Significant premium increases 9
Impacts on RASHP 1 Plans ✓ Eliminate Coverage Gap ✓ Reduce “True” Out-of-Pocket Maximum (and how quickly it’s reached) ✓ Reduce Manufacturer’s Discounts ✓ Shift Federal Reinsurance to Per-Employee-Per-Month Subsidy ✓ Didn’t come out with guidance/requirements until August ✓ Webster Plan -90% Increase 10
○ Still better than comparable Excellus Plans
11
RASHP II Plans-14.4% Increase ✘ ✘ ✘ ✘
✘
12
Provider Contracting ✗ Significant increases due to higher labor costs Outpatient Surgeries ✗ Increased utilization & cost per procedure Inpatient ✗ Increased admissions & length of stay Rx Space ✗ New high-cost drugs (hard to predict) ✗ Expanded indications for existing drugs increase utilization ✗ Increased need to provide drugs through outpatient setting High-cost claimants (technological advancements = higher costs) ✗ More individuals surviving to become high-cost claimants ✗ Cancers – more drugs available ✗ Transplants
The Total Estimated Impact for the Healthcare Changes: $5,000,000 Budget Increase (Active) $1,000,000 Budget Increase (Retiree) 13
Other Early Budget Factors ERS ✘ The rate of contribution for municipalities is going up from 15.2% to 16.5% ✘ 8.55% Increase ✘ Final Budget based on final salary projections ✘ Estimated $500,000 Increase 14
TRS ✘ Estimated rates are set to be 9.5%-10% ✘ Slight decrease or no change ✘ Contractual salaries will make this go up naturally, but it could have been worse ✘ Estimated increase $600,000
Just Benefit Increases Projected to be a 4.16% Increase This is before any other budget additions 15
Other Budget Items Revenues ✓ Sales Tax revenue increase/maintain? ✓ Interest rates remaining high for earning a few extra dollars? 16
Expenditures ✓ No contract negotiations to settle ✓ ✓ Minimum wage going up to $15.50 in January 2025 ○ This is driving SS/Medicare greatly
Budget = Funding Available - Requests
17
Next Up on The Budget Process
★ Gather data points for Tax Cap Calculation
★ Long Range ★ Continue to meet with budget Planning builders Workshop in ★ Prepare January ★ Reserve Plan ThoughtExchange 18
THANKS! Any questions?
19