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Putnam Valley School District

Multi-Year Financial Plan 2021-26

Presented by: Dr. Jeremy Luft & Jill Figarella

December 10, 2020

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Financial Planning

Identify Priorities

Make Program and Financial Recommendations

Build Budget around District Goals

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Factors that Affect Financial Condition

Organizational

Financial Condition

Fiscal

Environmental

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School District Financial Plan

Does the plan provide for professional development for both teaching and support staff ?
Does the plan meet state mandates and remain under the tax cap* ?

Is the plan providing the most equitable education we can within our means by aligning the budget with our educational initiatives?
Does the plan provide a safe and secure student learning environment?

COVID, Campus Security, years beyond COVID

*NYS “tax cap” is law -has created limitations

Supplement with fund balance
Lower voter turnout

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Plan in advance for our biggest expenses (What do we know?)

Instructional Salaries/Staffing
Health Care Costs
Pension Costs
Capital infrastructure

Enables us to make projections for other general operating expenses

REVENUES: What money do we have to work with in order to make the plan come to fruition?

Financial Planning Priorities

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Multi-year Planning-Future years

Predict sustainability for programs and the development of future programs that promote achievement
Identify potential shortfalls
Determine if existing revenue streams are sufficient…if not, where can we get the revenue from?
What can we do to implement change?
Monitor aid projections, Fund balances, and Expenses

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Why have assumptions changed?

The Covid Health Crisis has changed the landscape for school districts, students and all educational professionals nationwide and worldwide.

Trends in future years

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Unintended Consequences

Favorable:

-School closures left unexpended budget lines

-Property tax collections were not affected in the current year

-Retirements help stabilize salaries

-Improved technology integration for content delivery

VS.

Unfavorable:

-Students experience the “COVID Slide”- decrease in instructional time

-Economic outlook threatens aid projections

-Shift in focus away from development of new content and implementation of programs

-Costs for Personal Protective Equipment (PPE)

-Additional staff to cover increased building needs

-Additional technology support and equipment

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Revenue:

An allowable maximum tax levy change of 1.9%
2020-21 State aid restored (as of 12/3/2020)

Expenditures

Health insurance rate increase 1.5% (2021-22)
Teacher and CSEA pension increases

(TRS)8.86% to 9.5% (ERS) 14.6% to 16.2%

Social Security taxes-fixed 7.65% on all salaries
Salary increments

Anticipated budget change 1.45%

(5 Yr. historical change avg. budget to budget 1.27%)

$2.5M of district reserves have been used over the past 3 years. Trending use of reserves will fluctuate due to COVID. Consistency is important for predictability.

Forecast Assumptions for 2021-22

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CONSIDERATIONS:

How do we meet educational goals while maintaining fiscal solvency?

All of the following are considered when we formulate a planned budget to avoid exceeding the cap

USE OF FUND BALANCE??

PROGRAMMATIC CHANGES??

CLASS SIZE/ENROLLMENT/STAFF

CHANGE IN PROGRAM SCHEDULES

RE-NEGOTIATING VENDOR CONTRACTS-(Transportation Bid or School Lunch Contractor)

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Maintaining adequate reserves can be unique to each school district: Assumptions are necessary and important.

Consideration:

Possible state aid cuts on the horizon
Pension Contribution Rates could rise depending on the amount of time the economy takes to bounce back
Possible impact on a district’s bond ratings which can significantly increase the cost of borrowed funds
New economic realities (job market, Sales tax revenue mainly due to lack of worldwide travel)
Ability to protect the taxpayers investment in education and provide equity while trying to close achievement gaps

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GOAL:

Find a balance to support the District’s educational vision while remaining fiscally aware.

Needs

Benefit

Cost