Warwick Valley CSD 2020-2021 Budget Newsletter

WARWICK VALLEY

SCHOLAR B

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Budget preserves critical programs, stays below cap, reduces spending by $3.8 million District residents will vote by mail

JUNE 2020

2020

Budget Vote Snapshot June 9, 2020 Voting will be conducted by mail only.

PROPOSED BUDGET

$94,440,394

TAX LEVY INCREASE

2.60%

SPENDING DECREASE In a unique year, qualified voters in the Warwick Valley Central School District will have the opportunity to submit mail-in ballots as they consider a $94.4 million budget for the 2020-21 school year. The school district must receive completed ballots by Tuesday, June 9th.

The district’s proposed budget reduces next year’s overall spending by $649,000, or 0.68%, from this current year’s plan. It is the first such budget decrease in more than 20 years. The district cut nearly $3.8 million in personnel and other expenses (See story, page 3) so it can weather an anticipated $2.9 million reduction in state aid.

While maintaining fiscal responsibility on the spending side, the district is proposing a modest 2.60% tax levy increase, which is below the district’s 2.87% state-calculated tax cap by more than $172,000. The district has always held its increase within the tax cap threshold, and has saved taxpayers a total of $607,000, while staying

BUDGET HISTORY SINCE 2001-02 10% 8%

below the tax cap in five of the past seven years.

The district also used $2.38 million in fund balance and reserves to balance the budget.

“We understand how difficult this time is for our community and our state. In this budget, we are balancing the need to be fiscally conservative while working hard to maintain critical programming for our students,” Superintendent of Schools Dr. David Leach said. “We must remain cautious as the state has the unique authority to reduce our school aid further during the year. In 2020-21, we will maintain responsible class sizes, the majority of extracurricular activities, clubs, organizations, and the modified, junior varsity, and varsity sports teams, with very few reductions to academic electives. If state aid continues to decline in the future, these programs could be in jeopardy.”

Voters will also elect three members to the Board of Education and decide on a bus proposition (See story, Page 3).

The percentage increase or decrease in each year’s proposed budget from the previous year.

This year’s 0.68% decrease is the first decrease in spending in more than 20 years. The last reduction was in 1998-99.

6% 4%

-1 0 10 -11 20 11 -1 20 2 12 -1 20 3 13 -1 20 4 14 -1 20 5 15 -1 20 6 16 -1 20 7 17 -1 20 8 18 -1 20 9 19 20 20 20 -2 1

9

20

20

09

8

20

08

07 -0

20

-0

7

6 20

06

-0

5

-0

20

05

-0

4 20

04

-0

-0

03

20

-0

20

01 20

02

2

0 -1%

3

2%

–0.68%

NYS AID DECREASE

–$2,394,591 (–15%)

FUND BALANCE AND RESERVES USED

$2,375,000

SCHOOL BOARD ELECTIONS See page 3

BUS PROPOSITION See page 3

VOTE BY MAIL See page 4

WARWICK VALLEY SCHOLAR

2

REVENUES

THREE-PART BUDGET 2020-21 $72,528,700

$ Change ($897,741)

$9,922,053

$9,637,661

($284,392)

Capital

$11,740,790

$12,274,033

$533,243

TOTAL

$95,089,284

$94,440,394

($648,890)

Administrative

State Aid: 24.86%

Local Other: Sources: 2.65% 4.12%

2020-21

Program Costs (76.80%): include salaries and benefits of all certified faculty and staff, teacher aides, monitors and nurses as well as in-service training, library costs, transportation, co-curricular programs and interscholastic athletics.

Administrative Costs (10.20%): include salaries and benefits of all professional staff members who spend 50% or more of their time in administration, finance and supervision. This portion also includes clerical staff, public information, curriculum development and supervision, research, planning and evaluation, legal services and school board-related costs.

Capital Costs (13.00%): include operations and maintenance, security, budgeted capital projects, tax refunds, principal and interest on debt and installment purchases and leases.

PROJECTED REVENUES

2019-20 Adopted Budget

2020-21

2020-21 $ Change Proposed From Prior Budget School Year

Local Sources (4.12% of proposed budget) Real Property Tax Items Charges For Services Interest Earnings Use Of Property Refund Of Prior Year Expense Medicaid Miscellaneous Subtotal

$236,231 $2,239,000 $125,000 $519,789 $350,000 $35,000 $85,000 $3,590,020

$250,708 $2,464,163 $128,178 $533,265 $365,000 $45,000 $105,000 $3,891,314

$14,477 $225,163 $3,178 $13,476 $15,000 $10,000 $20,000 $301,294

State Sources (24.86% of proposed budget) Foundation Aid BOCES Aid Building Aid Text, Software, Library Aid Computer Hardware, tech Aid Transportation Aid Public/Private Excess Cost Aid Other

$15,963,941 $13,569,350 ($2,394,591) $1,738,619 $1,632,085 ($106,534) $3,353,888 $3,148,177 ($205,711) $295,332 $296,566 $1,234 $48,733 $50,844 $2,111 $2,790,506 $2,617,500 ($173,006) $1,391,405 $1,381,379 ($10,026) $780,717 $780,717 $0

Subtotal

$26,363,141 $23,476,618 ($2,886,523)

Other Sources (2.65% of proposed budget) Interfund Transfers Appropriated ERS Appropriated TRS Appropriated Employee Benefit Accrued Liability Reserve (EBLAR) Appropriated Workers Compensation Appropriated Debt Service

EXPENDITURES

2019-20 $73,426,441

Program

School Tax Levy: 68.37%

www.warwickvalleyschools.com

Instruction: 56.54%

Benefits, Debt Service: 29.91%

General Transportation: Support: 9.04% 4.51%

PROPOSED EXPENDITURES

2019-20 Adopted Budget

2020-21 $ Change Proposed From Prior Budget School Year

General Support (9.04% of proposed budget) Board of Education Central Adminstration Finance Support Services Central Service Special Items

$103,342 $354,547 $948,379 $522,600 $5,140,320 $1,245,979

$104,074 $374,408 $1,048,416 $469,700 $5,327,327 $1,216,268

$732 $19,861 $100,037 ($52,900) $187,007 ($29,711)

Subtotal

$8,315,167

$8,540,193

$225,026

Instruction (56.54% of proposed budget) Admin & Curriculum Development Teaching - Regular School Teaching - Special Programs Teaching - Special Schools Instructional Media Pupil Personnel Services

$3,472,247 $27,451,177 $4,209,547 $544,229 $2,841,876 $16,367,844

$3,150,727 $26,518,019 $4,254,878 $465,083 $2,505,462 $16,505,911

($321,520) ($933,158) $45,331 ($79,146) ($336,414) $138,067

Subtotal

$54,886,920 $53,400,080

($1,486,840)

Transportation (4.51% of proposed budget) $4,161,642

$4,255,358

$93,716

Benefits & Debt Service (29.91% of proposed budget)

$125,000 $400,000 $0 $100,000 $0 $25,000 $150,000

$125,000 $400,000 $200,000 $150,000 $0 $25,000 $200,000

$0 $0 $200,000 $50,000 $0 $0 $50,000

Appropriated Fund Balance

$1,400,000

$1,400,000

$0

Subtotal

$2,200,000

$2,500,000

$300,000

Subtotal

$32,153,161

$29,867,932 ($2,285,229)

School Tax Levy 2020-21 (68.37% of total) $62,936,123 $64,572,462

$1,636,339

TOTAL

($648,890)

$95,089,284 $94,440,394

Employee Benefits Debt Service Interfund Transfers/Misc

$21,976,844 $5,618,211 $130,500

$22,173,913 $5,910,350 $160,500

$197,069 $292,139 $30,000

Subtotal

$27,725,555 $28,244,763

$519,208

TOTAL

$95,089,284 $94,440,394

($648,890)

WARWICK VALLEY SCHOLAR

3

District makes conservative choice State’s authority to withdraw commitment to funding creates too much risk for future disruption of students’ education The pandemic-induced economic downturn is likely to have a long-standing impact on New York State tax collections. It isn’t yet clear whether more federal assistance is coming to help the state’s revenue shortfall, and if so, how much more aid the state would allocate to schools.

As a result, the state budget director has been given the authority to propose adjustments to the state budget during the year if revenue falls lower than projections. These adjustments would impact state foundation aid.

So, school districts are in a difficult position.

They need to either adjust their spending for the upcoming year in anticipation of a cut or risk having to make adjustments to spending during the year, which would disrupt students’ education.

The Warwick Valley Central School District anticipates a reduction in state aid of nearly $2.9 million next year. This revenue shortfall, along with rising costs, led to the district cutting almost $3.8 million in personnel and other expenses over three phases since early March to arrive at a balanced budget (See chart below). Most significantly, the district is trimming 13 full-time teaching positions, mostly through attrition, to save nearly $1.6 million.

Warwick administrators began making cuts to the budget before the pandemic because, along with rising costs, they had anticipated no increase in state aid from the prior year, creating a $1.1 million budget deficit.

The district then further reduced its anticipated state aid by $400,000 later in March when it became apparent the health crisis would create additional shortfalls in state expense-based aid, reimbursements for money already spent on transportation, BOCES, and other items.

In early April, lawmakers passed the state budget, freezing funding to Warwick schools at last year’s level but creating the authority to make adjustments during the year. As a result, the district made an additional $2.3 million in reductions to protect itself from more state cuts.

“I anticipate more cuts in state aid coming during the next school year and we are planning for this scenario,” said Superintendent Dr. David Leach. “The uncertainty in revenue makes it very difficult to create a budget. We must avoid reducing the budget further during the school year, which would disrupt the children’s education. To avoid this type of disruption, we forecasted an additional 15% reduction in state foundation aid or a total reduction of $2.9 million less state aid. We now feel the district is in a more secure position by lessening the risk involved in this coming school year.”

PERSONNEL REDUCTIONS $1,581,017

Administration

$189,686

Clerical/Support Staff

$204,026

Total Personnel Reductions

$1,974,729

OTHER REDUCTIONS Communications

PROPOSITION 2 CONSIDERATION TO PURCHASE FIVE BUSES

REDUCTIONS FROM CURRENT BUDGET Faculty

www.warwickvalleyschools.com

$150,000

Professional Development

$99,388

Freshman Sports/Clubs

$97,348

Purchase Services

$117,232

Supplies

$113,000

Employee Benefits

$685,146

BOCES

$541,924

Total Other Reductions

$1,804,038

TOTAL REDUCTIONS

$3,778,767

}

PERSONNEL REDUCTIONS

}

52.26% $1.97 Million

OTHER REDUCTIONS 47.74% $1.80 Million

Voters will also consider a proposition to purchase five school buses at a maximum cost of $599,000. The district would use $300,000 of its bus reserve fund to help offset the cost. About 58.5% of the cost — $350,415 — would be returned to the district in state transportation aid.

Therefore, no additional taxes would be needed to purchase the buses at a net cost of $299,000.

The proposed purchase includes three 65-passenger propane buses and two 65-passenger gas buses.

It is important to replace buses every year. The district buses students over 86 square miles so it is important to follow the district’s bus vehicle replacement plan and replaces buses annually that are older and have very high mileage. Nearly 63 percent of the fleet is over 10 years old and the buses that will be replaced are between 15 to 16 years old and have logged between 150,000 to 200,000 miles.

Bus Purchase (maximum cost)

$599,000

Reserve

$300,000

Net Cost (Financed)

$299,000

Transportation Aid (58.5%)

$350,415

No Additional Tax Increase

$0

2020-21 SCHOOL BOARD CANDIDATES Voters will also elect three members to the Warwick Valley Board of Education.

Trustees are unpaid and serve threeyear terms. The candidates, in the order they will appear on the ballot, are: n Luis

Abramson

n John

Garcia

n Robert n Dory

(incumbent)

Howe

(incumbent)

Masefield

(incumbent)

WARWICK VALLEY

Standard Mail Non-Profit Org. U.S. Postage PAID Permit No. 9011 Monsey, NY 10952

CENTR AL SCHOOL DISTRICT

P.O. Box 595, Warwick, New York 10990-0595

Dr. David Leach

Superintendent of Schools Board of Education Sharon Davis, President Keith Parsons, Vice President David Eaton Eilleen Gagliano John Garcia Denise Ginley Robert Howe Lynn Lillian Dory Masefield

4

ECRWSS Postal Customer

WARWICK VALLEY SCHOLAR 2020

Budget Vote

Tuesday, June 9 Due to the coronavirus (COVID-19) pandemic and the governor’s stay-at-home orders, the voting process is different this year than in recent years. It will be conducted by a confidential mail-in ballot. There will be no polling locations.

School District Budget Notice Total Budgeted Amount, Not Including Separate Propositions

www.warwickvalleyschools.com

Budget Adopted for the 2019-20 School Year

Budget Proposed for the 2020-21 School Year

$95,089,284

Increase/Decrease for the 2020-21 School Year Percentage Increase/Decrease in Proposed Budget Change in the Consumer Price Index A. Proposed Levy to Support the Total Budgeted Amount B. Levy to Support Library Debt, if Applicable

$94,440,394

$94,126,394

($648,890)

($962,890)

-0.68%

-1.01%

1.81% $62,506,673

$64,146,212

$429,450

$426,250

C. Levy for Non-Excludable Propositions, if Applicable**

$0

$0

D. Total Tax Cap Reserve Amount Used to Reduce Current Year Levy

$0

$0

$62,936,123

$64,572,462

$2,169,234

$2,547,674

G. School Tax Levy Limit, Excluding Levy for Permissible Exclusions

$60,862,837

$62,197,280

All qualified voters will receive a blank ballot from the school district. They will then complete their confidential ballot and return it by mail to the district offices. For your ballot to count, it must be received by the district by 5 p.m., Tuesday, June 9, 2020.

E. Total Proposed School Year Tax Levy (A + B + C – D)

H. Total Proposed School Year Tax Levy, Excluding Levy to Support Library Debt and/or Permissible Exclusions (E – B – F + D)

$60,337,439

$61,598,538

To determine if you are a qualified voter, to ask for a ballot if you have not received one, or if you have any questions, please contact District Clerk Susan Laroe at slaroe@wvcsd.org or 845-987-3000, ext. 10511 or Elections Coordinator Jennifer Bengel at jbengel@wvcsd.org or 845-987-3000, ext. 10530.

I. Difference: G – H (Negative Value Requires 60.0% Voter Approval – See Note Below Regarding Separate Propositions)**

$525,398

$598,742

F. Total Permissible Exclusions

Administrative Component

Contingency Budget for the 2020-21 School Year

$62,936,123

$9,922,053

$9,637,661

$9,587,661

Program Component

$73,426,441

$72,528,700

$72,422,700

Capital Component

$11,740,790

$12,274,033

$12,116,033

Total

95,089,284

$94,440,394

$94,126,394

*In the case of a contingent budget, the following would be deleted: $158,000 from Capital expenses, $50,000 from Administrative expenses, and $106,000 from Program expenses. **The proposition at right is a separate proposition not included in the total budgeted amount.

Description Bus proposition

Estimated Basic STAR Exemption Savings1 1

Amount $599,000

Under the Budget Proposed for the 2020-21 School Year $754

The basic school tax relief (STAR) exemption is authorized by section 425 of the Real Property Tax Law.

The vote on the annual budget for the fiscal year 2020-21 by the qualified voters of the Warwick Valley Central School District, Orange County, New York, will be conducted exclusively using absentee ballots, on Tuesday, June 9, 2020, for six hours ending at 5:00 pm.