At the Dec. 5 board of education meeting, Assistant Superintendent for Business Andrew Van Alstyne gave a presentation about the rollover budget for the 2024-2025 school year. This presentation is the first of several budget presentations to the board and is typically conducted early in the budget development process for the Guilderland Central School District.
What is a rollover budget?
The rollover budget gives the district a preliminary estimate of the expenditures and revenues for the next school year using the previous year’s general fund budget as a starting point. Over the course of several months, the district refines these estimates as it gathers more information about state aid and property tax projections on the revenue side and actual costs of needed staff, supplies, materials, etc., on the expenditure side. The first draft of the district’s actual budget is released in March then further refined until it is adopted by the board in April. A review of the rollover budget is an initial step in this process.
The rollover budget is built upon the following:
- the assumption that all current staffing and programs will carry forward into the new school year;
- revenues and expenses are projected into the new year using known data or what can be reasonably anticipated based on available information;
- trending of historical data or information from outside entities to provide a basis for determining estimates.
Key factors in budget development for 2024-25
There are several factors that GCSD administrators will take into consideration when developing the 2024-2025 school year budget, including the following.
Expiring Federal Pandemic Funds
A portion of federal stimulus funds, such as the American Rescue Plan/Elementary and Secondary School Emergency Relief funds (ARP/ESSER), which were given to school districts nationwide in response to the COVID-19 pandemic, will expire in September 2024. GCSD will continue to utilize these funds, until they are no longer available, for non-recurring, one-time expenses, such as purchasing equipment, improving instructional technology hardware and software, and constructing outdoor learning spaces at all seven GCSD buildings. These expenses were not included in the rollover budget, because they are not currently in the general fund.
Instructional Salaries
Staff salaries comprise more than 70% of the district’s general fund budget. With a raise to teachers’ salaries contractually required for the 2024-2025 school year, the district projects this segment of the budget to increase.
Health Insurance
GCSD is a member of a Capital Region school district health insurance consortium that has leveraged their combined populations to secure favorable and stable health insurance rates over many years. Currently health insurance rates are trending significantly higher than past years, both locally and nationally. This is a result of individuals, who had previously delayed routine diagnostic procedures, health exams and treatment due to the pandemic, now utilizing health insurance at greater rates.
Retirement System Contributions
Every November, the NYS Teachers’ Retirement System and the NYS Employees’ Retirement System provides to school districts estimates of the contribution rates they will be required to pay for the following year. Overall, it’s anticipated that GCSD will see an increase in pension obligations.
Bond Debt Payments
Bond debt payments factor significantly into the budget. Guilderland has bond debt payments in the upcoming budget that are associated with recent capital construction projects and tax certiorari claims. For the past two years the district has increased its initial payments for the capital project bond, which will save the district more than a million dollars over the life of the bond. Approximately 65% of the bond payment expenses are offset by state aid reimbursement.
Contract Transportation Costs
The bus driver shortage, which has been affecting schools across the state and the nation, has compelled GCSD to contract with outside companies to meet its transportation needs, at an additional cost to the district.
NYS Foundation Aid Funding Commitment
Foundation Aid is one of the two major types of state aid in New York. Foundation Aid fulfills a mandate that New York state provide adequate yearly funding to ensure every child receives a “sound basic education.” Foundation Aid can be used for operations, salaries and programming. The second kind of aid is expense-based aid, which includes reimbursements for expenses in specific areas, such as transportation, capital construction projects, etc.
Two years ago, New York state reaffirmed its commitment to fully fund Foundation Aid that was due to schools. GCSD anticipates it will receive approximately $41 million in overall state aid for the 2024-2025 school year. This amount is subject to the full legislative approval process.
Local Sources of Revenue
District administrators are projecting a property tax increase of approximately $2 million for the 2024-2025 school year.
Appropriation of Fund Balance
At the present time, which is early in the budget development process, the district foresees a possible gap of $1.7 million between projected expenses and projected revenue. To cover this shortfall the district would draw from the fund balance; this shortfall will only exist if the district makes no adjustments in the budget development process, which is not expected.
Financial Impact Summary
Areas of large financial impact for GCSD:
- Expenditure increase of $7.4 million (+6.1%)
- Revenue Increase of $5.6 million (+4.7%)
- Tax levy increase of $2.1 million (+2.6%)
- Maximum tax levy growth of $2.2 million
What comes next
Administrative Budget Planning Meetings
GCSD administrators and supervisors will meet with district office leaders to share their recommendations for items to be included in the 2024-2025 budget. These recommendations are based on their analysis of student needs and other operational considerations. Budget planning meetings provide an opportunity to consider what adjustments need to be made for the 2024-2025 school year. The goal is to ensure that the proposed budget effectively and efficiently meets the needs of students.
Community Input
In mid-January, the district will engage stakeholders and Guilderland school community members to gather feedback regarding budget priorities. Community members are also welcome and encouraged to provide their input through public comment at board of education meetings. This valuable perspective helps district leaders know where and how the community believes resources should be directed.
NYS Executive Budget Proposal (Jan. 2024)
The governor’s executive budget proposal will give GCSD more definitive information about Foundation Aid and other aid categories, to inform the ongoing development of the spending plan.
Superintendents Draft Budget Proposal will be shared March 5, 2024
Once the governor’s proposed budget is released, GCSD administrators will refine their recommendations that will result in a draft budget, which Dr. Wiles will present at the Mar. 5, 2024 board of education meeting. This draft budget is subject to revision but will provide the board of education members with a document to work from before adopting a final budget at the April 16, 2024 meeting.
Important upcoming dates
March 5, 2024: Superintendent’s Budget Presentation
March 12, 2024: Budget Workshop Q & A
March 26, 2024: Budget Work Session
April 16, 2024: Board Action to Adopt the Proposed Budget
May 7, 2024: Budget Hearing
May 21, 2024: Budget Vote and Election