With less state aid and half the federal aid of this past year and expenses of more than $927,000, Oakfield-Alabama’s school board approved a $25 million 2024-25 budget this week that will mean a 71-cent property tax increase for district residents.
The proposed budget of $25,021,919 is an increase of 3.85% from this past year’s $24,094,600, and includes of tax levy of $5,696,634. That levy is $220,107 more than in the 2023-24 budget, or 4.02%.
“This is largely driven by increases in salaries and the loss of pandemic-era aid causing some salaries to be brought back into the general fund from the federal grants for 24-25,” School Business Administrator Christine Griffin said during Tuesday’s board meeting. “So we had our budget workshop last week, and we presented a long-range financial analysis completed by an outside consultant. This included thorough analysis of our individual revenue lines, state aid, tax levy and other revenues and expense lines, particularly our largest expense, which is we know we're a human capital business, salaries and benefits, which is largely those net expenses largely driven by the collective bargaining agreements.”
Expenses include salaries of $10,627,342 for an increase of $748,392; a BOCES increase of $770,847 for a total of $3,229,547; and equipment costs rising by $63,050 to $553,800. The pandemic resulted in grants to school districts for additional social workers, teachers and programs, some of which Oakfield-Alabama will absorb in its general fund even though the grants are ending in September.
Federal aid will end Sept. 30 of this year, and salaries of $403,000, including $23,000 for the after-school program, will be absorbed into the general fund.
“On the salary lines, there's approximately $403,000 of the increases that are pandemic-funded salaries that are being returned to general funds. All of that $403,000. $222,000 of that is from newly added positions, which is the social worker, math, reading and after-school tutoring,” she said. “BOCES increases are largely due to increases in technology services costs.”
Budget highlights are that this proposed plan would continue after-school tutoring, formerly funded under a federal grant, pilot a new math series, replenish and expand science kits, continue $100,000 of capital outlay projects, and expend $487,000 for transportation vehicles — two large buses at $376,000 and one small bus for $111,000.
Staffing levels are to be maintained, with the following exceptions:
- Three teachers district-wide (one each retirement, reassignment and resignation)
- A .4 shared BOCES technology staff
- Not replacing retirements of two personal healthcare aides
- One custodian (which was replaced with a federal grant-funded position)
These staff reductions are to save $359,000, Griffin said.
Other expenses are decreasing, including benefits by $56,425, debt service by $592,216, and contractual services by $243,105.
State aid is to increase by $272,307, along with property tax of $220,107 and unclassified revenue of $99,500. The district plans to take nearly $1 million, $998,886, of appropriated fund balance, an increase of $345,405 from this past year’s budget, to offset expenses.
Fund balance is generated due to lower expenses than anticipated and/or greater revenues than projected, which may accumulate over time, resulting in savings for the district. By state law, the maximum amount of unassigned fund balance in a given fiscal year cannot exceed 4% of the following year’s budget, and some or all of the previous year’s fund balance may be appropriated as a source of revenue in the development of the next school year’s annual budget, she said.
She said the inflation factor of 4.12% and allowable levy growth factor of 2% leave a deficit of 2.12%. The consumer price index limit does not reflect economic reality.
The maximum levy is 4.02%, which is reflected in an estimated $18.39 per $1,000 assessed property value. If approved by voters, that would mean an increase of $88.75 per year for a home assessed at $125,000.
Citing a Genesee Valley BOCES Region Peer Group chart, officials show Oakfield-Alabama as having the second-lowest tax levy per pupil in 2023, at $7,451.
There will be a budget hearing at 6 p.m. May 14 at the Middle High School and a vote from 11 a.m. to 8 p.m. May 21 in the school's Community Room.
The vote includes Proposition #1: 2024-25 budget of $25,021,919; and two open seats for the Board of Education. There is one incumbent, Maria Thompson, who is running, and one vacancy for the seat of Jeff Hyde, whose term is also up in 2024. Applications for school board are due Monday.
To view the presentation, go HERE.
