HomeMy WebLinkAbout060905 Attachment WSA+�i�c h rue,-)'I-
Alternative Scenarios For Possible Modifications to the FY 2005 -06 Manager's
Recommended Budget
"Manager's Note: The following alternative scenarios reflect the areas that I have identified for progressive cuts to reduce the tax rate increase
penny by penny. The cuts in the first two columns could be considered and not dramatically erode the priorities of capital funding, critical
needs reserve, pay plan, and school current expense. The consideration of cuts to 3 cents or beyond will seriously erode these budget
priorities, in my opinion."
The Manager's Recommended 2005 -06 fiscal year budget proposed a tax rate of 86.8 cents per $100 valuation, reflecting an increase of 9 cents over the
revenue neutral rate of 77.8 cents. The tax rate increase was necessary in order to fund several major budget drivers - increased funding for schools, full
funding of school and County capital in accordance with Option 2 recently adopted by the BOCC, and increased debt service for School and County capital
projects.
Some of the budget drivers have more flexibility than others, meaning that funding could conceivably be phased in over more than one year. The following
budget drivers have some flexibility: increase in the current per pupil appropriation; full funding of School and County recurring capital; employee pay and
benefits; and the reserve fund to address priority funding needs. However, increases related to debt service, medicaid, fuel and utilities obligatory, meaning
that the County is either mandated to pay the expenses or is already experiencing increased costs. The obligatory elements of the Manager's
Recommended 2005 -06 budget increase total $2.9 million ($1.9 million for increased debt service and $1 million for rising costs of Medicaid, fuel and
utilities). The following table offers various ways the Board could conceivably consider decreasing the recommended tax rate increase of 9 cents down to
2. 5 cents (the amount necessary to fund the mandated budget drivers).
Page 1 of 3 potential cuts.xlsscenarios
From 86.8
From 86.8
From 86.8
From 86.8
From 86.8
From 86.8
Alternative Scenarios for Possible Budget
cents to 85;6
cents to 84.5
cents to 83.8
cents to 82.8
cents to 81.8
cents to 80.3
Modifications
cents
cents
= .cents
cents
cents
cents
Cent Equivalent
1
2
3
4
5
65
Total Budget Cuts for County and Schools
$11187,580
$2,375,160
$3,562,740
$4,750,320
$5,937,900
$7,719,270
Menu
Item
Item #
1. Recurring Capital - Manager's Recommended Budget provides $4,650,600 (an increase of $2,634,946) to fully fund recurring capital for schools and County as outlined
in Option 2 adopted by BOCC on May 5. The Recommended Budget includes 3 cents for Schools Recurring Capital ($1,342,861 for OCS and $2,145,089 for CHCCS) and
1 cent for County Recurring Capital ($1,187,580)
1 -a.
Reduce Schools Recurring Capital
$593,790
$593,790
$631,290
$890,685
$890,685
1 -b.
Reduce County Recurring Capital
$593,790
$593,790
$631,290
$890,685
$890,685
Maintain Schools at 2004 -05 funding level (provides
$1,472,296
1 -c'
$772,867 for OCS and $1,242,787 for CHCCS)
1A.
Maintain County at 2004 -05 funding levels (would leave
$1,162,650
no funds available for recurring capital)
Total Recurring Capital Decreases
$1,187,580
$1,187,580
$1,262,580
$1,781,370
$1,781,370
$2,634,946
2. Long -Range Capital - Manager's Recommended Budget provides $7,406,786 (an increase of $2,711,174) to fully fund recurring capital for schools and County as
outlined in Option 2 adopted by BOCC on May 5. The Recommended Budget includes $1,710,968 for OCS, $2,733,104 for CHCCS and $2,962,714 for County.
2-a.
Reduce long -range capital appropriation to County
$200,000
$390,000
$475,032
$712,548
$855,057
projects
2-1b.
Reduce long -range capital appropriation to School
$300,000
$585,000
$712,548
$1,068,822
$1,282,587
projects
Total Long Range Capital Decreases
$0
$500,000
$975,000
$1,187,580
$1,781,370
$2,137,644
Page 1 of 3 potential cuts.xlsscenarios
Alternative Scenarios For Possible Modifications to the FY 2005 -06 Manager's
Recommended Budget
"Manager's Note: The following alternative scenarios reflect the areas that I have identified for progressive cuts to reduce the tax rate increase
penny by penny. The cuts in the first two columns could be considered and not dramatically erode the priorities of capital funding, critical
needs reserve, pay plan, and school current expense. The consideration of cuts to 3 cents or beyond will seriously erode these budget
priorities, in my opinion."
The Manager's Recommended 2005 -06 fiscal year budget proposed a tax rate of 86.8 cents per $100 valuation, reflecting an increase of 9 cents over the
revenue neutral rate of 77.8 cents. The tax rate increase was necessary in order to fund several major budget drivers - increased funding for schools, full
funding of school and County capital in accordance with Option 2 recently adopted by the BOCC, and increased debt service for School and County capital
projects.
Some of the budget drivers have more flexibility than others, meaning that funding could conceivably be phased in over more than one year. The following
budget drivers have some flexibility: increase in the current per pupil appropriation; full funding of School and County recurring capital; employee pay and
benefits; and the reserve fund to address priority funding needs. However, increases related to debt service, medicaid, fuel and utilities obligatory, meaning
that the County is either mandated to pay the expenses or is already experiencing increased costs. The obligatory elements of the Manager's
Recommended 2005 -06 budget increase total $2.9 million ($1.9 million for increased debt service and $1 million for rising costs of Medicaid, fuel and
utilities). The following table offers various ways the Board could conceivably consider decreasing the recommended tax rate increase of 9 cents down to
2. 5 cents (the amount necessary to fund the mandated budget drivers).
Page 2 of 3 potential cuts.xlsscenarios
From 86.8:
From 86.8
From 86:8
From 86.8
From 86.8
From 86.8
Alternative Scenarios for Possible Budget
cents to 85.6
cents to 84:5
cents to 818
cents to 82.8
cents to 81.8
cents to 80.3
Modifications :
cents
cents
cents
cents'
cents
cents
Cent Equivalent
1
2
3
4
5
6,5
Total Budget Cuts for Countyand Schools --
$1,187,580
._.:.
$2,375,160
$3,562,740
.....
$4,750 320
,
$5,937,900
$7,71.9,270;
Menu
Item
Item #
3. Critical Needs Reserve - Manager's Recommended Budget includes $850,000 appropriation for fiscal year 2005 -06 to be combined with $150,000 carry forward from
current fiscal year
3 -a.
Reduce funding for Critical Needs Reserve
$425,000
$425,000
$500,000
$500,000
$700,000
Total Critical Needs Reserve Decreases
$0
$425,000
$425,000
$500,000
$500,000
$700,000
4. Employee Pay and Benefits Plan - Manager's Recommended budget includes $1.5 million for employee pay and benefits (provides for 2.5% COLA effective July 1,
2005, 2.5% in- range, meritorious service awards of $750 and $1,500, $5 increase in County 401(K) contribution)
4 -a.
Delete meritorious services awards
$159,000
$159,000
$159,000
$159,000
4 -b.
Delete 401 (k) plan improvement
$86,320
$86,320
$86,320
$86,320
4 -c.
Reduce In -Range increase to 2%
$76,731
$76,731
°o
0
0
o
4 -d.
Eliminate In -Range increase
$383,654
4 -e.
Reduce COLA increase to 2%
$173,254
$173,254
$173,254
4 -g.
Reduce Employee Pay and Benefits Plan to $395,305
Total Employee Pay and Benefit Decreases
$0
$245,320
$495,305
$495,305
$802,228
$1,100,000
Page 2 of 3 potential cuts.xlsscenarios
Alternative Scenarios For Possible Modifications to the FY 2005 -06 Manager's
Recommended Budget
"Manager's Note: The following alternative scenarios reflect the areas that I have identified for progressive cuts to reduce the tax rate increase
penny by penny. The cuts in the first two columns could be considered and not dramatically erode the priorities of capital funding, critical
needs reserve, pay plan, and school current expense. The consideration of cuts to 3 cents or beyond will seriously erode these budget
priorities, in my opinion."
The Manager's Recommended 2005 -06 fiscal year budget proposed a tax rate of 86.8 cents per $100 valuation, reflecting an increase of 9 cents over the
revenue neutral rate of 77.8 cents. The tax rate increase was necessary in order to fund several major budget drivers - increased funding for schools, full
funding of school and County capital in accordance with Option 2 recently adopted by the BOCC, and increased debt service for School and County capital
projects.
Some of the budget drivers have more flexibility than others, meaning that funding could conceivably be phased in over more than one year. The following
budget drivers have some flexibility: increase in the current per pupil appropriation; full funding of School and County recurring capital; employee pay and
benefits; and the reserve fund to address priority funding needs. However, increases related to debt service, medicaid, fuel and utilities obligatory, meaning
that the County is either mandated to pay the expenses or is already experiencing increased costs. The obligatory elements of the Manager's
Recommended 2005 -06 budget increase total $2.9 million ($1.9 million for increased debt service and $1 million for rising costs of Medicaid, fuel and
utilities). The following table offers various ways the Board could conceivably consider decreasing the recommended tax rate increase of 9 cents down to
2. 5 cents (the amount necessary to fund the mandated budget drivers).
Menu
Item #
5. Schc
5 -a.
5 -b.
5 -c.
5 -d.
Alternative Scenarios for Possible Budget
From 86.8
From 86.8
From 86.8.
From 86.8
From 86.8
From 86.8 -:
Modifications
cents to 85.6
cents to 84.5
cents to 83.8
cents to 82.8
cents to 81.8
cents to 803
cents
cents
cents
cents'
cents
cents
Cent Equivalent
1
2
3
4
5.;
6:5
Total Budget Cuts for County and Schools
$1,187,580
$2,375;160
$3,562,740
$4,750,320
$5;937,900
$7;71.9,270,;
Item
of Current Expense - Manager's Recommended budget provides $1.9 million to increase the per pupil appropriation by $95 (from $2,623 to $2,718)
Reduce Recommended Per Pupil Appropriation by $23
bringing total current expense increase to $1,439,206 (from
$411,148
recommended $2,718 to $2,695)
Reduce Recommended Per Pupil Appropriation by $45
bringing total current expense increase to $1,045,934 (from
$786,544
recommended $2,718 to $2,673)
Reduce Recommended Per Pupil Appropriation by $60
bringing total current expense increase to $777,794 (from
$1,072,560
recommended $2,718 to $2,658)
Reduce Recommended Per Pupil Appropriation by $65
bringing total current expense increase to $688,414 (from
$1,161,940
recommended $2,718 to $2,648)
Total Current Expense Decreases
$0
$0
$411,148
$786,544
$1,072,560
$1,161,940
Total Budget Cuts for County and Schools
$1,187,580
$2,357,900
$3,569,033
$4,750,799
$5,937,528
$7,734,530
Difference (1)
$0
- $17,260
$6,293
$479
-$372
$15,260
(" Difference may not reflect exactly one -half or one cent due to rounding.
Page 3 of 3 potential cuts. xlsscenarios