2024-25 BUDGET OBJECTIVES
In developing the budget, the Board of Education aims for:
- Student-Centered Programming: Advance innovative programs and professional development that equip students with the skills and knowledge essential to thrive in a complex global environment and become engaged citizens.
- Fiscal Responsibility: Achieve short- and long-term fiscal balance between community desires for excellent education and reasonable taxes. This requires critical evaluation of current and proposed spending, alongside consideration of additional funding streams beyond taxes.
- Advocacy: Closely track state-level decisions on aid, policy and regulation to effectively advocate for the interests of students in the Burnt Hills-Ballston Lake Central School District.
CONTEXT FOR DEVELOPING THE 2024-25 BUDGET
As we approach the budget development process for the 2024-2025 budget year, we are looking to build upon the processes we have used in the past as well as account for the different revenue environment we find ourselves in moving forward. Of particular note, we need to carefully review how we address the final ~$800,000 of district expenditures that are funded with a temporary federal grant that ends on June 30, 2024. As always, our goal for the 2024-25 budget process is the development of a student-centered, forward-thinking educational plan that carefully evaluates the educational and financial impact of that plan over the short and long term. Items that will have a significant influence on this budget development process are as follows:
- On a moderately challenging note, we have recently received information that indicates that district expenditures related to required contributions to the Employee Retirement System (which covers the district’s non-instructional employees) will experience a significant increase for the 2024-25 school year. The district’s average contribution is scheduled to rise from 13.1% of applicable salaries in 2023-24 to 15.2% of applicable salaries in 2024-2025. Related to that, district contributions to the Teachers’ Retirement System are anticipated to change from 9.76% of applicable salaries for 2023-24 to between 9.75% to 10.25% for 2024-25. In addition to the changes in district pension contribution rates, the district’s health insurance consortium, the Capital Area Health Insurance Consortium (CASHIC), has indicated that they expect the 11% increase in health insurance rates for 2023-24 to be followed by additional annual rate increases of 10 to 15% for 2024-25 and beyond.
- We have received guidance that the starting point for the tax cap calculation for the 2024-25 budget year will be 2% due to the increased rate of inflation as measured by the Consumer Price Index. It should be noted that with the current rate of inflation is well over 2% which will present increased challenges as our ability to raise revenue at the local level will likely not be sufficient to keep pace with increasing expenditures associated with inflation.
- BH-BL is fortunate its residents by and large support high-quality programs when balanced by reasonable taxes. The May 2023 budget proposition, which was within the district’s tax levy cap, was approved by over 79% of district voters.
- Since the 2014-15 school year, weighted average tax rate increases have averaged 1.24% due to controlled expenditure growth and increased assessed value from new construction in the district. It should be noted that the weighted average increase in the district’s tax rates over this time period is significantly less than the rate of inflation over the same time period.