What Does This Information Mean for Fillmore Central School?
If there is no increase in state aid and with a tax cap in place the district will be faced with difficult decisions:
1. Reduce Expenditures
2. Use More Fund Balance to make up for reductions in State Aid
What is the average increase in the annual budget?
Over the last 10 years the average annual increase in the budget has been 2.79%.
What is the dollar amount of the average annual budget increase?
2.79% of the annual budget is equal to $383,918
How much can the District raise in new taxes with the 2% tax cap?
If the tax cap is set at 2% the district will be able to raise a maximum of $44,304 in new taxes.
That is a budget gap of $339,614! State aid is slowly increasing, but it still lags well behind the gap.
The District will have to use a combination of spending controls, cash from fund balance and reserves to close the gap.
What is Fund Balance?
Fund Balance is the money saved each year when revenues exceed expenditures. Our healthy Fund Balance has kept taxes low at Fillmore Central School.
Why not use the Fund Balance to close the budget gap each year and not make any budget reductions?
We already use $400,000 - $500,000 of Fund Balance each year to balance the budget but try hard to replace it. With the prospect of no new state aid there will be no way to replenish the Fund Balance. If state aid remains flat, we will need to make judicious use of available fund balance to avoid cuts until state aid improves.