Episode Transcript
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Speaker 1 (00:07):
Good morning.
Good morning, welcome to ourHusky Huddle, and I'm so excited
to have with us today, at ournext episode, jenny Bellotta,
our business administratorextraordinaire, who's going to
take you through all the thingsthat you've ever wondered about
(00:31):
budget, our budget.
How do we develop a budget?
Why is it always sound andexpediently presented to our
voters and you just love it?
How about the work that goesinto it?
All of that, we're going totalk about that today, so
(00:52):
welcome, jenny.
Speaker 2 (00:53):
Good morning.
Thank you for having me.
I wish it was that easy.
Speaker 1 (00:58):
We've got plenty of
time to talk about what it is
and how we do it and why it's soflawless by the time we're done
with it.
So no pressure.
Anyway, tell us a little bitabout yourself.
Speaker 2 (01:14):
Sure, so my name is
Jenny Bellotta.
As you indicated, I'm thebusiness administrator here for
the district.
I've been here for about fouryears.
This is my 20th year in schoolbusiness administration, so I
started out for about two yearsat Archbishop Walsh High School
here in Olean and then made amove to Bolivar Richburg School
(01:39):
where I was there for 14 yearsand then I spent the last four
years here in Olean.
Speaker 1 (01:45):
So it's been
fantastic.
Best experience hasn't it?
Speaker 2 (01:49):
It has been, although
six weeks starting six weeks
prior to the pandemic wasn'texactly, you know, the start
that I had anticipated here inOlean.
So it's been a challenge, butit's been fantastic and a great
learning opportunity for me.
Speaker 1 (02:06):
Okay so good, all
right, so here we are.
We're in our budget season andyou can't see Jenny on this
podcast, but she seems calm,cool and collected and still
smiling.
So I think that says goodthings about our budget
development process.
Why don't you tell us what thatis?
Speaker 2 (02:28):
Okay, great.
So we started our budgetdevelopment process for the
24-25 school year back inOctober.
So budget development can bedifficult because you're
essentially projecting out 18months from the time when we
start our budget development.
Our budget is primarily drivenby our strategic plan and the
(02:50):
needs of our students, so thefirst thing we do is try to
align the expenditures with thegoals that we've set for the
district.
Obviously, the board sets goalsand then we have more
individualized goals throughoutthe district as well, and we
keep those in mind as we'redeveloping the budget.
We start the process by fillingin the pieces of the budget that
(03:14):
we most easily project theexpenditures for.
Some of those include debtservice payments or the amount
of money that we spend on ourcapital improvements.
We also fill in a lot of oursalary and contractual
expenditures in the beginning ofthe budget.
This works more easily in yearswhere we have contracts that
(03:38):
have not expired.
Obviously, our salaries and ourexpenditures and contractual
obligations account for about60% of our budget.
So we try to start out withthat to build the foundation of
our budget.
For expenditures that are moredifficult to predict, we use a
(03:59):
variety of methods to projectthose.
For some expenses we look at afive-year average.
That's proven to be a littlemore difficult this year due to
the rate of inflation impactingmany of the expenditures more
this year than in years past.
Utility expenditures are agreat example of this.
(04:22):
We've looked at the utilitiesfor the last five years.
However, everybody knows theirutilities have typically
fluctuated a lot more in thelast two years than in the last
five, so we have to take thingslike that into consideration.
Another step of our budgetprocess involves developing our
building and department budgets.
I meet with our principals andour directors to build their
(04:45):
budgets and their departmentbudgets.
This year we joined acooperative purchasing agreement
with about 250 other schools inNew York State to purchase many
of the supplies throughcontracts that have already been
put out to bid to about 100vendors.
So this was a big initiativethat we took on this year and,
(05:08):
while there's always hiccups inthe process, in the long run
it'll be best for our studentsand staff and it'll save the
district a considerable amountof funding as well.
Another significant portion ofour budget that involves the
partnership we have with theCataroga-Salegani BOCES and the
Erie 1 BOCES.
(05:28):
This involves a lot ofdifferent services that we
purchase and products that wepurchase through BOCES.
Each year we analyze all ofthose products and services and
see is there truly a morecost-effective way to provide
the services?
Sometimes there is andsometimes there isn't, but we
(05:50):
are fortunate for thoserelationships that we have with
BOCES to be able to offer a lotof the services.
One of the most significantcost increases that we are
seeing this year, as probablymany of our listeners are
familiar with as well, is theincrease in health insurance
costs.
Speaker 1 (06:09):
Yeah.
Speaker 2 (06:10):
Our health insurance
premiums are increasing 24.25%,
which is the largest I've seenin my 20 years in this business.
This equates to about a $1.5million increase on our budget
alone, which is huge.
So that's how we build theexpense side of our budget.
(06:31):
Now I'm going to talk a littlebit about the revenue side.
While we can control theexpense side of our budget to an
extent, the revenue side getsto be a little more difficult.
There's two main budget sourcesfor revenues, one being our
state aid and the other beingour tax levy that comes from our
(06:52):
voters and from our propertyowners.
Our revenue projections thisyear have also proven to be a
big obstacle as well that we'rehaving to overcome.
Under the current law, there'sa set amount of foundation aid
for the district, and ourfoundation aid is the general
(07:13):
operating aid that we receivefrom the state.
This is the largest pool ofgeneral operating aid that we
receive and it accounts forabout 72% of our overall
revenues, so anytime there'sfluctuation in that, it has a
significant impact on us.
Unfortunately, the executivebudget proposal, or the proposal
(07:35):
that came from the governorthat she originally put out back
in January, significantlychanges the calculation of
foundation aid, so our districtwould see over a $300,000
reduction in foundation aid.
This will have a profoundnegative impact on the finances
(07:55):
for our district.
Speaker 1 (07:56):
So by negative impact
on the finances.
What does that look like?
Speaker 2 (08:03):
So we are going to
see about $300,000 less.
So, as I just talked about someof those expenditures going up,
such as health insurance goingup, you know, health insurance
alone went up 1.5 million.
We're only getting about$44,000 in foundation aid.
So that's the huge impact.
(08:23):
While people say, oh, you'regetting more money, we're only
getting $44,000 more based onthe governor's proposal.
So that comes nowhere nearoffsetting the increase in
expenses.
So we have to determine how arewe going to offset that and
what are we going to do to tryto balance those two.
Speaker 1 (08:47):
What do we typically
do in this type of situation?
Speaker 2 (08:50):
Yeah.
So that's a great question.
So we have a few things thatwe're looking at.
Obviously, you have to find away to either increase your
revenue or decrease yourexpenses, so we've really done a
combination of those two.
One of the major things we'redoing from the expense side of
the budget is we have revampedour special education program
(09:12):
and we, a few months back,created a special ed advisory
committee.
They're taking a hard look atthe programs that we offer and
we intend to bring a lot more ofthe programs back in-house to
save some money and to reducethe costs.
That's one way to reduce thecost.
(09:32):
We are also looking at ourrevenues along with the Board of
Education to see do we Aincrease taxes, b use more of
our reserves, or a combinationof both?
So we're still doing thatanalyzation.
Right now.
The governor's budget issupposed to be, or the
(09:55):
legislative budget is supposedto be released by April 1st.
We're hoping that happens,although that really only
provides us, you know, a fewdays.
So we're hoping the governor'sor the final budget is released
by April 1st and then we'll havea better idea.
(10:20):
Reserves Currently, if we wereto increase taxes or the tax
levy, we would not exceed thetax cap, which, for only in this
year, would be a 1.42% increasein the levy.
That equates to about $196,000.
(10:41):
So that is one option If, asmany of our listeners are
probably familiar with the taxcap, if we were to exceed that,
we would need a super majorityof the vote of the voters to
approve that.
But for the time being, we'rejust looking at do we raise any
of the levy to that 1.42% or dowe look at using additional
(11:06):
reserves to offset that?
Um, so that's basically asummary of, you know, the
expense and the revenue side.
We, if any of our listenershave questions about the budget,
I would encourage them to reachout to us.
We also have our budgetpresentation on Tuesday, may 7th
(11:30):
, at six o'clock in the only anintermediate middle school LGgi
room.
So that's a great opportunityfor people to learn more about
the budget as well.
Speaker 1 (11:40):
So if I were in the
community and I had questions I
could call, then yes, yes, Idon't just send them in advance
or reach out, right.
Speaker 2 (11:51):
Right, so that
ideally, the public forum on May
7th is the best time for peopleto learn more about the budget.
We will also have stuff outonline.
We will also send out thebudget mailers to people, but if
you have more questions and youwant to see the complete
presentation, that's really thebest time to come in and see
(12:14):
that.
I will be back on here again tosee to provide more information
about the specifics of thebudget.
So we will be doing anotherHusky Huddle between now and
then.
Once we finalize our budget and,obviously the most important
date, we encourage everybody toget out and vote for the budget
(12:37):
and for the board.
Seats that will be open.
That vote will take place onTuesday, may 21st, from 7 am to
9 pm in the middle school musicsuite, but ideally, again, you
know, if there's questions, comeout and join us at the public
forum.
We'd love to answer anyquestions.
(12:57):
Um, the best vote is the mosteducational vote and and I
encourage people to um, you know, learn more about our budget
process and more about thespecifics of it.
Speaker 1 (13:09):
Fantastic.
So is there anything else thatyou think is important for our
listeners to know about when itcomes to budget?
Speaker 2 (13:22):
Again, I think it's
just best that they are informed
of it.
You know, if they havequestions, chances are somebody
else has questions and don't beafraid to ask.
There's nothing simple about aschool budget.
It's very complex and we do thebest we can to share everything
with people, but it really isimportant for them to learn
(13:46):
about it and to take advantageof the presentations and the
materials that we put out.
We put a lot of time and effortinto our budget, so the
materials that we put out.
We put a lot of time and effortinto our budget, so you know we
want everybody to be very welleducated on it.
Speaker 1 (14:03):
Yeah, and it's easier
to just reach out and ask your
question versus just asking afriend or someone else you may
know that you may think has theanswer, whereas you can just
call us and we're more happy toanswer those absolutely
absolutely, and if you can'tmake it to the public forum by,
you know, on on may 7th, by allmeans reach out to us.
Speaker 2 (14:23):
I'm happy to to meet
with anybody or to share
whatever we can with peoplefantastic, all right.
Speaker 1 (14:29):
So what I'm hearing
is come on may 7th and then come
to the budget vote on May 21st21st, all day.
We'll literally be here all day, and that's the opportunity to
vote for our new board membersas well, and we would love to
see you and hear your voice andget your votes for those really
(14:54):
important things that arenecessary.
Absolutely All right.
And one last question, becauseof course, everybody wants to
know how's the turf field going?
Speaker 2 (15:04):
The turf field is
going fantastic.
If you haven't had anopportunity to look at it, I
encourage all of our listenersto drive by there.
It's amazing how fast it'sgoing down now that it's able to
finally, you know go down.
I saw numbers.
Yes yes, so they're reallyworking on, you know, the hash
marks in there in the last fewdays.
(15:25):
It's a very interesting processto watch.
You know, we're hoping herewithin the next few months that
everything will be finalized.
We also have some playgroundequipment coming in within the
next few weeks down there.
We know our students are veryexcited for that as well.
(15:46):
So everything is finally comingtogether.
We're also trying to wrap up alot of the interior capital
project work too, trying to wrapup a lot of the interior
capital project work too.
Our locker rooms should be donevery soon as well.
So finally seeing the light atthe end of the tunnel.
It'll be a great opportunity,great opportunity for our
community to enjoy some of thesecapital improvements Beautiful.
Speaker 1 (16:09):
I'm so glad that it
is publicly accessible.
Some of the renovations are inbuildings and not necessarily
accessible by the public, butthis is one you can see, you can
use.
It's part of the community.
This is a great, great addition.
Speaker 2 (16:25):
It is.
Speaker 1 (16:25):
Yes, exciting, all
right.
Is there anything else that youwant to leave our listeners?
Speaker 2 (16:30):
with.
I don't think so.
Hopefully I see many of you onTuesday, May 7th, at our public
forum for the budget.
Speaker 1 (16:36):
Awesome.
Well, thank you so much.
This has been another amazingepisode of the Husky Huddle and
thank you for joining me.
Thank you,