Financial Performance Overview of Buffalo Public Schools 2022-2023
The financial overview of Buffalo Public Schools for 2022-2023 reveals significant improvements with a surplus of $50.9 million, driven by higher revenues and lower expenditures. The report highlights budget variances, fund balance analysis, and strategic fund allocations for the upcoming years. The district managed to navigate various financial challenges successfully, including settling contracts and funding capital projects.
- Public schools
- Financial performance
- Budget variances
- Fund balance analysis
- Strategic fund allocations
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Buffalo Public Schools Buffalo Public Schools 2022 2022- -2023 Audited 2023 Audited Financial Statements Financial Statements Discussion with Lumsden Discussion with Lumsden & McCormick & McCormick Finance and Operations Committee October 11, 2023 Dr. Tonja Williams Superintendent Jim Barnes CFO
2022 2022- -2023 General Fund Audited Results (in millions) 2023 General Fund Audited Results (in millions) 22/23 Original Budget Deficit May 2023 $(34.6) Projected Deficit in April 2023 (Q3 Report) $(3.6) Final Surplus $50.9 22/23 21/22 Change Total Revenues & Transfers In $1,009.1 $939.5 $69.6 Total Expenditures & Transfers Out $958.2 $927.6 $30.6 Actual Surplus $50.9 $11.9 $39.0 Total General Fund Balance $375.5 $324.6 $50.9
Fund Balance Analysis at June 30, 2023 Fund Balance Analysis at June 30, 2023 Balance 6-30-2023 1,184,030 Notes Non spendable Inventory Changes for current value of inventory. Non cash 3,938,559 9,156,044 17,750,000 30,844,603 MBBA debt - will be used for final payoff Restricted Stabilization Reserve Unemployment Judgments & Claims & Property Loss Potential ARP layoff no changes at this time Total Restricted Projected deficit for 2023-24 increase from 2022-23; Assigned Designated for next year budget Encumbrances 37,725,000 6,191,694 Carry over encumbrances into 2023-24 set aside commissary (11), buffalo state (6), fosdick (1.5), All high additional (3) maybe less Refi (3) plus misc unknown. Assigned for other capital needs/repairs/leases Assigned for OPEB and Other Benefits 24,080,000 70,030,324 Assigned for Health Insurance 15,084,559 For self-insured healthcare $15m per year for 2024-25 and 2025-26. In case we don t cut $90 million. This will add to 24-25 deficit. Assigned for Continuation of ARP Plan items 30,000,000 Assigned for PY Claims 9,000,000 192,111,577 $6m collective bargaining / $3m State aid claims Total Assigned Unassigned Board policy minimum requires 4% of Budget Amount in excess of minimum 44,109,000 107,278,158 151,387,158 balancing - what is not assigned or restricted Total Unassigned 375,527,369 Total Fund Balance Projected Fund Balance at 6/30/23 in 4 Yr Fin Plan Adopted 6/9/23 *Improvement of Actual Results Over Projections in 4 Yr Fin Plan Adopted 6/9/23 The City of Buffalo maintains District cash balances, which do not earn interest, except for the Stabilization Reserve which was established by the Chapter 88 Laws of 2000 and has a cash balance equal to the reserve 321,000,000 54,527,369
2022 2022- -2023 Financial Results 2023 Financial Results Significant Budget Variances Variances Significant Budget We had a tremendously successful financial year in 2022-23 even while navigating numerous large financial issues such as the BTF contract settlement and funding unaidable capital projects. General Fund Revenues: Total Revenues were $23.8 million above the $985.5 million budget. Total State Aid was $4.5 greater than budget, sales tax was $11.1 million greater than budget, invoicing to other districts was $2.9 million greater than budget, Medicaid reimbursements were $1 million greater than budget and Interfund Revenues due to ARP/ESSER indirect were $3.9 million greater than budget. General Fund Expenditures Favorable Variances: Total Expenditures were $62.1 million under Revised Budget. $4.4 million Transportation $32.3 million Salaries due to vacancies and the use of ARP/ESSER funding $9.9 million Benefits due to vacancies and the use of ARP/ESSER funding $17.7 million Contracts and all other $3.8 million Tuitions from other Agencies/Other Districts Offsetting these positive variances - we transferred $17 million in unbudgeted requests to Capital Projects. Notes: We utilized $48 million in ARP/ESSER to fund the BTF retro pay and 10% bonus.
A Look Ahead A Look Ahead General Fund Last years results far exceeded budget targets. We are in the strongest financial position in years (maybe ever). Yet the challenges we face in the upcoming years are very large. General Fund The 23-24 Approved Budget calls for a $37.7 million deficit. Among the factors driving the projected deficit: The full impact of the second year of the BTF on salaries, extra activity and benefits. Fewer vacancies, thus higher wages and benefits than in past few years. Depending on the timing we may have to make additional Transfers for Capital Projects that were not budgeted. A pending $6 million Woz Ed purchase that was not budgeted. These factors will be more fully discussed and outlined in the upcoming First Quarter Financial Report which will be submitted to the Board at the November regular Board meeting. ARP/ESSER funding ends on June 30, 2024. This impacts approximately $90,000,000 in funding including approximately 310 FTE s, Summer School and After School programs. The $90,000,000 cannot fit into the General Fund. If reductions are not made, or additional revenues identified, it will quickly deplete the Districts fund balance and result in severe cash flow problems impacting the Districts ability to cover its basic operating expenditures. Continued decreases in enrollment will negatively impact both Foundation Aid (now on full formula basis) and our major Title grants and IDEA grant that are also based upon enrollment. We need to right size our building staff to enrollments. During the last 2 fiscal years we have transferred $27 million to capital projects. There is an additional $22 million currently being discussed. In total the projected amount of transfers to capital projects is $49 million dollars over a 3 year period. This will have a negative impact on the Districts ability to use fund balance for covering ARP/ESSER expenditures. We cannot continue to fund unaidable capital projects and maintain a healthy fund balance.
