Purpose of Budget Review
The objective of this review was to provide an independent evaluation of the Rochester City School District’s (District) proposed budget for the 2020-21 fiscal year.
Background
The District is located in Monroe County. Earlier this year our office performed a review of the Rochester City School District’s (District) 2018-19 and 2019-20 adopted budgets[1] which noted several budgeting deficiencies. Subsequent to the release of our review, several interested stakeholders again requested that this office provide a similar independent review of the District’s 2020-21 proposed budget. Future reviews will be completed by an independent State Monitor[2] installed in the District by the New York State Education Department pursuant to language included in the State’s 2020-21 budget bill.
Key Findings
- We commend the Superintendent[3] and Board for the actions they have taken to improve the accuracy of budget projections in the 2020-21 budget and restore the District’s overall financial condition, especially in light of the challenges caused by unexpected revenue reductions due to the economic fallout resulting from the COVID-19 pandemic.
- Revenue projections to be substantially accurate.
- Appropriations for charter school tuition are underbudgeted by approximately $1.5 million and salary and substitute costs will have to be closely monitored.
- The budget remains structurally imbalanced because District officials are relying on City Council to approve a waiver to the City charter for the use of $10 million for operating expenditures rather than capital purposes.
Key Recommendations
- District officials will need to closely monitor salary and substitute fill levels and the related budget lines and make necessary budget adjustments throughout the fiscal year to ensure that the budget is not overexpended.
- If actual charter school enrollment figures trend close to projections, District officials will have to make budget adjustments accordingly to balance the budget.
- If City Council does not approve a waiver to the cash capital requirement allowing the $10 million to be used for operating expenditures, the budget will need to be modified accordingly.
[1] /localgov/audits/schools/2020/rochester-br-20-2-1.pdf
[2] http://www.nysed.gov/news/2020/state-education-department-appoints-dr-shelley-jallow-monitor-rochester-city-school
[3] Superintendent Dade, who was responsible for preparing the preliminary budget, submitted his resignation from the District on April 23, 2020 which the Board accepted and resolved effective May 18, 2020.