ESSA Reporting and Charitable Funds
Friday, August 24, 2018
ASBO attended a meeting on Thursday, August 23, 2018, held by Brian Cechnicki, Director of Education Finance for the state Education Department, to discuss SED’s plans to comply with ESSA’s Financial Reporting requirements.
Brian has been having similar meetings with stakeholder groups and education leaders around the state to get feedback on both the state’s new budget transparency reporting requirements as well as SED’s plans to comply with ESSA’s expenditure reporting requirements.
This year 76 districts must file by next Friday, August 31st the budget transparency reports required by the state. Next year 230 districts must comply and the year after all districts will be required to report their budgeted expenditures and revenue by building.
For ESSA, all districts will be required by December 2019 to report their actual expenditures and revenue per building. SED plans to hold additional regional forums around the state in mid-September to get additional feedback on plans to develop the ESSA reporting form and content.
District superintendents will be notified in the coming weeks on the details of these meetings which they should be sharing with business officials. ASBO will continue to keep members updated as the ESSA reporting conversations progress. Anyone with questions or concerns on the ESSA requirement can send them to email@example.com.
ASBO recommends that even if your district is not among the 76 districts that have to file budget transparency forms with NYS by next week, that you begin the process of realigning your chart of accounts by building and keeping track of both budgeted amounts and expenditures so that you can discern any discrepancies or variations between school buildings and then discuss them with your superintendent in early 2019 to either mitigate the variances or develop a communication plan to explain why some school buildings receive more funding than others. This preemptive work will hopefully avoid negative press stories later when this information is shared with the public and media.
In addition, the IRS issued proposed regulations that would undercut state efforts to mitigate the negative impact of the $10,000 limit on property tax deductions imposed by the Trump Administration.
The new draft regulations released yesterday caps the amount that a charitable donation in lieu of property tax payments to 15% of the donation. New York State's charitable fund option allowed property taxpayers a tax credit of up 95% of the charitable donation. The proposed regulation can be found here.