BUDGET PRESENTATION. April 4, 2017 Boyertown Area School District Board of Education

Transcription

1 BUDGET PRESENTATION April 4, 2017 Boyertown Area School District Board of Education

2 2016 Berks County Schools Real Estate Tax Rate ANTIETAM B. HEIGHTS EXETER FLEETWOOD WYOMISSING KUTZTOWN DANIEL BOONE MUHLENBERG TULPEHOCKEN C. WEISER GOV. MIFFLIN SCH. VALLEY TWIN VALLEY HAMBURG OLEY VALLEY WILSON BOYERTOWN READING* * Reading SD taxpayers voted to exchange HIGHER INCOME tax FOR LOWER PROPERTY tax. Compare Reading SD EIT of 1.5% to Boyertown.5%

3 2016 Montgomery County Schools Real Estate Tax Rate CHELTENHAM POTTSTOWN JENKINTOWN POTTSGROVE NORRISTOWN LWR MORELAND UPPER DUBLIN SPRINGFIELD PERK VALLEY ABINGTON UPR MORELAND SOUDERTON METHACTON HATBORO-HORS LOWER MERION SPRING FORD BOYERTOWN NORTH PENN UPPER PERK COLONIAL UPPER MERION WISSAHICKON 18.79

4 Act 1 & Budgeting Below is the BASD 10-year historical Act 1 data: Base BASD BASD Difference FY Index Index % Tax Incr** Base vs. Tax Incr % 4.1% 2.2% -1.2% % 5.3% 2.6% -1.8% % 4.9% 0.0% -4.1% % 3.5% 3.7% +0.8% % 1.7% 5.5% +2.9% % 2.1% 2.3% +0.6% % 2.1% 2.5% +0.8% % 2.6% 2.6% +0.5% % 2.3% 2.5% +0.6% % 2.9% 1.5% -0.9% ** Average Tax Increase subject to tax equalization calculation

5 Act 1 Index Index Calculation for : ECI Index equals 2.5% times: Aid Ratio Allow ( ) x BASD Index (from PDE) 3.1% County Millage Index Increase Berks %.75 Mont %.75 1 Mill = $2.3 Million times.75 = $1,725,000

6 Expenditure Per Student Berks County

7 Expenditure Per Student Montgomery County

8 Expenditures Well Invested Academic Results 2016 SAT Results Statewide - 118th out of 646 (Top 18% in Pennsylvania) Berks County Only - 4th out of 18 Montgomery County Only - 17th out of 22 Berks and Montgomery County 21st out of 40 Per pupil instructional expenditure in Berks County 16 th lowest of 18 School Districts Per pupil instructional expenditure in Montgomery County 22 nd out of 22 School Districts

9 Budget Deficit Update February 7 March 14 Projected Revenue $105,347,105 $105,367,201 Projected Expenditures $111,345,876 $111,017,918 Projected Deficit $ (5,998,771) $ (5,650,717) Use of $2M Committed One-Time Funds PSERS $ 2,000,000 $ 2,000,000 Net Deficit $ (3,998,771) $ (3,650,717) Current Budget does not include any revenue increase as proposed in Governor Wolf s budget proposal.

10 Budget Deficit Reduction Three Ways to Decrease a Budget Deficit: 1. Decrease Expenditures 2. Increase Revenue 3. Use of Fund Balance

11 Prior Budget to Actual Review Review of Revenue Budget History Conservative Projections allowed for Positive Variances More Optimistic Revenue Projections will minimize Positive Variances Review of Expenditure Budget History Expenditure Negative Variances increasing as Optimistic Expense Items are overspent

12 State Budget Trouble

13 State Budget Woes The Independent Fiscal Office, a non-partisan state agency, confirmed an anticipated shortfall of at least $2.5 billion by July 1, 2018, reflective of sluggish economic growth, rising health care and pension costs, and an aging workforce. That shortfall can be reduced by substantive changes in public policy.

14 Deficit Reduction Expenditures

15 PSERS Mandated Contribution Rate

16 PSERS EXPENSE

17 2 Major Expenditure Factors (a.k.a. State Mandates) Pennsylvania School Employers Retirement System (PSERS) State Mandated Pension Establishes Annual Contribution Rate for All School Districts PSERS rate at 8.65% (+ 5.2%) $1.28 Million PSERS rate at 12.36% (+42.9%) $1.59 Million PSERS rate at 16.93% (+37.0%) $2.25 Million PSERS rate at 21.40% (+26.4%) $2.58 Million PSERS rate at 25.84% (+20.7%) $2.39 Million PSERS rate at 30.03% (+16.2%) $1.99 Million PSERS rate at 32.57% (+ 8.5%) $1.6 Million (est.) Special Education Expenditures Approximately 20% of BASD Students Special Ed expenditures average 11% over 7 years Increase Special Ed Expense $ M $ M $1.306 M Special Ed % of Budget 17.5% 18.1%

18 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations/ Professional 1. Reduce from 2.0 FTE to 1.0 FTE middle school librarians JHE and JHW will each have a teacher who is.5 librarian and.5 ELA teacher Library clerk covers library, reduced opportunity for library instruction One open ELA teacher position would not be filled for Reduction = $80,000 (Salary, PSERS, Benefits)

19 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations/ Professional 2. Reduce 1.0 FTE School Counselor o o o o Transfer 1 counselor from elementary to middle school open position Elementary reduces by one grade level No increase to counseling services for students at elementary level WES, BES, GES, NHUF have 1.0 FTE Counselor, CES, PFES, EES have.5 FTE Counselor Reduction = $98,000 (Salary, PSERS, Benefits)

20 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations/Professional 3. Close Planetarium No Planetarium sessions for BASD students/community Reduced community opportunity Teacher retires June 2017 Reduction = $30,000

21 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Professional 4. Reduce 2.5 special area teachers at elementary level Students continue current amount of special area instruction No opportunity to expand health instruction Continued large class sizes/bubble classes combined Art vacancy not filled, PE to open BASH position,.5 music teacher reassigned to middle school position Reduction = $200,000 (Salary, PSERS, Benefits)

22 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Professional 5. Reduce.5 BASH Chemistry/Biology Increase class size from 21 to 23 (average/estimated) Reduction = $50,000 (Salary, PSERS, Benefits) 6. Eliminate Elementary Band/Orchestra No opportunity for band/orchestra until middle school Decreased learning/opportunity for 508 students (some students counted twice) Teacher furloughs in music department Reduction = $350,000 (Salary, PSERS, Benefits)

23 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Administration 1. Reduce Administration Reallocation of administrative assignments Administrative staff increases additional areas of responsibility Reduction = $175,000 (Salary, PSERS, Benefits) 2. Reduce Administrative support Reallocation of office support staff Current support staff increases additional responsibilities Reduction = $25,000 (Salary, PSERS)

24 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Support 1. Reduce custodial staff Reallocation of staff assignments Redistribution/prioritization of duties Reduction = $130,000 (Salary, PSERS) 2. Reduce recess aide hours across district 6th grade students moving to middle school Some elementary schools will condense lunch/recess periods Reduction = $17,000 (Salary, PSERS)

25 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Support 3. Reduce paraprofessional hours at elementary level Evaluate support needs due to attrition and replacement Reduction = $22,000 (Salary, PSERS)

26 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Operations 1. Reduce school and department budgets 5% Less supplies, equipment, needs reprioritzed Reduction = $150, Reduce three bus runs Redesign district runs Possible longer bus rides, increased students per bus Reduction = $117,000

27 Program Reduction Considerations 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Operations 3. Elimination of middle school sports programs Eliminates 26 teams involving 828 students (based on last season, some students counted twice) Reduced opportunity for students to prepare for BASH programs through BASD programs Reduction = $200,000 (stipends, equipment, fees, etc.)

28 Reduction Considerations Summary JH Librarian $ 80,000 Counselor $ 98,000 Planetarium $ 30,000 Elementary Special Areas $ 200,000 BASH Chem/Bio $ 50,000 Elementary Band/Orchestra $ 350,000 Administration $ 175,000 Administrative Support $ 25,000 Custodial Support $ 130,000 Recess Aides $ 17,000 Paraprofessional $ 22,000 Budgets Reduction $ 150,000 Bus Runs $ 117,000 Middle School Sports $ 200,000 Total $1,644,000

29 Deficit Reduction Increase Revenue

30 Revenue Increases Limited Options Student Activity Fees - $100 student total $120,000 BASH Parking Fees - $50 permit total $20,000 Facility Rental Increase total $160,000 Assessment Increase Projected at 1% increase adding $200,000 results from March to May County Reports Tax Increase up to Act 1 Limit of 3.1% would generate $1.75 Million Current Deficit $5,650,717 Use of one-time $ $2,000,000 Less: 3.1% Tax increase $1,725,000 Remaining Deficit $1,925,717

31 Use of Fund Balance

32 Fund Balance Usage $2 million in Committed fund balance for PSERS included in budget Projected Balance of PSERS Fund on 6/30/18 is $2.8 million Plan to utilize remaining balance over 3 years with proposed replacement of one-time funds with tax increases or further expenditure or program reductions Capital Projects Fund $500,000 for Internal Service Fund Balance Reduction Plan - Premium Holiday

33 Fund Balance Usage Caution must be used when considering further use of fund balance considering plan to deplete the PSERS funds Additional use of fund balances will create larger deficits in the next 1-2 years; larger deficits than tax increases could fund

34 Budget Deficit Reduction Ways to Decrease a Budget Deficit: Decrease Expenditure Which programs to cut? How many employees to furlough? Which services are reduced? Reduction in BASD activities

35 Budget Deficit Reduction Ways to Decrease a Budget Deficit: Increase Revenue Raise tax revenue Raise activity fees Raise parking fees Raise facility rental fees

36 Budget Deficit Reduction Ways to Decrease a Budget Deficit: Use of Fund Balance How much one-time funds to use? PSERS Committed Fund Internal Service - Healthy Holiday Capital Projects Transfer How do we replace in the future?

37 Looking to the Future How will this year impact the next 5 years? The use of one-time fund balance must be replaced Health Care is cyclical - 0% increases are not projected. Special Education costs will continue to rise. PSERS increasing but at slower rate Building operations and maintenance evaluation Future Tax Increases and will require tax increases and possible use of exceptions (No Act 1 Resolution). Without additional revenue, programs and services will continue to be reduced or eliminated.

38 Future Meetings April 18, 2017 Budget Work Session Junior High East 6:30 pm April 25, 2017 School Board Meeting Education Center - 6:30 pm May 9, 2017 School Board Meeting Education Center 6:30 pm (Adoption of Final Proposed Budget) May 30, 2017 Budget Work Session Education Center 6:30 pm June 13, 2017 School Board Meeting Education Center 6:30 pm (Adoption of Final Budget)

39 Questions & Discussion