Norristown Area School District Budget

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Marlene Willis
6 years ago
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1 January 17, 2017

2 PROPOSED PRELIMINARY BUDGET Act 1 of 2006 requires: Proposed Preliminary Budget must be on public display before adoption, specifically by January 26, We are complying with the public display requirement by presenting our Preliminary Budget tonight. We will also make sure that our budget document is available on our website, in our buildings, and in the offices of our local municipal partners. Intent to adopt Preliminary Budget must be advertised 10 days prior to adoption Preliminary Budget must be adopted by February 15, 2017 REMINDER: WE NEED TO SET A FEBRUARY SPECIAL MEETING DATE

3 BUDGET PRIORITIES / RECOMMENDATIONS Maintain full-day kindergarten program; Including maintaining Musselman Learning Center as a kindergarten center Providing adequate instructional materials & textbooks Maintain strong range of music, arts, and foreign languages courses Maintain manageable class sizes Maintain adequate staffing to support growing ELL student population Maintain adequate staffing to support our Special Education programming Maintain School Resource Officers Adequately plan for facilities management, maintenance, repairs, and facility upgrades.

4 REVENUES Norristown Area School District

5 REVENUE SNAPSHOT CURRENT YEAR BUDGETED REVENUES $ 146,605,950 PROJECTED REVENUES (Jan 2017) $ 146,094,800 VARIANCE ($ 511,150) Includes a 6.71% Projected Tax Increase -0.34% NEXT YEAR BUDGETED REVENUES $ 152,024,880 VARIANCE (Compared to Projected) $ 5,930, %

REVENUE SNAPSHOT 2016-17 5% 2017-18 4% 24% 23%

6 REVENUE SNAPSHOT % % 24% 23% 71% 73% Local State Federal Local State Federal

7 REVENUE OVERVIEW: NASD Adjusted Act 1 Index = 3.00% Estimated Maximum Allowable Tax Increase = 6.71% With PSERS & Special Education Exceptions Will submit to PDE for approval in March 2017 Proposed Preliminary Budget Tax Increase = 6.71% Recognize that much work needs to done over the coming months to reduce this

8 REVENUE OVERVIEW: Limited growth in local economy Commonwealth of PA: Continues to struggle to raise revenue; deficit estimated at $ 3 billion Budget impasse anticipated Property Tax Relief Elimination Plan (Priority Issue?) Federal uncertainty School Choice US Department of Education minimized/eliminated

9 Preliminary Budget Includes a 6.71% Proposed Tax Increase Based on our historical performance, we anticipate that the needed tax increase can be reduced before Final Budget Adoption in June 2017: School Year Tax Preliminary Budget Adoption Tax Final Budget Adoption % 0.00% % 4.29% % 2.19% % 2.06% % 2.69% % 2.61% % 1.86% % 3.647%

10 EXPENSES Norristown Area School District

11 EXPENSE SNAPSHOT CURRENT YEAR BUDGETED EXPENSES $ 147,334,095 PROJECTED EXPENSES (Jan 2017) $ 148,943,040 VARIANCE ($ 1,608,945) ( 1.09%) NEXT YEAR BUDGETED EXPENSES $ 154,432,800 VARIANCE $ 5,489, %

12 EXPENSE SNAPSHOT CURRENT YEAR BUDGETED EXPENSES Trends in Special Education $ 147,334,095 Expenses Creating Challenges PROJECTED EXPENSES (Jan 2017) $ 148,943,040 See Budget Document (Accounts & ) VARIANCE ($ 1,608,945) ( 1.09%) NEXT YEAR BUDGETED EXPENSES $ 154,432,800 VARIANCE $ 5,489, %

13 EXPENSE SNAPSHOT CURRENT YEAR BUDGETED EXPENSES Trends in Special Education $ 147,334,095 Expenses Creating Challenges PROJECTED EXPENSES (Jan 2017) $ 148,943,040 See Budget Document (Accounts & ) VARIANCE ($ 1,608,945) ( 1.09%) Note: In November 2016 (when discussing the Audit), we shared the challenges involved with managing and projecting special education expenses. We missed our budget target in and our concerned about implications to We will work closely to refine our & projections in this area over the coming months. These projections may affect the potential deficit at 6/30/17.

14 EXPENSES BY MAJOR OBJECT Other Purch Svc (Tuition, Transportation, etc) 16% Supplies 2% Other (Primarily Equipment Debt) 4% 2% Property Svc 1% Professional Svc 3% Wages 44% Benefits 28%

2017-18 EXPENSES BY MAJOR FUNCTION Other Support 0% Central Support (IT) 1% Student /Community Transportation 1% Debt 6% 4% Operations 9%

15 EXPENSES BY MAJOR FUNCTION Other Support 0% Central Support (IT) 1% Student /Community Transportation 1% Debt 6% 4% Operations 9% Business 1% Health 1% Admin Support 7% Reg Ed 42% Pupil Svcs 4% Instruct Support 1% Adult Ed 0% Voc Ed 3% Spec Ed 18% Other Instruction 1%

EXPENSE OVERVIEW: Wage Increases Still to be negotiated (EANA Professional, EANA Support, & Mid-Mgmt) PSERS (Retirement) contribution rate projected to increase from 30.03% to 32.

16 EXPENSE OVERVIEW: Wage Increases Still to be negotiated (EANA Professional, EANA Support, & Mid-Mgmt) PSERS (Retirement) contribution rate projected to increase from 30.03% to 32.57% Pension Reform discussions? Health Care Costs First Look at = 5.3% rate increase May be impacted by labor negotiations Debt Service payments include $500k increase; will decrease again in Central Montgomery Technical High School - Tuition increase - $248k Staffing Early projections indicate additional regular education teachers may be needed at the elementary/middle buildings Home/school team restructuring/expansion under review Three additional bilingual paraprofessionals and one additional lunch aide

17 EXPENSE OVERVIEW: Staffing Early projections, based on programmatic changes, indicate that teaching positions may be reduced at NAHS Secretarial position review also in early stages Facilities Phase 2 of Hancock bus loop improvement project may need to be deferred until

18 SUMMARY / FUND BALANCE Norristown Area School District

19 FUND BALANCE $ 1,977, PROJECTED REVENUES (Jan 2017) $ 146,094, PROJECTED EXPENSES (Jan 2017) $ 148,943,040 FUND BALANCE (DEFICIT) ( $ 870,284) PROJECTED REVENUES (Tax Increase at 6.71%) $ 152,024, PROJECTED EXPENSES $ 154,432,800 MINIMUM FUND BALANCE NEEDED $1,000,000 FUNDING GAP (CUMULATIVE) (@ 6.71%) ($ 4,278,204) FOR TAX INCREASE UNDER 5% - FUNDING GAP = +/- $ 6.0 MILLION

20 Plans to Close Budget Gap Monitor activity in Harrisburg & Washington closely Actively engage legislators, parents & staff Refinement of staffing recommendations Closer look at rosters, programs, enrollment projections needed Anticipate in-depth discussion at February/March meetings Work closely with Bucks-Montco Healthcare Consortium Monitor claims trend 2 nd look rates expected late Feb Evaluate potential further use of reserves held by Consortium One-time revenue source (short-term solution) Explore sale of delinquent tax receivables One-time revenue source (short-term solution)

21 Preliminary Budget: Must Be Adopted by February 15, 2017 Meeting Schedule / Format TBD Questions?

Norristown Area School District Proposed Preliminary Budget

Norristown Area School District 2018-19 Proposed Preliminary Budget January 22, 2018 Norristown Area School District 2018-19 PROPOSED PRELIMINARY BUDGET Act 1 of 2006 requires: Proposed 2018-19 Preliminary