Budget Information

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Annabelle Casey
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1 Budget Information

2 Executive Summary 83% of the District s revenue is generated at the local level. 93% of the local revenue is from annual real estate taxes. A 2.98% tax increase (Act 1 Index of 2.5% plus 0.48% PSERS Exception) is included in the budget. The average annual tax bill will increase by $173. Rose Tree Media continues to have one of the lowest millage rates in Delaware County. Over the past five years, the District has had the third lowest millage rate. There has been a decline in tax appeals and potential future tax growth could be in the near future as a result of the transformation of the Granite Run mall and property developments in Media, Middletown and Edgmont townships. There are potential changes to the funding of public education at the state level. Salaries and benefits comprise 73% of District expenditures. The PSERS retirement rate will increase to 32.57% from the current rate of 30.03%. The budget includes the addition of two new teaching positions as well as the reduction of a custodian, a technology assistant and a Business Office administrator. The savings from the Early Incentive Plan, ERIP, are in the budget and currently include replacing all 13 positions. The District continues to look for ways to improve efficiencies and cut costs. 1

3 OUR School District OUR Children Excellent and Award-winning Educational Programs This helps to maintain and increase property values We achieve this through a serious and balanced approach to year-round fiscal responsibility 2

4 Budget Process At all times during the process, the goal is to maintain the highest quality of excellence in our educational program for our students as possible. Our students needs come first! 3

Budget Process The University of Pennsylvania s Center for School Study Councils, Penn Graduate

engagement for the 2017/2018 budget process through community forums.

Four community forum meetings were held and were attended by more than 518 community members.

5 Budget Process The University of Pennsylvania s Center for School Study Councils, Penn Graduate School of Education Penn Project for Civic Engagement assisted the district with community engagement for the 2017/2018 budget process through community forums. An advisory group comprised of various district stakeholders also assisted with the process. Four community forum meetings were held and were attended by more than 518 community members. The goals of the community forums were to inform the public about the 2017/2018 budget and inform the district of the public s priorities. 4

6 Budget Calendar Date Description BUDGET CALENDAR WITH EXCEPTIONS 09/01/16 Department of Education publishes the Index 2.5% 09/13/16 Finance Committee Meeting 09/22/16 Legislative Meeting 09/30/16 Department of Education provides action dates for the budget 10/11/16 Finance Committee Meeting 10/27/16 Legislative Meeting 11/10/16 Finance Committee Meeting 11/17/16 Legislative Meeting 12/06/16 Finance Committee Meeting 12/22/16 Legislative Meeting 01/06/16 Deadline to make Preliminary Budget available for inspection 01/10/17 Finance Committee Meeting 01/16/16 Deadline to offer public notice of intent to adopt the Preliminary Budget. 01/26/16 Legislative Meeting - Adoption of the Preliminary Budget 02/14/17 Finance Committee Meeting 02/23/17 Legislative Meeting 03/14/17 Finance Committee Meeting 03/23/17 Legislative Meeting 04/17/17 Finance Committee Meeting 04/17/17 Legislative Meeting-Adoption of the Proposed Final Budget and Certification of Use of PDE /27/17 Legislative Meeting 04/28/17 Make the Proposed Final Budget available for public inspection. 05/08/17 Deadline to offer public notice of intent to adopt the Final Budget. 05/09/17 Finance Committee Meeting 05/18/17 Legislative Meeting-Adoption of the Final Budget 06/13/17 Finance Committee Meeting 06/22/17 Legislative Meeting 5

7 Sources of Revenue Revenue is comprised of four sources: local, state, federal and fund balance. Local revenue sources include Real Estate Taxes, Per Capita Taxes, Tuitions, Earnings on Investments and miscellaneous revenue. State revenue sources include state subsidies for Basic Education Funding, Special Education, and Transportation, State Property Tax Relief, Reimbursement for Social Security and Retirement payments. Federal revenue source consists of Title I & II, IDEA and ACCESS funds that have restricted uses. Fund balance is the difference between assets and liabilities and results when revenues are greater than expenditures. It s often referred to as a savings account, but does not consist of only cash. 6

8 The Act 1 Index The Act 1 Index is a result of the Taxpayer Relief Act of 2006, which established limits on tax increases. The Index is calculated based on the percentage of increase in the State Wide Average Weekly Wage (SAWW) and the percentage increase in the national Education Cost Index (ECI). The SAWW is determined by the Department of Labor and Industry in the same manner as the Unemployment Compensation Law and it is calculated on the previous calendar year. The ECI is also based on the previous 12-month period beginning July 1 st through June 30 th using Elementary and Secondary school data reported by the Bureau of Labor and Statistics. *SAWW calculation changed by Act 6 of 2011 to a 36-month from 12-month Fiscal Year 17/18 16/17 15/16 14/15 *13/14 12/13 11/12 10/11 09/10 08/09 07/08 SAWW $967 $942 $919 $898 $875 $872 $855 $847 $825 $788 $756 ECI SAWW % + 2.6% 2.5% 2.4% 2.6% 2.0% 2.1% 0.9% 2.7% 4.6% 4.3% 2.8% ECI % + 2.3% 2.2% 1.4% 1.6% 1.4% 1.3% 1.9% 3.0% 3.6% 4.5% 4.0% Base Index 2.5% 2.4% 1.9% 2.1% 1.7% 1.7% 1.4% 2.9% 4.1% 4.4% 3.4% 7

9 Revenue Act 1 Index vs. RTMSD Increases 6.00% 5.00% District's Increase Act 1 Index 4.00% 3.00% 2.00% 1.00% 0.00% 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 8

10 Assessment Ten Year History 3,000,000,000 2,950,000,000 2,900,000,000 2,850,000,000 2,800,000,000 2,750,000,000 9

11 Tax Revenue Assessment Granite Run Mall $3,000,000 Granite Run $2,500,000 $2,000,000 $1,500,000 $1,928,787 $1,994,359 $1,860,163 $1,778,066 $1,653,301 $1,778,066 $1,714,390 $1,777,636 $1,446,845 $1,504,671$1,563,625 $1,653,301 $1,598,859 $1,446,845 $1,504,671$1,563,625 $1,519,398 $2,240,333 $2,273,045$2,314,970$2,358,589 $2,090,088 $2,142,336$2,204,461 $2,204,461 $1,362,620 $1,340,420 $2,414,988 $1,000,000 $1,165,657 $1,050,856 $845,616 $500,000 $715,566 $510,103 $522,301 $ Tax Year Actual Revenue Potential Revenue 10

Tax Revenue Assessment Franklin Mint $600,000 $500,000 $400,000 $300,000 Franklin Mint $559,406 $546,341 $536,237 $510,639 $510,639 $518,949 $526,526 $496,249 $484,146 $461,971 $446,782 $492,948

12 Tax Revenue Assessment Franklin Mint $600,000 $500,000 $400,000 $300,000 Franklin Mint $559,406 $546,341 $536,237 $510,639 $510,639 $518,949 $526,526 $496,249 $484,146 $461,971 $446,782 $492,948 $430,886 $481,436 $446,819 $451,181 $457,297 $463,974 $472,532 $411,870 $382,969 $434,227 $362,197 $346,463 $423,637 $334,512 $361,708 $394,280 $337,448 $340,672 $357,909 $302,308 $318,183 $314,779 $200,000 $100,000 $ Tax Year Actual Revenue Potential Revenue 11

13 Local Revenue Local Source Budget Amount % of Total Real Estate Tax $69,507, % Transfer Tax 1,000, % Delinquent Taxes 1,558, % Current Per Capita 340, % Tuition 980, % Earnings on Investments 125, % Rentals/Other 1,006, % Total $74,518, % 12

14 State Revenue State Source Budget Amount % of Total Basic Education Subsidy $2,892, % Special Education Funding 1,784, % Transportation 1,103, % Property Tax Relief 1,633, % Social Security Subsidy 1,586, % Retirement Subsidy 6,772, % Other 225, % Total $15,997, % 13

15 Federal Revenue Federal Source Budget Amount % of Total Title I $195, % Title II 90, % Access 103, % Total $388, % 14

16 Fund Balance Fund balance as of 6/30/16 $ 9,186,390 Additional Revenue Media Elementary School Project $ 1,132,108 Estimated Use to Balance the 2016/2017 fiscal year $ (1,700,000) $ 8,618,498 Assigned Fund Balance as of 6/30/16 Summer School $ 38,402 SLMS $ 16,498 Capital Projects $ - Miscellaneous $ 410 Future benefits funding $ - Balance 17/18 Budget $ 4,956,570 Total Assigned Fund Balance as of 6/30/17 $ 5,011,880 Total Unassigned Fund Balance as of 6/30/17 $ 3,606,618 Total Assigned Fund Balance as of 7/1/17 $ 5,011,880 Total Unassigned Fund Balance as of 7/1/17 $ 3,606,618 Total Fund Balance $ 8,618,498 Amount of Fund Balance used During 17/18 $ (4,956,570) $ 3,661,928 Assigned Fund Balance as of 6/30/2018 Summer School $ 20,000 SLMS $ 16,498 Capital Projects $ 1,000,000 Future benefits funding $ 934,320 Total Assigned Fund Balance as of 6/30/2018 $ 1,970,818 Unassigned Fund Balance as of 6/30/18 $ 1,691,110 15

17 Revenue Budget Comparison 16/17 17/18 Major Object Budget Amount Budget Amount $ Incr/Decr % Incr/Decr Local 72,039,463 74,518,126 2,478, % State 15,228,716 15,997, , % Federal 437, ,000 (49,196) (11.25%) Fund Balance 5,297,982 4,956,570 (341,316) (6.44%) Total 93,003,357 95,860,556 2,857, % 16

18 Revenue Summary Revenue by Source 16.69% 0.40% 5.17% Local Revenue State Revenue Federal Revenue Fund Balance 77.74% 17

19 Key Facts and Figures of the Revenue Budget -- Key Points -- 1 millage point (mill) is equal to approximately $2.82 million Total Tax Increase 2.98% (Act 1 Index 2.5% and PSERS Exception.48%) Homestead exemption $ Homestead exemption $ Homestead exemption $ Homestead exemption $220 Average homeowner assessment is $208,301 Average homeowner tax bill in is $5,227 Increase in average homeowner tax bill for is $173 The use of $4.9 million in fund balance The Increase in state revenue was due to the rising PSERS rate Increase in assessment value 18

20 Expenditure Budget for is $95,860,556 In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Functions 1000 Instruction-regular, special, vocational, alternative education programs and the Delaware County Community College 2000 Support Services-guidance, administration, student health, business, operations and maintenance, student transportation, staff and technology services 3000 Operations of Non-Instructional Services-athletics, student activities, and community services 5000 Other Expenditures and Financing Uses-debt service, fund transfers, and budgetary reserve 19

21 Expenditure Comparison by Function 16/17 17/18 $ % Expense Function Budget Amount Budget Amount Incr/Decr Incr/Decr Instructional Programs 52,892,134 54,509,982 1,617, % Instr Support Svcs 7,494,940 7,451,986 (42,954) (0.57%) Admin 4,700,884 5,137, , % Pupil Health 769, ,453 25, % Business Svcs 1,319,894 1,321,533 1, % Opn & Maint 7,862,345 8,519, , % Transportation 5,693,340 6,002, , % Central Support Svcs 1,142,011 1,256, , % Student Activities 1,690,689 1,678,057 (12,632) (0.75%) Debt Service 8,683,950 8,641,250 (42,700) (0.49%) Other Expenses 754, ,685 (206,368) (27.37%) Total 93,003,357 95,860,556 2,857, % 20

0% Central Support Svcs 1.3% Transportation 6.3% Student Activities 1.

22 Expenditure Comparison by Function ROSE TREE MEDIA SCHOOL DISTRICT 17/18 BUDGET EXPENSES BY FUNCTION Other Expenses Debt Service 0.6% 9.0% Central Support Svcs 1.3% Transportation 6.3% Student Activities 1.7% Opn & Maint 8.9% Instructional Pgm 56.9% Business Svcs 1.4% Pupil Health 0.8% Admin 5.3% Instr Support Svcs 7.8% 21

23 Expenditure Budget for In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Objects Salaries - wages for all school district employees Benefits - health care, tuition reimbursement, retirement and social security Contracted Professional Services tuition to the Intermediate Unit, legal and auditing services Purchased Property Services - utilities, repairs, leases and rentals. Other Purchased Services - transportation, property insurances, advertising, tuitions and travel Supplies- books, general supplies and natural gas Equipment - computers, furniture and vehicles Other objects interest on bonds, dues and fees Other Uses of Funds bond principal and fund transfers 22

24 Expenditure Comparison by Object 16/17 17/18 $ % Major Object Budget Amount Budget Amount Incr/Decr Incr/Decr Salaries 40,979,266 42,331,823 1,352, % Employee Benefits 26,821,449 28,034,683 1,213, % Contr Prof. Svc 3,927,737 3,952,707 24, % Purch Property Svcs 2,979,254 2,805,214 (174,040) (5.84%) Other Purchased Svcs 5,925,799 5,693,960 (231,839) (3.91%) Supplies/Books 2,603,114 3,494, , % Property (Equipment) 454, ,432 (33,067) (7.28%) Other Objects 2,340,532 2,177,727 (162,805) (6.96%) Other Financing Uses 6,971,707 6,948,292 (23,415) (0.34%) Total 93,003,357 95,860,556 2,857, % 23

25 Expenditure Comparison by Object ROSE TREE MEDIA SCHOOL DISTRICT 17/18 BUDGET EXPENSES BY OBJECT Property 0.4% Other Objects 2.3% Other Uses of Funds 7.2% Supplies 3.6% Other Purchased Services 6% Salaries 44.2% Purchased Property Services 3% Purchased Prof. & Technical Services 4.1% Benefits 29.2% 24

26 Key Facts of the Expenditure Budget -- Key Points -- Two additional teaching positions Staff Reductions One Technology Assistant One Custodian One Business Office Administrator Savings through the Early Retirement Incentive Plan, ERIP Reduction in Prescription Costs Rising PSERS retirement rate Maintain Current Programs Technology devises for students in grade six though twelve 25

27 Summary Budget Budget Final Expenditures Instructional ,892,134 54,509,982 Support Services/Operations ,184,484 30,638,267 Non-Instructional Services ,842,789 1,821,057 Other Financing Services ,083,950 8,891,250 Total 93,003,357 95,860,556 Budget Final Revenues Local ,039,463 74,518,126 State ,228,716 15,997,860 Federal , ,000 Sub-Total 87,705,375 90,903,986 Fund Balance 5,297,982 4,956,570 Total 93,003,357 95,860,556 26

28 Challenges Potential rapid housing developments Level State Funding and/or Changes Fund Balance Level Unfunded Mandates Charter School Tuition Alternative Education Special Education PSERS Retirement Transportation Academic Assessments Common Core Costs Retirement Costs 14/ % $ 8,334,577 15/ % $10,006,511 16/ % $12,442,402 17/ % $13,576,618 18/ % $14,866,951 27

29 Highlights Homestead exemption $220 Average homeowner assessment is $208,301 Average homeowner tax bill is $5,227 for an annual increase of $173 Pending new construction market Maintain Current Programs An Award Winning District Blue Ribbon Schools Nationally Ranked High School 28

30 Next Steps Planning for the Future Update the Demographic Enrollment Study Building Capacity Study to be completed in the fall of 2017 Review Financing Options for funding of capital projects Review staffing Review updated assessment changes Continue to review opportunities for budget reductions Approve the Proposed Final budget on April 17 th Adopt the Final Budget at the May 18, 2017 Legislative meeting 29

Overview of Budgeting & School Finance

Overview of Budgeting & School Finance PINE-RICHLAND SCHOOL DISTRICT ( U P D A T E D A S O F J A N U A R Y 2 0 1 5 ) Purpose To provide a clear overview of school funding in Pennsylvania that highlights