Elizabethtown Area School District Budget Update. Presented by George Longridge Business Manager December 4, 2018

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1 Elizabethtown Area School District Budget Update Presented by George Longridge Business Manager December 4, 2018

2 Budget Overview Start with review of budget vs. actual- expense and revenue First glance at main areas of budget Areas of concern Next steps

3 Budget vs Actual Comparison Object Desc Budget YTD Exp Percent Used Remaining , , Salaries 25,949, ,155, % (205,622.31) 200 Benefits 17,381, ,953, % (572,180.84) 300 Professional Services 4,059, ,983, % 75, Property Services 748, , % (46,671.43) 500 IU, Trans, Charter 5,475, ,378, % 96, Supplies 2,876, ,643, % 233, Equipment 17, , % 13, Fees 187, , % (38,692.87) 900 Debt, Transfers 3,992, ,652, % (1,659,600.41) 60,888, ,791, Total (1,902,730.03) Salaries cost would have been $225,644 more (deficit higher) if not for HR hiring/attritional savings

4 Expenses- Key Points Salaries 100 Object accounts were % accurate HR hiring resulted in attritional savings to budget of $225,644 Salaries still slightly exceeded budget Benefits and Supplies (200 and 600 Objects) have larger differences 900 Object has Capital Reserve transfer ($1.4m)- affects fund balance but NOT budget Overall budget within $248k (.41%) when Capital Reserve transfer is excluded Health Care- $6.589M is transfer to Health Fund, NOT expense on HC Transfers to maintain appropriate balance in Health Fund (target of approx. $1m to $1.2m) Current balance is $1.3m- ON TARGET

5 Budget vs Actual Comparison- Benefits Object Desc Budget YTD Exp Percent Used Remaining 200 Misc Benefits 140, , Dental Insurance 281, , % (12,582.56) 213 Life Insurance 20, , % (36,861.85) 214 Disability Vision 52, , % (1,844.99) 220 Social Security 1,894, ,935, % (41,075.09) 230 Retirement 8,038, ,453, % (414,265.09) 240 Tuition Reimbursement 285, , % 56, Unemployment - 7, (7,223.66) 260 Workers Comp - 191, (191,240.00) 271 Health Insurance 6,658, ,589, % 68, Other Benefits - 132, (132,556.44) 299 United Way 9, , % (249.60) TOTALS 17,381, ,953, % (572,180.84)

6 Benefits Expense- Key Points Variance for 200 Object is 3.29%- or, accounts were % accurate Disability, Workers Comp are budgeted in Business Office Due to account code shifting and IU insurance pool- will move these budget items 200 and 290- Retirement Benefits- code shifting Retirement and Soc. Sec. line items- off by 5% and 2%- will review budget Also monitoring current year for any issues Health Care- $6.589M is transfer to Health Fund, NOT expense on HC Transfers to maintain appropriate balance in Health Fund (target of approx. $1m to $1.2m) Current balance is $1.3m- ON TARGET

7 Budget vs Actual Comparison- Supplies Object Desc Budget YTD Exp Percent Used Remaining % Variance 600 SUPPLIES GENERAL SUPPLIES 1,062, , % 91, % 615 UNIFORMS 32, , % (5,479.30) 17.12% 621 NATURAL GAS 173, , % (39,299.18) 22.62% 622 ELECTRICITY 568, , % 91, % 623 BOTTLED GAS 43, % 43, % 626 GASOLINE 26, , % 7, % 635 MEALS/REFRESHMENTS 17, , % (2,850.41) 16.06% 640 BOOKS AND PERIODICALS 49, , % 7, % 650 SUPPLIES & FEES TECH 990, , % 127, % TOTALS 2,964, ,643, % 321, %

8 Supplies Expense- Key Points 600 Object accounts were 89.1% accurate Bottled Gas kept in budget- not spent, only used at BB (building closed) 621 Natural Gas over budget- below avg. temp. Nov.-Jan., Mar.-Apr. (5 mos.) 622 Electric under budget- benefit of hedging program, ESCO improvements Review of codes- ensure 600 Supplies properly classified

9 Revenue Budget vs Actual Account Description Budget YTD Actual % Used Remaining % Variance 6100 Local Taxes- RE, Income, PILOT (37,826,196.00) (38,494,636.75) % 668, % 6300 Real Estate- Penalties - (43,205.46) 43, Delinquent RE Tax (900,000.00) (606,051.78) 67.34% (293,948.22) % 6500 Interest (25,000.00) (213,357.08) % 188, % 6700 Admissions, Stud Activ (Giant) (120,000.00) (179,891.65) % 59, % 6800 Pass Thru- IU State/Fed (690,000.00) (851,412.25) % 161, % 6900 Facility Rental, Tuition (680,000.00) (616,618.26) 90.68% (63,381.74) -9.32% 7100 State Subsidy- Basic Ed, Voc Ed (8,968,497.00) (8,995,501.17) % 27, % 7200 Special Ed (2,078,816.00) (2,192,122.86) % 113, % 7300 Transportation, PLANCON (2,105,251.00) (2,183,820.18) % 78, % 7500 State Block Grant (472,997.00) (472,997.00) % % 7800 PSERS, SS (5,242,663.00) (5,345,331.96) % 102, % 8500 Title, ESEA (450,000.00) (605,597.00) % 155, % 8600 Fed Grants (30,000.00) - (30,000.00) 8800 ACCESS (65,000.00) (212,454.05) % 147, % 9400 Asset Sale - (17,154.00) 17, TOTALS (59,654,420.00) (61,030,151.45) % 1,375, %

10 Revenue- Key Points Revenue accounts were % accurate Current Property Taxes % accurate Interim Property Taxes Up 275%- strong building market Transfer Taxes Up 169%- strong home sales Interest Income- significantly increased- improved due to interest rates Special Ed Subsidy- funding formula, contingency funds ACCESS- Federal funding program up 326% State vendor change seems to have worked out- more revenue in future due to service needs?

11 Budget Overview

12 Budget Preparation- Assumptions Salaries Teachers % (CBA) Admin % (Act 93 agreement) Support Staff % Health Care- 5%? 3%? 0%? - inflationary pressure- monitor Health Fund PSERS- estimated rate of 34.79%- 4.7% increase (not set yet- early December!!) Transportation- 3% (contract) Special Ed- unknown at this point

13 Initial Budget Increase Projections Salaries- $800,000 Health Care- $0 to $500,000 PSERS- $800,000 Social Security- $70,000 Transportation- $80,000 Debt Service- Rheems- $525,000 Phase One Borrowing- PFM/RBC Plan Programs Technology- $350,000 Leader in Me Expansion to MS, Level 2, 3 at Others- $60,000

14 Tax Increase Impact Index for is 2.9% Reassessment impact- incremental growth of tax base Tax revenue increase with 0% tax increase would generate approx. $200k Tax increase to the index would generate approximately $1.2 million

15 Initial Revenue Projections- Increases Real Estate Tax- $200,000 to $1,000,000 Interest Income- $200,000 Social Security- $35,000 PSERS- $400,000 Basic Ed Subsidy- TBD Special Ed Subsidy- TBD Transportation- TBD ACCESS- $100,000

16 Initial State Revenue Increase Projections Basic Ed Subsidy- TBD Special Ed Subsidy- TBD PSERS- TBD Social Security- TBD Transportation- TBD

17 Continued Areas of Analysis Staffing at all levels Retirements Attritional savings Program alignments, offerings, and adjustments (What School Could Be) Changing student support needs Special Education State funding- protracted state budget process? Debt service- timing of next bond issue Federal Funding- Title II, IV Uncertainty of ongoing support for safety and security- Act 44?

18 Next Steps December 18- budget projections and more updates Referendum exceptions or resolution? January- Proposed Preliminary Budget January 15- Professional Staff Intent of Retirement Deadline February April- Ongoing analysis and projections March 1- Administration Intent of Retirement Deadline

19 ~ Questions ~

General Fund Expenditures. Budget Summary vs Major Items Affecting the Budget. Budget Summary and Review Budget Timeline

General Fund Expenditures. Budget Summary vs Major Items Affecting the Budget. Budget Summary and Review Budget Timeline 01 03 General Fund Expenditures Budget Summary 18-19 vs 17-18 Major Items Affecting the Budget Major Impact Budget Summary and Review 2018-19 Budget Timeline Comparison by Function 2018-19 Budget 2017-18