Delaware County Intermediate Unit. General Operating Budget Summary

Transcription

1 Delaware County Intermediate Unit General Operating Budget Summary

2 Delaware County Intermediate Unit Mission Statement The mission of the Delaware County Intermediate Unit, a regional educational service agency, is to provide leadership in the development and delivery of quality, cost-effective programs and services to school communities. Beliefs We believe in our commitment to provide diverse and flexible educational programs and services within a safe environment by fostering the development of learning communities of integrity and excellence. We pledge to promote forward thinking, creativity, partnerships, and to encourage positive change. We will seek to maintain our entrepreneurial spirit while developing meaningful goals that indicate the success of our mission.

3 Board of Directors Edward J. Cardow, Chichester President Maureen Carey, Upper Darby Vice President Susan Haagen, Nonmember Secretary Thomas C. Brown, Nonmember Treasurer Lawrence J. O Shea, Ph.D. Executive Director Michael V. Puppio, Jr., Esq. Solicitor Wanda J. Mann Chester Upland Tracy A. Karwoski Garnet Valley Philip R. Hopkins Haverford Township Edward Harris Interboro Barbara Harvey Marple Newtown A. Lewis Boughner Penn-Delco Patricia Booker Radnor Township Harry J. McElwee Ridley Nancy Mackrides Rose Tree Media Lucy Lopez Southeast Delco Frank Agovino Springfield Richard Sonntag Wallingford-Swarthmore Robert Reardon William Penn

4 A Message From the Executive Director Lawrence J. O Shea, Ph.D. The Delaware County Intermediate Unit General Operating Budget is unique among all the DCIU budgets. It is the one budget that annually must go before all of the 15 member school districts for adoption. It is the budget that supports the administration of all DCIU programs and provides for delivery of basic services to local school districts in accordance with Act 102 of This budget is always presented in February and is not subject to the provisions of Act 1 of Through the work supported by this budget the DCIU staff strive to provide cost effective services that demonstrate a substantial return on investment to member school districts. This is accomplished largely through service and purchasing consortium. For example, in consortia operated by DCIU saved school districts over $16.5 million, an amount greater than the entire General Operations budget. The General Operating Budget will support 49 full time equivalent employees. The term full time equivalent is used because some staff expenses are budgeted in more than one budget on a prorated basis. The budget consists of 12 components: the administrative and Board budgets along with 10 service area budgets. Total expenditures represented in the General Operating Budget are $8,246,226, which represents a 2.88% increase from the prior year. The districts contribution to the DCIU budget remains unchanged at $885,694. Although, we must caution that eventually there may be an increase. Expectations from PDE have increased for IU s (e.g. implementation of the School Improvement Planning, professional development for district staff on SPP, PVAAS, PSSA, etc.); therefore, we are being asked to provide more services to school districts without a proportionate increase in state funding to the IU. The DCIU has used other funding sources (e.g., grants, contracts with other entities) to supplement the budget in order to provide services needed by our districts. 1

5 Introduction The Delaware County Intermediate Unit General Operating Budget is the financial plan that provides for the daily operation of the organization and for the services required by the state under Act 102 of This act, upon which the intermediate unit system was founded, requires the following services be provided: curriculum development and instructional improvement, educational planning, instructional materials, continuing professional education, pupil personnel, state and federal agency liaison, and management services. The Delaware County Intermediate Unit provides approximately $120 million in programs and services to its member districts. The operating budget of $8,246,226 will allow the organization to continue to provide the high-quality, cost-efficient program expected of DCIU. The DCIU Administrative Offices in Morton provide opportunities for DCIU to serve Delaware County students and districts. The conference and training space is used to provide programming and training needed to offer quality education and assist district efforts to meet state mandates. The DCIU Board of Directors will take action to adopt the perating Budget for circulation to school district board members for their consideration and action. A majority of the member districts school board must approve the budget along with a majority of proportionate votes of all school board directors. This budget must be filed with the Pennsylvania Department of Education by May 1. 2

6 Key Points for the DCIU Operating Budget The district contributions to the DCIU budget remain unchanged for seventeen years. There were two exceptions when DCIU provided a 20% rebate to its districts for three years and the Commonwealth of Pennsylvania, through their annual budget process, increased district contributions two times. The budget is $8,246,226. This is an increase of $230,981 or 2.88% from the school year. Total school districts contribution to the Intermediate Unit budget is 10.74% ($885,694). Individual school district net contributions for this budget range from 0.28% to 1.35%. This represents in total 0.7% of DCIU s 60 composite budgets, approximately $120,000,000. Contributions coming from sources other than districts are approximately 89%. The DCIU General Operating Budget provides the administrative services required for the operation of the DCIU Joint Purchasing and provides the financial management services for the Delaware County Public School Trust. The projected savings to DCIU and its member school districts for the school year is a combined $16.5M from these two programs. 3

7 Health insurance reflects an increase of 6% offset by the savings moving to self-insured. The Public School Employees Retirement System (PSERS) rate as a percentage of salary increased from 21.40% to 25.84%. Salary and benefits account for 2.81% of the budget increase with 0.07% accounted for in all other areas of the budget. 4

8 Delaware County Intermediate Unit Health Insurance Savings Report Delaware County Public Schools Healthcare Trust The Delaware County Public Schools Healthcare Trust was formed in July 2013 to provide self-insurance and is comprised of participating school districts represented by both administrators and employees. A goal of the Trust is to keep healthcare costs affordable by educating members on ways to promote better health and wellness, in order to help keep healthcare-related costs down. The Trust contracts with Arthur J. Gallagher for third-party administrator services to provide consulting and analytic services. The Trust contracts with DCIU and appointed Thomas Brown the Financial Manager to provide Financial Management services. The following two pages highlight the DCIU and the Trust Savings. In the first year of Trust operations, 11 school districts and the DCIU saved over $15 million, approximately 19%. The savings are a result of reduced self insured rates when compared to fully insured equivalent rates plus the first year reserves, $5,961,576 retained by the Trust. Effective January 1, 2015, 28 municipalities and 3 local Municipal Authorities joined the Trust collectively as Purchasing Entities. The Trust current members will save approximately $500,000 in IBC administrative costs annually as a result of the addition of the municipality members. 5

9 Delaware County Intermediate Unit Health Insurance Savings Report Delaware County Public Schools Healthcare Trust TRUST FINANCIAL SUMMARY DESCRIPTION Fully Insured Costs $94,158, $99,645, Self Insured Costs $85,057, $90,040, Savings $9,101, $9,601, DCIU FINANCIAL SUMMARY DESCRIPTION Fully Insured Costs $7,905, $8,440, Self Insured Costs $7,043, $7,634, Savings $862, $805, Millions $105 $100 $95 TRUST SUMMARY Savings of $9,601,269 Savings of $9,101,370 Millions $10 $9 $8 DCIU SUMMARY Savings of $862,293 Savings of $805,345 $90 $7 $85 $6 $80 $5 $ $ Fully Insured Costs Self Insured Costs 6

10 Summary of Revenues ( ) Description Current Budget % of Total Proposed Budget % of Total Earnings on Investment 45, , Tuition from Patrons 20, , Receipts Member Districts 885, , Service Provided Other LEA s 80, , Receipts IU Programs 3,949, ,025, Rental of Facilities 320, , Miscellaneous Revenue 1,873, ,946, Miscellaneous Technology Revenue 40, , General Operating Subsidy Capital Subsidy Social Security State Share 126, , PSER State Share 353, , Budgeted Fund Balance 321, , TOTALS 8,015, ,246, Earnings on Investments 0.56% Tuition From Patrons 0.25% Receipts Member Districts 11.05% Service Provided Other LEA s 1.00% Receipts IU Programs 49.27% Rental of Facilities 3.99% Miscellaneous Revenue 23.38% Miscellaneous Technology Revenue 0.05% Social Security State Share 1.58% PSER State Share 4.41% Budgeted Fund Balance 4.01% 7

11 Summary of Expenditures ( ) Description Current Budget % of Total Proposed Budget % of Total Pupil Services 199, , Instructional Material Services 110, , Instructional Services 151, , Board of Directors 137, , Administrative Services 1,249, ,306, Business Services 1,597, ,657, Production Services 200, , Personnel & Communication Services 781, , Operational Services 486, , Building Services 1,246, ,257, Technology Services 940, , Data Services 913, , TOTALS 8,015, ,246, Pupil Services 2.50% Instructional Materials Services 1.35% Instructional Services 1.87% Board of Directors 1.69% Adminstrative Serices 15.84% Business Services 20.10% Production Services 2.46% Human Resources & Communication Services 9.75% Operational Services 6.08% Building Services 15.25% Technology Services 11.72% Data Services 11.39% 8

12 Summary Of District Contributions District ** Chester Upland 22, , Chichester 37, , Garnet Valley 76, , Haverford Township, 109, , Interboro 38, , Marple Newtown 71, , Penn-Delco 46, , Radnor Township 72, , Ridley 59, , Rose Tree Media 77, , Southeast Delco 29, , Springfield 61, , Upper Darby 94, , Wallingford-Swarthmore 49, , William Penn 35, , TOTALS 885, , * Actual district cost is determined by the Pennsylvania Department of Education based on a formula approved by the General Assembly. A District s share is based upon its relative wealth and pupil enrollments compared to other Delaware County districts. These figures will be calculated in the fall of Deductions will be made from each district s state subsidy payment in December. ** District contributions remain unchanged for sixteen years with two year exceptions resulting from increases initiated through the Commonwealth of PA budget process. 9

13 *Estimated 21, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

14 Budget Explanation Revenue Sources Earnings on Investments are expected to remain low. Tuition from Patrons is from courses being offered by the Instructional Technology Resource Center (ITRC). Member Districts Contributions remain unchanged from the school year. Receipts from IU Programs reflect the shared costs to other DCIU program budgets to provide general operating services. Rental of Facilities reflects IU program building rental. Miscellaneous Revenue reflects income for operating many local, state and federally funded programs. State Share of Social Security payments reflects the Commonwealth s contribution toward the employer s share of social security. State Share of PSERS reflects the current amount the state is responsible for under Act 24 of Budgeted Fund Balance reflects the amount of available funds anticipated at the end of the fiscal year. 11

15 Budget Explanation Expenditures Pupil Services provides for the administration of child accounting, student data/record services and special education reports for the IU and districts. County-wide child count reporting is submitted to PDE each December for all districts. DCIU hosts the special education software system and database for districts. The department produces reports as part of the billing services provided to each district. Instructional Materials Services provides district, nonpublic and DCIU educators with materials to aid student learning. Instructional materials are available through the fiber optic network. Instructional Services provides services to districts developing instructional programs that lead to school improvement and better learning opportunities for all students. DCIU staff work closely with the district personnel to interpret student data in the development of methods for improving student and school performance. The Board of Directors provides leadership for the organization through planning and the development of policy. Administrative Services provides leadership for the operation of the Delaware County Intermediate Unit. Funding is included to support the responsibilities of the Executive Director and the Assistant Executive Directors. 12

16 Budget Explanation Expenditures (continued) Business Services provides central administrative support. The Business Office oversees the management, preparation and presentation of $120 million in more than 60 programs and services budgets. Production Services provides centralized copying services for the organization. These services are available for district use on a fee basis. Human Resources and Communications Services also provides central administrative support. The Human Resources Office oversees all employment practices of the Intermediate Unit. The Communications Office is responsible for the public relations program. 13

17 Budget Explanation Expenditures (continued) Operational Services provides for the daily operation and maintenance of the organization s more than 100 locations throughout the county. This department also manages the IU s telecommunication systems, the warehousing and distribution of common use materials and supplies within the IU, and oversees transportation services. Building Services provides for the operation and maintenance of the Intermediate Unit Education Service Center. Technology Services provides staff development to assist with the infusion of technology into instruction. Attention is paid to content areas, Pennsylvania Standards and Act 48 requirements. The technology center coordinator and distance learning coordinator provides training for county educators in the development of instructional applications for the fiber optic network. Data Services provides the data/information services and technology support for the operation of all DCIU programs. Support services are available to districts upon request. 14

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20 Lawrence J. O Shea, Ph.D. Executive Director 200 Yale Avenue Morton, PA