Elizabethtown Area School District 2019-20 Budget Update Presented by George Longridge Business Manager December 4, 2018
Budget Overview Start with review of 2017-18 budget vs. actual- expense and revenue First glance at main areas of 2019-20 budget Areas of concern Next steps
2017-18 Budget vs Actual Comparison Object Desc Budget YTD Exp Percent Used Remaining 000 200,000.00 200,000.00 100 Salaries 25,949,935.00 26,155,557.31 100.79% (205,622.31) 200 Benefits 17,381,625.00 17,953,805.84 103.29% (572,180.84) 300 Professional Services 4,059,040.05 3,983,328.09 98.13% 75,711.96 400 Property Services 748,203.00 794,874.43 106.24% (46,671.43) 500 IU, Trans, Charter 5,475,458.96 5,378,595.78 98.23% 96,863.18 600 Supplies 2,876,594.08 2,643,101.39 91.88% 233,492.69 700 Equipment 17,819.00 3,849.00 21.60% 13,970.00 800 Fees 187,348.00 226,040.87 120.65% (38,692.87) 900 Debt, Transfers 3,992,692.00 5,652,292.41 141.57% (1,659,600.41) 60,888,715.09 62,791,445.12 Total (1,902,730.03) Salaries cost would have been $225,644 more (deficit higher) if not for HR hiring/attritional savings
2017-18 Expenses- Key Points Salaries 100 Object accounts were 100.79% 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
2017-18 Budget vs Actual Comparison- Benefits Object Desc Budget YTD Exp Percent Used Remaining 200 Misc Benefits 140,538.00-0 140,538.00 212 Dental Insurance 281,402.00 293,984.56 104.47% (12,582.56) 213 Life Insurance 20,967.00 57,828.85 275.81% (36,861.85) 214 Disability - - - 215 Vision 52,301.00 54,145.99 103.53% (1,844.99) 220 Social Security 1,894,705.00 1,935,780.09 102.17% (41,075.09) 230 Retirement 8,038,835.00 8,453,100.09 105.15% (414,265.09) 240 Tuition Reimbursement 285,000.00 228,574.75 80.20% 56,425.25 250 Unemployment - 7,223.66 (7,223.66) 260 Workers Comp - 191,240.00 (191,240.00) 271 Health Insurance 6,658,277.00 6,589,521.81 98.97% 68,755.19 290 Other Benefits - 132,556.44 (132,556.44) 299 United Way 9,600.00 9,849.60 102.60% (249.60) TOTALS 17,381,625.00 17,953,805.84 103.29% (572,180.84)
2017-18 Benefits Expense- Key Points Variance for 200 Object is 3.29%- or, accounts were 103.29% 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
2017-18 Budget vs Actual Comparison- Supplies Object Desc Budget YTD Exp Percent Used Remaining % Variance 600 SUPPLIES 0.00-610 GENERAL SUPPLIES 1,062,892.02 971,235.72 91.38% 91,656.30-8.62% 615 UNIFORMS 32,008.00 37,487.30 117.12% (5,479.30) 17.12% 621 NATURAL GAS 173,698.79 212,997.97 122.62% (39,299.18) 22.62% 622 ELECTRICITY 568,323.21 476,423.10 83.83% 91,900.11-16.17% 623 BOTTLED GAS 43,487.56 269.50 0.62% 43,218.06-99.38% 626 GASOLINE 26,449.55 19,119.03 72.28% 7,330.52-27.72% 635 MEALS/REFRESHMENTS 17,750.00 20,600.41 116.06% (2,850.41) 16.06% 640 BOOKS AND PERIODICALS 49,537.38 42,516.75 85.83% 7,020.63-14.17% 650 SUPPLIES & FEES TECH 990,447.84 862,451.61 87.08% 127,996.23-12.92% TOTALS 2,964,594.35 2,643,101.39 89.16% 321,492.96-10.84%
2017-18 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
2017-18 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) 101.77% 668,440.75 1.77% 6300 Real Estate- Penalties - (43,205.46) 43,205.46 6400 Delinquent RE Tax (900,000.00) (606,051.78) 67.34% (293,948.22) -32.66% 6500 Interest (25,000.00) (213,357.08) 853.43% 188,357.08 753.43% 6700 Admissions, Stud Activ (Giant) (120,000.00) (179,891.65) 149.91% 59,891.65 49.91% 6800 Pass Thru- IU State/Fed (690,000.00) (851,412.25) 123.39% 161,412.25 23.39% 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) 100.30% 27,004.17 0.30% 7200 Special Ed (2,078,816.00) (2,192,122.86) 105.45% 113,306.86 5.45% 7300 Transportation, PLANCON (2,105,251.00) (2,183,820.18) 103.73% 78,569.18 3.73% 7500 State Block Grant (472,997.00) (472,997.00) 100.00% - 0.00% 7800 PSERS, SS (5,242,663.00) (5,345,331.96) 101.96% 102,668.96 1.96% 8500 Title, ESEA (450,000.00) (605,597.00) 134.58% 155,597.00 34.58% 8600 Fed Grants (30,000.00) - (30,000.00) 8800 ACCESS (65,000.00) (212,454.05) 326.85% 147,454.05 226.85% 9400 Asset Sale - (17,154.00) 17,154.00 TOTALS (59,654,420.00) (61,030,151.45) 102.31% 1,375,731.45 2.31%
2017-18 Revenue- Key Points Revenue accounts were 102.31% accurate Current Property Taxes- 100.46% 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?
2019-20 Budget Overview
Budget Preparation- Assumptions Salaries Teachers- 2.875% (CBA) Admin- 3.3375% (Act 93 agreement) Support Staff- 2.875% 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
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
Tax Increase Impact Index for 2019-20 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
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
Initial State Revenue Increase Projections Basic Ed Subsidy- TBD Special Ed Subsidy- TBD PSERS- TBD Social Security- TBD Transportation- TBD
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?
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
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