Randy L. Brown, Business Administrator 131 West Nittany Avenue State College, PA 16801 814-231-1021 rlb21@scasd.org To: Robert J. O Donnell V1-A2 From: Randy L. Brown and Donna Watson Date: April 27, 2015 Subject: 2015-16 Proposed Final Budget Attached is the following information related to the 2014-15 Budget agenda item for tonight s meeting. 1. Budget Memo updated with additional information this morning. 2. Slide presentation updated/additional slides have been added. 3. Attachment AA 2015-16 Proposed Final Budget Revenues and Expenses These schedules reflect the budget as presented on April 13, 2015, updated to reflect the refined staffing program requests to be presented prior to this agenda item. 4. Attachment BB Multi-year Projection These schedules reflect the projections as presented April 13, 2015, updated to reflect the refined staffing program requests. 5. Attachment A 2015-16 Proposed Final Budget as presented April 13, 2015 6. Attachment B Multi-year Projections as presented April 13, 2015 We will review the slide presentation to facilitate the discussion of the 2015-16 budget at tonight s meeting.
VI-A2 Business Office 131 West Nittany Avenue State College, PA 16801 814-231-1021 To: From: RE: Robert J. O Donnell Randy L. Brown and Donna Watson 2015-2016 Budget Update Date: April 23, 2015 As the administration continues to analyze and evaluate the 2015-16 proposed final budget in preparation for presentation for approval on May 4, 2015. As discussed at the April 13, 2015 board meeting, the proposed budget contains: Revenue $136,135,989 Expense $137,336,551 Expenses in excess of Revenue $ (1,200,562) Use of Assigned Fund Balance $ 1,791,053 Change in Unassigned Fund Balance $ 590,491 As noted in the program request memo from Dr. O Donnell attached to this agenda, review of our prior program requests have been adjusted. These adjustments result in budget allocations representing decreases in salary and benefit costs. These allocations will be moved from salary and benefit expenses to capital reserve transfer. The amount of change in these allocations is not yet determined at the writing of this communication. We expect to have the line item budget projections updated for discussion at the board meeting. From the April 13 board meeting, several data points for comparison were requested. A comparison of staffing in the human resource and business office functions for our cohort districts has been compiled. This information was collected from the websites of our cohort districts. Responses to our inquiries sent to districts for additional information have not yet been received. For staffing of business offices, there is not enough information available to make any comparisons or assumptions. Information on human resource office staffing appears to be more available, which shows that our district would not be out of alignment in staffing levels with the proposed additional position requested. 2015-16 Budget Development - 4.27.2015 final 1
VI-A2 Additional information has been provided: Student enrollment beginning in 2002-03 through the current year, showing a decrease of almost 700 students during the period. Employee data since 2011-12. This head count information, not full-time equivalent. The 2014-15 head count data compared to 2011-12 shows only a decrease of four; however this is due to the fact primarily that there are more employees in the district at parttime levels. Previously employees were able to complete multiple part-time positions, which would then result in benefit eligibility. With the growing cost of medical benefits, the district has been limited job assignments in an effort to reduce the number of benefit eligible employees to reduce benefit expenses. Charter school students and costs. Data showing resident students attending cyber and brick and mortar charter schools and associated costs has been collected. Please note that the April 2015 data for 2014-15 does not reflect all cyber charter students. Cyber charter schools do not bill the district for tuition on a consistent basis; therefore we are unable to account for all cyber students at this time. Real estate tax comparison schedules have been updated to include the operating and referendum portion of the tax increase for 2015-16 and 2016-17, since the referendum tax will be implemented over these two years. In total, the budget has not changed. At the line item level, salaries, benefits and capital reserve transfer have been adjusted. Updated budget projection schedules including PDE Form 2028, reflecting these adjustments, will be available at the board meeting based upon the revised staffing requests provided in this packet. Thank you for your input and consideration of this budget proposal. The 2015-16 proposed final budget will be presented on PDE Form 2028 for your approval at the May 4, 2015 board meeting in accordance with the Act 1 of 2006 budget preparation timeline. The May 4 approval will precede, by at least 30 days, the final budget approval tentatively set for June 8, 2015. 2015-16 Budget Development - 4.27.2015 final 2
2015-16 BUDGET State College Area School District April 27, 2015
2 Budget 2015-16 Revenue $ 136,135,989 Expense $ 137,336,551 Expense in Excess of Revenue $ (1,200,562) Use of Assigned Fund Balance $ 1,791,053 Change in Unassigned Fund Balance $ 590,491
Cohort District Human Resource Staff District Enrollment Schools Teachers Certified Administrators Number of Employees Position Lower Merion 7,036 10 725 38 8 Director of Human Resources HR Specialist HR Specialist Hiring Manager HR Specialist Assistant Director of Human Resources Benefits Specialist HR Manager Parkland 9,292 11 667 25 Incomplete HR Director North Allegheny 8,047 11 660 27 5 Director of HR Administrative Asistant Benefits Specialist HR Specialist - Recruitment and Employment HR Specialist - Certification, Retirement & Reporting Cumberland Valley 7,717 10 627 30 4 Director of Human Resources Assistant Director of Human Resources Human Resources Generalist Human Resources Generalist Abington 7,423 9 631 47 8 Director of HR HR Coordinator Staff Accountant Benefits Specialist Administrative Assistant for Substitutes Administrative Assistant Administrative Assistant Administrative Assistant Tredyffrin/Easttown 6,290 8 510 28 4 Director of Personnel Personnel Associate for Support Staff Personnel Associate for Professional Staff Benefits Specialist SCASD 7,083 12 646 29 4 Director of Human Resources Benefits Executive Secretary Executive Secretary 3
4 Cohort District Business Office District Student Enrollment Schools Teachers Certified AdministratorsNumber of Employees Position Lower Merion 7,036 10 725 38 5 Business Manager Payroll Professional Staff Payroll Support Staff Accounts Payable Accounts Payable Parkland 9,292 11 665 25 Incomplete Director Assistant Director North Allegheny 8,047 11 660 27 8 Director of Finance Business Manager Accounting and Budget Specialist Accounts Payable II Account Payable I Accounting and Budget Specialist Payroll Manager Payroll Assistant Cumberland Valley 7,717 10 627 30 Incomplete Abington 7,423 9 631 47 Incomplete Business Manager Administrative Assistant Tredyffrin/Easttown 6,290 8 510 28 Incomplete Business Manager Controller/Treasurer SCASD 7,083 12 646 29 8 Business Administrator Executive Assistant Assistant Business Administrator Accountant Accounting Clerk Payroll Accounts Payable Accounts Payable
5 Student Enrollment Year Elementary Secondary Total 2002-03 3,572 3,880 7,452 2003-04 3,476 3,831 7,307 2004-05 3,372 3,902 7,274 2005-06 3,426 3,897 7,323 2006-07 3,457 3,776 7,233 2007-08 3,389 3,732 7,121 2008-09 3,404 3,624 7,028 2009-10 3,448 3,660 7,108 2010-11 3,470 3,499 6,969 2011-12 3,455 3,401 6,856 2012-13 3,407 3,410 6,817 2013-14 3,382 3,393 6,775 2014-15 3,406 3,360 6,766
6 Student Enrollment 8,000 7,000 6,000 5,000 4,000 Secondary Elementary 3,000 2,000 1,000-2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
7 Employee Head Count 2011-12 2012-13 2013-14 2014-15 Adminstrative 43 43 45 45 Teacher 644 629 631 627 Clerical/Secretary/Technology 78 76 71 69 Custodian/Maintenance 78 71 71 74 Paraprofessionals (1) 265 266 305 297 Food Service 77 77 75 75 Bus Drivers 53 48 50 47 Total 1,238 1,210 1,248 1,234 (1) Number of paraprofessionals has increased in headcount, part-time: a) Fewer number of full-time employees working multiple positions (i.e. lunch para in addition to instructional para role) b) Food Service and Bus Drivers not employed as lunch para's in recent years.
8 Classroom Teachers Grade 2011-12 2015-16 K-5 142 Classroom Teachers 138 Classroom Teachers 6 th Grade 11 Classroom Teachers 10 Classroom Teachers
9 State College Area School District FTE's - June 2010 and 2014 **DRAFT** (Continued on next slide) June 2010 June 2014 ASSISTANT PRINCIPAL 7.0 5.0 CENTRAL OFFICE ADMINISTRATOR 4.0 4.0 CLERICAL 6.0 5.0 CLERICAL PARAPROFESSIONAL 7.9 6.9 COORDINATOR 8.7 6.5 DEVELOPMENT/PUBLIC INFO 2.5 1.5 ELEMENTARY TEACHER 223.0 219.8 EXECUTIVE SECRETARY 7.0 7.0 GUIDANCE COUNSELORS 21.2 20.4 GUIDANCE PARAPROFESSIONAL 1.5 3.6 HEALTH CARE PARAPROFESSIONAL 11.3 8.9 HOME AND SCHOOL VISITOR 1.0 1.0 INSTR TECHNOLOGY SPECIALIST 6.0 6.0 INTERPRETER 3.9 2.5 LIBRARIAN 13.0 11.5 LIBRARY PARAPROFESSIONAL 18.9 12.0 LUNCH PARAPROFESSIONAL 15.8 14.3 MONITOR PARAPROFESSIONAL 3.4 3.0 NURSES, DENTAL HYGIENISTS 8.2 8.9 OCCUPATIONAL THERAPIST 0.4 0.2 OTHER ADMINISTRATOR 18.5 22.5
10 State College Area School District FTE's - June 2010 and 2014 **DRAFT** June 2010 June 2014 PARAPROFESSIONAL 229.5 220.1 PHYSICAL PLANT CUSTODIAN 56.0 55.0 PHYSICAL PLANT GROUNDS 7.0 6.0 PHYSICAL PLANT MAINTENANCE 6.0 4.0 PHYSICAL PLANT SUPERVISOR 9.0 8.0 POOL OPERATOR/FITNESS CTR 2.0 2.0 PRINCIPAL 12.0 11.0 PRINTER 4.1 3.6 PSYCHOLOGIST 6.0 6.5 PUBLIC FUNDING - COMM ED 1.0 - SECONDARY TEACHER 273.1 240.6 SECRETARY 58.3 48.9 SECURITY GUARD 2.3 2.1 SPECIAL EDUCATION TEACHER 68.5 65.0 SPEECH AND HEARING 10.5 10.0 TECHNOLOGY SPECIALIST 9.0 8.0 TRANSPORTATION BUS DRIVER 42.1 32.0 TRANSPORTATION MECHANIC 4.0 5.0 TRANSPORTATION SUPERVISOR 2.0 2.0 VIPS SPECIALIST 1.0 - Grand Total 1,192.5 1,100.3
11 Charter School Students 450 Regular Ed Students Special Ed Students 400 61 56 350 300 57 67 64 63 62 52 57 288 342 359 55 327 250 200 240 228 245 248 247 260 150 100 33 122 50-2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Apr-15 Total 155 297 295 309 311 309 312 345 403 415 382 Note: Numbers reflect student counts at the end of each school year. The projected estimate for 2014-15 is 392 students. This includes an estimate of some cyber students not yet reflected in the April 2015 count.
12 Charter School Cost Per Student $24,000.00 $21,000.00 Regular Ed Special Ed $18,000.00 $15,000.00 $12,000.00 $9,000.00 $6,000.00 $3,000.00 $- 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Apr-15
13 Proposed Tax Increase Millage 2014-15 39.5056 mills Proposed increase in real estate tax rate 5.49% Index-based increase 1.90% Referendum Tax (1) 3.59% Proposed 2015-16 Millage 41.6740 Millage excluding referendum 40.2562 Referendum millage 1.4178 (1) Tax dedicated to pay debt service on $85 million of borrowed funds for the high school project. 2016-17 will include an additional increase. Payment due on this referendum borrowing for years 2017-18 through maturity (current term of borrowing is 25 years) will remain at the 2016-17 level.
-1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 14 Real Estate Tax Increase Average since 2006-07 2.56% Proposed 2015-16 1.90% 3.59% Total proposed tax increase 5.49% 2014-15 1.95% 2013-14 2.70% 2012-13 2011-12 2.40% 2.65% 2010-11 2009-10 2008-09 3.00% 3.30% 3.70% Percent Real Estate Tax Increase Referendum Tax 2007-08 -0.50% 2006-07 3.80% 2005-06 2004-05 3.50% 5.60% 2003-04 6.17% 2002-03 4.10%
15 Referendum Tax 2015-16 2016-17 Estimated Increase in 2016-17 Interest Payment related to referendum debt $3,384,493 $5,256,275 $1,871,782 Less: Estimated state reimbursement (201,073) (312,276) (111,203) Total Referendum tax $3,183,420 $4,943,999 $1,760,579 Estimated millage to pay referendum debt service 1.4178 2.1738 0.756 Assumes estimated value of 1 mil (2016-17 assumes assessed value growth of 1.3%) $2,245,213 $2,274,403 $29,190
SCASD Percentage of revenue from state sources is one of the lowest compared to other school districts in the Commonwealth.
SCASD Percentage of revenue derived from local sources is one of the highest compared to other school districts in the Commonwealth.
18 Average Taxpayer Impact Average taxpayer assessed value $71,686* 2014-15 tax $2,832 2015-16 Estimated Tax: Real estate tax $2,886 Referendum tax 102 Total $2,988 2015-16 Tax Increase $ 156 2016-17 Estimated Tax: Real estate tax** $2,940 Referendum tax 156 Total $3,096 2016-17 Estimated Tax Increase $ 108 * Assessed value represents approximately 28% of market value ** Assumes 1.3% assessed value growth and 1.9% Act 1 index
19 $71,000,000 Salary Expense As of 4/13/15 As of 4/27/15 $69,000,000 $67,000,000 $65,000,000 $63,000,000 $61,000,000 $59,000,000 $57,000,000 $55,000,000 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
20 Benefit Expense $60,000,000 As of 4/13/15 As of 4/27/15 $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
21 $10,000,000 Transfer to Capital Reserve As of 4/13/15 As of 4/27/15 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
22 $13,000,000 Unassigned Fund Balance As of 4/13/15 As of 4/27/15 $12,500,000 $12,000,000 $11,500,000 $11,000,000 $10,500,000 $10,000,000 $9,500,000 $9,000,000 $8,500,000 $8,000,000 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Attachment AA 2015-16 Proposed Final Budget Revenues and Expenses
State College Area School District General Fund 2014-15 and Budget 2015-16 - Revenue 4/24/2015 Assumptions: Earned Income Tax Growth 2.00% 1.80% 1.80% Assessed Value Growth 1.50% 2.30% 1.20% Exceptions 0.00% 0.00% 3.59% Act 1 Index 2.10% 2.10% 1.90% Actual/ Total Tax Increase 1.95% 1.95% 5.49% Budget Budget 2015-2016 Proj vs. Budget Proj 2014-15 vs. Budget 2015-16 Budget 2015-16 vs. Budget 2014-15 LOCAL SERVICES TAX CURRENT REAL ESTATE TAX $82,900,000 $83,696,808 $86,303,898 $796,808 (1) $2,607,090 (7) $3,403,898 REAL ESTATE TAX - REFERENDUM DEBT - - 3,183,420-3,183,420 (8) 3,183,420 EARNED INCOME TAX 15,560,000 15,980,000 16,270,000 420,000 (2) 290,000 (9) 710,000 REALTY TRANSFER TAX 1,500,000 1,575,000 1,500,000 75,000 (3) (75,000) 0 DELINQUENT REAL ESTATE TAX 1,100,000 1,400,000 1,100,000 300,000 (3) (300,000) 0 INTERIM REAL ESTATE TAX 500,000 500,000 300,000 - (200,000) (10) (200,000) IDEA-B 600,000 750,000 750,000 150,000 (4) - 150,000 PAYMENTS IN LIEU OF TAX 450,000 514,670 514,670 64,670 (4) 0 64,670 LOCAL SERVICES TAX 379,000 366,000 370,000 (13,000) 4,000 (9,000) TUITION 782,282 837,940 1,196,010 55,658 (4) 358,070 (11) 413,728 MISC LOCAL REVENUE/TUITION 384,918 384,918 384,918 - - 0 PUBLIC UTILITY REALTY TAX 120,000 122,808 122,808 2,808-2,808 INTEREST ON INVESTMENTS 100,000 100,000 150,000 0 50,000 50,000 TOTAL LOCAL 104,376,200 106,228,144 112,145,724 1,851,944 5,917,580 7,769,524 STATE BASIC ED INSTR SUBSIDY 6,440,619 6,440,460 6,440,460 (159) - (159) SPECIAL ED REVENUE 3,220,000 3,221,640 3,221,640 1,640-1,640 REV. FOR RETIREMENT 6,114,895 6,101,703 7,582,929 (13,192) 1,481,226 (12) 1,468,034 REV. FOR SOCIAL SECURITY 2,171,532 2,181,216 2,244,570 9,684 63,354 (12) 73,038 PROPERTY TAX REDUCTION 1,422,517 1,432,690 1,432,690 10,173-10,173 TRANSPORTATION REVENUE 600,000 750,000 750,000 150,000 (2) - 150,000 BOND REIMBURSEMENTS 80,000 940,122 517,497 860,122 (4)(5) (422,625) (13) 437,497 HEALTH SERVICES REVENUE 140,000 140,000 140,000 - - 0 READY TO LEARN GRANT 128,440 246,078 128,440 117,638 (6) (117,638) 0 VOCATIONAL EDUCATION 107,040 107,040 107,040 - - 0 OTHER STATE REVENUE - - - - - - TUITION - 1305/1306 80,000 80,000 80,000 - - 0 TOTAL STATE 20,505,043 21,640,949 22,645,265 1,135,906 1,004,317 2,140,223 FEDERAL TITLE I REVENUE 700,000 700,000 700,000 - - 0 TITLE II REVENUE 200,000 200,000 200,000 - - 0 ACCESS FUNDS 50,000 350,000 350,000 300,000 (4) - 300,000 OTHER FEDERAL REVENUE 60,000 70,000 60,000 10,000 (10,000) 0 TITLE III REVENUE 35,000 35,000 35,000 - - 0 TOTAL FEDERAL 1,045,000 1,355,000 1,345,000 310,000 (10,000) 300,000 AA-1 TOTAL REVENUE $125,926,243 $129,224,093 $136,135,989 $3,297,850 $6,911,897 $10,209,747 Projection vs budget April 24 4/24/20151:22 PM
(1) 2014-15 increase is related to assessed value for major building projects not fully reflected in 2014-15 budgeted assessed value. (2) Increase based on actual 2013-14 (3) 2014-15 increase based on current year trends, however 2015-16 reflects return to more historical trend. (4) Based on most recent available information in 2014-15. (5) 2014-15 includes $631,000 related to Plancon approvals received in September 2014 for prior financings. (6) Previously referred to as the Accountability Block Grant. 2014-15 reflects increase in allocation. 2015-16 reduced to 2013-14 level due to uncertainty related to future allocations. (7) 2015-16 reflects assumed increase in assessed value and increase in millage rate to Act 1 index (excludes referendum tax). (8) Reflects debt service on high school referendum debt, less estimated Plancon reimbursement. This reimbursement will not be received until after project completion, however the budget reflects a reduction in this tax in anticipation of receipt in future years. (9) Reflects assumed growth (10) Reflects assumed tax rebate program (11) Assumes growth due to expansion of after school programs. (12) Increase related to increased salaries; retirement reimbursement also reflects PSERS rate increase from 21.14% to 25.84%. (13) 2015-16 includes estimate of $201,073 for reimbursement related to referendum financing, offset by reduction related to 2014-15 retroactive payment. AA-2 Projection vs budget April 24 4/24/20151:22 PM
State College Area School District General Fund 2014-15 and Budget 2015-16 - Expense 4/24/2015 Budget Budget 2015-2016 Proj vs. Budget Proj 2014-15 vs. Budget 2015-16 Budget 2015-16 vs. Budget 2014-15 Salaries $57,930,679 $58,189,036 $59,879,158 $258,357 (1) $1,690,122 (7) $1,948,479 Health Insurance 12,109,179 11,954,434 12,416,714 (154,745) 462,280 (8) 307,535 PSERS 12,229,790 12,203,405 15,165,856 (26,385) 2,962,451 (9) 2,936,066 Other Benefits 5,979,296 6,045,705 6,207,681 66,409 161,976 (10) 228,385 Professional Services 4,202,699 4,072,412 4,336,979 (130,287) (2) 264,567 (11) 134,280 Purchased Property Services 2,050,035 2,050,035 2,090,571-40,536 40,536 Other Purchased Services 10,374,623 10,689,208 10,885,651 314,585 (3) 196,443 (3) 511,028 Supplies/Equipment 5,881,705 5,851,699 6,252,598 (30,006) 400,899 (12) 370,893 Minor Capital Projects 2,055,717 2,055,717 2,096,831-41,114 41,114 Athletics/transfers/contingencies 3,207,334 2,898,332 3,662,310 (309,002) (4) 763,978 (13) 454,976 Debt Service 5,348,828 5,089,299 5,165,109 (259,529) (5) 75,810 (14) (183,719) Debt Service - Referendum Debt - - 3,384,493-3,384,493 (15) 3,384,493 Transfer to Capital Reserve 5,421,779 8,758,779 5,792,600 3,337,000 (6) (2,966,179) (16) 370,821 Fund Balance (FB) Use (PSERS/Legal) (1,148,424) (1,148,424) (1,791,053) - (642,629) (642,629) Total Expenses and FB Transfers $125,643,240 $128,709,637 $135,545,498 $3,066,397 $6,835,861 $9,902,258 Total Expenses excluding FB Transfers $126,791,664 $129,858,061 $137,336,551 $3,066,397 $7,478,490 $10,544,887 Total Salary and Benefits $88,248,944 $88,392,580 $93,669,409 $143,636 $5,276,829 $5,420,465 Use of PSERS FB (598,424) (598,424) (1,241,053) - (642,629) (642,629) Total Salary and Benefits, including FB Transfers $87,650,520 $87,794,156 $92,428,356 $143,636 $4,634,200 $4,777,836 % of Total Expense and FB Transfers 69.8% 68.2% 68.2% (1) Includes enrollment based hirings, increased extended school year students, and budget transfer from professional services. (2) Budget transfer to salaries (3) Charter school enrollments increased 1% over 2013-14; expense per student approximately 5% higher in 2014-15. Budget assumes a 2% increase. (4) Reduction in contingency (5) Reflects savings related to refinancing (6) Net change in revenues and expense transferred to capital reserve fund. This is primarily related to retroactive reimbursement related to Plancon approval of prior financings, higher than average increase in real estate taxes and earned income tax. (7) Assumed rate increases based on historical increases and proposed additional positions offset by attrition savings. (8) Assumes 4% increase (9) Rate increase from 21.4% to 25.84% (10) Primarily related to increase in salaries (FICA) (11) Includes $90,000 related to strategic initiatives (screenings, strategic plan evaluation and prof development) (12) Includes $290,000 related to literacy initiative (13) Includes increase in contingency and estimated transfer of $130,000 to food services. (14) Debt service in 2015-16 may be higher than the amount reflected above. Assuming issuance of the $20 million non-referendum borrowing in 2015-16, there would be a partial year payment due in the budget year. This may be offset by savings from refinancing currently outstanding debt. Any increase in the debt service is assumed to decrease the transfer to capital reserve. (15) Reflects actual debt service based on referendum bond issuance. (16) Transfer maintains a relatively level budget vs. 2014-15 budget. AA-3 Projection vs budget April 24 4/24/2015 1:23 PM
Attachment BB Multi-year Projection
State College Area School District General Fund Activity 4/24/2015 Assumptions: Earned Income Tax Growth 2.00% 1.80% 1.80% 1.90% 2.00% 2.10% 2.20% 2.30% 2.30% 2.30% 2.30% Assessed Value Growth 1.50% 2.30% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.70% 1.70% 1.70% Exceptions 0.00% 0.00% 3.59% 1.81% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Act 1 Index 2.10% 2.10% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% Actual/ Total Tax Increase 1.95% 1.95% 5.49% 3.71% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% Budget 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Revenue $125,926,243 $129,224,093 $136,135,989 $142,059,265 $145,870,792 $149,907,408 $154,120,848 $158,319,272 $162,711,331 $167,211,087 $171,899,927 Local 104,376,200 106,228,144 112,145,724 116,936,405 120,211,769 123,702,383 127,420,616 131,424,146 135,517,675 139,750,970 144,123,794 State 20,505,043 21,640,949 22,645,265 23,977,859 24,514,023 25,060,025 25,555,232 25,750,126 26,048,655 26,315,117 26,631,133 Federal 1,045,000 1,355,000 1,345,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 Expenses and Fund Balance Use 125,643,240 128,709,637 135,545,498 141,709,732 145,761,358 149,805,382 153,994,345 158,099,632 162,458,311 166,898,161 171,584,505 Change in Unassigned General Fund Bal $283,003 $514,456 $590,491 $349,532 $109,434 $102,026 $126,503 $219,640 $253,020 $312,926 $315,422 BB-1 Projection_v10_4.24.2015_Actual Referendum borrowing_for presentation 4_27 4/24/201512:24 PM
State College Area School District General Fund Revenue 4/24/2015 Assumptions: Earned Income Tax Growth (1) Assessed Value Growth (2) Exceptions (3) Act 1 Index Actual/ Total Tax Increase LOCAL SERVICES TAX CURRENT REAL ESTATE TAX REAL ESTATE TAX-REFERENDUM DEBT (3) EARNED INCOME TAX REALTY TRANSFER TAX DELINQUENT REAL ESTATE TAX INTERIM REAL ESTATE TAX (4) IDEA-B PAYMENTS IN LIEU OF TAX LOCAL SERVICES TAX TUITION MISC LOCAL REVENUE PUBLIC UTILITY REALTY TAX INTEREST ON INVESTMENTS TOTAL LOCAL STATE BASIC ED INSTR SUBSIDY SPECIAL ED REVENUE-REGULR REV. FOR RETIREMENT REV. FOR SOCIAL SECURITY PROPERTY TAX REDUCTION TRANSPORTATION REVENUE BOND REIMBURSEMENTS (5) HEALTH SERVICES REVENUE READY TO LEARN GRANT (6) VOCATIONAL EDUCATION OTHER STATE REVENUE TUITION - 1305/1306 TOTAL STATE FEDERAL TITLE I REVENUE TITLE II REVENUE ACCESS FUNDS OTHER FEDERAL REVENUE TITLE III REVENUE TOTAL FEDERAL TOTAL REVENUE 2.00% 1.80% 1.80% 1.90% 2.00% 2.10% 2.20% 2.30% 2.30% 2.30% 2.30% 1.50% 2.30% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.70% 1.70% 1.70% 0.00% 0.00% 3.589% 1.81% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.10% 2.10% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.95% 1.95% 5.489% 3.71% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% Budget 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 $82,900,000 $83,696,808 $86,303,898 $89,070,000 $92,010,000 $95,140,000 $98,470,000 $102,010,000 $105,680,000 $109,480,000 $113,420,000 - - 3,183,420 4,943,999 4,945,363 4,941,977 4,946,210 4,945,740 4,945,269 4,944,564 4,943,388 15,560,000 $15,980,000 16,270,000 16,580,000 16,910,000 17,270,000 17,650,000 18,060,000 18,480,000 18,910,000 19,340,000 1,500,000 1,575,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,100,000 1,400,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 500,000 500,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 600,000 750,000 750,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 450,000 514,670 514,670 514,670 514,670 514,670 514,670 514,670 514,670 514,670 514,670 379,000 366,000 370,000 374,000 378,000 382,000 386,000 390,000 394,000 398,000 402,000 782,282 837,940 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 120,000 122,808 122,808 122,808 122,808 122,808 122,808 122,808 122,808 122,808 122,808 100,000 100,000 150,000 200,000 200,000 200,000 200,000 250,000 250,000 250,000 250,000 104,376,200 106,228,144 112,145,724 116,936,405 120,211,769 123,702,383 127,420,616 131,424,146 135,517,675 139,750,970 144,123,794 6,440,619 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 3,220,000 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 6,114,895 6,101,703 7,582,928 8,750,000 9,250,000 9,750,000 10,200,000 10,350,000 10,600,000 10,850,000 11,100,000 2,171,532 2,181,216 2,244,570 2,289,462 2,335,251 2,381,956 2,429,595 2,478,187 2,527,751 2,578,306 2,629,872 1,422,517 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 600,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 80,000 940,122 517,497 638,128 628,502 627,799 625,367 621,669 620,635 586,541 600,991 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 128,440 246,078 128,440 128,440 128,440 128,440 128,440 128,440 128,440 128,440 128,440 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 0 0 0 0 0 0 0 0 0 0 0 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 20,505,043 21,640,949 22,645,265 23,977,859 24,514,023 25,060,025 25,555,232 25,750,126 26,048,655 26,315,117 26,631,133 700,000 700,000 700,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 50,000 350,000 350,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 60,000 70,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 1,045,000 1,355,000 1,345,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 125,926,243 129,224,093 136,135,989 142,059,265 145,870,792 149,907,408 154,120,848 158,319,272 162,711,331 167,211,087 171,899,927 (1) Assumes gradual growth toward five-year average from 2008-09 to 2013-14 of 2.62%. (2) 2014-15 reflects major building projects not fully reflected in 2013-2014 assessed value. 2015-16 forward assumes gradual growth toward historical averages. (10-yr average 1.7%) (3) Assumes additional tax equal to the debt service on referendum borrowing. (4) Reflects reduction of $200,000 beginning in 2015-16 related to potential property tax rebate program. (5) Reflects projected annual reimbursement. Retroactive reimbursement of $631,000 to be received in January 2015 has been included in projected 2014-15. 2015-16 forward includes estimated $200,000 to $300,000 reimbursement related to High School referendum borrowing. (6) Previously referred to as the Accountability Block Grant. Future projected years do not include the additional amount added in 2014-15 due to uncertainty related to future year allocations. BB-2 Projection_v10_4.24.2015_Actual Referendum borrowing_for presentation 4_27 4/24/201512:24 PM
State College Area School District General Fund Expenses and Fund Balance Transfers 4/24/2015 2013-2014 Actual Budget 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Salaries $56,677,873 $57,930,679 $58,189,036 59,879,158 61,076,741 62,298,276 63,544,242 64,815,126 66,111,429 67,433,657 68,782,331 70,157,977 Health Insurance 10,630,073 12,109,179 11,954,434 12,416,714 13,930,887 15,223,976 16,646,373 18,211,010 19,932,111 21,825,323 23,907,855 26,198,640 PSERS 9,470,346 12,229,790 12,203,405 15,165,856 17,500,000 18,500,000 19,500,000 20,400,000 20,700,000 21,200,000 21,700,000 22,200,000 Other Benefits 5,676,740 5,979,296 6,045,705 6,207,681 6,300,000 6,400,000 6,500,000 6,600,000 6,700,000 6,800,000 6,900,000 7,000,000 Professional Services 2,965,891 4,202,699 4,072,412 4,336,979 4,410,000 4,480,000 4,560,000 4,640,000 4,720,000 4,800,000 4,880,000 4,960,000 Purchased Property Services 1,885,056 2,050,035 2,050,035 2,090,571 2,130,000 2,170,000 2,210,000 2,250,000 2,290,000 2,330,000 2,370,000 2,410,000 Other Purchased Services 10,145,511 10,374,623 10,689,208 10,885,651 11,070,000 11,260,000 11,450,000 11,640,000 11,840,000 12,040,000 12,240,000 12,450,000 Supplies/Equipment 5,574,454 5,881,705 5,851,699 6,252,598 6,100,000 6,190,000 6,280,000 6,370,000 6,470,000 6,570,000 6,670,000 6,770,000 Minor Capital Projects 2,015,409 2,055,717 2,055,717 2,096,831 2,138,768 2,181,543 2,225,174 2,269,678 2,315,071 2,361,373 2,408,600 2,456,772 Athletics/transfers/contingencies (1) 2,819,490 3,207,334 2,898,332 3,662,310 3,887,956 3,994,715 3,252,610 3,311,662 3,371,895 3,433,333 3,496,000 3,559,920 Debt Service (2) 6,327,453 5,348,828 5,089,299 5,165,109 5,250,813 5,021,218 5,011,078 4,924,865 4,967,087 4,943,036 4,862,877 4,875,757 Debt Service - Referendum Debt (3) 0 0 0 3,384,493 5,256,275 5,257,725 5,254,125 5,258,625 5,258,125 5,257,625 5,256,875 5,255,625 Transfer to Capital Reserve (2) 10,500,000 5,421,779 8,758,779 5,792,600 4,894,187 4,751,783 4,556,922 4,144,135 3,923,913 4,013,965 3,923,624 3,378,244 Fund Balance Use (PSERS/Legal) (743,818) (1,148,424) (1,148,424) (1,791,053) (2,235,895) (1,967,878) (1,185,141) (840,756) (500,000) (550,000) (500,000) (88,430) Total Expenses and Fund Balance Transfers $123,944,479 $125,643,240 $128,709,637 $135,545,498 $141,709,732 $145,761,358 $149,805,382 $153,994,345 $158,099,632 $162,458,311 $166,898,161 $171,584,505 (1) Includes legal liability payments and food service transfer of $130,000 in 2015-16 growing to $300,000 in 2017-18. (2) Transfer from 2015-16 forward has been adjusted to no less than the transfer in the preliminary budget. (3) Reflects actual debt service for referendum borrowing. BB-3 Projection_v10_4.24.2015_Actual Referendum borrowing_for presentation 4_27 4/24/2015 12:21 PM
State College Area School District Fund Balance Summary 4/24/2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Nonspendable Fund Balance $ 1,701,632 $ 1,701,632 $ 1,701,632 $ 1,701,632 $ 1,701,632 $ 1,701,632 $ 1,701,632 $ 1,701,632 $ 1,701,632 $ 1,701,632 General Unassigned 10,259,279 10,849,770 11,199,302 11,308,737 11,410,762 11,537,265 11,756,905 12,009,925 12,322,851 12,638,273 General Assigned PSERS 7,973,576 6,732,523 5,046,628 3,628,750 2,443,609 1,602,853 1,102,853 602,853 102,853 14,423 General Assigned Legal Liability 1,650,000 1,100,000 550,000 - - - - - - - Total General Fund 21,584,487 20,383,925 18,497,562 16,639,119 15,556,003 14,841,750 14,561,390 14,314,410 14,127,336 14,354,328 Capital Reserve Fund 28,055,138 32,757,738 36,561,925 28,223,708 29,690,630 30,744,765 31,578,678 30,502,643 27,336,267 23,624,511 Capital Projects Fund 35,146 35,146 35,146 35,146 35,146 35,146 35,146 35,146 35,146 35,146 Total Capital Funds 28,090,284 32,792,884 36,597,071 28,258,854 29,725,776 30,779,911 31,613,824 30,537,789 27,371,413 23,659,657 Debt Service Fund - - - - - - - - - - Total Fund Balance $ 49,674,771 $ 53,176,809 $ 55,094,633 $ 44,897,972 $ 45,281,779 $ 45,621,661 $ 46,175,214 $ 44,852,198 $ 41,498,748 $ 38,013,985 BB-4 Projection_v10_4.24.2015_Actual Referendum borrowing_for presentation 4_27 4/24/201512:25 PM
State College Area School District General Fund Balance 4/24/2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 General Fund - Unassigned Beginning Balance $9,744,824 $10,259,279 $10,849,770 $11,199,302 $11,308,737 $11,410,762 $11,537,265 $11,756,905 $12,009,925 $12,322,851 Revenue less Expense 514,456 590,491 349,532 109,434 102,026 126,503 219,640 253,020 312,926 315,422 General Fund - Unassigned $10,259,279 10,849,770 11,199,302 11,308,737 11,410,762 11,537,265 11,756,905 12,009,925 12,322,851 12,638,273 % of Expense 7.90% 7.90% 7.78% 7.66% 7.56% 7.45% 7.41% 7.37% 7.36% 7.36% General Fund - Assigned PSERS Beginning Balance 8,572,000 7,973,576 6,732,523 5,046,628 3,628,750 2,443,609 1,602,853 1,102,853 602,853 102,853 Additions Uses (598,424) (1,241,053) (1,685,895) (1,417,878) (1,185,141) (840,756) (500,000) (500,000) (500,000) (88,430) Ending Fund Balance 7,973,576 6,732,523 5,046,628 3,628,750 2,443,609 1,602,853 1,102,853 602,853 102,853 14,423 Legal Liability Beginning Balance 2,200,000 1,650,000 1,100,000 550,000 - - - - - - Additions Uses (550,000) (550,000) (550,000) (550,000) - - - - - - Ending Fund Balance 1,650,000 1,100,000 550,000 - - - - - - - Total General Fund - Assigned $9,623,576 $7,832,523 $5,596,628 $3,628,750 $2,443,609 $1,602,853 $1,102,853 $602,853 $102,853 $14,423 BB-5 Projection_v10_4.24.2015_Actual Referendum borrowing_for presentation 4_27 4/24/201512:27 PM
State College Area School District Capital Reserve Fund 4/24/2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Beginning Balance $19,296,359 $28,055,138 $32,757,738 $36,561,925 $28,223,708 $29,690,630 $30,744,765 $31,578,678 $30,502,643 $27,336,267 Additions: Transfer 8,758,779 5,792,600 4,894,187 4,751,783 4,556,922 4,144,135 3,923,913 4,013,965 3,923,624 3,378,244 Donation Total Additions 8,758,779 5,792,600 4,894,187 4,751,783 4,556,922 4,144,135 3,923,913 4,013,965 3,923,624 3,378,244 Uses: High School (1) - (1,090,000) (1,090,000) (11,090,000) (1,090,000) (1,090,000) (1,090,000) (1,090,000) (1,090,000) (1,090,000) Other Facilities (2) - - - (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) Other Facilities (2) - - - - - - - (2,000,000) (2,000,000) (2,000,000) Other Facilities (2) - - - - - - - - (2,000,000) (2,000,000) Total Uses - (1,090,000) (1,090,000) (13,090,000) (3,090,000) (3,090,000) (3,090,000) (5,090,000) (7,090,000) (7,090,000) Net Change 8,758,779 4,702,600 3,804,187 (8,338,217) 1,466,922 1,054,135 833,913 (1,076,035) (3,166,376) (3,711,756) Ending Fund Balance $28,055,138 $32,757,738 $36,561,925 $28,223,708 $29,690,630 $30,744,765 $31,578,678 $30,502,643 $27,336,267 $23,624,511 (1) Reflects amount designated to pay a portion of the State High project cost. Assumes financing of $20 million District borrowing in 2015-16 and $10 million funding from capital reserve in 2017-18. (2) Renovation projects. Actual timing of projects may differ from this presentation. BB-6 Projection_v10_4.24.2015_Actual Referendum borrowing_for presentation 4_27 4/24/201512:25 PM
State College Area School District Capital Projects Fund Ending Fund Balance 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Beginning Balance 3,135,146 35,146 35,146 35,146 35,146 35,146 35,146 35,146 35,146 35,146 Additions: Transfer 2,055,717 2,096,831 2,138,768 2,181,543 2,225,174 2,269,678 2,315,071 2,361,373 2,408,600 2,456,772 Total Additions 2,055,717 2,096,831 2,138,768 2,181,543 2,225,174 2,269,678 2,315,071 2,361,373 2,408,600 2,456,772 Uses: Minor Projects (2,055,717) (2,096,831) (2,138,768) (2,181,543) (2,225,174) (2,269,678) (2,315,071) (2,361,373) (2,408,600) (2,456,772) Panarama Renovations (3,100,000) Total Uses (5,155,717) (2,096,831) (2,138,768) (2,181,543) (2,225,174) (2,269,678) (2,315,071) (2,361,373) (2,408,600) (2,456,772) Net Change (3,100,000) - - - - - - - - - Ending Fund Balance $35,146 $35,146 $35,146 $35,146 $35,146 $35,146 $35,146 $35,146 $35,146 $35,146 Note: The Capital Projects fund includes transfer from the general fund to fund minor capital projects. BB-7 Projection_v10_4.24.2015_Actual Referendum borrowing_for presentation 4_27 4/24/201512:27 PM
Attachment A 2015-16 Proposed Final Budget Revenues and Expenses As Presented April 13, 2015
State College Area School District General Fund 2014-15 and Budget 2015-16 - Revenue 4/7/2015 Assumptions: Earned Income Tax Growth 2.00% 1.80% 1.80% Assessed Value Growth 1.50% 2.30% 1.20% Exceptions 0.00% 0.00% 3.59% Act 1 Index 2.10% 2.10% 1.90% Actual/ Total Tax Increase 1.95% 1.95% 5.49% Budget Budget 2015-2016 Proj vs. Budget Proj 2014-15 vs. Budget 2015-16 Budget 2015-16 vs. Budget 2014-15 LOCAL SERVICES TAX CURRENT REAL ESTATE TAX $82,900,000 $83,696,808 $86,303,898 $796,808 (1) $2,607,090 (7) $3,403,898 REAL ESTATE TAX - REFERENDUM DEBT - - 3,183,420-3,183,420 (8) 3,183,420 EARNED INCOME TAX 15,560,000 15,980,000 16,270,000 420,000 (2) 290,000 (9) 710,000 REALTY TRANSFER TAX 1,500,000 1,575,000 1,500,000 75,000 (3) (75,000) 0 DELINQUENT REAL ESTATE TAX 1,100,000 1,400,000 1,100,000 300,000 (3) (300,000) 0 INTERIM REAL ESTATE TAX 500,000 500,000 300,000 - (200,000) (10) (200,000) IDEA-B 600,000 750,000 750,000 150,000 (4) - 150,000 PAYMENTS IN LIEU OF TAX 450,000 514,670 514,670 64,670 (4) 0 64,670 LOCAL SERVICES TAX 379,000 366,000 370,000 (13,000) 4,000 (9,000) TUITION 782,282 837,940 1,196,010 55,658 (4) 358,070 (11) 413,728 MISC LOCAL REVENUE/TUITION 384,918 384,918 384,918 - - 0 PUBLIC UTILITY REALTY TAX 120,000 122,808 122,808 2,808-2,808 INTEREST ON INVESTMENTS 100,000 100,000 150,000 0 50,000 50,000 TOTAL LOCAL 104,376,200 106,228,144 112,145,724 1,851,944 5,917,580 7,769,524 STATE BASIC ED INSTR SUBSIDY 6,440,619 6,440,460 6,440,460 (159) - (159) SPECIAL ED REVENUE 3,220,000 3,221,640 3,221,640 1,640-1,640 REV. FOR RETIREMENT 6,114,895 6,101,703 7,599,712 (13,192) 1,498,009 (12) 1,484,817 REV. FOR SOCIAL SECURITY 2,171,532 2,181,216 2,249,440 9,684 68,224 (12) 77,908 PROPERTY TAX REDUCTION 1,422,517 1,432,690 1,432,690 10,173-10,173 TRANSPORTATION REVENUE 600,000 750,000 750,000 150,000 (2) - 150,000 BOND REIMBURSEMENTS 80,000 940,122 517,497 860,122 (4)(5) (422,625) (13) 437,497 HEALTH SERVICES REVENUE 140,000 140,000 140,000 - - 0 READY TO LEARN GRANT 128,440 246,078 128,440 117,638 (6) (117,638) 0 VOCATIONAL EDUCATION 107,040 107,040 107,040 - - 0 OTHER STATE REVENUE - - - - - - TUITION - 1305/1306 80,000 80,000 80,000 - - 0 TOTAL STATE 20,505,043 21,640,949 22,666,918 1,135,906 1,025,970 2,161,876 FEDERAL TITLE I REVENUE 700,000 700,000 700,000 - - 0 TITLE II REVENUE 200,000 200,000 200,000 - - 0 ACCESS FUNDS 50,000 350,000 350,000 300,000 (4) - 300,000 OTHER FEDERAL REVENUE 60,000 70,000 60,000 10,000 (10,000) 0 TITLE III REVENUE 35,000 35,000 35,000 - - 0 TOTAL FEDERAL 1,045,000 1,355,000 1,345,000 310,000 (10,000) 300,000 TOTAL REVENUE $125,926,243 $129,224,093 $136,157,642 $3,297,850 $6,933,550 $10,231,400 A-1 Projection vs budget April 13 4/9/20156:38 PM
(1) 2014-15 increase is related to assessed value for major building projects not fully reflected in 2014-15 budgeted assessed value. (2) Increase based on actual 2013-14 (3) 2014-15 increase based on current year trends, however 2015-16 reflects return to more historical trend. (4) Based on most recent available information in 2014-15. (5) 2014-15 includes $631,000 related to Plancon approvals received in September 2014 for prior financings. (6) Previously referred to as the Accountability Block Grant. 2014-15 reflects increase in allocation. 2015-16 reduced to 2013-14 level due to uncertainty related to future allocations. (7) 2015-16 reflects assumed increase in assessed value and increase in millage rate to Act 1 index (excludes referendum tax). (8) Reflects debt service on high school referendum debt, less estimated Plancon reimbursement. This reimbursement will not be received until after project completion, however the budget reflects a reduction in this tax in anticipation of receipt in future years. (9) Reflects assumed growth (10) Reflects assumed tax rebate program (11) Assumes growth due to expansion of after school programs. (12) Increase related to increased salaries; retirement reimbursement also reflects PSERS rate increase from 21.14% to 25.84%. (13) 2015-16 includes estimate of $201,073 for reimbursement related to referendum financing, offset by reduction related to 2014-15 retroactive payment. A-2 Projection vs budget April 13 4/9/20156:39 PM
State College Area School District General Fund 2014-15 and Budget 2015-16 - Expense 4/7/2015 Budget Budget 2015-2016 Proj vs. Budget Proj 2014-15 vs. Budget 2015-16 Budget 2015-16 vs. Budget 2014-15 Salaries $57,930,679 $58,189,036 $60,009,063 $258,357 (1) $1,820,027 (7) $2,078,384 Health Insurance 12,109,179 11,954,434 12,432,612 (154,745) 478,178 (8) 323,433 PSERS 12,229,790 12,203,405 15,199,423 (26,385) 2,996,018 (9) 2,969,633 Other Benefits 5,979,296 6,045,705 6,218,493 66,409 172,788 (10) 239,197 Professional Services 4,202,699 4,072,412 4,336,979 (130,287) (2) 264,567 (11) 134,280 Purchased Property Services 2,050,035 2,050,035 2,090,571-40,536 40,536 Other Purchased Services 10,374,623 10,689,208 10,885,651 314,585 (3) 196,443 (3) 511,028 Supplies/Equipment 5,881,705 5,851,699 6,252,598 (30,006) 400,899 (12) 370,893 Minor Capital Projects 2,055,717 2,055,717 2,096,831-41,114 41,114 Athletics/transfers/contingencies 3,207,334 2,898,332 3,662,310 (309,002) (4) 763,978 (13) 454,976 Debt Service 5,348,828 5,089,299 5,165,109 (259,529) (5) 75,810 (14) (183,719) Debt Service - Referendum Debt - - 3,384,493-3,384,493 (15) 3,384,493 Transfer to Capital Reserve 5,421,779 8,758,779 5,621,600 3,337,000 (6) (3,137,179) (16) 199,821 Fund Balance (FB) Use (PSERS/Legal) (1,148,424) (1,148,424) (1,791,053) - (642,629) (642,629) Total Expenses and FB Transfers $125,643,240 $128,709,637 $135,564,680 $3,066,397 $6,855,043 $9,921,440 Total Expenses excluding FB Transfers $126,791,664 $129,858,061 $137,355,733 $3,066,397 $7,497,672 $10,564,069 Total Salary and Benefits $88,248,944 $88,392,580 $93,859,591 $143,636 $5,467,011 $5,610,647 Use of PSERS FB (598,424) (598,424) (1,241,053) - (642,629) (642,629) Total Salary and Benefits, including FB Transfers $87,650,520 $87,794,156 $92,618,538 $143,636 $4,824,382 $4,968,018 % of Total Expense and FB Transfers 69.8% 68.2% 68.3% (1) Includes enrollment based hirings, increased extended school year students, and budget transfer from professional services. (2) Budget transfer to salaries (3) Charter school enrollments increased 1% over 2013-14; expense per student approximately 5% higher in 2014-15. Budget assumes a 2% increase. (4) Reduction in contingency (5) Reflects savings related to refinancing (6) Net change in revenues and expense transferred to capital reserve fund. This is primarily related to retroactive reimbursement related to Plancon approval of prior financings, higher than average increase in real estate taxes and earned income tax. (7) Assumed rate increases based on historical increases and proposed additional positions offset by attrition savings. (8) Assumes 4% increase (9) Rate increase from 21.4% to 25.84% (10) Primarily related to increase in salaries (FICA) (11) Includes $90,000 related to strategic initiatives (screenings, strategic plan evaluation and prof development) (12) Includes $290,000 related to literacy initiative (13) Includes increase in contingency and estimated transfer of $130,000 to food services. (14) Debt service in 2015-16 may be higher than the amount reflected above. Assuming issuance of the $20 million non-referendum borrowing in 2015-16, there would be a partial year payment due in the budget year. This may be offset by savings from refinancing currently outstanding debt. Any increase in the debt service is assumed to decrease the transfer to capital reserve. (15) Reflects actual debt service based on referendum bond issuance. (16) Transfer maintains the level budgeted in the 2014-15 budget. A-3 Projection vs budget April 13 4/9/2015 6:39 PM
Attachment B Multi-year Projection As Presented April 13, 2015
State College Area School District General Fund Activity 4/7/2015 Assumptions: Earned Income Tax Growth 2.00% 1.80% 1.80% 1.90% 2.00% 2.10% 2.20% 2.30% 2.30% 2.30% 2.30% Assessed Value Growth 1.50% 2.30% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.70% 1.70% 1.70% Exceptions 0.00% 0.00% 3.59% 1.81% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Act 1 Index 2.10% 2.10% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% Actual/ Total Tax Increase 1.95% 1.95% 5.49% 3.71% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% Budget 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Revenue $125,926,243 $129,224,093 $136,157,642 $142,114,232 $145,875,858 $149,912,575 $154,126,119 $158,374,648 $162,716,814 $167,266,680 $171,955,632 Local 104,376,200 106,228,144 112,145,724 116,936,405 120,211,769 123,702,383 127,420,616 131,424,146 135,517,675 139,750,970 144,123,794 State 20,505,043 21,640,949 22,666,918 24,032,826 24,519,089 25,065,192 25,560,503 25,805,503 26,054,139 26,370,710 26,686,838 Federal 1,045,000 1,355,000 1,345,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 Expenses and Fund Balance Use 125,643,240 128,709,637 135,564,680 141,960,200 145,916,272 149,964,976 154,158,870 158,369,360 162,633,538 167,179,206 171,871,717 Change in Unassigned General Fund Bal $283,003 $514,456 $592,962 $154,032 -$40,414 -$52,400 -$32,751 $5,289 $83,277 $87,474 $83,915 B-1 Projection_v9_4.3.2015_Actual Referendum borrowing_updated proj and bud 4/9/20157:11 PM
State College Area School District General Fund Revenue 4/7/2015 Assumptions: Earned Income Tax Growth (1) 2.00% 1.80% 1.80% 1.90% 2.00% 2.10% 2.20% 2.30% 2.30% 2.30% 2.30% Assessed Value Growth (2) 1.50% 2.30% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.70% 1.70% 1.70% Exceptions (3) 0.00% 0.00% 3.589% 1.81% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Act 1 Index 2.10% 2.10% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% Actual/ Total Tax Increase 1.95% 1.95% 5.489% 3.71% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% 1.90% Budget 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 LOCAL SERVICES TAX CURRENT REAL ESTATE TAX $82,900,000 $83,696,808 $86,303,898 $89,070,000 $92,010,000 $95,140,000 $98,470,000 $102,010,000 $105,680,000 $109,480,000 $113,420,000 REAL ESTATE TAX-REFERENDUM DEBT (3) - - 3,183,420 4,943,999 4,945,363 4,941,977 4,946,210 4,945,740 4,945,269 4,944,564 4,943,388 EARNED INCOME TAX 15,560,000 $15,980,000 16,270,000 16,580,000 16,910,000 17,270,000 17,650,000 18,060,000 18,480,000 18,910,000 19,340,000 REALTY TRANSFER TAX 1,500,000 1,575,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 DELINQUENT REAL ESTATE TAX 1,100,000 1,400,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 INTERIM REAL ESTATE TAX (4) 500,000 500,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 IDEA-B 600,000 750,000 750,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 PAYMENTS IN LIEU OF TAX 450,000 514,670 514,670 514,670 514,670 514,670 514,670 514,670 514,670 514,670 514,670 LOCAL SERVICES TAX 379,000 366,000 370,000 374,000 378,000 382,000 386,000 390,000 394,000 398,000 402,000 TUITION 782,282 837,940 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 1,196,010 MISC LOCAL REVENUE 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 384,918 PUBLIC UTILITY REALTY TAX 120,000 122,808 122,808 122,808 122,808 122,808 122,808 122,808 122,808 122,808 122,808 INTEREST ON INVESTMENTS 100,000 100,000 150,000 200,000 200,000 200,000 200,000 250,000 250,000 250,000 250,000 TOTAL LOCAL 104,376,200 106,228,144 112,145,724 116,936,405 120,211,769 123,702,383 127,420,616 131,424,146 135,517,675 139,750,970 144,123,794 STATE BASIC ED INSTR SUBSIDY 6,440,619 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 6,440,460 SPECIAL ED REVENUE-REGULR 3,220,000 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 3,221,640 REV. FOR RETIREMENT 6,114,895 6,101,703 7,599,712 8,800,000 9,250,000 9,750,000 10,200,000 10,400,000 10,600,000 10,900,000 11,150,000 REV. FOR SOCIAL SECURITY 2,171,532 2,181,216 2,249,440 2,294,429 2,340,317 2,387,123 2,434,866 2,483,563 2,533,234 2,583,899 2,635,577 PROPERTY TAX REDUCTION 1,422,517 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 1,432,690 TRANSPORTATION REVENUE 600,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 BOND REIMBURSEMENTS (5) 80,000 940,122 517,497 638,128 628,502 627,799 625,367 621,669 620,635 586,541 600,991 HEALTH SERVICES REVENUE 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 READY TO LEARN GRANT (6) 128,440 246,078 128,440 128,440 128,440 128,440 128,440 128,440 128,440 128,440 128,440 VOCATIONAL EDUCATION 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 107,040 OTHER STATE REVENUE 0 0 0 0 0 0 0 0 0 0 0 TUITION - 1305/1306 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 TOTAL STATE 20,505,043 21,640,949 22,666,918 24,032,826 24,519,089 25,065,192 25,560,503 25,805,503 26,054,139 26,370,710 26,686,838 FEDERAL TITLE I REVENUE 700,000 700,000 700,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 TITLE II REVENUE 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 ACCESS FUNDS 50,000 350,000 350,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 OTHER FEDERAL REVENUE 60,000 70,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 TITLE III REVENUE 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 TOTAL FEDERAL 1,045,000 1,355,000 1,345,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 1,145,000 TOTAL REVENUE 125,926,243 129,224,093 136,157,642 142,114,232 145,875,858 149,912,575 154,126,119 158,374,648 162,716,814 167,266,680 171,955,632 (1) Assumes gradual growth toward five-year average from 2008-09 to 2013-14 of 2.62%. (2) 2014-15 reflects major building projects not fully reflected in 2013-2014 assessed value. 2015-16 forward assumes gradual growth toward historical averages. (10-yr average 1.7%) (3) Assumes additional tax equal to the debt service on referendum borrowing. (4) Reflects reduction of $200,000 beginning in 2015-16 related to potential property tax rebate program. (5) Reflects projected annual reimbursement. Retroactive reimbursement of $631,000 to be received in January 2015 has been included in projected 2014-15. 2015-16 forward includes estimated $200,000 to $300,000 reimbursement related to High School referendum borrowing. (6) Previously referred to as the Accountability Block Grant. Future projected years do not include the additional amount added in 2014-15 due to uncertainty related to future year allocations. B-2 Projection_v9_4.3.2015_Actual Referendum borrowing_updated proj and bud 4/9/20157:12 PM