2011-2012 Budget Hearing May 3, 2011
The purpose of tonight s meeting is to present budgeting options that are being considered to balance the 2011-2012 budget and to solicit input from the community regarding the options.
Budget Development Initial budget reflects the existing Board approved curriculum, programs and services Additional or new funding requests are submitted and reviewed for consideration Administration and School Board work together to balance the educational needs of the students with the ability of the community to pay
Goals 1. Balance the budget with a real estate tax increase in the range of 0 to 1.4% (Board approved Act 1 resolution 1/20/11) 2. Maintain support for the most important educational needs with the limited funds available 3. Seek & implement direction of the School Board
First Draft Budget Summary Total Expenditures $174,970,000 (0.5% decrease) Total Revenues $171,915,000 (8% decrease) Deficit $ 3,055,000 Real estate tax increase = 2.4% (3.6 mills)
Potential Revenue Loss Governor s Budget Proposal Basic Education Subsidy $1,388,396 Accountability Block Grant 876,385 Charter School Reimbursement 750,000 Soc. Security Reimbursement* 689,705 Loss in State Funding $3,704,486
Deficit Summary 1 st Draft Deficit $ 3,055,000 State Revenue Loss 3,704,486 Revised Deficit $ 6,759,486 Allowable Act 1 RET increase ( 1,780,623) Deficit $ 4,978,863
How Will We Fund the Deficit?
Expenditure and Revenue Budgeting Options
Budgeting Options To Reach 1.4% Salaries & Wages $ 1,102.1 K - Reduce professional staff through attrition, 5.5 - Eliminate every day building subs - Reduce summer per diem days - Reduce part-time health aides in private schools, 6 - Reduce salary budget for retirements - Accept risk in salary budget
Budgeting Options To Reach 1.4% Employee Fringe Benefits $ 466.2 K - Adjust payroll withholdings for saved salaries and wages - Reduce health care benefits budget for reduction in number of employees, experience analysis and increased risk
Budgeting Options To Reach 1.4% Services $ 15.5 K - Reduce overtime - Expand four day work weeks in summer
Budgeting Options to Reach 1.4% Supplies, Books & Software $ 342.0 K - Purchase natural gas and electricity in advance - Follow through with energy conservation program - Revise phone service agreement - Reduce band width pricing for WAN I
Budgeting Options To Reach 1.4% Programs $ 34.5 K - Suspend middle school lightweight football - Suspend ninth grade wrestling - Replace SAGE program (Senior Adults for Greater Education)
Budgeting Options To Reach 1.4% Other Measures (Expenditures) $ 867.2 K - Reduce share of Technical School budget - Reduce variable rate debt service budget - Reduce MA (ACCESS) employee benefit expenses
Budgeting Options To Reach 1.4% Revenue Adjustments $3,356.3 K - Reduce state reimbursement for special education - Reduce federal stimulus funding (ARRA) - Increase federal MA funding (ACCESS) - Further decrease investment earnings - Increase tax revenue based on January and May real estate tax duplicates
Budgeting Options To Reach 1.4% Revenue Adjustments (cont d) - Increase interims for Matrix development - Add new revenue for school advertising Focus on health, safety, nutrition and education - Appropriate fund balance ($2.5 M)
Budgeting Options To Reach 1.4% Budget Additions $1,205.0 K - New elementary math specialist positions, 3 - New special ed instructors, 4 (Funded by MA) - Purchase van for MOST students (Funded by MA) - Debt service to begin Eleanor Roosevelt project - RELA textbook adoption - Increase in cost of diesel fuel - Increase in workers compensation expense
PROPOSED BUDGET SUMMARY
Budget Recap Budget Date RET Increase First Draft 1/13/11 2.4% Governor s 3/10/11 5.3% Proposal Proposed 5/12/11 1.4%
Proposed Budget Summary Total Expenditures $173,301,000 (1.4% decrease) Total Revenues $171,520,377 (2.4% decrease) Deficit $ 1,780,623 Real estate tax increase = 1.4% (2.1 mills)
Tax Increase by Municipality* Proposed Budget Falls $ 45 Lower Makefield $ 88 Tullytown $ 39 Yardley $ 49 District-wide $ 66 * Based on average assessment of 31,324
Additional Budgeting Options To Reach 0%
Additional Budgeting Options To Reach 0% Salaries & Wages $ 961.4 K - Further reduce professional staff through attrition, 4 - Reduce part-time school aides, 4 - Demote 6.5 hr paraprofessionals by 1 work day - Furlough or demote other support staff - Accept additional risk in salary budget
Additional Budgeting Options To Reach 0% Employee Fringe Benefits $ 155.3 K - Adjust payroll withholdings for reduced salaries and wages - Reduce health care benefits budget for reduction in number of employees
Additional Budgeting Options To Reach 0% Services $ 169.9 K - Eliminate mid-day kindergarten transportation - Accept additional risk in property and casualty insurance
Additional Budgeting Options To Reach 0% Programs $ 118.0 K - Introduce a $50 ($100 cap) student activity participation fee - Suspend one ninth grade basketball team - Suspend one ninth grade football team - Suspend high school winter track
Additional Budgeting Options To Reach 0% Other Measures $ 376.0 K - Implement a 6% reduction to principals and other budget manager allocations
Next Steps
Work Continues More data still needed: - Commonwealth Budget - Federal subsidies - Enrollments & registrations - Retirements, resignations & leaves - Benefits experience analysis - May assessments
Budget Timeline - Continue refining budget data through June - Adopt proposed budget May 12 - Adopt final budget June 16
Public Input School Board public meetings and hearings (all times p.m.) - May 12: Special Meeting, 8:00 at Fallsington - May 19: Board Budget Committee, 5:30 at Fallsington - May 19: Regular Meeting, 8:00 at Fallsington - May 31: Budget Hearing, 7:00 at Makefield - June 9: Agenda Meeting, 8:00 at Fallsington - June 16: Regular Meeting, 8:00 at Fallsington
Questions & Comments