2017-2018 BUDGET PRESENTATION DRAFT May 2 , 2017 Boyertown Area - - PowerPoint PPT Presentation

2017-2018 BUDGET PRESENTATION

May 2, 2017 Boyertown Area School District Board of Education

DRAFT

Looking to the Future

 Based on 5 Year Budget Projection and Assumptions ■ How will decisions in 16-17 & 17-18 impact the next 5 years? ■ Consideration of Future Tax Increases ■ 2018-2019 and 2019-2020 will require tax increases and possible use of exceptions (No Act 1 Resolution) ■ The use of one-time fund balance must be replaced ■ Health Care is cyclical - 0% increases are not projected ■ Special Education costs will continue to rise ■ PSERS increasing but at slower rate ■ Building operations and maintenance evaluation – Pine Forge Annual Operating Budget? ■ Without additional revenue, programs and services will continue to be considered for reduction or elimination

2016 Berks County Schools Real Estate Tax Rate

ANTIETAM 37.79

• B. HEIGHTS

32.30 EXETER 32.21 FLEETWOOD 31.81 WYOMISSING 30.07 KUTZTOWN 29.95 DANIEL BOONE 29.70 MUHLENBERG 28.56 TULPEHOCKEN 27.70

• C. WEISER

27.14

• GOV. MIFFLIN

27.10

• SCH. VALLEY

27.07 TWIN VALLEY 26.77 HAMBURG 26.71 OLEY VALLEY 26.33 WILSON 24.95 BOYERTOWN 24.27 READING* 17.93

* Reading SD taxpayers voted to exchange HIGHER INCOME tax FOR LOWER PROPERTY tax. Compare Reading SD EIT of 1.5% to Boyertown .5%

2016 Montgomery County Schools Real Estate Tax Rate

CHELTENHAM 45.09 POTTSTOWN 39.25 JENKINTOWN 38.98 POTTSGROVE 37.72 NORRISTOWN 34.39 LWR MORELAND 33.32 UPPER DUBLIN 32.29 SPRINGFIELD 31.66 PERK VALLEY 31.60 ABINGTON 30.83 UPR MORELAND 29.40 SOUDERTON 28.78 METHACTON 28.74 HATBORO-HORS 27.49 LOWER MERION 27.40 SPRING FORD 26.24

BOYERTOWN 24.27

NORTH PENN 24.19 UPPER PERK 23.64 COLONIAL 20.96 UPPER MERION 18.96 WISSAHICKON 18.79

Act 1 Index

Index Calculation for 2017-2018: ECI Index equals 2.5% times: Aid Ratio Allow (.75 + .479) x 1.2229 BASD Index (from PDE) 3.1% County Millage Index Increase Berks 24.27 3.1% .75 Mont. 24.27 3.1% .75

1 Mill = $2.3 Million times .75 = $1,725,000

The School Board adopted a resolution that the District would not increase the tax rate by more than the Act 1 Index

Budget Deficit Update

February 7 April 4 May 2 Projected Revenue $105,347,105 $105,367,201 $106,191,693

Tax Increase of 3.1% $ 1,750,000 Total Projected Revenue $107,916,693

Projected Expenditures $111,345,876 $111,017,918 $110,167,918 Projected Deficit $ (5,998,771) $ (5,650,717) $ (2,251,225) Use of One-Time Funds PSERS Committed $ 2,000,000 $ 2,000,000 $ 2,000,000 Net Deficit $ (3,998,771) $ (3,650,717) $ (251,225) Current Budget does include Basic Ed and Special Ed revenue increases as proposed in Governor Wolf’s budget proposal

Budget Deficit Reduction

• Three Ways to Decrease a Budget Deficit:
• 1. Decrease Expenditures
• 2. Increase Revenue
• 3. Use of Fund Balance

Deficit Reduction Expenditures Review

New Secondary Personnel Recommendations

Regu egular Ed/ d/Support ■ BASH SH Admi dministrator ■ BASH H Cle leric ical al ■ BASH Counselor ■ BASH HPE ■ BASH H HPE HPE ■ BAS ASH C Cust ustodians ns (2) ■ BASH SH Sec Security Monitor ■ BASH SH CAF M Monitor (2 (2) ■ Secondary Orchestra (.5) Specia ial Education ■ BASH SH ES ES Tea eacher (I (IDE DEA) ■ BASH SH .5 Gi Gifted Tea eacher ■ MSE SE LS T S Tea eacher ■ MS Gifted T ed Teacher er

New Elementary Personnel Recommended

■ CES Intervention Teacher ■ BES ES .5 Couns unselor ■ EES EES .5 C Couns unselor ■ PFES ES .5 Couns unselor ■ GE GES S .5 Dea Dean of St Students ■ NHUF .5 Dea Dean of St Students ■ GE GES S Playgr ground Aide de

New District-wide Personnel Recommended

■ School Psychologist ■ Speech Pa Pathologis ist ■ PT Staff Accountant

Personnel Summary Full Time Equivalent Positions

Additions

Regular Education 1 BASH Guidance Counselor 1 BASH HPE 1 CES Intervention Teacher .5 Secondary Orchestra Special Education 1 Bash ES Teacher (IDEA) .5 BASH Gifted Teacher 1 MSE LS Teacher 1 School Psychologist Support .5 Staff Accountant

Deletions

Regular Education .5 BASH Social Studies .5 JHE Planetarium (Contracted) 3 WES Grade Teachers 1 BES Grade Teacher 1 GES Grade Teacher 1 NHUF Grade Teacher 0 Professi ssional FTE Total al . .5 FTE A Additio ion Gener eral F Funded ded (.5) ) FTE

Special Education Expense (Federal Mandate)

Personnel Wages & Benefits

Salaries & Benefits Final Year of BAEA Collective Bargaining Agreement (CBA) All Non-BAEA Employees budged at 2.5% increase in wages Benefits PSERS Increase from 30.03% to 32.57% Health Insurance – 0% Increase in Premium Staff Contribution percent increase .5% Premium Holiday – December 2017 Internal Service Fund Balance Reduction

Pension Contribution Expense (State Mandate)

Remaining Cost Reduction Considerations After 4/4/17

JH Librarian $ 80,000 Counselor $ 98,000 BASH Chem/Bio $ 50,000 Administration $ 175,000 Administrative Clerical $ 25,000 Custodial Support $ 130,000 Recess Aides $ 17,000 Paraprofessional $ 22,000 Budgets Reduction $ 150,000 Bus Runs (3) $ 117,000 Total $ 864,000

Deficit Reduction Increase Revenue

Proposed Revenue Increases

State Revenue Assume Governor’s Budget will be adopted as proposed with $100 million added to BEF Local Revenue Maximum tax increase of 3.1% (BASD Act 1 Index) Assessment Increases in April & May Student Activity Fees increase to $200 per secondary student for unlimited participation

Use of Fund Balance

Fund Balance Usage

➢$2 million in Committed fund balance for PSERS included in budget ▪ Projected Balance of PSERS Fund on 6/30/18 is $2.8 million ▪ Plan to utilize remaining balance over 3 years with proposed replacement of one-time funds with tax increases or further expenditure or program reductions

• Capital Projects Fund Transfer of $500,000 for 2017-18

eliminated

• Internal Service Fund Balance Reduction Plan - Premium

Holiday

Budget Deficit Reduction

April 4 May 2 Projected Revenue $105,367,201 $105,367,201

Local Revenue (Activity Fees to $200) $ 120,000 Local Revenue (Assessment Increases) $ 240,803 State Subsidy Increase (Gov. Budget) $ 438,689 Tax Increase of 3.1% $ 1,750,000 Total Projected Revenue $107,916,693

Projected Expenditures $111,017,918 $111,017,918 Capital Projects Transfer $ (500,000) Premium Holiday (Use of Internal Service) $ (350,000) Projected Expenditures $110,167,918 Projected Deficit $ (5,650,717) $ (2,251,225) PSERS Committed $ 2,000,000 $ 2,000,000 Net Deficit $ (3,650,717) $ (251,225)

Debt Service Expense

Remaining Cost Reduction Considerations After 4/4/17

JH Librarian $ 80,000 Counselor $ 98,000 BASH Chem/Bio $ 50,000 Administration $ 175,000 Administrative Clerical $ 25,000 Custodial Support $ 130,000 Recess Aides $ 17,000 Paraprofessional $ 22,000 Budgets Reduction $ 150,000 Bus Runs (3) $ 117,000 Total $ 864,000

Budget Deficit Reduction

• Ways to Decrease a Budget Deficit:

Decrease Expenditure Which programs to cut? How many employees to furlough? Which services are reduced?

Budget Deficit Reduction

• Ways to Decrease a Budget Deficit:

Increase Revenue Raise parking fees Raise facility rental fees

Budget Deficit Reduction

• Ways to Decrease a Budget Deficit:

Use of Fund Balance How much additional one-time funds to use? How do we replace in the future?

Other Funding Sources

The following funding sources will be added to the General Fund budget for inclusion in the adoption of the Final Proposed Budget on May 9 and the Final Budget on June 13: Loc Local Pottstown Health & Wellness $ 75,000 Stat ate Ready to Learn Block Grant $ 928,175 Feder ederal Title I $ 563,931 Title II $ 93,000 IDEA $1,152,225 ACCESS $ 475,000 Total $3,307,331 Each Funding source has equal revenues and expenditures

Future Meetings

May 9, 2017 School Board Meeting – Education Center – 6:30 pm

• (Adoption of Final Proposed Budget)

May 30, 2017 Budget Work Session – Education Center – 6:30 pm June 13, 2017 School Board Meeting – Education Center – 6:30 pm

• (Adoption of Final Budget)

Questions & Discussion