2018-2019 Budget Work Session Jason Perrin, D.Ed. May 21, 2018
District Goals: 17/18 Looking Forward 18/19 • Academic Success Improve academic performance and achievement for all students – as measured by multiple sources of data • Instructional Strategies All teachers will use demanding, relevant and appropriate instructional practices to provide top-quality learning experiences for all students • Manage Resources Ensure financial and human resources are efficiently and effectively utilized (This Evening’s Work and Overall Budget Process) • Community Relations Continue to build and nurture relationships with community stakeholders to garner support of our public schools
Budget Process Information Superintendent’s Goals For Budget Process 18-19: (Shared Jan 29) 1) Balancing Programming and Resources (doing the best we can for kids/meeting our mission), while being respectful of the community’s resources 2) Ensuring Short and Long Term Fiscal Health of District; and 3) Engaging in/creating a process that can be utilized in future years Recommendations for Action: Board Actions will be preceded by a Superintendent’s Recommendation Norms for Conversations: Questions and Constructive Discourse leading to successful process/outcomes All Documents Relating to Budget Preparation 18-19
Projections 18-19 Total Revenue Increase (Projected)= 2.0% Local Revenue Increase Projected as: 1.8% *Assumes Local Tax Collection Rate= 95.1% This was increased from 94.9% based on Data (Effort to better predict Local Revenues) Total Expenditure Increase= 0.8%
Projections 18-19 Projects Short Term Savings in Benefits (Health Care) -Health Care Plan Design -HSA Funding Reduction in Transportation Budget Decrease in 5 Yr. Average for Capital Projects Payoff of Variable Rate Debt Use of 16/17 Actuals to Drive Flexible Portion of Budget Assumes Increased Expenditures for Contracts and Agreements New-Five Year Technology Plan New-Special Budget Requests
Considerations 19/20 & Beyond Charter tuition Rising Special Education Cost Increases Return to trend for health care Return to full year HSA
Expenditures At a Glance Pie Chart 2018 ‐ 19 Expenses Payroll and Benefits 13% Outside Special Education and Tuition 12% Utilities and Debt 61% Service 14% Supplies, Equipment and All Other
Utilities and debt service 18-19 Budget ($) % of Total Notes Budget 887,119 1.36 Utilities 6,982,966 10.70 Includes Debt Service Transfers To Capital Project Fund 7,870,085 12.06 TOTAL
Fiscal chart: Tax Rate Changes (Mills) Adams County Schools - Tax Rate Changes (mills) 0.9000 Average Changes Dist. Mills % CVSD 0.4418 4.00 0.8000 UASD, 0.8004 UASD 0.4302 3.34 LASD 0.2928 2.79 BSSD 0.2551 2.46 0.7000 FASD 0.1641 1.70 GASD 0.1053 1.01 0.6000 CVSD, 0.5066 0.5000 Mills 0.4000 BSSD, 0.3715 FASD, 0.3090 0.3000 GASD, 0.2638 LASD, 0.2270 0.2000 0.1000 0.0000 12/13 13/14 14/15 15/16 16/17 17/18
Act 1 Index vs. GASD Tax Increase GASD - Act 1 % Compared to Tax Rate Change (%) 6.00% 08/09 Used $214,004 of $219,792 PDE Approved Act 1 Exceptions for Special Ed & Maintenance of Local Revenue 5.00% 10/11 Used $354,474 of $389,777 PDE Approved Act 1 Exception for Retirement Contributions 4.00% 11/12 Act 1 Index is the same as 10/11 due to County-wide Reassessment 3.00% 11/12 Mill Rate Changed Due to County-wide Reassessment 2.00% 1.00% 0.00% 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 GASD Tax Rate Change 2.04% 3.11% 5.33% 4.09% 4.32% 2.50% 1.20% 0.00% 1.73% 0.00% 0.64% 2.50% 1.20% GASD Act 1 Index 4.60% 4.00% 4.40% 4.10% 2.90% 2.90% 1.70% 1.70% 2.10% 1.90% 2.40% 2.50% 2.40%
GASD Tax Increase and Local Tax Collection Rate
Inflation Trends: cumulative Chart Inflation Trends ‐ Cumulative 35.0 30.0 25.0 CPI (a) 20.0 Act 1 Index Percent 15.0 Tax Rate Increase Budget Expense Increase 10.0 Budget Expense Increase Without Charter Tuition and PSERS 5.0 0.0 2010 ‐ 11 2011 ‐ 12 2012 ‐ 13 2013 ‐ 14 2014 ‐ 15 2015 ‐ 16 2016 ‐ 17 2017 ‐ 18 2018 ‐ 19 (5.0) Fiscal Year
Unassigned fund balance 18-19 Unassigned Fund Balance (UFB) $13,161,864 - December Audit $4.1 Million Utilized to Balance 17-18 Final Budget UFB Board Policy (622)= 6%-8% $3.4 Million Recommended to Balance 18-19 Final Budget (7.92% Remaining)
Scenarios as requested: UFB Gettysburg Area School District Unassigned Fund Balance Worksheet May 18, 2018 A B C D Use Cap. Proj. Fund For Use Cap. Proj. Fund For Partial Roof And 0.0% Tax Use Cap. Proj. Fund For Proposed Budget With 1.2% Partial Roof And 0.0% Tax Increase And 8% Fund 100% Roof and 0.0% Tax Tax Increase Increase Balance Increase Unassigned Fund Balance (Balance) at 6/30/17 -Per June 30, 2017 Audit Report $13,161,861 $13,161,861 $13,161,861 $13,161,861 2017/18 Budget Impact on Balance Revenue Budget $59,978,944 $59,978,944 $59,978,944 $59,978,944 Use of PSERS Committed Fund Balance 611,691 611,691 611,691 611,691 Expense Budget (64,694,760) (64,694,760) (64,694,760) (64,694,760) Net Change in Fund Balance (4,104,125) (4,104,125) (4,104,125) (4,104,125) 9,057,736 9,057,736 9,057,736 9,057,736 Recommendations for Action: Fund HS Gymnasium Roof (455,000) (105,949) (57,000) 0 Designate for Future FIP 0 0 0 0 Other Capital Needs (455,000) (105,949) (57,000) 0 Projected Balance at 6/30/18 8,602,736 8,951,787 9,000,736 9,057,736 Amount Needed to Balance 2018/19 Budget (3,432,887) (3,781,938) (3,781,938) (3,781,938) Projected Balance 6/30/19 $5,169,849 $5,169,849 $5,218,798 $5,275,798 % of 18/19 budget 7.92% 7.92% 8.00% 8.09% Limit on Projected Balance at 6/30/19 Projected 2018/19 Expense Budget $65,236,960 $65,236,960 $65,236,960 $65,236,960 8% Limit 5,218,956 5,218,956 5,218,956 5,218,956 Projected Balance Above/(Below) Projected Limit ($49,107) ($49,107) ($158) $56,842 18/19 Budget Revenue Draft 61,196,622 (remove 1.2% 60,847,571 (remove 1.2% 60,847,571 (remove 1.2%) 60,847,571 18/19 Use of PSERS fund 607,451 607,451 607,451 607,451 18/19 Budget Expense Draft (65,236,960) (65,236,960) (65,236,960) (65,236,960) Difference (3,432,887) (3,781,938) (3,781,938) (3,781,938) Mill Value - Proposed budget $2,689,143 Value of 1.2% (.1298 mills) $349,051
Strategic Reduction of Structural Deficit Gettysburg Area School District Strategic Budgeting/Unassigned Fund Balance Plan May 18, 2018 Assumption: Structural budget deficits must be reduced to $1.5M per year in order to allow positive budget performance of $1.5M each year. 8% Limit Calculation Budgeted Use of Difference - Fiscal Unassigned Budget vs. Year Fund Balance Actual $ % 2016-17 (2,976,070) 3,856,250 3,991,437 6.52% 2017-18 (4,104,125) 2,104,125 4,436,888 6.86% 2018-19 (3,432,887) 1,832,887 5,169,849 7.92% 2019-20 (2,949,665) 1,749,665 4,779,309 7.11% 2020-21 (2,466,443) 1,666,443 4,145,753 5.99% 2021-22 (1,983,221) 1,583,221 3,912,197 5.49% 2022-23 (1,500,000) 1,500,000 4,078,640 5.55% (1) (2) (3) (4) (1) Structural deficits must be reduced as actual performance changes, since actual performance will no longer fund those structural deficits. (2) Actual performance of revenues exceeding expenditures by $1,500,000 each year is an appropriate goal. (3) Assumes future budgets increase by 3% annually (4) Even with the projected plan, the budgeted unassigned fund balance percentage goes below Board Policy minimum.
Strategic Reduction of Structural Deficit Strategic Structural Deficit Management 6,000,000 4,000,000 2,000,000 Dollars Budgeted Use of Unassigned Fund Balance 0 Difference ‐ Budget vs. Actual 2016 ‐ 17 2017 ‐ 18 2018 ‐ 19 2019 ‐ 20 2020 ‐ 21 2021 ‐ 22 2022 ‐ 23 Projected Unassigned Fund Balance (2,000,000) (4,000,000) (6,000,000) Fiscal Year
1.2% Over Five Years: Revenues and Expenditures Projected Inflationary Trends of Revenues and Expenses With 1.2% Annual Real Estate Tax Rate Increase 85,000,000 80,000,000 75,000,000 70,000,000 Dollars Revenues, with 1.2% annually Expenses 65,000,000 60,000,000 55,000,000 50,000,000 2017 ‐ 18 2018 ‐ 19 2019 ‐ 20 2020 ‐ 21 2021 ‐ 22 2022 ‐ 23 Fiscal Year
1.2% Over Five Years: Revenues and Expenditures Projected Unassigned Fund Balance Impacts ‐ Using Historical Inflation Rates + 1.2% Annual Tax Rate Increase $15,000,000 $10,000,000 $5,000,000 Dollars Unassigned Fund Balance $0 2017 ‐ 18 2018 ‐ 19 2019 ‐ 20 2020 ‐ 21 2021 ‐ 22 2022 ‐ 23 ($5,000,000) ($10,000,000) Fiscal Year
Benchmark Comparison of Unassigned funds (FItCH) Capital Funding Benchmark 1 ‐ 2% to 3% of Annual Budget for Capital Items $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Benchmark 1 ‐ Upper Benchmark 1 ‐ Lower GASD Target ‐ 3% Target ‐ 2%
Benchmark Comparison of Unassigned funds (Moody’s) Capital Funding Benchmark 2 ‐ 21% of Annual Budget Available in Unassigned Fund Balances $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Benchmark 2 ‐ Target GASD
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