2018-2019 Budget Work Session Jason Perrin, D.Ed. May 21, 2018 - - PowerPoint PPT Presentation

2018-2019 Budget Work Session

Jason Perrin, D.Ed. May 21, 2018

• 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

District Goals: 17/18 Looking Forward 18/19

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

Budget Process Information

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

61% 14% 12% 13%

2018‐19 Expenses

Payroll and Benefits Outside Special Education and Tuition Utilities and Debt Service Supplies, Equipment and All Other

Utilities and debt service

18-19 Budget ($) % of Total Budget Notes Utilities 887,119 1.36 Debt Service 6,982,966 10.70 Includes Transfers To Capital Project Fund TOTAL 7,870,085 12.06

Fiscal chart: Tax Rate Changes (Mills)

BSSD, 0.3715 CVSD, 0.5066 FASD, 0.3090 GASD, 0.2638 LASD, 0.2270 UASD, 0.8004 0.0000 0.1000 0.2000 0.3000 0.4000 0.5000 0.6000 0.7000 0.8000 0.9000 12/13 13/14 14/15 15/16 16/17 17/18

Mills

Adams County Schools - Tax Rate Changes (mills)

Average Changes Dist. Mills % CVSD 0.4418 4.00 UASD 0.4302 3.34 LASD 0.2928 2.79 BSSD 0.2551 2.46 FASD 0.1641 1.70 GASD 0.1053 1.01

Act 1 Index vs. GASD Tax Increase

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% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%

GASD - Act 1 % Compared to Tax Rate Change (%)

11/12 Mill Rate Changed Due to County-wide Reassessment 11/12 Act 1 Index is the same as 10/11 due to County-wide Reassessment 08/09 Used $214,004 of $219,792 PDE Approved Act 1 Exceptions for Special Ed & Maintenance of Local Revenue 10/11 Used $354,474 of $389,777 PDE Approved Act 1 Exception for Retirement Contributions

GASD Tax Increase and Local Tax Collection Rate

Inflation Trends: cumulative Chart

(5.0) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19

Percent Fiscal Year

Inflation Trends ‐ Cumulative

CPI (a) Act 1 Index Tax Rate Increase Budget Expense Increase Budget Expense Increase Without Charter Tuition and PSERS

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 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) Designate for Future FIP Other Capital Needs (455,000) (105,949) (57,000) 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 Use Cap. Proj. Fund For Partial Roof And 0.0% Tax Increase And 8% Fund Balance Use Cap. Proj. Fund For 100% Roof and 0.0% Tax Increase May 18, 2018 Proposed Budget With 1.2% Tax Increase Use Cap. Proj. Fund For Partial Roof And 0.0% Tax Increase

A B C D

Strategic Reduction of Structural Deficit

Gettysburg Area School District Strategic Budgeting/Unassigned Fund Balance Plan May 18, 2018 Fiscal Year Budgeted Use of Unassigned Fund Balance Difference - Budget vs. 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. 8% Limit Calculation Structural budget deficits must be reduced to $1.5M per year in

• rder to allow positive budget performance of $1.5M each year.

Assumption:

Strategic Reduction of Structural Deficit

(6,000,000) (4,000,000) (2,000,000) 2,000,000 4,000,000 6,000,000 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23

Dollars Fiscal Year

Strategic Structural Deficit Management

Budgeted Use of Unassigned Fund Balance Difference ‐ Budget vs. Actual Projected Unassigned Fund Balance

1.2% Over Five Years: Revenues and Expenditures Projected

50,000,000 55,000,000 60,000,000 65,000,000 70,000,000 75,000,000 80,000,000 85,000,000 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23

Dollars Fiscal Year

Inflationary Trends of Revenues and Expenses With 1.2% Annual Real Estate Tax Rate Increase

Revenues, with 1.2% annually Expenses

1.2% Over Five Years: Revenues and Expenditures Projected

($10,000,000) ($5,000,000) $0 $5,000,000 $10,000,000 $15,000,000 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23

Dollars Fiscal Year

Unassigned Fund Balance Impacts ‐ Using Historical Inflation Rates + 1.2% Annual Tax Rate Increase

Unassigned Fund Balance

Benchmark Comparison of Unassigned funds (FItCH)

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Benchmark 1 ‐ Upper Target ‐ 3% Benchmark 1 ‐ Lower Target ‐ 2% GASD

Capital Funding Benchmark 1 ‐ 2% to 3% of Annual Budget for Capital Items

Benchmark Comparison of Unassigned funds (Moody’s)

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Benchmark 2 ‐ Target GASD

Capital Funding Benchmark 2 ‐ 21% of Annual Budget Available in Unassigned Fund Balances

Recommendation 18-19

Recommendation: 1.2% Tax Increase and Utilization of Unassigned Fund Balance of $3.4 Million

This Recommendation Accomplishes:

Reduction in Structural Deficit Effort to Better Predict Revenues and Expenditures Remaining Fund Balance Within Policy Limit Five Year Technology Plan: Instruction and Achievement Funding of Special Budget Requests: Student Experiences, Supports for Learning Funds for High School Roof Repair Continues Funding Capital Projects as Planned (Ongoing Five-Year Plan)

Reserve Accounts Stable Enough to Mitigate Possible Increased Expenditures in Future Years

Next Steps 18-19

May 21: Budget Work Session June 4: Public Budget Hearing (18-19) June 18: Approve Final Budget (18-19)

Additional Information

January 16th Memo: Explaining the Capital Improvement Program Worksheet showing Capital account balances as of 6/30/17 audit, with projected work forward Capital Improvement 5-Year Plan from Mr. Crosby Budget Detail Documents