2020-21 PROPOSED FINAL BUDGET May 13, 2020 2020-21 Budget Topics: - - PowerPoint PPT Presentation

NORRISTOWN AREA SCHOOL DISTRICT 2020-21 PROPOSED FINAL BUDGET

May 13, 2020

2020-21 Budget

• Topics:

– 2019-20 Revenue/Expense Projections – 2020-21 Proposed Final Budget – Legislative Proposal - Property Tax Freeze! – Taxpayer Impact / Payment Flexibility – Next Steps

2019-20 Revenue & Expense Projections

(Impact of COVID-19)

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000

Local Revenues

Assessment Appeals

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000

Local Revenues

Projects / Property Improvements Expected To Be Delayed

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 Earned Income Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000

Local Revenues

Filing Deadline Extension Rising Unemployment Revenue dropped 34% (April 2019 –vs- April 2020)

Week ending 3/28 4/4 4/11 4/28 4/25 5/2 Initial Claims 6,506 8,202 5,356 2,919 2,525 1,611 Continuing Claims 6,333 15,349 17,098 44,946 35,272 46,796

UC Claims - For Montgomery County

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 Earned Income Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000

Local Revenues

Property Transactions Already Slowing

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 Earned Income Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000

Local Revenues

Impacted by Rising Unemployment (Inability to pay) Concerns about Upset Sales moving forward Revenue dropped 10% (April 2019 –vs- April 2020)

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 Earned Income Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 Dlq Earned Income $ 366,962 $ 425,000 $ 390,000 $ 350,000

Local Revenues

Challenges Similar to Current EIT Filing Deadline Extension Rising Unemployment Revenue dropped 58% (April 2019 –vs- April 2020)

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 Earned Income Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 Dlq Earned Income $ 366,962 $ 425,000 $ 390,000 $ 350,000 Interest Earnings $ 1,023,462 $ 600,000 $ 900,000 $ 775,000

Local Revenues Market Conditions

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 Earned Income Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 Dlq Earned Income $ 366,962 $ 425,000 $ 390,000 $ 350,000 Interest Earnings $ 1,023,462 $ 600,000 $ 900,000 $ 775,000 All Other Local $ 1,012,882 $ 1,277,800 $ 1,277,800 $ 1,017,600 TOTAL $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600

Local Revenues Pre-COVID Local Revenue Projected to Exceed Budget

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 Earned Income Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 Dlq Earned Income $ 366,962 $ 425,000 $ 390,000 $ 350,000 Interest Earnings $ 1,023,462 $ 600,000 $ 900,000 $ 775,000 All Other Local $ 1,012,882 $ 1,277,800 $ 1,277,800 $ 1,107,600 TOTAL $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600

Local Revenues COVID Pandemic Projected Local Revenue Loss = $ 2,650,200

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Basic Ed $ 12,887,566 $ 14,476,000 $ 13,662,775 $ 13,662,775 Ready-To-Learn $ 787,066 $ 0 $ 787,000 $ 787,000 Subtotal $ 13,674,632 $ 14,476,000 $ 14,449,775 $ 14,449,775

State Revenues

• Gov. Wolf Originally Proposed Combining These Line Items

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Basic Ed $ 12,887,566 $ 14,476,000 $ 13,662,775 $ 13,662,775 Ready-To-Learn $ 787,066 $ 0 $ 787,000 $ 787,000 Special Ed $ 4,634,929 $ 4,813,000 $ 4,761,000 $ 4,761,000 Transportation $ 1,709,778 $ 2,000,000 $ 2,100,000 $ 2,100,000 Prop Tax Reduction $ 2,856,955 $ 2,838,000 $ 2,838,000 $ 2,838,000 FICA/PSERS $ 12,928,350 $ 13,350,000 $ 13,350,000 $ 13,350,000 All Other State $ 1,933,006 $ 1,735,500 $ 2,009,000 $ 2,009,000 TOTAL $ 37,737,650 $ 39,212,500 $ 39,507,775 $ 39,507,775

State Revenues Act 13 (Emergency School Code Bill) 2019-20 Full Subsidy Payment

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Local $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600 State $ 37,737,650 $ 39,212,500 $ 39,507,775 $ 39,507,775 Federal $ 7,688,295 $ 7,254,000 $ 7,912,000 $ 7,637,000 Other $ 504,429 $ 5,000 $ 2,500 $ 2,500 TOTAL $ 157,579,707 $ 160,592,050 $ 161,815,075 $ 158,889,875

Revenue Overview Federal Medical Access Reimbursement Impacted By COVID MA = Reimbursement For Svc Provided

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Local $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600 State $ 37,737,650 $ 39,212,500 $ 39,507,775 $ 39,507,775 Federal $ 7,688,295 $ 7,254,000 $ 7,912,000 $ 7,637,000 Other $ 504,429 $ 5,000 $ 2,500 $ 2,500 TOTAL $ 157,579,707 $ 160,592,050 $ 161,815,075 $ 158,889,875

Revenue Overview Pre-COVID Total Revenue Projected to Exceed Budget By $ 1.2 Million

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID

Local $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600 State $ 37,737,650 $ 39,212,500 $ 39,507,775 $ 39,507,775 Federal $ 7,688,295 $ 7,254,000 $ 7,912,000 $ 7,637,000 Other $ 504,429 $ 5,000 $ 2,500 $ 2,500 TOTAL $ 157,579,707 $ 160,592,050 $ 161,815,075 $ 158,889,875

Revenue Overview Variance = ($ 2,925,200)

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000

Expense Overview Act 13 (Emergency School Code Bill) Requires All Staff To Be Maintained & Paid For Full Year

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000

Expense Overview Act 13 (Emergency School Code Bill) Requires All Staff To Be Maintained with Full Benefits

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 Purch Profess Svc $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000

Expense Overview Purchased Professional Services; Contracted Subs, Contracted IU Svcs, Legal & Audit Svcs, etc. Spending Minimally Impacted by COVID

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 Purch Profess Svc $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 Purch Prop Svcs $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000

Expense Overview Purchased Property Services; Utilities, Maintenance/Repairs (Including IT) etc. Spending Minimally Impacted by COVID

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 Purch Profess Svc $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 Purch Prop Svcs $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 Other Purch Svcs $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877

Expense Overview Other Purchased Svcs; Charter/APS/PRRI Tuition, Contracted Transportation Advertising, Travel, etc. Spending Significantly Impacted By COVID (Primarily Transportation)

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 Purch Profess Svc $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 Purch Prop Svcs $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 Other Purch Svcs $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877 Supplies $ 3,232,887 $ 3,161,500 $ 2,900,000 $ 3,020,984

Expense Overview Supply Costs Adversely Impacted by COVID Sanitization / Disinfection (May Be Eligible for Partial FEMA Reimbursement)

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 Purch Profess Svc $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 Purch Prop Svcs $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 Other Purch Svcs $ 27,351,667 $ 26,504,000 $ 27.100,000 $ 26,255,877 Supplies $ 3,232,887 $ 3,161,500 $ 2,900,000 $ 3,020,984 Property / Equip $ 3,746,595 $ 1,831,270 $ 1,670,000 $ 1,670,000 Debt & Other $ 6,188,658 $ 8,864,980 $ 8,859,045 $ 8,859,045

Expense Overview Property/Equipment/Debt Spending Not Impacted By COVID

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 Purch Profess Svc $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 Purch Prop Svcs $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 Other Purch Svcs $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877 Supplies $ 3,232,887 $ 3,161,500 $ 2,900,000 $ 3,020,984 Property / Equip $ 3,746,595 $ 1,831,270 $ 1,670,000 $ 1,670,000 Debt & Other $ 6,188,658 $ 8,864,980 $ 8,859,045 $ 8,859,045 TOTAL $ 153,820,677 $ 160,592,050 $ 159,369,045 $ 158,270,906

Expense Overview Pre-COVID Total Expenses Projected Below Budget $ 1.2 Million

2019-20 (Current Year)

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 Purch Profess Svc $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 Purch Prop Svcs $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 Other Purch Svcs $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877 Supplies $ 3,232,887 $ 3,161,500 $ 2,900,000 $ 3,020,984 Property / Equip $ 3,746,595 $ 1,831,270 $ 1,670,000 $ 1,670,000 Debt & Other $ 6,188,658 $ 8,864,980 $ 8,859,045 $ 8,859,045 TOTAL $ 153,820,677 $ 160,592,050 $ 159,369,045 $ 158,270,906

Expense Overview COVID Closure Projected To Result In An Additional $ 1.1 Million in Reduced Costs No Windfall = Spending Reductions Offset By Local Revenue Losses

2019-20 (Current Year)

Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID Fund Balance 7/1/19 $ 7,136,618 $ 7,136,618 $ 7,136,618 2019-20 Revenues $ 160,592,050 $ 161,815,075 $ 158,889,875 2019-20 Expenses $ 160,592,050 $ 159,369,045 $ 158,270,906 Fund Balance 6/30/20 $ 7,136,618 $ 9,582,648 $ 7,755,587

Fund Balance Overview Variance = ($1.8 Million)

2020-21 Proposed Final Budget

2020-21 Proposed Final Budget

OVERVIEW (Worst Case Scenario):

• Includes Tax Increase @ Act 1 Adjusted Index = 3.30%
• Assumes level funding from the State; no increases/no reductions ?
• Assumes that efforts to reform Charter School tuition calculations do not move

forward for 2020-21

• Assumes CARES Stimulus funding of $1,500,000 – all unrestricted
• Allocations/guidelines not available yet
• Includes staffing changes as discussed in April
• NAHS Block Scheduling / 9th Grade Academy
• Middle School New Related Arts Course
• Includes funding for PPE & cleaning supplies
• CDC guidance moving target
• Questions about reopening expectations/requirements
• NAHS library and weightroom projects delayed; will revisit for 2021-22
• Roosevelt Family Service Center moving forward
• Use of $ 3.6 million in fund balance (nearly 50% of what we have!)
• COMMITTED TO REVIEWING/REFINING PROJECTIONS/PLANS

BEFORE FINAL ADOPTION IN JUNE 2020

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000

Local Revenues 3.30% Tax Increase (Act 1 Adjusted Index) Assumes Slight Reduction in Collection %

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 $ 75,000

Local Revenues Uncertainty @ Projects / Property Improvements Revenue Volatile From 2007-08 to 2010-11 During Last Economic Downturn

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 $ 75,000 EIT Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 $ 6,000,000

Local Revenues Revenue Impact From Economic Downturn Expect to Refine Projection For June 2020 Presentation

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 $ 75,000 EIT Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 $ 750,000

Local Revenues Revenue Dropped 47% From 2007-08 to 2008-09

(and remained low for following years)

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 $ 75,000 EIT Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 $ 750,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 $ 3,600,000

Local Revenues Revenue Dropped 9% From 2007-08 to 2009-10

(Then jumped significantly)

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 $ 75,000 EIT Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 $ 750,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 $ 3,600,000 Dlq EIT $ 366,962 $ 425,000 $ 390,000 $ 350,000 $ 300,000

Local Revenues Revenue Relatively Flat From 2007-08 to 2009-10

(Then jumped significantly)

Expect to Refine Projection For June 2020 Presentation

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 $ 75,000 EIT Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 $ 750,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 $ 3,600,000 Dlq EIT $ 366,962 $ 425,000 $ 390,000 $ 350,000 $ 300,000 Interest $ 1,023,462 $ 600,000 $ 900,000 $ 775,000 $ 300,000

Local Revenues Revenue Dropped 92% From 2007-08 to 2009-10

(Then recovered very slowly)

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 $ 101,000,000 Interim RE $ 173,593 $ 300,000 $ 200,000 $ 150,000 $ 75,000 EIT Tax $ 7,467,304 $ 7,550,000 $ 7,425,000 $ 6,000,000 $ 6,000,000 RE Transfer Tax $ 2,428,677 $ 1,350,000 $ 1,700,000 $ 1,550,000 $ 750,000 Dlq RE Tax $ 4,183,415 $ 4,700,000 $ 4,200,000 $ 3,900,000 $ 3,600,000 Dlq EIT $ 366,962 $ 425,000 $ 390,000 $ 350,000 $ 300,000 Interest $ 1,023,462 $ 600,000 $ 900,000 $ 775,000 $ 300,000 All Other Local $ 1,012,882 $ 1,277,800 $ 1,277,800 $ 1,107,600 $ 650,000 TOTAL $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600 $ 112,675,000

Local Revenues Local Revenues Significantly Impacted Projected Down By $ 1.7 Million (Even With Tax Increase @ Index)

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Basic Ed $ 12,887,566 $ 14,476,000 $ 13,662,775 $ 13,662,775 $ 13,662,775

State Revenues Estimated Pa Budget Shortfall = $ 4 Billion Governor Wolf originally proposed increasing BEF; NASD projected increase = $ 592,000 Hope is for Level Funding – No Reductions ?

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Basic Ed $ 12,887,566 $ 14,476,000 $ 13,662,775 $ 13,662,775 $ 13,662,775 Ready-To-Learn $ 787,066 $ 0 $ 787,000 $ 787,000 $ 787,000 Special Ed $ 4,634,929 $ 4,813,000 $ 4,761,000 $ 4,761,000 $ 4,761,000

State Revenues Governor Wolf originally proposed increasing Special Education Subsidy NASD projected increase = $ 129,000 (Combined BEF/Spec Ed Loss = $ 721k) Hope is for Level Funding – No Reductions ?

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Basic Ed $ 12,887,566 $ 14,476,000 $ 13,662,775 $ 13,662,775 $ 13,662,775 Ready-To-Learn $ 787,066 $ 0 $ 787,000 $ 787,066 $ 787,000 Special Ed $ 4,634,929 $ 4,813,000 $ 4,761,000 $ 4,761,000 $ 4,761,000 Transportation $ 1,709,778 $ 2,000,000 $ 2,100,000 $ 2,100,000 $ 2,100,000

State Revenues Act 13 (Emergency School Code Bill) NASD renegotiated with First Student = Full Payment Expected

(Subsidy Pymt Always 1 Yr Behind)

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Basic Ed $ 12,887,566 $ 14,476,000 $ 13,662,775 $ 13,662,775 $ 13,662,775 Ready-To-Learn $ 787,066 $ 0 $ 787,000 $ 787,000 $ 787,000 Special Ed $ 4,634,929 $ 4,813,000 $ 4,761,000 $ 4,761,000 $ 4,761,000 Transportation $ 1,709,778 $ 2,000,000 $ 2,100,000 $ 2,100,000 $ 2,100,000 Prop Tax $$ $ 2,856,955 $ 2,838,000 $ 2,838,000 $ 2,838,000 $ 2,838,170 FICA/PSERS $ 12,928,350 $ 13,350,000 $ 13,350,000 $ 13,350,000 $ 13,350,000 All Other State $ 1,933,006 $ 1,735,500 $ 2,009,000 $ 2,009,000 $ 2,009,000 TOTAL $ 37,737,650 $ 39,212,500 $ 39,507,775 $ 39,507,775 $38,768,945

State Revenues State Revenues Down For 2020-21

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Local $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600 $ 112,675,000 State $ 37,737,650 $ 39,212,500 $ 39,507,841 $ 39,507,841 $ 38,768,945 Federal $ 7,688,295 $ 7,254,000 $ 7,912,000 $ 7,637,000 $ 8,538,000

Revenue Overview

Federal Revenue Snapshot 2019-20 Projected Revenue (POST) $ 7,637,000 Conclusion of 21st Century ( $399,000) Projected Reduction in MA ( $ 200,000) New – CARES Stimulus $ 1,500,000 2020-21 Proposed Final $ 8,538,000

CARES Allocations / Guidelines Still N/A Expect to Refine Projections for June Discussion

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final

Local $ 111,649,333 $ 114,120,550 $ 114,392,800 $ 111,742,600 $ 112,675,000 State $ 37,737,650 $ 39,212,500 $ 39,507,775 $ 39,507,775 $ 38,768,945 Federal $ 7,688,295 $ 7,254,000 $ 7,912,000 $ 7,637,000 $ 8,538,000 Other $ 504,429 $ 5,000 $ 2,500 $ 2,500 $ 0 TOTAL $ 157,579,707 $ 160,592,050 $ 161,815,075 $ 158,889,875 $ 159,981,945

Revenue Overview 2020-21 Revenues Significantly Impacted By COVID

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,015,000

Expense Overview Includes Funding For Staff Changes Outlined In April And All Increases Per Current CBA’s/Agreements Cabinet Team & AAS (Administrative Team) Wage Concessions Not Factored In Yet

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,015,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 $ 44,640,500

Expense Overview SEPAST (Healthcare Consortium) 2020-21 Rate Increases: Medical – 0.8% Prescription Drug – 2.8% ******************************************** PSERS (Retirement) Employer Contribution Rate: 2019-20 = 34.29% 2020-21 = 34.51% Heightened Concern – PSERS Rates Moving Forward

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,015,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 $ 44,640,500 Purch Profess $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 $ 7,705,500

Expense Overview Purchased Professional Services; Contracted Subs, Contracted IU Svcs, Legal & Audit Svcs, etc. Expenses Will Be Impacted By Reopening Plans Projections Will Be Revisited For June Discussion

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,015,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 $ 44,640,500 Purch Profess $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 $ 7,705,500 Purch Prop $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 $ 2,612,000

Expense Overview Purchased Property Services; Utilities, Maintenance/Repairs (Including IT) etc. Expenses Will Be Impacted By Reopening Plans Projections Will Be Revisited For June Discussion

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,015,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 $ 44,640,500 Purch Profess $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 $ 7,705,500 Purch Prop $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 $ 2,612,000 Other Purch $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877 $ 28,078,000

Expense Overview Other Purchased Svcs; Charter/APS/PRRI Tuition, Contracted Transportation Expenses Will Be Impacted By Reopening Plans (Especially Transportation) Projections Will Be Revisited For June Discussion

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,015,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 $ 44,640,500 Purch Profess $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 $ 7,705,500 Purch Prop $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 $ 2,612,000 Other Purch $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877 $ 28,078,000 Supplies $ 3,232,887 $ 3,161,500 $ 2,900,000 $ 3,020,984 $ 3,323,000

Expense Overview Largest Concern = PPE / Sanitizing Supplies Expenses Will Be Impacted By Reopening Plans Projections Will Be Revisited For June Discussion

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,015,000 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 $ 44,640,500 Purch Profess $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 $ 7,705,500 Purch Prop $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 $ 2,612,000 Other Purch $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877 $ 28,078,000 Supplies $ 3,232,887 $ 3,161,500 $ 2,900,000 $ 3,020,984 $ 3,323,000 Property / Equip $ 3,746,595 $ 1,831,270 $ 1,670,000 $ 1,670,000 $ 1,670,000 Debt & Other $ 6,188,658 $ 8,864,980 $ 8,859,045 $ 8,859,045 $ 8,545,295 TOTAL $ 153,820,677 $ 160,592,050 $ 159,369,045 $ 158,270,906 $ 163,589,295

Expense Overview Property/Equipment/Debt – Primarily Fixed Costs

2020-21 Proposed Final Budget

Category Actual 2018-19 Budgeted 2019-20 (ADJUSTED) Projected 2019-20 PRE-COVID Projected 2019-20 POST-COVID 2020-21 Proposed Final Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 $ 67,030,00 Benefits $ 40,417,464 $ 43,882,800 $ 43,785,000 $ 43,785,000 $ 44,662,500 Purch Profess $ 7,040,792 $ 7,465,500 $ 7,390,000 $ 7,190,000 $ 7,705,500 Purch Prop $ 2,483,720 $ 2,142,000 $ 2,450,000 $ 2,275,000 $ 2,612,000 Other Purch $ 27,351,667 $ 26,504,000 $ 27,100,000 $ 26,255,877 $ 28,078,000 Supplies $ 3,232,887 $ 3,161,500 $ 2,900,000 $ 3,020,984 $ 3,323,000 Property / Equip $ 3,746,595 $ 1,831,270 $ 1,670,000 $ 1,670,000 $ 1,670,000 Debt & Other $ 6,188,658 $ 8,864,980 $ 8,859,045 $ 8,859,045 $ 8,545,295 TOTAL $ 153,820,677 $ 160,592,050 $ 159,369,045 $ 158,270,906 $ 163,626,295

Expense Overview 1.88% Variance

2020-21 Proposed Final Budget

Projected 2019-20 POST-COVID Fund Balance 7/1/19 $ 7,136,618 2019-20 Revenues $ 158,889,875 2019-20 Expenses $ 158,270,906 Fund Balance 6/30/20 $ 7,755,587 2020-21 Revenues $ 159,981,945 2020-21 Expenses $ 163,589,295 Fund Balance 6/30/21 $ 4,148,237

Fund Balance Overview Fund Balance Used in 2020-21= $ 3.6 Million

Legislative Concerns Property Tax Freeze Proposals

2020-21 Proposed Final Budget

Property Tax Freeze Proposals House Bill 1776 & House Bill 2431

• Still much discussion in Harrisburg about limiting local taxing authority
• NASD would be unable to increase tax rate for 2020-21 if approved
• Short term & long term effects would be devastating:

2020-21 Proposed Final Budget

Property Tax Freeze Proposals House Bill 1776 & House Bill 2431

• Still much discussion in Harrisburg about limiting local taxing authority
• NASD would be unable to increase tax rate for 2020-21 if approved
• Short term & long term effects would be devastating:

2019-20 2020-21 NO TAX INCREASE 2021-22 2022-23 2023-24 Revenues $ 158,889,875 $ 156,981,945 $ 159,500,000 $ 162,800,000 $ 166,500,000 Expenses $ 158,270,906 $ 163,589,295 $ 166,800,000 $ 169,700,000 $ 172,800,000 Surplus / Deficit $ 618,969 ( $ 6,607,350) ( $ 7,300,000) ( $ 6,900,000) ( $ 6,300,000) Begin Fund Balance $ 7,136,618 $ 7,755,587 $ 1,148,237 ( $ 6,151,763) ($ 13,051,763) Ending Fund Balance $ 7,755,587 $ 1,148,237 ( $ 6,151,763) ( $ 13,051,763) ($ 19,351,763) Fund Balance (% of Expenses) 4.90% 0.70%

• Act I Index Expected Low For

Next Few Yrs (Based on Pa Economy)

2020-21 Proposed Final Budget

Property Tax Freeze Proposals House Bill 1776 & House Bill 2431

• Still much discussion in Harrisburg about limiting local taxing authority
• NASD would be unable to increase tax rate for 2020-21 if approved
• Short term & long term effects would be devastating:

2019-20 2020-21 NO TAX INCREASE 2021-22 2022-23 2023-24 Revenues $ 158,889,875 $ 156,981,945 $ 159,500,000 $ 162,800,000 $ 166,500,000 Expenses $ 158,270,906 $ 163,589,295 $ 166,800,000 $ 169,700,000 $ 172,800,000 Surplus / Deficit $ 618,969 ( $ 6,607,350) ( $ 7,300,000) ( $ 6,900,000) ( $ 6,300,000) Begin Fund Balance $ 7,136,618 $ 7,755,587 $ 1,148,237 ( $ 6,151,763) ($ 13,051,763) Ending Fund Balance $ 7,755,587 $ 1,148,237 ( $ 6,151,763) ( $ 13,051,763) ($ 19,351,763) Fund Balance (% of Expenses) 4.90% 0.70%

• Act I Index Expected Low For

Next Few Yrs (Based on Pa Economy)

Fund Balance Depleted During 2021-22; Recovery Will Be Challenging / Impacted By Length of Recession

Taxpayer Impact Tax Payment Flexibility

2020-21 Proposed Final Budget

• Includes 3.30% Tax Increase (Act 1 Limit)

– 2019-20 Tax Rate = 37.952 Mills – 2020-21 Tax Rate = 39.204 Mills

• $ 163 to Avg NASD Taxpayer

Rebate Volunteer Installments

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Deadline Extensions

Rebate

North Penn SD Rebate Program

• Modeled After PA Property Tax/Rent Rebate Program
• Rebate Started at 25% of State Amount – Increased to 30% in 2019-20
• Max Rebate = $ 162.50 @ 25% & $195 @ 30%
• Program Eligibility:
• Age 65 or older
• Widow / Widower Age 50 or older
• Age 18 or older and permanently disabled
• NASD exposure = $ 309k at 25% & $ 371k at 30%

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Rebate Volunteer

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Owen J Roberts Senior Service Work Program

• Senior workers work up to 62.5 hours per year

for maximum compensation @ $500

• Program Eligibility:
• Age 60 or older
• NASD exposure = Difficult to calculate; could

be significant

Rebate Volunteer Installments

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

• NASD currently offers 4 installments
• Aug 3, Sept 3, Oct 3, Nov 3
• Act 1 allows up to 6 monthly payments
• Needs Board resolution
• Will require tax collector to

implement process changes

Rebate Volunteer Installments

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Deadline Extensions

• NASD cannot extend the

discount period

• House Bill 2460
• Would extend the

property tax discount period by 30 days would also eliminate the penalty through December 31, 2020

Rebate Volunteer Installments

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Deadline Extensions

Will Further Stress Fund Balance

Rebate Volunteer Installments

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Deadline Extensions

Will Further Stress Fund Balance Vulnerable Population Safety Concerns

Rebate Volunteer Installments

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Deadline Extensions

Will Further Stress Fund Balance Vulnerable Population Safety Concerns May Impact Cash Flow Recommend Moving to 6

Rebate Volunteer Installments

2020-21 Proposed Final Budget

Taxpayer Relief / Tax Payment Flexibility (Options)

Rebate

Deadline Extensions

Will Further Stress Fund Balance Vulnerable Population Safety Concerns May Impact Cash Flow Recommend Moving to 6 Monitor Legislative Activity Support Action

Next Steps

• Act 1 Requires Adoption of “Proposed” Final Budget

by 5/31

• Recommended Action Items For May:

– Approve 2020-21 Proposed Final Budget – Approve expanding installment options from four (4) payments to six (6) monthly payments

• Early notice to tax collectors needed

– Approve Cabinet/AAS proposals for voluntary wage concessions

Next Steps

• Using $ 3.6 Million in Fund Balance in 2020-21 is

simply too much

• 2020-21 Revenue Projections Will Be Refined

– Focusing on:

• Earned Income Tax
• CARES Stimulus Funding
• 2020-21 Spending Plans Will Be Revisited

– Staffing / Department Budgets / Building Budgets

• Recommend separate FF Committee meeting again in

June for review of Final Budget recommendations

• 2020-21 Final Budget must be adopted by 6/30/20

Next Steps

Questions