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) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID POST-COVID Current RE Tax $ 94,993,038 $ 97,917,750 $ 98,300,000 $ 98,000,000 Assessment Appeals

2019-20 (Current Year) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Projects / Property Improvements Expected To Be Delayed

2019-20 (Current Year) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Filing Deadline Extension UC Claims - For Montgomery County Rising Unemployment 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 Revenue dropped 34% (April 2019 – vs- April 2020)

2019-20 (Current Year) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Property Transactions Already Slowing

2019-20 (Current Year) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 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) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Challenges Similar to Current EIT Filing Deadline Extension Rising Unemployment Revenue dropped 58% (April 2019 – vs- April 2020)

2019-20 (Current Year) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Market Conditions

2019-20 (Current Year) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Pre-COVID Local Revenue Projected to Exceed Budget

2019-20 (Current Year) Local Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 COVID Pandemic Projected Local Revenue Loss = $ 2,650,200

2019-20 (Current Year) State Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Gov. Wolf Originally Proposed Combining These Line Items

2019-20 (Current Year) State Revenues Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Act 13 (Emergency School Code Bill) 2019-20 Full Subsidy Payment

2019-20 (Current Year) Revenue Overview Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Federal Medical Access Reimbursement Impacted By COVID MA = Reimbursement For Svc Provided

2019-20 (Current Year) Revenue Overview Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Pre-COVID Total Revenue Projected to Exceed Budget By $ 1.2 Million

2019-20 (Current Year) Revenue Overview Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 PRE-COVID 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 Variance = ($ 2,925,200)

2019-20 (Current Year) Expense Overview Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 (ADJUSTED) PRE-COVID POST-COVID Wages $ 63,358,894 $ 66,740,000 $ 65,215,000 $ 65,215,000 Act 13 (Emergency School Code Bill) Requires All Staff To Be Maintained & Paid For Full Year

2019-20 (Current Year) Expense Overview Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 (ADJUSTED) PRE-COVID 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 Act 13 (Emergency School Code Bill) Requires All Staff To Be Maintained with Full Benefits

2019-20 (Current Year) Expense Overview Category Actual Budgeted Projected Projected 2018-19 2019-20 2019-20 2019-20 (ADJUSTED) PRE-COVID 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 Purchased Professional Services; Contracted Subs, Contracted IU Svcs, Legal & Audit Svcs, etc. Spending Minimally Impacted by COVID