Bethlehem Area School District 2018-2019 Budget Highlights & - - PowerPoint PPT Presentation

Bethlehem Area School District 2018-2019 Budget Highlights & Tentative Preliminary General Fund Budget

January 16, 2018

BUDGET CONTEXT

Goal: Maintain BASD “assets” and programming in support of the Roadmap to Educational Excellence 4.0 and the BASD Goals. Realities: Difficult economic times present us with “Structural Deficits” that make it increasingly difficult to achieve our goals.

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PRELIMINARY BUDGET STRATEGY

Preserving our ability to maximize our options by applying for Act 1 Exceptions in the face of numerous unknown variables at this early stage of the budget development process.

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2018-19 BUDGET GOALS

Roadmap 4.0 to Educational Excellence

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2018-19 PRIORITIES

Literacy Technology Student Services/Support

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2018-19 STRATEGIC INITIATIVES

ELEMENTARY (in addition to ESSA measures)

Each student will read at grade level by the end of

Grade 3.

SECONDARY (in addition to ESSA measures)

Each student will learn and grow in a personalized

manner.

Each student will navigate a BASD Career Pathway to

be ready for a college or a career upon.

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PRIORITIZED EDUCATIONAL PROGRAMS

Reading By Grade 3 (RBG3) Core Curriculum Revision PROJECT LEAD THE WAY Collective Impact Efforts: Community Schools,

Partnerships, etc.

Elementary Related Arts HS Computer Science Blended/Personalized Instruction

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We define access as providing each student what he or she needs to be successful, understanding that each child has different strengths and needs.

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2018-19 PRELIMINARY BUDGET …. THE BEGINNING

Preliminary Budget Increase

PSERS $ 35,146,932 $1,966,492 Charter Schools $ 29,257,173 $ 2,559,316 Everything Else $219,345,366 $ 7,391,229 Initial Deficit $10,703,980

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WHAT NEW MONEY IS TENTATIVE FOR BASD IN 2018-19??

Basic Education Funding (BEF) ($ 455) Special Education Funding (SEF) $ 111,754 Ready to Learn Grant $ -0- Federal Programs ($164,236) Pre-K Counts $ 34,000 Tuition Orphans/Group Homes $ 90,000 State Share Social Security $ 283,756 State Share Retirement $ 279,205 Total $ 634,024 Retirement Expense ($1,966,492) Net New Money for Programs ($1,332,468)

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STATE FUNDING IMPACT

Basic Ed. Funding (BEF)

BEF BEF Increase PSERS Increase

2013-14 BEF Actual

27,816,168 $ 771,493 $ 2,272,789 $

2014-15 BEF Actual

27,927,942 $ 111,774 $ 1,838,240 $

2015-16 BEF Actual

29,220,357 $ 1,292,415 $ 2,452,477 $

2016-17 BEF Actual

30,914,201 $ 1,693,844 $ 2,318,791 $

2017-18 BEF Budget

31,777,834 $ 863,633 $ 1,881,443 $

2018-19 BEF Budget

31,777,379 $ (455) $ 1,732,191 $ 4,732,704 $ 12,495,930 $

Final Allocation not confirmed until late May 2018 after 2016-17 enrollment data is finalized. Estimates are subject to change.

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2018-19 REVENUE SUMMARY

2018-19 Dollar Percentage Budget Change Change

Revenues: Local

$192,493,284 $3,717,832 1.97%

State

$73,240,422 $1,075,889 1.49%

Federal

$5,281,785 ($164,236)

• 3.02%

Other

$2,030,000 ($3,416,428)

• 62.73%

Total Revenue

$273,045,491 $1,213,057 0.45%

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2018-19 REVENUES BY SOURCE

2017-18 $271,832,434 2018-19 $273,045,491

Local 69.45% State 26.55% Other 2.00% Federal 2.00% Local 70.50% State 26.82% Other 0.74% Federal 1.93%

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2017-18 PRELIMINARY BUDGET EXPENDITURE SUMMARY

2018-19 Dollar Percentage Budget Change Change

Expenditures: Instruction

$128,946,988 $4,686,815 3.77%

Support Services

$62,063,471 $2,259,998 3.78%

**Non-Instr Svcs

$2,816,883 $171,021 6.46%

Facilities

$500,000 $500,000 0.00%

**Debt Svc/Transfers

$25,018,024 ($226,605)

• 0.90%

BASD

$219,345,366 $7,391,229 3.49%

PSERS

$35,146,932 $1,966,492 5.93%

CHARTER SCHOOLS

$29,257,173 $2,559,316 9.59%

Total Expenditures

$283,749,471 $11,917,037 4.38%

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2018-19 PRELIMINARY BUDGET EXPENDITURES BY CATEGORY

Instruction 64.27% Support Services 25.56% Non-Instr Svcs 1.15% Debt Svc/Transfers 8.82%

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PSERS FUNDING RATE

25.84% 15-16 12.36% 12-13 16.93% 13-14 21.4% 14-15

0% 5% 10% 15% 20% 25% 30% 35% 40%

30.03% 16-17 8.65% 11-12 5.64% 10-11 32.57% 17-18

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EXPENDITURES BY PROGRAM AREA

Expenditures Per Dollar Cost Instructional Programs 173,742,727 $ 0.61 $ Maintenance 18,801,387 $ 0.07 $ Instructional Support 18,309,017 $ 0.06 $ Transportation 8,707,736 $ 0.03 $ $0.81 Federal Programs 9,865,753 $ 0.03 $ Health Services 2,619,486 $ 0.01 $ Security 995,100 $ 0.00 $ Administrative Support 22,338,757 $ 0.08 $ Debt Svc/Transfers/Reserves 25,018,024 $ 0.09 $ Non-Instructional Costs 3,351,484 $ 0.01 $ 283,749,471 $ 1.00 $ $

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NON DISCRETIONARY EXPENDITURES

Salary & Benefits 168,277,841 $ 59.3% Charter Schools 29,257,173 $ 10.3% Debt Service 21,325,611 $ 7.5% Tuition Outside Student Pgms 12,134,465 $ 4.3% IU Services/Alt Ed/Sp Ed 10,545,854 $ 3.7% Utilities 2,995,000 $ 1.1% Transportation 2,950,366 $ 1.0% Insurance 833,303 $ 0.3% Federal Programs 9,865,753 $ 3.5% Total Budget 283,749,471 $ 91.1%

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SALARIES AS A PERCENTAGE OF BUDGET

Dollar Amount % of Total Expenditures Professional 76,726,705 $ 27.04% Maintenance 8,610,838 $ 3.03% Administration 7,120,663 $ 2.51% Instructional Assistants 4,480,785 $ 1.58% Clerical 4,198,185 $ 1.48% Bus Drivers 3,119,914 $ 1.10% Technical 894,589 $ 0.32% Total Salaries 105,151,679 $ 37.06% Associated Benefits 72,437,181 $ 25.53% Total Salaries & Benefits 177,588,860 $ 62.59%

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SALARIES & BENEFITS

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 18-19 17-18 16-17 15-16 14-15 13-14 $105.15 $101.56 $98.33 $95.98 $93.41 $95.69 $25.01 $26.16 $26.39 $23.78 $23.98 $26.17 18-19, $35.15 17-18, $33.18 16-17, $29.40 15-16, $24.72 14-15, $19.83 13-14, $16.11 Millions Salary . - Life/LTD . - Other . - Tuition . - UC . - WC . - Retiree . - SS . - Health . - PSERS

CHARTER SCHOOL ENROLLMENT

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• 500

1,000 1,500 2,000 2,500 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

491 611 690 933 994 1,064 1,308 1,429 1,640 1,743 1,842 14 156 147 166 234 304 234 266 242 201 208

S T U D E N T S

Brick & Morter Cyber

CHARTER SCHOOL COSTS

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$4,802,463.00 $6,335,519.70 $7,913,949.13 $9,410,044.66 $11,341,439.53 $12,652,271.80 $12,672,287.49 $18,434,453.77 $21,622,268.80 $23,320,498.15 $26,697,857.00

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000

CHARTER SCHOOL IMPACT

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2017-18 Estimate 2018-19 Budget % Budget Tax Mills % Tax for CS BASD Total Cost $271,832,434 $283,749,471 Charter School Tuition $26,475,563 $29,648,675 10.4% 7.5 15.5% Net BASD Budget $245,356,871 $254,100,796

18-19 BUDGET 17-18 BUDGET 16-17 ACTUAL 15-16 ACTUAL 14-15 ACTUAL 13-14 ACTUAL 12-13 ACTUAL 11-12 ACTUAL 10-11 ACTUAL 09-10 actual 08-09 ACTUAL 07-08 ACTUAL 06-07 ACTUAL CS Subsidy $- $- $- $- $- $- $- $- $1,723,818 $1,710,538 $1,463,457 $1,286,786 $1,021,288 Projected CS Subsidy (if cont'd) $6,296,342 $5,837,834 $4,977,151 $4,280,661 $3,416,009 $3,062,095 $2,540,634 $2,136,701 $1,723,818 $1,710,538 $1,463,457 $1,286,786 $1,021,288

$- $1 $2 $3 $4 $5 $6 $7 Millions

$32.55 million potential additional revenue if CS subsidy had not been eliminated

CHARTER SCHOOL SUBSIDY

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18-19 BUDGET

Millions illi

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2018-19 PRELIMINARY BUDGET

Expenditures $283,749,471 Revenues $273,045,491 Gap ($10,703,980)

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2018-19 BUDGET COST DRIVERS

Jan 2018

• PSERS

1,966,492 $

• Academic Initiatives

2,661,412 $

• Salaries

3,593,384 $

• Student Tuition

718,735 $

• Charter Schools

2,559,316 $

• General Operations

(795,359) $

• Net Deficit Remaining

10,703,980 $

18-19 BUDGET 17-18 BUDGET 16-17 ACTUAL 15-16 ACTUAL 14-15 ACTUAL 13-14 ACTUAL 12-13 ACTUAL 11-12 ACTUAL 10-11 ACTUAL 09-10 actual 08-09 ACTUAL 07-08 ACTUAL 06-07 ACTUAL Charter Schools 29257173 $26,697,85 $23,320,49 $21,622,26 $18,434,45 $15,854,78 $12,652,27 $11,341,44 $9,410,045 $7,913,949 $6,335,520 $4,802,463 $4,282,881 Net PSERS $18,276,45 $16,589,17 $14,707,72 $12,388,93 $9,936,460 $8,098,220 $5,825,431 $3,925,911 $2,715,858 $2,283,089 $2,256,683 $3,014,749 $2,937,933

$- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Millions

PRIMARY COST DRIVERS PSERS & CHARTER SCHOOLS

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$ 9,909,997

$ 64,404,105

$54.5M or 550% increase over 13 years

ACT 1 INDEX – HISTORICAL INDEX

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3.0% 3.1% 2.9% 2.3% 2.6% 2.1% 2.1% 1.7% 3.6% 5.1% 5.4%

1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09

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ACT 1 INDEX – ESTIMATED EXCEPTIONS

School Construction - Debt

• $

Special Education 2,362,390 Retirement Contributions 1,026,118 3,388,508 Total Est Increase Under Act 1 Provisions 8,348,283 $ Preliminary Estimated Exceptions: 4,959,775 $

• Est. Allowable Index 2018-19 3.0%

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FUND BALANCE REVIEW

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Budget $8,457,814 7,418,821 1,795,953 ($3,169,965) ($1,119,232) 8,891,091 15,418,727 15,471,346 18,918,779 17,155,765 19,074,393 14,757,959 16,041,747 16,041,747 Balance 5.53% 4.64% 1.03%

• 1.72%
• 0.60%

4.80% 7.80% 7.77% 8.87% 7.77% 8.34% 6.03% 6.21% 5.97%

$(3,169,965) ($1,119,232)

4.80% 7.77% 8.87% 7.77% 8.34% 6.21% 5.53% 4.64% 1.03% 6.03% 7.80% 5.97%

2017-18 MILLAGE RATES NORTHAMPTON COUNTY

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42 47 52 57 62 67 1 2 3 4 5 6 7 8 9 10

B A S D

1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.80% 1.90% 2.00% D K B A J G P I BASD N M L C O E F H

LEHIGH VALLEY LOCAL EFFORT

As related to Market Value & Personal Income

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B A S D

10 15 20 25 30 35

LEHIGH VALLEY EQUALIZED MILLS

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B A S D

OTHER COMPARATIVE DATA

BASD is

• 6th largest SD in student enrollment
• 10th of 27 in wealth in Lehigh Valley
• 166th most wealthy SD in PA
• 142nd in market value per student in PA
• 197th in personal income per student in PA

BASD spends 2% less overall than the average

school district per student in Lehigh Valley

BASD spends 7% less than the average school

district per student in Lehigh Valley before Charter tuition

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RECOMMENDED NEXT STEPS …..

Approve Preliminary Budget as Presented

• n February 12, 2018

Authorize the Administration to Apply for Act 1 Exceptions Administration Continues Work to Reduce the Budget Gap

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TIMELINE FOR SPRING

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WORKSHOPS DATES PRELIMINARY BUDGET ADOPTION February 12, 2018

(Special Board Meeting)

Governors Budget On or about February 6, 2018 Budget Workshop March 26, 2018 Budget Workshop April 30, 2018 Tentative Final Budget Adoption May 14, 2018

(Special Board Meeting)

FINAL BUDGET ADOPTION June 18, 2018

(Special Board Meeting)

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