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Elizabethtown Area School District
Board of School Directors Workshop Session 2018-19 Proposed Final Budget
Tuesday May 8, 2018
“Excellence by CHOICE, Not by Chance”
“Excellence by CHOICE, Not by Chance”
Board of School Directors Workshop Session 2018-19 Proposed Final - - PowerPoint PPT Presentation
Board of School Directors Workshop Session 2018-19 Proposed Final - - PowerPoint PPT Presentation
Elizabethtown Area School District Board of School Directors Workshop Session 2018-19 Proposed Final Budget Tuesday May 8, 2018 Excellence by CHOICE, Not by Chance Opportunities and Threats Within the 4As Public Education is at a
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Opportunities
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Opportunities
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“Excellence by CHOICE, Not by Chance”
But also some serious challenges and threats
- Increasing Unfunded Mandates
- Homeless, foster, charter schools
- Increasing social support
- Free & reduced lunch, mental health
- Budget uncertainty / unpredictability
- New funding formula, political changes
Challenges and Threats
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Student Learning at Elizabethtown will:
PREPARE students for college and career readiness; PROMOTE 21st Century learning skills and processes; ENGAGE students and staff in real world problem solving; BY CAPITALIZING on personalized learning opportunities; PROVIDING a safe and supportive learning environment; EXTENDING beyond the walls of our school buildings by fostering strong relationships with families and the community.
Student Learning at Elizabethtown will:
“Excellence by CHOICE, Not by Chance”
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Goals for Budget
- Support student learning within the 4As
Support student learning within the 4As!
- Provide safe, clean environment to support
support student learning within the 4As! student learning within the 4As!
- Operate as effectively and efficiently as possible
to support student learning within the 4As! to support student learning within the 4As!
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Goals for Budget
- While planning for 2018-19….
- We are responsibly preparing for the Future
- Future renovations (Rheems, HSMS, MR?)
- Other capital projects (athletics, maintenance)
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Financial Update High Level View- Current Status
2016-17 2016-17 Actual Actual 2017-18 2017-18 Budget Budget 2017-18 2017-18 Projected Projected Revenue Revenue 58,112,553 58,112,553 59,654,419 59,654,419 59,915,000 59,915,000 Expense Expense 58,018,855 58,018,855 60,890,715 60,890,715 59,932,679 59,932,679 Surplus/Deficit Surplus/Deficit 93,698 93,698 (1,236,296) (1,236,296) (17,679)* (17,679)*
- *Result of careful strategic long-term planning
- Savings from changes in last CBA negotiations (health care, etc.)
SLIDE 11 PROPOSED FINAL BUDGET Revenue and Expense Projections 5/2/18 Board Update Dollar Variance Percent Change
REVENUES
Local 38,213,564 40,241,196 40,500,000 42,062,957 1,562,957 3.86% State 17,790,201 18,868,224 18,870,000 19,570,701 700,701 3.71% Federal 545,000 545,000 545,000 755,000 210,000 38.53% Other 56,548,765 59,654,420 59,915,000 62,388,658 2,473,658 4.13%
EXPENSES 100
Salaries Professional Education 18,521,878 19,249,062 19,100,000 19,825,153 725,153 3.80% Administration 2,856,760 2,960,308 2,925,000 3,028,983 103,983 3.55% Other 3,649,655 3,740,566 3,695,000 3,819,586 124,586 3.37% Total Salaries 25,028,293 25,949,935 25,720,000 26,673,722 953,722 3.71%
200
Employee Benefits Group Insurance 66,542 20,967 68,828 59,563 (9,265)
- 13.46%
- 27.43%
- 9.41%
- 7.60%
- 34.00%
- 0.97%
- 78.82%
EASD Budget vs Actual Comparison
Object Code 2016-2017 Actual 2017-2018 Budget 2017-2018 Projected April 2018 SLIDE 12
Financial Update Proposed Budget- High Level View
2018-19 Budget 2018-19 Budget Revenue Revenue
3.2% tax increase 3.2% tax increase
62,388,658 62,388,658 Expense Expense 62,394,486 62,394,486 Surplus/Deficit Surplus/Deficit (5,828) (5,828)
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EXPENDITURES
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EASD - Historical Operating Expenses
41,248,515 43,719,530 44,796,910 46,433,519 45,987,209 47,807,417 51,681,238 53,329,469 54,129,849 58,018,855 59,932,679 62,394,486
10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
- 2017-18 projected
- 2018-19 budget
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Expenditures by Major Function Area 2018-2019*
Instruction 63.6% Student Supports, Admin, Business, Transport 28.5% Athletics & Extracurricular 2.1% Debt and Transfers 5.9%
*Proposed
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Expenditures by Major Category 2018-2019*
Salaries 42.75% Benefits 27.53% IU, Subs, Prof Serv 5.88% Property Svcs 1.23% Transport., Charter Schools, Tuition 9.96% Supplies 4.64% Property 0.01% Other 0.30% [CATEGORY NAME] (Debt Service, Cap Reserve) [PERCENTAGE]
*Proposed Budget
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Expenses- Key Points
“Excellence by CHOICE, Not by Chance”
Salaries: Teachers at contracted increase- 3.25%, but varies by step and level (the range is from 1.17 to 4.8%) Administrators at 3.75% based on performance (as per the Act 93 agreement) Support staff at 3.25% (as in line with the CBA) PSERS Rate= 34.18%, a 4.94% increase over 17-18 rate of 32.57% Health care= budget at 0% increase
- Recent plan changes having positive effect
Other contracts Adjusted as needed- selected key B&G, Business Office, and other operations contracts
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“Excellence by CHOICE, Not by Chance”
Adjustments given changing circumstances
- Retirees/resignations- Savings of ($475,801)
- Not replacing three teaching positions
- Shifting existing staff to balance class sizes and increase efficiency
- Special ed program- new hires- Addition of $657,473
- Cost avoidance strategy- better outcome than contracting service
- Opportunity to offset cost through tuition sale with other member districts
- Extends continuity of key Autistic Support program across buildings
- No increase in health care budget- 0%
Personnel Budget Adjustments
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“Excellence by CHOICE, Not by Chance”
- School calendar changes
- Reduction in days for transportation, paras, subs
- IU Special ed contract reduction
- Cost avoidance strategy- offsets new hires, allows more flexibility in program
- Building budget cuts
- Principals reviewed and approved
Reducing Expenses
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“Excellence by CHOICE, Not by Chance”
Over $1 million budget
- Planned projects- security, HVAC, athletics, marquee
- Contingency- HVAC, roofing, furniture
- Complete list finalized in June
Capital Improvements
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REVENUE
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2018-2019 Sources of Revenue
68% 31% 1%
Local State Federal
Total Revenue for 2018-2019 Budget = $62,388,658
Assumes 3.2% tax increase
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“Excellence by CHOICE, Not by Chance”
Revenue Key Points
- Increase in local sources
- Tax increase- 3.2% (Act 1 index)
- Forecasted growth in EIT, other local sources
- Interest income- improved rates
- State revenue- 0% increase for BEF and SEF
- Federal revenue- increase for ACCESS funding
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EASD - Index vs. Tax Increases
4.20% 5.50% 5.10% 3.60% 1.80% 2.20% 2.20% 2.70% 2.40% 3.00% 3.20% 3.20% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Act 1- EASD Tax Increase
- Average tax increase for last 7 years- 2.94%
- Average Act 1 Index for last 7 years- 2.70%
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EASD Millage Rate Since 2006
15.3394 16.1816 16.5861 17.27 17.58 17.89 17.89 18.37 19.1048 19.9000 20.8450
5.0000 10.0000 15.0000 20.0000 25.0000 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
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2017-18 Lancaster Co. Millage Rates
12.8109 15.3848 16.3220 17.7731 18.4841 19.4128 20.0600 20.3258 20.5494 20.8450 20.9600 21.1623 22.8790 23.1600 28.2568 30.1908 20.5361
0.0000 5.0000 10.0000 15.0000 20.0000 25.0000 30.0000 35.0000
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2017-18 Lancaster Co. Mill Value
352,087 1,252,987 1,305,501 1,493,969 1,629,961 1,724,327 1,797,375 1,913,924 1,934,488 2,012,620 2,130,860 2,423,876 2,685,307 2,718,333 3,220,042 3,693,117500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000
Determinants of Mill Value ü Property value ü Housing growth- new development ü Industry ü New business development ü Strong school system All of these except last one- OUTSIDE DISTRICT CONTROL! All of these except last one- OUTSIDE DISTRICT CONTROL!
EASD generates $388k less per mill than the Lancaster Co. average mill EASD generates $388k less per mill than the Lancaster Co. average mill
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2017-18 Lancaster Co. Mill Strength
Value of One Mill at Average County Millage (Value of One Mill x 20.5361)
7,230,484 25,731,470 26,809,897 30,680,289 33,473,032 35,410,954 36,911,073 39,304,537 39,726,845 41,331,366 43,759,550 49,776,964 55,145,739 55,823,954 66,127,100 75,842,21610,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000
Shows the discrepancy in mill value Shows the discrepancy in mill value when multiplied over multiple mills! when multiplied over multiple mills!
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2017-18 Impact of Exempt Properties
Ranked Highest to Lowest, Exempt Properties as % of Total Assessment
- EASD has 2nd highest tax exempt entities (Elizabethtown College, Masonic Village, churches)
- Only Masonic Village makes significant contribution (PILOT- $959k) relative to overall assessed value
*Not final audited numbers DISTRICT
5/1/2017 Taxable Assessment 5/1/2017 Exempt Assessment % of Total Assessment SCHOOL DIST OF LANCASTER $2,685,307,300 $829,610,900 23.6% ELIZABETHTOWN $1,629,960,500 $297,988,700 15.5% PENN MANOR $2,423,876,200 $334,179,500 12.1% COLUMBIA BORO $352,086,500 $48,398,900 12.1% EPHRATA AREA $1,934,488,300 $241,145,400 11.1% MANHEIM TOWNSHIP $3,220,041,800 $393,315,900 10.9% WARWICK $2,012,620,000 $214,733,300 9.6% PEQUEA VALLEY $1,305,550,900 $131,942,000 9.2% EASTERN LANCASTER $2,130,859,800 $197,244,800 8.5% CONESTOGA VALLEY $2,718,332,800 $250,140,000 8.4% HEMPFIELD $3,693,116,800 $336,447,100 8.3% DONEGAL $1,252,987,200 $112,977,700 8.3% MANHEIM CENTRAL $1,797,375,000 $150,155,200 7.7% LAMPETER-STRASBURG $1,724,327,100 $134,644,600 7.2% SOLANCO $1,913,924,100 $145,701,700 7.1% COCALICO $1,493,968,600 $110,301,400 6.9%
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“Excellence by CHOICE, Not by Chance”
- Controlled and driven by Lancaster County
- Assessed value should be pegged to market value (in
theory)
- Should be kept up to date – every 7 to 8 years
- Countywide reassessment should be revenue neutral
revenue neutral
- Neutral in total – not neutral to individual properties
Reassessment Overview
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“Excellence by CHOICE, Not by Chance”
1997-1998
- Millage dropped from 61.5 to 10.145
- Initial Tax Increase 8.13% to 10.97
2005-2006
- Millage dropped from 13.5 to 12.134
- Initial Tax Increase 18.26% to 14.35
Reassessment Overview- History
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“Excellence by CHOICE, Not by Chance”
Reassessment Overview
Municipality Municipality
% Increase in Assessed % Increase in Assessed Value Value
Conoy 23.55% West Donegal 28.28% E-town Boro 33.27%
- Mt. Joy Upper
29.11%
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“Excellence by CHOICE, Not by Chance”
Reassessment Overview- Preliminary Figures
2017-18
- Assessment*
$1,629,960,500
- Millage Rate
20.845
- Slots Funding
$596,468
- Collection Rate
96.50%
- Revenue Yield
$32,211,757 Equalized Millage Before Increase
- 2018-19
- Assessment *
* $2,111,466,600
- Millage Rate *
* 16.1 16.1
- Slots Funding *
* $596,468
- Collection Rate *
* 96.50%
- Revenue Yield *
* $32,229,209 29.54% increase in assessment 29.47% decrease in millage
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“Excellence by CHOICE, Not by Chance”
Reassessment Overview- Proposed Figures
2017-18
- Assessment*
$1,629,960,500
- Millage Rate
20.845
- Slots Funding
$596,468
- Collection Rate
96.50%
- Revenue Yield
$32,211,757 Equalized Millage Before Increase
- 2018-19
- Assessment *
* $2,111,466,600
- Millage Rate *
* 16.0914 16.0914
- Slots Funding *
* $596,468
- Collection Rate *
* 96.50%
- Revenue Yield *
* $32,211,686 29.54% increase in assessment 29.54% increase in assessment 29.54% decrease in millage 29.54% decrease in millage
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“Excellence by CHOICE, Not by Chance”
Potential Tax Increase Example
2018-19 Assessed Value 172,875 $ 2018-19 mills 16.6063 2018-19 Tax 2,871 $ 2018-19 Assessed Value 179,154 $ 2018-19 mills 16.6063 2018-19 Tax 2,975 $ 2018-19 Assessed Value 183,939 $ 2018-19 mills 16.6063 2018-19 Tax 3,055 $ Home Assessment Up 25% Home Assessment Up 29.54% Home Assessment Up 33%
Current Millage 20.845 Equalized/Reassessed Millage 16.0914 Equalized/Reassessed Millage at Index 16.6063 2017-18 Assessed Value 138,300 $ 2017-18 mills 20.845 2017-18 Tax 2,883 $
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Reassessment Current Millage Recalculation
ü New median assessed value in EASD = $177,100 ü Tax at reassessed millage rate= $2,849.79 ü Tax at increased millage rate (3.2%)= $2,940.98 ü Tax increase at recalculated millage rate= $91.19 ü Increase of $7.60 per month
- “Excellence by CHOICE, Not by Chance”
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“Excellence by CHOICE, Not by Chance”
Reassessment Overview- Next Steps
- Part of final budget package
- An item will appear on the voting agenda for June 12 to
set the equalized millage rate.
- An additional item will also appear that sets the tax
increase and the new millage for 2018-19.
- Separate votes are not required but recommended for
transparency
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“Excellence by CHOICE, Not by Chance”
Changes to Food Service Program
- Renovations- after the fire
- Reimbursed by insurance
- New design more flexible- meets modern needs
- Contract Extension- SFE
- Approved by PDE
- New initiatives- breakfast bar, more options
- Price Increase
- Mandated- HHFKA (Michelle Obama Act)
Cafeteria
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Key Takeaways
ü
EASD has a strong focus on the 4As in our district and a vision for moving forward with innovation
ü
Balancing the educational needs of our future workforce while recognizing the fiscal realities
ü
Big Cost Drivers in Budget
- Salaries- education is a ”people business”
- Pensions
- Special Education
- Charter Schools
- “Excellence by CHOICE, Not by Chance”
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The Administration is requesting Board approval of the Proposed Final Budget at tonight’s meeting. The Proposed Final Budget will be on public display for 30 days. Tentative final adoption is scheduled for June 12, 2018.
Board Action:
“Excellence by CHOICE, Not by Chance”