District Budget Presentation May 12, 2015 2015/16 Deficit Reduction - PowerPoint PPT Presentation

Northern Bedford County School District Budget Presentation May 12, 2015

2015/16 Deficit Reduction Process Date Deficit June 2014 Board Passed a motion for evaluation of programs and staff for 2015/16 Budget July – December 2014 Administration Reviewed All Programs and made recommendations at the Board Retreat December 2014 2015/16 Projected Deficit -$721,567 January/February 2015 Administrative Budget -$622,092 Reduction February/March 2015 Offered to Support and -$622,092 Teacher Associations to Switch to QHD March/April 2015 Offered a retirement incentive -$72,325 to Teachers and one support staff resignation and other budgetary adjustments such as Health premium reduction 2

2015/16 Deficit Reduction Process Date Deficit May 2015 Additional items budgeted for -$138,324 increase to biomass fuel for 15/16; increase in anticipated fees 3

2015/16 Budget Items • Retirement Incentive: – $20,000 over 3 years ($6666.67/year to HRA) – Retirees enter the Qualified High Deductible Plan (QHD) – Ill day buyout per current CBA at $65/day – Board Received 5 Letters of Intent to Retire and it is the intention to only replace 1 of these 5 positions 4

5 Year Projections 2015/16 2016/17 2017/18 2018/19 2019/20 Preliminary Projected Projected Projected Projected Budget Excess (Deficiency) of $-721,567 $-1,008,796 $-1,115,576 $-1,270,928 $-1,422,227 Revenue over Expenditures Dec 2014 With Retirement $-138,325 $-656,137 $-743,440 $-845,352 $-975,798 Incentives and Replacement Plan, Non Renewal of Contract for one Professional Employee Improvement in $583,242 $352,659 $372,136 $425,576 $446,429 Deficit Approximate Future $0 $-3,989 $-105,388 $-203,314 $-213,480 Planning If Teacher group would go to QHD Plan Potential Future $583,242 $-652,148 $-638,102 $-642,038 $-762,318 Deficits with QHD 5

Affects to 2014/15 Budget Deficit Projected Deficit as of April 2015 -$7,418 Adopted Budgeted Deficit for 2014/15 -$393,799 We are still doing better than budgeted by $386,381 as of now. This projection is as of April 2015 actual expenditures and revenues. There are also various audit entries and items to occur yet in 2014/15 that may affect the projection and ending 2014/15 deficit. Final audited reports will not happen until October of 2015. 6

Reduction in Extended Contract Days Teacher 2014/15 Days 2015/16 Days Elem Librarian 3 - $747.87 2 - $498.58 MS/HS Guidance 11 - $3,807.32 6 - $2,076.72 MS/HS Lib 3 - $1,031.80 2 - $687.87 Ag 15 - $5,802.05 8 - $3,094.43 Elem Guidance 4 - $1,019.02 2 - $509.51 Ag 7 - $4,029.51 4 - $2,149.07 Nurse 7 - $1,923.66 4 - $1,099.23 MS/HS Guidance 7 - $1,816.94 4 - $1,038.25 Total $20,178.17 $11,153.66 7

Enrollment Trends School Year K-12 Enrollment 2005/06 1,210 2006/07 1,141 2007/08 1,125 2008/09 1,089 2009/10 1,081 2010/11 1,058 2011/12 1,011 2012/13 1,007 2013/14 1,016 2014/15 992 2015/16** Projected 956 2016/17** Projected 929 8

Staffing Trends School Year Professional Support Total 2005/06 102 44 146 2006/07 103 43 146 2007/08 99 50 149 2008/09 103 48 151 2009/10 102 46 148 2010/11 102 44 146 2011/12 100 45 145 2012/13 96 49 145 2013/14 96 49 145 2014/15 96 47 143 2015/16 92* 45 137 * Anticipated Retirements 9

2015/16 State Subsidy • Governor Wolf’s budget address held on March 3, 2015. He offers education a lot of fiscal help in his presentation • Preliminary spreadsheets from PDE show that we could receive an additional $189,703, however the Ready to Learn/Accountability Block Grant was already included in the preliminary budget. The Governor is proposing moving this to the regular Basic Education Funding (BEF) line item. He also is suggesting additional special education funding that could be $28,782 for NBC. Lastly, he has an initiative to reinstate reimbursement from charter school tuition in the amount of 10% of our costs. This reimbursement ended in 2010/11. This could be $51,670 to NBC. All of this is HIGHLY SUBJECTIVE and needs legislative cooperation. • Referendum exceptions which will allow the district to raise taxes above the 2.5% index totaled $35,896. The maximum mills that we could raise would be .0971.

Difference between Revenue and Expenditure is the Increase/Decrease to Fund Balance Effect to Fund Balance 2015/16 Budgeted Revenues $12,669,785 2015/16 Budgeted Expenditures $13,063,584 Decrease to Fund Balance $ - 138,325 IF we add the additional subsidy proposed $100,000 by Governor Wolf Decrease to Fund Balance $ 38,325 11

PSERS Contribution Projections Fiscal Year Employer Object 230 Retirement Contribution Projections by Reimbursed by Rate Year State 2010/11 5.64% $342,084 $268,351 2011/12 8.65% $523,389 $312,261 2012/13 12.36% $737,978 $442,787 2013/14 16.93% $946,039 $567,624 2014/15 21.40% $1,283,447 $763,046 2015/16 25.84% $1,455,101 $887,545 2016/17 29.27% $1,724,728 $1,051,618 2017/18 30.25% $1,803,824 $1,100,147 2018/19 31.28% $1,887,517 $1,151,497 2019/20 32.08% $1,958,422 $1,195,073 It is projected to continue to increase until 2035 at a top rate of 33.27%. This assumes an 8% return of investment on PSERS funds plus all the other changes that go in effect July 1, 2011 with new employees and the T-E and T-F tiers. Any other changes will require legislative action. 12

2015/16 2015/16 Variance Variance with Pre With Major Object 2014/15 2014/15 vs incentive and Retirement Retirement Pre Incentive without Incentive Incentives 100 – Salaries $6,076,017 $6,211,938 $5,815,067 $135,921 -$396,871 200 – Employee $3,711,415 $4,118,047 $3,845,780 $406,632 -$272,267 Benefits 300 – Purchased Professional Services $401,540 $407,335 $468,335 $5,795 $61,000 400 – Purchased $271,185 $269,756 $269,756 -$1,429 $0 Property Services 500 – Other Purchased $1,295,495 $1,295,908 $1,295,908 $413 $0 Services 600 – Supplies/ Textbook/Workbook $557,385 $522,817 $545,005 -$34,568 $22,188 700 – Property $97,770 $86,334 $86,334 -$11,436 $0 800 – Other Objects $274,391 $295,182 $295,182 $20,791 $0 900 – Financing $387,686 $395,926 $395,926 $8,240 $0 Total $13,072,884 $13,603,243 $13,017,292 $530,359 -$585,950 100-200 OBJECTS $9,787,432 $10,329,985 $9,660,847 $542,553 -$669,138 300-900 OBJECTS $3,285,452 $3,273,258 $3,286,258 -$12,194 $83,188 13

2015/16 2014/15 With Variance 14/15 Percentage 2015/16 Percentage Major Object 2013/14 2014/15 Retirement VS 15/16 Increase (Decrease) Increase Incentives (Decrease) 100 – Salaries $5,843,861 $6,076,017 $5,815,067 -$260,950 3.97% -4.29% 200 – Employee $3,304,345 $3,711,415 $3,845,780 $134,365 12.32% 3.62% Benefits 300 – Purchased $316,320 $401,540 $468,335 $66,795 26.94% 16.63% Professional Services 400 – Purchased $254,119 $261,885 $269,756 $7,871 3.06% 3.01% Property Services 500 – Other Purchased Services $1,458,046 $1,295,495 $1,295,908 $413 -11.15% 0.03% 600 – Supplies/ Textbook/Workbook $483,880 $557,385 $545,005 ($12,380) 15.19% -2.22% 700 – Property $185,627 $97,770 $86,334 ($11,436) -47.33% -11.70% 800 – Other Objects $370,693 $274,391 $295,182 $20,791 -25.98% 7.58% 900 – Financing $374,736 $387,686 $395,926 $8,240 3.46% 2.13% Total $12,591,627 $13,063,584 $13,017,292 -$46,291 -3.75% -35.00% 100-200 OBJECTS $9,148,206 $9,787,432 $9,660,847 6.98% -$126,585 -1.29% 300-900 OBJECTS $3,443,421 $3,276,152 $3,286,258 $80,294 -4.86% 3.08% 14

2015/16 General Fund Budget … At A Glance Revenues Expenditures 6000-Local $3,856,145 1000-Instruction $7,750,070 Increase of $91,718 Decrease of $94,106 7000-State $8,618,785 2000-Support $4,280,471 Increase of $117,465 Increase of $47,934 8000-Federal $ 404,038 3000-Operation of Non-Instructional Increase of $0 Services $ 318,401 Decrease of $26,347 4000-Facilities, Acquisition, Improvement $ 6,500 No increase or decrease 5000-Other Expenditures and Financing $ 661,851 Increase of $26,532 Total $12,874,780 Total $13,017,292 Increase of $209,183 Decrease of $45,992 15

REVENUES 2014/15 2015/16 Variance Percentage Percentage 2013/14 2014/15 2015/16 14/15 VS Increase Increase Budget Budget Budget 15/16 (Decrease) (Decrease) 6000 Local Funds $3,579,571 $3,764,427 $3,856,145 $91,718 5.16% 2.3% 7000 State Funds $8,422,869 $8,501,320 $8,618,785 $117,465 0.93% 1.38% 8000 Federal Funds $389,038 $404,038 $404,038 $0 3.86% 0.00% Total $12,391,478 $12,669,785 $12,878,968 $209,183 2.25% 1.61% 16