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

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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 Reduction

• $622,092

February/March 2015 Offered to Support and Teacher Associations to Switch to QHD

• $622,092

March/April 2015 Offered a retirement incentive to Teachers and one support staff resignation and other budgetary adjustments such as Health premium reduction

• $72,325

2015/16 Deficit Reduction Process

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Date Deficit May 2015 Additional items budgeted for increase to biomass fuel for 15/16; increase in anticipated fees

• $138,324

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

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5 Year Projections

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2015/16 Preliminary Budget 2016/17 Projected 2017/18 Projected 2018/19 Projected 2019/20 Projected

Excess (Deficiency) of Revenue over Expenditures Dec 2014

$-721,567 $-1,008,796 $-1,115,576 $-1,270,928 $-1,422,227

With Retirement Incentives and Replacement Plan, Non Renewal of Contract for one Professional Employee

$-138,325 $-656,137 $-743,440 $-845,352 $-975,798

Improvement in Deficit

$583,242 $352,659 $372,136 $425,576 $446,429

Approximate Future Planning If Teacher group would go to QHD Plan

$0 $-3,989 $-105,388 $-203,314 $-213,480

Potential Future Deficits with QHD

$583,242 $-652,148 $-638,102 $-642,038 $-762,318

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.

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Reduction in Extended Contract Days

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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

Enrollment Trends

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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

Staffing Trends

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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

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

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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 by Governor Wolf $100,000 Decrease to Fund Balance $ 38,325

PSERS Contribution Projections

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Fiscal Year Employer Contribution Rate Object 230 Projections by Year Retirement Reimbursed by 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

• n 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.

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Major Object 2014/15 2015/16 Pre Retirement Incentive 2015/16 With Retirement Incentives Variance 2014/15 vs Pre Incentive Variance with incentive and without 100 – Salaries $6,076,017 $6,211,938 $5,815,067 $135,921

• $396,871

200 – Employee Benefits $3,711,415 $4,118,047 $3,845,780 $406,632

• $272,267

300 – Purchased Professional Services $401,540 $407,335 $468,335 $5,795 $61,000 400 – Purchased Property Services $271,185 $269,756 $269,756

• $1,429

$0 500 – Other Purchased Services $1,295,495 $1,295,908 $1,295,908 $413 $0 600 – 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

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Major Object 2013/14 2014/15 2015/16 With Retirement Incentives Variance 14/15 VS 15/16 2014/15 Percentage Increase (Decrease) 2015/16 Percentage Increase (Decrease) 100 – Salaries $5,843,861 $6,076,017 $5,815,067

• $260,950

3.97%

• 4.29%

200 – Employee Benefits $3,304,345 $3,711,415 $3,845,780 $134,365 12.32% 3.62% 300 – Purchased Professional Services $316,320 $401,540 $468,335 $66,795 26.94% 16.63% 400 – Purchased Property Services $254,119 $261,885 $269,756 $7,871 3.06% 3.01% 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

• $126,585

6.98%

• 1.29%

300-900 OBJECTS $3,443,421 $3,276,152 $3,286,258 $80,294

• 4.86%

3.08%

2015/16 General Fund Budget … At A Glance

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Revenues Expenditures 6000-Local $3,856,145 Increase of $91,718 1000-Instruction $7,750,070 Decrease of $94,106 7000-State $8,618,785 Increase of $117,465 2000-Support $4,280,471 Increase of $47,934 8000-Federal $ 404,038 Increase of $0 3000-Operation of Non-Instructional 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 Increase of $209,183 Total $13,017,292 Decrease of $45,992

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2013/14 Budget 2014/15 Budget 2015/16 Budget Variance 14/15 VS 15/16 2014/15 Percentage Increase (Decrease) 2015/16 Percentage Increase (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%

REVENUES

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2014/15 Assessed Values as of June 2014 (Column A) 2014/15 Assessed Values as of Feb 2015 (Column B) Increase in County Assessment (Column C) 2015/16 Projected Real Estate Revenue with no Act 1 increase (Column D) B/1000* 7.6992 *94% Collection less Homestead/ Farmstead 2015/16 Projected Real Estate with Act 1 Tax Increase (Column E) B/1000* 7.9071* 94% Collection less Homestead /Farmstead 2015/16 Projected Real Estate with Act 1 Tax Increase and Increases available with Referendum Exceptions (Column F) B/1000*7.9984* 94% Collection less Homestead/Farms tead $390,265,530 $392,957,050 $2,691,520 $2,519,323 $2,782,546 $2,818,423 Value per mill = $392,957 (Assessed Value /1000) Tax Increase to the Index limit 7.6992* 2.7% = 7.9071 Referendum exception allows $35,894 which equates to .0913 mil Both increases would set millage at 7.9984 This budget was built with the assumption of a tax increase and using referendum exceptions for reasons of retirement costs. Tax increase (net of collection rate) without Referendum Exceptions would allow $81,697 to be raised over what was budgeted for 2014/15

Fund Balance

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Fund Balance Year Ending June 30, 2014 Unaudited Fund Balance Year Ending June 30, 2015 Projected Fund Balance Year Ending June 30, 2016 Beginning Balance

$2,823,283 $2,818,634 $2,648,524

Deficit of Expenditures over Revenues

• $4,649
• $170,110
• $138,324

General Fund Balance

$2,818,634 $2,648,524 $2,510,200

Ending Capital Reserve

$893,838 $832,616 $765,616

Overall Assets

$3,712,472 $3,481,140 $3,275,816

Percentage Change

6.2% Decrease 4% Decrease

Capital Reserve – 2015/16 Activity

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Capital Reserve Balance Capital Reserve Balance 2014/15 $ 765,616 Undesignated Balance $ 765,616 Capital Reserve Balance Door Project Paid to Date $37,000 Telecor Paid to Date $33,222 Door Project portion not paid $37,000 Telecor portion not paid $30,000

Capital Reserve – 2014/15 Activity

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Project Timeline/Fund Approximate Amount #1 – Seal Coating the Elementary Parking Lots and Lining Summer 2015/16 – Capital Reserve $30,000 * Bids will be required /Prevailing wage #2 – Roof for Middle/High School Building Construction Fund Allowable $750,000 #3 MS/HS Lots and curbing should be done in conjunction with PennDOT project Summer 2016/17– Capital Reserve $210,000 *Bids will be required/Prevailing wage #4 Sub pumps – Middle school area drain water and roof water pumps up and out and the Boiler Room Sub pump General Fund Budget 2015/16 * Not currently budgeted– Capital Reserve $8,000 #5 Replogle Building Roof and Electrical repairs Summer 2015/16– Capital Reserve $10,000 *Awaiting bids #6 Pole Lights for Parking Project Summer 2015/16– Capital Reserve Already approved for in 2014/15. Poles are

• rdered and will be here

shortly

Priority List of Maintenance Projects

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Project Timeline Approximate Amount #7 Heating/Cooling Units for Grade 6 Classrooms. Should be done in conjunction with ones we are anticipating Reynolds to replace in Middle School 7/8 area ? $100,000 #8 Pneumatic controls for Elementary Office, Library and Hallways ? $125,000

Priority List of Maintenance Projects