Lower Merion Board of School Directors PRELIMINARY BUDGET - PowerPoint PPT Presentation

Lower Merion Board of School Directors PRELIMINARY BUDGET PRESENTATION February 13, 2017

Th The I Impact of of Enrollm lment G Growth The greatest cost to any school district is directly related to the number of children served. Our enrollment growth “cost” is about 1% annually. No other school district in the Commonwealth of Pennsylvania has been impacted more than Lower Merion.

In Ten Years of Growth Needed to hire 98 New Teachers Additions/Renovations to: ◦ Gladwyne Elementary School - $2.9 Million ◦ Penn Valley Elementary School - $3.1 Million ◦ Welsh Valley Middle School - $16.4 Million ◦ Bala Cynwyd Middle School - $1.9 Million ◦ District Administration Building (for LMHS) $5.5 Million Construction of Lower Merion and Harriton High Schools over $200 million

The Eight Year Growth in the Commonwealth 502 school districts 418 school districts saw a DECLINE in Enrollment 84 School Districts showed a GROWTH (of at least one student) in Enrollment 15 School Districts Showed a growth of 10% or more Lower Merion School District’s growth was 1474 students and a 21.3% Increase – The highest per pupil increase in the last 8 years of any school district in Pennsylvania The Next Largest Growth was 872

Efficiency While Growing Partner Schools ◦ New students to the District are enrolled in a partner school if the class size numbers of their home school are filled ◦ For the 2017 Registration the Board has approved a plan that will allow us to begin partner schooling by June 1 ◦ If Partner Schooling had been in place during the summer of 2015 the District would have saved three teaching positions ◦ Partner Schools save core facilities (Art and Music rooms for example) N+1 Allows us to increase the class size targets by one

Source: Pennsylvania Department of Education

Two Dec Decisi sions T s That t Rea eally Mat attered In 2004 the Lower Merion Board of School Directors authorized the building of two new high schools In the Spring of 2007 the LMSD community voted against an EIT or a PIT

2017-18 Preliminary Budget Highlights Uncertain Issues •Current and Future Tax Revenues •State Budget – Governor will add $125 million of which the District would get $100,000 but he cut $50 million from Transportation funding. If the legislature applies a percentage cut to districts, LMSD would lose $240,000 •Pending Budget Litigation 9

Anticipated Revenue Budget Budget Description 2016-17 2017-18 Fund Balance Funds Designated as a Revenue 9,220,901 6,484,826 Local Sources Current Real Estate Taxes 204,197,135 208,764,687 Interim Real Estate Taxes 301,000 301,000 Public Utility Realty Tax 220,000 220,000 Local Services Tax 200,000 205,000 Realty Transfer Taxes 3,000,000 3,250,000 Delinquent Real Estate Taxes 3,850,000 3,600,000 Interest Income 250,000 375,000 Tuition - Summer Programs 200,000 200,000 IU Federal Funds 1,200,000 1,200,000 Misc. Other Local Sources 106,300 107,500 Total Local Sources 213,524,435 218,223,187 10

Anticipated Revenue (cont'd) Budget Budget Description 2016-17 2017-18 State Sources Basic Education Funding Subsidy 3,497,119 3,794,830 Special Education Subsidy 2,882,307 2,932,363 Transportation Subsidy 2,400,000 2,400,000 Revenue for Social Security Payment 4,600,000 4,700,000 Revenue for Retirement 18,200,000 20,000,000 State Property Tax Reduction Allocation 3,473,906 Health Services Subsidies 260,000 250,000 Rental & Sinking Fund Reimbursement 150,000 200,000 Misc. Other State Subsidies 20,000 20,000 Total State Sources 35,483,332 34,297,193 Federal Sources 705,600 745,000 Total Revenue 249,713,367 253,265,380 Total Revenue and Designated Fund Balance 258,934,268 259,750,206 11

Budget Preliminary Budget DESCRIPTION 2016-17 2017-18 Salaries 122,792,506 124,609,663 Benefits 75,971,829 81,926,498 Other - Purchased Professional and Technical Svcs (IU services, consultants, etc) - Purchased Property Svcs (utilities, repair work, leases etc) - Other Purchased Svcs (tuition payments to charters, special ed, vo-tech, general insurance, contracted transportation - Supplies (general supplies, books, software licenses, fuel, gas, etc) - Property (equipment, laptops, iPads, etc) - Other Objects (debt service principal payments) 59,369,933 60,438,092 Budget Reserve 800,000 800,000 258,934,268 267,774,253 Tax Monies required to balance the Budget (8,024,047) Budgeted Mill Value 7,576,074 7,620,178 Additional Increase in Mills Required 1.0530 Total Mills 27.3963 28.4493 Mills Increase 3.85% Budget Expenditure Increase 3.41% 12

Real Estate Tax Change Median Household Assessment $250,680 2016-17 Real Estate Tax mill rate 27.3963 Face amount of 2016-17 Real Estate Tax 6,868 2017-18 Real Estate Tax mill rate 28.4493 Face amount of 2017-18 Real Estate Tax 7,132 Tax Increase $264 Median household assessments provided by Montgomery Co. Board of Assessments 13

Where does the money go? It goes to the values of the Community The District prides itself in providing access to a plethora of opportunities for students: • Low class sizes • Extensive curricular and co-curricular offerings • Commitment to the Arts and Music • Numerous enrichment programs (IB, Dual-enrollment, Interdisciplinary programs, FLES) • Inclusive instructional model and environment • Enhanced academic support services at all buildings (literacy and math specialists) • Enhanced holistic support services at all buildings (counselors, psychologists, etc.) • Extensive after-school and summer enrichment programs at all levels • Commitment to community service and service-oriented programs • Commitment to hire, recruit and professionally develop quality staff

Extra and Co-Curricular Athletic Teams – HS only – 118 ◦ Coaches $967,014 ◦ Officials $656,111 ◦ Transportation $390,000 Clubs and Afterschool Activities 96 ◦ Advisors $656,111 On Stage Performances – 35 ◦ $10,000 (costs other than advisors) Natatorium $120,000 ◦ Includes staffing and management

Five Y e Year ar Us Use Of Of Excep eptions in LMSD f for Sp Specia ial l Educatio ion Facts: • The District was entitled to tax over $1.88 million dollars more than was utilized. • In all but one year the actual special education costs exceeded the allowable exception. • In some years special education increases were partially funded through the Act 1 tax index. • The actual Special Ed. instructional increases total 12.9 million dollars.

PSE SERS F S Facts The total amount NOT taxed as an exception is $3,702,819. The total amount taken within the index was $5,770,683.

WHY PSERS RESERVE IS NEEDED 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 - 2006 2016 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Budgeted Budgeted Expenses Revenue 18

Historical Comparison Preliminary vs Final Budgets Fiscal Preliminary Preliminary Tax Final Tax Year Budget Final Budget Difference Increase (% - $) Increase (% - $) Difference 2011-12 204,777,378 204,571,449 (205,929) 3.31% = 185 3.31% = 185 - 2012-13 212,809,404 212,809,404 - 3.92% = 225 1.99% = 114 (111) 2013-14 222,134,342 221,634,342 (500,000) 4.40% = 259 3.82% = 225 (34) 2014-15 234,620,559 234,520,559 (100,000) 4.11% = 251 3.9% = 239 (12) 2015-16 246,766,565 246,266,565 (500,000) 3.81% = 242 3.55% = 225 (17) 19 Above tax increases based upon median household assessments provided by Montgomery Co. Board of Assessments

Budget Calendar - 2017 February – 13 Preliminary Budget Approval March - Superintendent presentation to ISC *March 29 - Finance Committee – Presentation on Operations including facilities and transportation *April 5 - Finance Committee - Presentation on Curriculum and Instruction April 24 – Proposed Final Budget Approval *April 26 - Finance Committee - Presentation on Staffing including enrollment impact and class size and Technology *May 17 - Finance Committee - Presentation on Student Services including Gifted and Talented May 23 – Public Inspection Deadline of Proposed Final Budget May - Superintendent presentation to Federations May 28 – Public Notice of Intent to adopt 2017-18 Budget June - Superintendent presentation to Staff June 12 Final Budget Approval/Adoption *Dates finalized, advertised and posted

Lower Merion School District: A Public lic School System Independent schools implement a stringent vetting process designed to ensure that students entering will be successful. Public schools encourage all students – no matter where they are from , no matter their skills in language or mathematics, no matter their religion or beliefs and strive to provide a superior education – and we represent what has been a crown jewel in our republic – a public education.