North Penn School District 2020-2021 Budget Update April 14, 2020 - - PowerPoint PPT Presentation

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North Penn School District 2020-2021 Budget Update April 14, 2020 - - PowerPoint PPT Presentation

Jul 19, 2023 121 likes •393 views

North Penn School District 2020-2021 Budget Update April 14, 2020 Budget Timeline Finance Committee Meeting 5/4 Board Direction on Tax Rate Adoption of Proposed Final Budget 5/12 Board Worksession Adoption of Final Budget 6/18 Board

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North Penn School District

2020-2021 Budget Update April 14, 2020

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5/4 Finance Committee Meeting Board Direction on Tax Rate 5/12 Adoption of Proposed Final Budget Board Worksession 6/18 Adoption of Final Budget Board Action Meeting

Budget Timeline

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2.6%

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Act 1Exceptions

Special Education $1,541,260

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Act 1Exceptions

Special Education +0.84% 3.43%

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0%

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$13.1 M

Deficit Budget

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7.06%

To Balance

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Updates…

  • Moved the purchase of 3,500

ChromeBooks for grades 7-9 from the 2020-21 budget to the current year. Reduced the 2020-21 budget by $1,330,000

  • Tax rebate program question
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CARES Act Funding

  • $982,412 estimated
  • Distributed by State
  • Distribution or grants?
  • General prescribed guidelines for use
  • Supplement state budget?
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Fund Balance Breakdown 6/30/19

Description Amount Nonspendable (inventory & prepaid items) $343,826 Assigned for self-funded insurance $2,700,000 Committed to PSERS $16,806,523 Unassigned (7.76%) $21,264,066 Total Fund Balances $41,114,415

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Type of Economic Recovery

10-Year Projections

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V

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U

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L

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Projection Assumptions

  • 0% tax increase for 2020-21 (Act 1 thereafter)
  • Act 1 tax increase every year
  • Special education exception for 2020-21

(Act 1 thereafter)

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V Projection Assumptions

  • Sharp recovery after 1 year
  • Near “return to normal”
  • Very optimistic
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V Projection Assumptions

  • Tax base contraction
  • Reduced tax collection
  • No growth in EIT and transfer taxes
  • Near zero interest rates for 2 years
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V Projection Assumptions

  • Lower Act 1 index - 30 bps most years
  • No change in PSERS projections
  • Reduced spending
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U Projection Assumptions

  • Recovery after 2 years
  • Near “return to normal”
  • More realistic but still optimistic
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U Projection Assumptions

  • Tax base contraction
  • Reduced tax collection
  • No growth in EIT and transfer taxes
  • Near zero interest rates for 3 years
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U Projection Assumptions

  • Lower Act 1 index - 40 bps most years
  • No change in PSERS projections
  • Reduced spending
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Budget Scenario

Current Budget Deficit

  • $13,017,732

Act 1Increase - 2.60% $4,786,870 Anticipated Retirements $750,000 Budgetary Reserve $1,500,000 Potential Positive Variances (0.50%) $2,744,686 Projected Ending Deficit

  • $3,236,176
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Tax Scenarios

Tax Increase Additional Revenue Remaining Deficit Average Homestead Increase 0.00% $0.00 $13,017,732 $0 1.00% $1,853,392 $11,164,340 $39 1.50% $2,770,899 $10,246,833 $58 2.00% $3,698,302 $9,319,430 $77 2.60% $4,786,870 $8,230,862 $100 3.43% $6,327,829 $6,689,902 $132

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Next Steps

  • Staffing recommendations
  • Remove items from 2020-21 budget and purchase this

fiscal year.

  • Refine and update data based on new information
  • Closely monitor EIT and transfer tax collection
  • Direction on tax rate
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Discussion