North Penn School District 2020-2021 Budget Update May 4, 2020 - PowerPoint PPT Presentation

North Penn School District 2020-2021 Budget Update May 4, 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 Action Meeting

2.6%

Act 1Exceptions Special Education $1,541,260

Act 1Exceptions Special Education +0.84% 3.43%

0%

$11.1 M Deficit Budget

6.05% To Balance

It’s a Revenue Problem

Revenue Changes 1. Preliminary Budget $269,635,219 2. Changes from Preliminary to 4/14 -$2,340,444 3. Retirement and SS Subsidy Reduction -$824,315 4. Earned Income Tax Reduction -$700,000 5. Realty Transfer Tax Reduction -$500,000 6. BEF and SEF Subsidy Reduction to 2019-20 -$382,204 7. Real Estate Tax Collection @96.8% -$370,424 8. All Others -$29,528 9 9. Increased Assessed Values $217,772 10. Current Revenue $264,706,076

PASBO Report Comparison Revenue PASBO North Penn Earned Income Tax $14,806,383 $17,331,000 Delinquent Taxes $1,044,199 $2,000,000 Investment Income $395,489 $400,000 Realty Transfer Tax $2,637,418 $3,400,000 Interim Real Estate $542,441 $800,000 Tax Total $19,425,930 $23,931,000

Expenditure Changes 1. Preliminary Budget $282,498,098 2. Changes from Preliminary to 4/14 -$2,185,591 3. Personnel Changes -$3,441,339 4. Pre-Purchase of 20-21Budgeted Items -$953,134 5. Bond Refunding Savings -$339,802 6. Worker’s Comp Premium Reduction -$82,558 7. Unemployment Compensation $50,000 8. All Others $304,797 9. Current Expenditures $275,850,471

Budget Comparison Fiscal Year Surplus Revenues Expenses Budget (Deficit) 2020-2021 $264,706,076 $275,850,471 -$11,144,395 Current 2020-2021 $269,635,219 $282,498,098 -$12,862,879 Preliminary 2019-2020 $267,208,014 $273,977,289 -$6,769,275 $ Change -$2,501,938 $1,873,182 -$4,375,120 % Change -0.94% 0.68%

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

Budget Scenario Current Budget Deficit -$11,144,395 Act 1Increase - 2.60% $4,782,259 Budgetary Reserve $1,500,000 *Potential Positive Variances (0.50%) $2,671,708 Projected Ending Deficit -$2,190,428

Tax Rates 18% Below County Average 5th Lowest in County 32.00 25.60 19.20 12.80 6.40 North Penn County Average

Tax Scenarios Average Tax Additional Remaining Homestead Increase Revenue Deficit Increase 0.00% $0.00 $11,144,395 $0 1.00% $1,851,607 $9,292,788 $39 1.50% $2,768,230 $8,376,165 $58 2.00% $3,694,740 $7,449,655 $77 2.60% $4,782,259 $6,362,136 $100 3.43% $6,321,734 $4,822,661 $133

Next Steps • Direction on tax rate for proposed final budget • Refine and update data based on new information • Closely monitor EIT and transfer tax collection for possible additional reductions

Discussion