Northeastern School District Preliminary Budget Presentation - - PowerPoint PPT Presentation
Northeastern School District Preliminary Budget Presentation 2015-2016 School Year The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education. Preliminary Budget Summary DESCRIPTION 2015-16 BUDGET
The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.
DESCRIPTION 2015-16 BUDGET SUMMARY TOTAL REVENUE $ 61,155,102
$ 62,754,782 Budget deficit (rounded) ($ 1,600,000) Use of Fund Balance $ 500,000 TAXES: to Adjusted Index $ 850,000 Total budget deficit ($ 250,000)
REVENUE EXPENDITURES Budgeting growth again in local revenue for interim, EIT , RE transfer. Less LERTA exemption added $400k. 5 teacher retirements More state funding for retirement due to higher retirement contribution. Did not budget for LTS and ETS as wages from FMLA, sabbatical and CRL should offset Budgeted ABG and SS/HS grant Tuition reimbursement reduced $100k Tax increase to adjusted index Locking in utility and diesel fuel at lower rates for budget savings
REVENUE CONCERNS EXPENDITURE CONERNS Is the current trend in interim real estate, RE transfer and EIT going to continue? Employer contribution to RETIREMENT . Rate increased +20%. State doesn’t support cyber/charter school funding costs. ABG will hopefully be continued as budgeted. Employer contribution to HEALTH
Hope state continues to support retirement payments LIU costs are growing at a fast pace. Need continued tax increases to try to balance budget Need to keep doing debt refinancing to maintain lower debt service exp.
Understand that the fiscal crisis in PA education is not over with salaries, PSERS, health insurance and charter tuition cost growth > total revenue growth Approve LERTA for 3 year term through 2017 and beyond – promotes LT local revenue growth. Employee staff maintained – supports student achievement and efficiency. Labor negotiations will hopefully produce health insurance savings – (not included) Continued debt refinancing – holds down cost- potential for 2015-16 (not included) Consider bringing in-house LIU program(s) that strategically fit. In other areas, evaluate whether services are better served in-house or outsourced. Use part of committed fund balance to balance budget – planned to ease into millage Increase taxes to state limit - maximums revenue. Annualize Capital Reserve transfers for physical plant maintenance and for artificial turf and track. Keep on the horizon the eventual need for a new high school and upkeep for Annex Ctr/pool area
SAVINGS TAXES 2013-14 audit results added $1.35M to fund balance w/ planned allocation of savings. If Tax resolution approved, as recommended, the tax increase limits would be +.64 mils or 2.5%. $500k use of fund balance committed to PSERS to offset nearly $600k in retirement cost increase Tax resolution also means No exceptions included in this budget Transfer $175k to Capital Reserve fund
Budget Opportunities to watch… Hoping local assessed values and additional LERTA properties will occur to help local rev. District qualified for 4 year grant called Safe School/Healthy Children – grant revenue and expenditure mostly offset. State subsidies (except retirement) are presented at a 0% increase. Debt refinancing possible, more retirements possible. Act 93 and NEA contracts expire June 30, 2015. Productive negotiations could produce LT health insurance savings. Last 2 years of audit savings has afforded opportunity to commit fund balance to PSERS, poss. $1.5M and draw down beginning 2015-16, and add to Capital Reserve. May have some savings for 2014-15.
Local State Federal
11.80% 13.85% 8.86% 2.50% 6.96% 5.95%
5.26% 3.48% 2.99% 2.69%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 B2014-15 B2015-16
Revenue Growth % - 10 year History
Group Life Insurance $30,000 % Social Security $2,008,703 1 3 % Retirement $6,784,952 4 3 % Tuition Reimbursement $250,000 2 % Unemployment Compensation $20,000 % Worker's Compensation $165,000 1 % Health Insurance $6,470,941 4 1 %
2015 -16 Benefit Budget
Group Life Insurance Social Security Retirement Tuition Reimbursement
Unemployment Compensation Worker's Compensation Health Insurance
10.3% 13.4% 14.3% 8.7% 6.8% 4.9%
1.9% 3.5% 7.7% 3.9%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 B2014-15 B2015-16
Expenditure Growth % - 10 year History
% exp growth
8.33% 10.73% 12.37% 7.94% 5.23% 4.22% 3.62% 6.35% 8.42% 7.46% 6.77% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 B2014-15 B2015-16
Fund Balance % of Expenditures Budget - 10 year History
Fund Balance as a % of Budget
Real Estate Millage Increase based on assessed property value 1 mil = $1.3M in new reoccurring revenue Adjusted Index +2.5% No Exceptions to be filed Additional Real Estate Revenue projected $850,000 $0
Real Estate Millage Increase based on assessed property value $ 100k $ 150k $ 200k Tax increase: Adjusted Index to 2.5% Real Estate Tax bill at 26.25mils w/o H/F excl +$ 64 $2,625 +$ 96 $3,937. 5 +$ 128 $5,250