Proposed Final Budget New Hope-Solebury SY 2017-2018 School - - PDF document

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Proposed Final Budget SY 2017-2018

New Hope-Solebury School District

A Look Back

Reflecting on the Past

• Preliminary budget for SY 2016-2017

showed a deficit of ~$4.1m

• Retirement incentive for professional and

administrative staff members

• Total retirees: 10
• Approximate savings: $1m
• Actual use of fund balance to balance

budget: ~$1.3m

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Administrative Staffing Changes

Improving Efficiencies, Reducing Costs

• Elimination of one administrative position

(Director of Custodial Services)

• Reduction of one administrative position

(Director of Food Services) from 12 months to 10 months

• Reclassification of the Director of Human

Resources to Supervisor of Personnel Relations

• Reclassification of the Director of Pupil

Services to the Director of Special Education

• Expansion of the Athletic Director position to

include assistant principal responsibilities

• Reclassification of Assistant to the

Superintendent/Assistant Superintendent to Director of Education

• Labor conversion of payroll services to a

contracted service

Professional Staffing Changes

Improving Efficiencies, Reducing Costs

• Curtailment of Elementary Spanish and

Middle School Family & Consumer Sciences

• Elementary health incorporated into

physical education and science classes

• Expansion of library/technology at the

elementary level

• Several positions eliminated by attrition

(i.e. retirements, resignations) due to enrollment

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Offer the best quality education possible for our community’s children

Offer

Increase student achievement and growth

Increase

Provide comprehensive services to students

Provide

Align to class size guidelines

Align

Encourage professional development and professional growth

Encourage

Develop a capital projects committed fund balance

Develop

SY 2017-2018

Budgetary Goals

Budgetary Unknowns

• Federal Budget (Title I, II, IDEA)
• Pennsylvania State Budget
• Charter School Enrollments and

Tuition

• New Hope-Solebury Education

Association Contract Negotiations

• Preparation for New Hope-

Solebury Education Support Personnel Contract Negotiations

• Preparation for Act 93 Meet and

Discuss

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Proposed Final Budget Highlights

Budgetary Areas 2017-2018 2016-2017 Change Expenditures 40,322,697 40,110,960 0.5% Revenues 40,105,610 38,704,888 3.6% Use of Fund Balance 217,088 1,406,072 Ending Uncommitted Fund Balance 2,708,861 2,925,949 Fund Balance as a % of Expenditures 6.7% 7.3%

SY 2017-2018 Revenues

Revenue Type 2015-2016 Actual 2016-2017 Budget 2017-2018 Final Change % of Total Revenue 6000 Local 31,298,049 32,309,011 33,475,128 1,166,117 83% 7000 State 5,702,806 6,126,362 6,410,982 284,620 16% 8000 Federal 88,318 269,515 219,500 (50,015) 1% Total 37,089,173 38,704,888 40,105,610 1,400,722 — Revenue Comparison – Increase of $1,400,722

— Tax Increase – 4.0% generates $1.1M in new revenue — EIT Reduction - $50,000 in line with current estimates — Other Local – Increase of $50,000 for Donations — State Revenue – Increase of $284,620

—

Education Funding – Flat to 16-17 Budget

—

Retirement and Social Security Subsidy – Increase of $235,000 — Federal Revenue – Decrease of $50,000

—

Reduced Special Education Contingency - Use of Medical Access Monies to cover any increased costs

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SY 2017 – 2018 Expenditures

Expense Type 2015-2016 Actual 2016-2017 Budget 2017-2018 Budget Increase/ (Decrease) % Total Expenditures 100 Salaries 18,033,385 18,132,048 18,204,647 72,599 45.1% 200 Benefits 9,896,482 10,703,968 11,115,588 411,620 27.6% 300 Professional Services 2,043,782 2,224,688 2,022,341 (202,346) 5.0% 400 Property Services 295,507 432,085 391,886 (40,199) 1.0% 500 Other Purchased Svcs 2,948,775 3,348,823 3,447,689 98,866 8.6% 600 Supplies & Books 1,321,278 1,600,449 1,751,451 151,002 4.3% 700 Equipment 25,095 75,300 96,210 20,910 0.2% 800 Interest, Fees & Dues 630,075 971,913 1,065,386 93,473 2.6% 900 Principal & Transfers 3,194,712 2,621,686 2,227,500 (394,186) 5.5% Total 38,389,092 40,110,960 40,322,697 211,737

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New Hope-Solebury Millage History

Fiscal Year Tax Rate Change Average Tax Bill Average Increase % Increase Act 1 Index

2009/2010 79.84 3.14 4,537 178 4.09% 4.10% 2010/2011 82.15 2.31 4,668 131 2.90% 2.90% 2011/2012 83.30 1.15 4,733 65 1.39% 1.40% 2012/2013 84.72 1.42 4,814 80 1.70% 1.70% 2013/2014 86.16 1.44 4,896 81 1.70% 1.70% 2014/2015 87.96 1.81 4,998 102 2.10% 2.10% 2015/2016 89.64 1.67 5,093 94 1.90% 1.90% 2016/2017 93.9387 4.30 5,338 244 4.80% 2.40% 2017/2018 97.6962 3.76 5,551 213 4.00% 2.50% *Source - BucksCounty.org - Government-Finance-Board of Assessment-Millage Rates **New Hope-Solebury includes millage increase for 17-18

• 20.00

40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00

Millage - Bucks County Schools 2016/2017

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0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 11/12 12/13 13/14 14/15 15/16 16/17 17/18

Budget History

Expenditure % Change Tax Rate % Change

• SY 2011-2012 to SY 2015-2016
• Total expenditure increase of 20%
• r 4% per year
• Tax Rate increase of 8.8% or

1.76% per year

• SY 2016-2017 to SY 2017-2018
• Total expenditure increase of

1.52% or 0.76% per year

Budget History

SY 2017-2018 Preliminary vs Proposed Final Budget

Summary of Changes – Salary and Benefits

Expenditure Reduction / (Increase) Amount Description

Administrative Staffing Changes 217,000 HR Director to Supervisor, Director of Operations replacement, Director

• f Custodial and Maintenance Eliminated

Teacher Retirement Incentive 143,000 3 Retirements Professional Staffing Changes 431,000 Reduction of 4 FTE – Enrollment Professional Staffing Other (217,000) 2 LTS for Known Paid Leaves, 1 FTE placeholder – class size, Mid Year Column Movements Support Staff Changes (10,000) Superintendent Admin Assist retire and replace at lower salary, PT Custodian reallocated to weekend to reduce overtime, Add Instructional Assistant for student need. ESY Staffing 31,000 ESY Staffing efficiencies. Medical Benefits 184,000 Preliminary Projections of 11.1% increase and final was 5.1%, also includes open enrollment changes

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SY 2017-2018 Preliminary vs Proposed Final Budget

Summary of Changes – Other Functions

Expenditure Reduction / (Increase) Amount Description

Building/Department Budgets 140,000 Needs Based Budgeting – 2nd review of all budgets Transportation Efficiencies 62,000 Consolidation of non-public buses 1:1 Program Device Purchase (150,000) Purchase versus Lease saves 10,000 over 2 years Legal Costs (50,000) Contract Negotiations Donations (40,000) Received in 16-17 to expend in 17-18 Capital Improvements (47,000) 16-17 Added a placeholder to the budget for this item. Increases to 57,000 and is funded with PlanCon reimbursement Budgetary Reserve (50,000) Added 50,000 for future donations with an offsetting revenue item of 50,000 for donation receipts.

Budget Projections

SY 2017-2018 through SY 2020-2021

Year Revenues Expenses Deficit Ending Fund Balance 2017-2018 Preliminary (1) 40.1 M 41.0 M 0.9 M 2.7 M 2017-2018 Proposed Final (1) 40.1 M 40.3 M 0.2 M 3.4 M 2018-2019 (2) 40.7 M 41.3 M 0.6 M 2.8 M 2019-2020 (2) 41.5 M 42.5 M 1.1 M 1.8 M 2020-2021 (2) 42.2 M 43.7 M 1.5 M 0.3 M

(1) – 4.0% Tax Increase (2) – 2.0% Tax Increase

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33,000,000 35,000,000 37,000,000 39,000,000 41,000,000 43,000,000 45,000,000 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21

Expense to Revenue Gap - Continues Trending Apart

Revenue Expense Current

(12,000,000) (10,000,000) (8,000,000) (6,000,000) (4,000,000) (2,000,000)

• 2,000,000

4,000,000 6,000,000 8,000,000 10,000,000 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21

Fund Balance Projections

Current Prelim - 17-18 Prelim - 16-17

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Summary

• Financial Position of the district continues

to improve – still fragile

• Recommending approval of this Proposed

Final Budget to be put on public display

• Final budget will include updates if any

new information becomes available.

• This presentation only includes the

budget highlights

• Supplemental data and reports are

included in the budget packet

• Including form PDE-2028 which is

the official budget document submitted to PDE

Timeline

• May 25 –Proposed Final Budget

Adoption Resolution

• Authorize Proposed Final Budget

Advertising and Public Inspection

• May 29 – Advertise and make budget

available for public inspection

• June 26 – Final Budget Adoption

Resolution

• Real Estate Tax Resolution
• Homestead/Farmstead Exclusion

Resolution

• Installment Payment of Real Estate

Tax Resolution

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QUESTIONS?