SHARPSVILLE AREA SCHOOL DISTRICT PROPOSED GENERAL FUND BUDGET - - PDF document

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SHARPSVILLE AREA SCHOOL DISTRICT

PROPOSED GENERAL FUND BUDGET 2015-2016

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AT A GLANCE

The 2015-2016 Proposed General Fund Budget exhibits a 4.3% growth in revenues and a 5.5% increase in expenditures. The budget as presented requires a commitment of $780,344 of the District's fund balance to balance the budget.

WORTH NOTING REVENUES at the local level reflect an increase of $133,212, or 2.6%. A 1.98 mill increase, the maximum permitted

under Act 1, accounts for the lion's share of the increase in local revenue sources. Wage tax collections continue to show some stability trending level with the 2014-15 collections. In budgetary dollars, a reduction of $21,550 was made to reflect the current collection rate. Realty Transfer and Delinquent taxes depict a budgetary increase of $31,446 collectively based on historical collections. Tuition income is expected to increase based on current non-resident enrollment and the increased tuition rate, although fair share tuition is expected to decline. No allocation was included for international students. It should be noted that federal revenues received as pass-through funds from the Midwestern Intermediate Unit are listed are federal revenues for presentation purposes, but are included as local revenues in the budget document submitted to the state as required by the PA Department of Education. Overall, state revenues are budgeted at a 5.1% increase generating $485,428 in new dollars. Governor Wolf's proposed budget includes the restoration of $325,405 in the District's Basic and Special Education Subsidies. The previous Ready to Learn/Accountability Block Grant allocation has been rolled into the Basic Education subsidy. The budgetary increase in the Basic Education Subsidy/Block Grant allocation is $117,492 due to a reduction in the actual Block Grant allocation from the previous year’s budget. The largest revenue increase is a result of the continued spike in the PSERS retirement

• contribution. The District receives a 50% reimbursement of PSERS expenses for employees hired before 1994, and a

reimbursement equal to the District's aid ratio (currently 72.77%) on those employees hired after said date. Federal revenues show an 8.3% increase. The District plans to utilize Title I carry-over funds to support technology at the elementary level. The Medical Access Program has shown some improved growth in funds available. The District plans to utilize those funds to add a sensory room for use by the special needs classrooms at the elementary. Overall, EXPENDITURES grew by 5.5% or $860,137. Wages and payroll costs represent over 70% of the proposed increase, with the largest share a result of the expected increase in the District's retirement contribution. The retirement rate is set annually by the PSERS Board of Directors and is out of the District's control. Without a legislative change in how it is calculated, the rate is expected to climb over the next few years to over 30% of District wages. The Northwest School Health Consortium, in which the District participates for its medical insurance, has established an 8.5% rate increase for the 2015-16 school year. A 12.75% increase in funding was projected based on anticipated claims, but the consortium voted by a narrow margin to underfund the increase. Based on this decision, it is anticipated that the increase for 2016-17 will be equal to or higher than the increase for this year. As a result of concessions negotiated by the Sharpsville Area Education Association and the Board of Education, the rate increase for their insurance plan is only 5.5% due to said concessions. Two one-time expenses are new to the budget including new band uniforms and the upgrade of the District’s current network infrastructure in the amount of $50,675 and $50,000 respectively. The network upgrades are contingent upon the District receiving E-rate funding of approximately $70,000. It is worth noting that the construction for the relocation

• f the administrative offices has not impacted the budget. The debt payments of the new loan along with the refinancing
• f an existing loan have been structured to represent the rent for our current office space. The District will be free of

rent/debt for the administrative offices in 9 years.

BUDGET BUDGET 2014-15 2015-16 DOLLAR PERCENT REVENUES 15,151,245 15,802,538 651,293 4.3% EXPENSES 15,722,745 16,582,882 860,137 5.5% FUND BALANCE NEEDED (571,500) (780,344)

GENERAL FUND

INCREASE/(DECREASE)

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STAFFING

Current staffing levels are indicated in the chart to the right. There are currently 124 full-time and 24 part-time permanent employees. Coaching and other temporary positions are not included. It is anticipated that there will be two (2) professional vacancies as the result of one retirement and one promotion. Three (3) vacancies are expected at the support staff level including two secretarial/administrative assistant positions and one cleaning position as a result of retirements. How these positions will be filled for the upcoming year will continue to be

• evaluated. Maintaining these positions in their

current state will be at the Board’s discretion.

ENROLLMENT

The following graph shows a 15 year enrollment history based on the October 1 annual enrollment reports. Student enrollment shows a slight decrease of 2.3% over the past five years. The Ungraded (UG) category was reported during the 2009-2010 school year with the addition of Midwestern JU IV Special Education Classrooms. Beginning with the 2013-14 years, PIMS required all students to be assigned to a grade level. Category Full-time Part-time Administrative/Supervisory 8 Teaching (SAEA Members) 81 Confidential 4 Nurse Technician 1 Secretarial 5 Custodial/Cleaning 13 Instructional Aides 12 2 Cafeteria 22 Total 124 24 Sch Yr Grade SCHOOL YEAR

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16

K 92 86 102 93 110 87 87 86 116 77 87 84 86 73 85 1 88 93 88 105 104 105 97 94 88 115 82 93 90 89 79 2 90 90 90 92 117 102 110 105 92 94 115 83 94 89 89 3 98 94 89 95 99 108 105 106 102 93 96 119 82 98 89 4 99 103 102 89 97 102 104 103 104 108 98 94 122 87 98 5 93 105 102 98 90 97 106 106 106 109 108 104 99 124 87 UG 11 12 11 6 Total ES 560 571 573 572 617 601 609 600 619 608 597 583 573 560 527 6 124 97 109 105 109 92 98 107 110 111 106 105 100 96 124 7 131 125 105 117 110 112 100 95 113 109 109 105 107 105 96 8 101 123 128 108 116 108 105 101 95 114 106 112 106 109 105 Total MS 356 345 342 330 335 312 303 303 318 334 321 322 313 310 325 9 106 110 128 133 117 116 111 104 102 98 111 114 109 113 109 10 110 101 95 125 130 115 101 105 100 102 101 110 113 111 113 11 75 95 107 94 125 120 104 98 99 98 96 97 106 112 111 12 96 72 93 102 96 116 111 98 96 96 100 95 95 110 112 Total HS 387 378 423 454 468 467 427 405 397 394 408 416 423 446 445 Total

1303 1294 1338 1356 1420 1380 1339 1308 1334 1336 1326 1321 1309 1316 1297

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FUND BALANCE

Early indication of the estimated 2014-15 year-end fund balance shows a possible decrease as a result of a planned fund balance contribution of $571,500 and an unexpected revenue shortfall of $131,000. From a budget perspective for the 2015-16 fiscal year, a planned fund balance contribution of $780,344 would result in an ending fund balance of $693,452, or 4.1% of our

• expenditures. Estimating the 2015-16 ending fund balance based on historical data of a 97% spend of expenses and a 100%

revenue collection would result in an estimated fund balance of $1,190,938, or 7.4% of expenditures. Please note that the budgeted revenues include 100% of the Governor’s proposal and a millage increase of 1.98 mills. Any revenue shortfall will have an unfavorable effect on the 2015-16 estimated fund balance.

TRENDS

Over the first five of the last eight years, the District’s revenues have outpaced expenditures resulting in a positive effect on the fund balance. During the 2011-12 fiscal year, the District experienced a significant decrease in state/federal revenues of over $500,000. Expenditures were reduced to offset this shortfall. During the 2013-14 fiscal year, expenditure growth outpaced District revenues. This trend is anticipated to continue through the 2015-16 school

• year. Failure to achieve budgeted revenues has impacted

this trend over the most recent two years. The chart to the right depicts the revenue and expenditure trends over the past eight (8) years. As stated in the new Policy “620 - Fund Balance” scheduled for approval this month: “The Board recognizes that the maintenance of a fund balance is essential to the preservation

• f the financial integrity of the school district and is fiscally

advantageous for both the district and the taxpayer.” Fund balance is defined as “a measurement of available financial

• resources. Fund balance is the difference between total assets

and total liabilities in each fund.” It is estimated that the District will utilize approximately $310,000 of fund balance during the 2014-15 fiscal year. That trend is expected to continue through the 2015-16 fiscal year. It is recommended by Administration that measures be taken to reduce the use of fund balance in order to maintain the financial integrity of the School District.

Fund Balance

Actual 2013-14 Budgeted 2014-15 Estimated 2014-15 Budgeted 2015-16 Estimated 2015-16 Beginning Fund Balance $1,980,218 $1,784,074 $1,784,074 $1,473,796 $1,473,796 Plus Revenues 14,418,065 15,151,245 15,018,602 15,802,538 15,802,538 Minus Expenditures 14,614,209 15,722,745 15,328,880 16,582,882 16,085,396 Estimated Ending Fund Balance $1,784,074 $1,212,574 $1,473,796 $693,452 $1,190,938 Fund Balance as a % of Expenditures 12.2% 7.7% 9.6% 4.1% 7.4%

1,064,781 1,483,004 1,631,439 1,806,374 1,980,218 1,784,074 1,473,796 1,190,938

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 FUND BALANCE

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FUTURE BUDGET CONCERNS

The District's contribution to the Public School Employees Retirement System (PSERS) is set annually by the PSERS Board. The projected rates depicted in the graph below are percentages of payroll. The District receives a corresponding revenue from the state equivalent to 50% of the retirement expense paid for employees hired prior to 7/1/1994, or the District's aid ratio (Currently 72.77%) for those employees hired after said date. The rate projections are as published on the PSERS website entitled “Current Contribution Rate and 30-Year Rate Projections” updated December 9, 2014.

PROJECTED DISTRICT COSTS

Looking beyond the 2015-16 budget year, if the District retains the same staffing levels with a 2.5% increase in salaries, benefit increases of 6%, along with the proposed retirement rates indicated above, the district can expect over $1 million in wages, benefits and retirement expenses over the following four years as depicted in the chart below. Traditional state revenue increases would not offset the projected cost increases in salaries and benefits. 5.64% 8.65% 12.36% 16.93% 21.40% 25.84% 29.69% 30.62% 31.56% 32.23%

0% 5% 10% 15% 20% 25% 30% 35%

PSERS Employer Rates

Projected Projected Projected Projected 2016-17 2017-18 2018-19 2019-20 Salaries 182,033 186,584 191,248 196,029 Employee Benefits 533,864 263,538 276,984 268,604 Less Retirement Subsidy (196,772) (84,782) (88,619) (77,530) Total Increase 519,125 365,340 379,613 387,103 MILLAGE EQUIVALENT 8.37 5.89 6.12 6.24

Estimated Salary/Benefit Increases

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REVENUES – LOCAL

Local revenues represent a budgetary increase of $133,212, most of which is attributed to a 1.98 mill increase in real estate

• taxes. Budgetary adjustments have been made to earned income taxes, realty transfer taxes, and delinquent taxes to reflect

historical trends. Although tuition/fair share revenue is expected to increase based on current non-resident enrollments and increasing tuition rates, the fair-share tuition income will decrease as a result of the reduction of Midwestern Intermediate Unit IV classrooms. Other local revenues decreased as a result of lower budgeted donations and an increase due to an accounting

• change. The District previously offset Girls’ Soccer expenses by the co-op payment from Reynolds. It is now being recorded as

revenue.

MILLAGE

There is 1.98 mill increase included in the current proposed budget resulting in a millage rate of 72.73 mills for the 2015-16 fiscal year. The chart at the right shows a 10 year history of millage rates. The District’s annual average increase over the 10 year period is 1 mill per year The Taxpayer Relief Act, known as Act 1 of 2006, established limits to the amount of tax increase a district can assess annually based on a newly established index. The index is the average of the statewide average weekly wage and employment cost index. This index is then adjusted based on the district's aid ratio. Sharpsville's adjusted 2015-16 index is 2.8% which allows the District to increase its millage by 1.98 mills. In November 2014, the Board of Education approve Resolution 5 of 2014 stating that taxes will not be increased above the index, therefore, eliminating the ability to apply for exceptions or present a ballot question for consideration.

58 60 62 64 66 68 70 72 74

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $5,035,831 $5,150,300 $5,192,033 $5,283,512 $133,212 2.6% REAL ESTATE 3,852,117 4,010,920 4,012,537 4,138,106 127,186 3% PER CAPITA/OCCUPATION 63,099 63,094 64,693 64,695 1,601 3% EARNED INCOME 695,860 714,385 691,439 692,835 (21,550)

• 3%

REALTY TRANSFER 46,603 32,288 58,870 47,534 15,246 47% DELINQUENT 257,970 205,300 225,372 221,500 16,200 8% RENTAL INCOME 800 700

• %

TUITION/FAIRSHARE 67,821 60,723 61,784 58,342 (2,381)

• 4%

INTEREST INCOME 5,401 5,750 4,400 5,750 0% OTHER LOCAL REVENUES 46,160 57,840 72,238 54,750 (3,090)

• 5%

BUDGET TO BUDGET COMPARISON

LOCAL REVENUES

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HOMESTEAD EXEMPTION

Act 1 also allowed for gambling proceeds in Pennsylvania to be used to reduce real estate taxes by way of a homestead

• exemption. For the 8th consecutive year, each homeowner meeting the appropriate criteria who has filed a homestead

exemption application with the Mercer County Assessor's Office has received an exemption from their real estate tax bill of approximately $200. The chart to the left reflects the number of homesteads that will receive such credit during the 2015 tax year

COST PER MILL

The average cost per mill equates to $16.67 district wide. The chart below illustrates the variance by municipality. To put this in perspective, the median assessed value of those homes who qualify for the homestead exemption is $17,250. Using the estimated homestead exemption for the 2015-16 fiscal year, the total tax payment for this property would be $1,049.93, or $14.44 per mill. Homesteads 60.7% Farmsteads 0.3% Land Only 12.6% Non-Homestead 26.5%

MUNICIPALITY TAXABLE UNIT AVG PMT PER PROPERTY AVG COST PER MILL DISTRICT 3,609 $1,212 $16.67 CLARK BOROUGH 290 1,475 $ 20.28 $ SOUTH PYMATUNING TWP 1,447 1,336 $ 18.38 $ SHARPSVILLE BOROUGH 1,872 1,075 $ 14.78 $

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REVENUES – STATE

Overall, budgeted state revenues reflect a $485,428 increase. The lion's share of the increase is the retirement subsidy, a direct result of the increase in the employer's retirement contribution rate. Governor Wolf is proposing a $325,405 increase in the Basic and Special Education subsidies. Although due to a shortfall in 2014-15 Block Grant funding, the budgetary increase is $198,289. His proposal includes rolling the former Accountability Block Grant allocation into the Basic subsidy line item which has been budgeted accordingly. Other state revenue has decreased as a direct result of a decrease in the District's foster student population.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $8,934,518 $9,606,719 $9,434,204 $10,092,147 $485,428 5.1% BASIC SUBSIDY 6,023,283 6,023,265 6,023,283 6,465,617 442,352 7.3% PROPERTY TAX REDUCTION 450,382 450,382 450,865 450,382 0.0% SPECIAL EDUCATION 686,951 669,290 681,975 750,087 80,797 12.1% TRANSPORTATION 348,969 339,265 335,505 345,570 6,305 1.9% BOND REIMB. SUBSIDY 187,233 348,882 364,071 347,679 (1,203)

• 0.3%

BLOCK GRANT/EAP 85,281 324,860 185,041 (324,860)

• 100.0%

SOCIAL SEC SUBSIDY 330,804 363,612 357,124 384,746 21,134 5.8% RETIREMENT SUBSIDY 768,822 1,017,163 999,014 1,287,858 270,695 26.6% OTHER STATE REVENUE 52,791 70,000 37,326 60,208 (9,792)

• 14.0%

STATE REVENUES

BUDGET TO BUDGET COMPARISON

REVENUES - FEDERAL

Federal revenues, specifically Pass-Through Funds which are federal dollars funneled through the Midwestern Intermediate Unit including Title I, Title IIA Class-size Reduction, and l.D.E.A. shows a budgetary increase due to the anticipated utilization of Title I carry-over funds to support technology at the elementary school. Pass-through funds are shown here as federal, but are reported under the local revenue category. A $13,500 increase is expected in Medical Access funding based on the availability of funds and is planned to cover the cost of the sensory room at the elementary school.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $428,977 $394,226 $392,365 $426,879 $32,653 8.3% PASS-THROUGH FUNDS 407,287 379,226 368,852 398,379 19,153 5.1% MEDICAL ACCESS/RMTS 21,690 15,000 23,513 28,500 13,500 90.0% ARRA/EDU-JOBS

• %

OTHER

• %

FEDERAL REVENUES

BUDGET TO BUDGET COMPARISON

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TOTAL REVENUES

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $14,399,326 $15,151,245 $15,018,602 $15,802,538 $651,293 4.3% LOCAL 5,035,831 5,150,300 5,192,033 5,283,512 133,212 2.6% STATE 8,934,518 9,606,719 9,434,204 10,092,147 485,428 5.1% FEDERAL 428,977 394,226 392,365 426,879 32,653 8.3% TOTAL REVENUES

BUDGET TO BUDGET COMPARISON

33.4% 63.9% 2.7% LOCAL STATE FEDERAL

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EXPENDITURES - BY OBJECT

The chart below reflects expenditures by object, or by the type of expense. An estimated column is included for reference. For comparison purposes, the total budgeted dollars from year to year are compared by category. The 2015-16 budget reflects an increase of 5.5%, or $860,137. 70% of the budget increase is the direct result of wages and payroll costs. Professional Services and Other Purchased Services have increased as a direct result of an increase in Charter School and Alternative Education costs. The budgetary changes in Technical Services, Other Fees/Interest Payments, and Other Uses of Funds are a direct reflection of the reduction in rent for the administrative offices and a comparable increase in debt expenses. As electric utility costs continue to rise, the budget reflects an increase of $16,000 due to new contracted rates beginning July 1. Equipment increased due to the new band uniforms and network upgrades. WAGES 45.3% BENEFITS/PAYROLL COSTS 27.7% PROFESSIONAL SVCS 3.3% TECHNICAL SVCS 1.4% OTHER PURCHASED SVCS 8.8% UTILITIES 1.9% BOOKS/SUPPLIES 2.5% EQUIPMENT 1.3% OTHER- FEES/INTEREST PMT 0.4% OTHER USES OF FUNDS 7.4%

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $14,614,209 $15,722,745 $15,328,879 $16,582,882 $860,137 5.5% WAGES 7,126,240 7,312,457 7,231,521 7,506,505 194,048 2.7% BENEFITS/PAYROLL COSTS 3,722,913 4,187,176 4,011,262 4,593,980 406,804 9.7% PROFESSIONAL SVCS 531,893 496,704 464,927 553,791 57,087 11.5% TECHNICAL SVCS 250,070 248,043 253,682 232,709 (15,334)

• 6.2%

OTHER PURCHASED SVCS 1,151,982 1,365,348 1,307,595 1,451,323 85,975 6.3% UTILITIES 285,163 302,425 270,617 320,925 18,500 6.1% BOOKS/SUPPLIES 318,456 390,926 394,577 408,593 17,667 4.5% EQUIPMENT 178,519 142,623 171,709 220,077 77,454 54.3% OTHER-FEES/INTEREST PMT 84,554 92,511 88,456 74,247 (18,264)

• 19.7%

OTHER USES OF FUNDS 964,420 1,184,532 1,134,532 1,220,732 36,200 3.1% EXPENDITURES

BUDGET TO BUDGET COMPARISON

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EXPENDITURES - BY FUNCTION

Expenditures by Function reflect the level by which the Board is required to submit its general fund budget to the Department of

• Education. A definition of each category is listed below with its corresponding budget data. Salaries/Benefits increases are self-
• explanatory. Other noteworthy changes are documented accordingly.

1100 REGULAR PROGRAMS

• Activities designed to provide grades K-12 students with learning experiences to prepare them for activities as citizens, family

members and non-vocational workers as contrasted with programs designed to improve or overcome physical, mental, social and/or emotional handicaps. Technical Services were reduced for instructional technology equipment repairs based on historical costs. Other Professional Services reflect a change in the Charter School enrollment population. Changes in supplies and equipment are a result of the net effect of a reduction in Project Lead the Way costs and the increase for band uniforms and network upgrades. .

1200 SPECIAL EDUCATION

• Activities designed primarily for students having special needs.

Professional and Other Professional Services reflect changes due to anticipated fluctuations in the special education student population including Charter Schools. Supplies and Equipment allocations increased to purchase items to support the autistic classroom at the elementary, with the costs being covered by Medical Access dollars.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $6,923,664 $7,268,182 $7,169,242 $7,614,679 $346,497 4.8% Salaries 4,280,660 4,305,298 4,264,783 4,397,853 92,555 2.1% Benefits 2,231,023 2,403,608 2,341,120 2,636,193 232,585 9.7% Professional Services 35,614 59,994 47,420 60,726 732 1.2% Technical Services 46,578 54,158 43,721 51,320 (2,838)

• 5.2%

Other Prof. Services 206,614 211,507 202,602 224,422 12,915 6.1% Supplies/Books 102,552 123,617 137,959 118,640 (4,977)

• 4.0%

Equipment 20,621 110,000 131,636 125,525 15,525 14.1%

BUDGET TO BUDGET COMPARISON

1100 REGULAR PROGRAMS 2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $1,362,514 $1,442,077 $1,477,242 $1,637,440 $195,363 13.5% Salaries 639,974 715,663 706,386 760,486 44,823 6.3% Benefits 298,057 397,392 385,592 426,091 28,699 7.2% Professional Services 322,048 243,397 222,353 276,757 33,360 13.7% Technical Services 2,700 3,000 2,700 3,000 0.0% Other Prof. Services 92,975 76,123 148,318 137,622 61,499 80.8% Supplies/Books 4,398 6,252 11,669 8,807 2,555 40.9% Equipment 2,112 24,452 24,452

• %

Dues/Fees 250 250 225 225 (25)

• 10.0%

BUDGET TO BUDGET COMPARISON

1200 SPECIAL PROGRAMS

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1300 VOCATIONAL EDUCATION

PDE approved programs under public supervision and control that provide organized learning experiences designed to develop skills, knowledge, attitudes and work habits in order to prepare individuals for entrance into and progress through various levels

• f employment in occupational fields.

The District contribution to the Mercer County Career Center is based on a three year average membership. The District's average membership has increased from approximately 30 to 34 students. This line item also includes the District's portion of the debt for the Career Center renovation. Please note that the District does not budget a refund of prior year's expenditures, although we have received significant refunds in recent years.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $161,441 $302,699 $210,391 $324,745 $22,046 7.3% Other Prof. Services 161,441 302,699 210,391 324,745 22,046 7.3%

BUDGET TO BUDGET COMPARISON

1300 VOCATIONAL EDUCATION

1400 OTHER INSTRUCTIONAL PROGRAMS

Activities that provide grades K-12 students with learning experiences not included above including Driver's Education, Homebound Instruction, and Alternative Education Programs. Professional Services reflect changes due to anticipated fluctuations in the alternative education student population.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $41,385 $62,025 $59,989 $79,047 $17,022 27.4% Salaries 9,627 11,596 7,933 14,391 2,795 24.1% Benefits 4,169 3,489 2,392 4,982 1,493 42.8% Professional Services 4,842 12,500 30,587 24,774 12,274 98.2% Technical Services

• %

Other Prof. Services 22,747 33,000 17,206 33,000 0.0% Supplies/Books 1,440 1,871 1,900 460 31.9%

BUDGET TO BUDGET COMPARISON

1400 OTHER INSTRUCTIONAL PROGRAMS

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2100 PUPIL PERSONNEL SUPPORT SERVICES

• Activities designed to assess and improve the welI-being of students to supplement the teaching process. Included in this area

are the District's Guidance, Attendance and Psychological services. The reduction in Supplies and Equipment is the result of the need to purchase testing materials to perform the work at the District level during the 2014-15 school year.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $371,140 $481,347 $479,149 $497,108 $15,761 3.3% Salaries 254,999 282,810 296,091 298,604 15,794 5.6% Benefits 105,651 167,654 165,708 186,867 19,213 11.5% Professional Services 4,845 7,929 4,680 7,500 (429)

• 5.4%

Technical Services 158 84 42 (84)

• 100.0%

Supplies/Books 5,487 21,370 12,628 4,137 (17,233)

• 80.6%

Equipment 1,500 (1,500)

• 100.0%

2100 PUPIL PERSONNEL SUPPORT SERVICES

BUDGET TO BUDGET COMPARISON

2200 INSTRUCTIONAL STAFF SUPPORT SERVICES

• Activities associated with assisting, supporting, advising and directing the instructional staff with or on the content and process
• f providing learning experiences for students. This function includes the areas of Technology Support Services, School Library

Services, Instructional and Curriculum Development Services, Instructional Staff Development Services and Other Instructional Staff Services. The salary increase is a result of the reclassification of staff. The Director of Student Services salary was previously prorated and classified under Gifted Education. Other Professional Services decreased due to the elimination of Project Lead the Way Professional Development. Supplies/books increased due to the renewal of PAETEP, the teacher/administrative evaluation software, while Equipment has been increased to fund the replacement of the District’s network upgrades pending approval of E- rate funding. E-rate, if approved, will cover 60% of the cost to upgrade the district’s network.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $549,858 $524,702 $468,891 $636,051 $111,349 21.2% Salaries 239,532 268,139 249,042 304,030 35,891 13.4% Benefits 132,689 157,268 134,305 185,870 28,602 18.2% Professional Services 7,479 11,175 7,242 9,900 (1,275)

• 11.4%

Technical Services 150 150 2,259 234 84 56.0% Other Prof. Services 16,492 19,106 17,002 14,856 (4,250)

• 22.2%

Supplies/Books 47,305 58,364 58,290 60,661 2,297 3.9% Equipment 106,211 10,000 750 60,000 50,000 500.0% Dues/Fees 500 500 0.0% 2200 - INSTRUCTIONAL SUPPORT

BUDGET TO BUDGET COMPARISON

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2300 ADMINISTRATIVE SUPPORT SERVICES

• Activities concerned with establishing and administering policy in connection with operating the District. Included in this

category are Board Services, Tax Assessment and Collection Services, Legal Services, Office of the Superintendent and Office of the Principal Services. Due to administrative changes at the Principal level, Salaries have been reduced. Excluding benefits, he remaining categories were adjusted largely due to building budget submissions and annual changes to the technology replacement cycle.

2400 PUPIL HEALTH SUPPORT SERVICES

• Physical and mental health services, which are not direct instruction. Included are activities that provide students with

appropriate medical, dental and nurse services. Benefits cost reductions are a result of changes in staffing. Changes in Supplies and Equipment were a direct result of building budget submissions and annual changes to the technology replacement cycle.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $1,081,819 $1,112,701 $1,073,618 $1,143,087 $30,386 2.7% Salaries 610,658 622,144 611,865 605,805 (16,339)

• 2.6%

Benefits 348,236 370,119 351,906 411,728 41,609 11.2% Professional Services 50,217 50,539 45,496 51,431 892 1.8% Technical Services 3,909 3,168 2,984 3,857 689 21.7% Other Prof. Services 44,223 42,822 37,033 42,956 134 0.3% Supplies/Books 17,843 15,970 16,551 18,721 2,751 17.2% Equipment 779

• 1,104

1,150 1,150

• %

Dues/Fees 5,954 7,939 6,679 7,439 (500)

• 6.3%

2300 ADMINISTRATIVE SUPPORT SERVICES

BUDGET TO BUDGET COMPARISON

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $127,039 $138,577 $124,355 $134,659 ($3,918)

• 2.8%

Salaries 74,010 79,183 78,859 83,080 3,897 4.9% Benefits 49,741 56,613 42,621 47,802 (8,811)

• 15.6%

Professional Services 1,096 1,250 1,197 1,250 0.0% Other Prof. Services 196 200 196 200 0.0% Supplies/Books 1,997 1,331 1,482 1,527 196 14.7% Equipment

• 800

800

• %

2400 PUPIL HEALTH SUPPORT SERVICES

BUDGET TO BUDGET COMPARISON

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2500 BUSINESS SUPPORT SERVICES

• Activities concerned with paying, transporting, exchanging & maintaining goods & services for the District.

With the planned relocation of the District’s Administrative Offices, there will no longer be a need for a separate T-1 line for connection to the District’s network; therefore, Professional Services have decreased. Equipment has increased as a result of annual changes to the technology replacement cycle.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $207,693 $220,471 $227,567 $231,809 $11,338 5.1% Salaries 113,865 117,353 118,069 120,306 2,953 2.5% Benefits 64,330 72,561 72,203 81,289 8,728 12.0% Professional Services 20,819 21,042 26,934 21,089 47 0.2% Technical Services 628 840 453 800 (40)

• 4.8%

Other Prof. Services 6,557 6,600 6,787 5,325 (1,275)

• 19.3%

Supplies/Books 1,273 1,850 1,719 1,965 115 6.2% Equipment

• 1,175

800 800

• %

Dues/Fees 220 225 228 235 10 4.4% 2500 BUSINESS SUPPORT SERVICES

BUDGET TO BUDGET COMPARISON

2600 OPERATION AND MAINTENANCE OF PLANT SERVICES

• The activities concerned with keeping the physical plant open, comfortable and safe for use, and keeping the grounds,

buildings, and equipment in effective working condition and state of repair. Utility costs are expected to rise by $18,500 collectively. Technical Services are planned to decline largely as result of eliminating one half of the rental payment for the District’s Administrative Offices. Other Professional Services increased to cover rising liability insurance costs and to account for the reduction in e-rate funding of partial telephone costs. Equipment has increased as a result of annual changes to the technology replacement cycle.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $1,569,434 $1,657,967 $1,601,163 $1,703,656 $45,689 2.8% Salaries 568,349 599,305 589,471 602,277 2,972 0.5% Benefits 357,590 423,957 386,053 459,741 35,784 8.4% Professional Services 22,810 25,000 23,984 25,750 750 3.0% Electric 144,350 156,650 143,535 172,650 16,000 10.2% Water 18,734 23,275 17,827 23,775 500 2.1% Technical Services 136,633 129,168 140,295 109,588 (19,580)

• 15.2%

Other Prof. Services 53,766 59,932 60,318 66,395 6,463 10.8% Supplies 108,075 118,030 115,293 118,030 0.0% Gas (Heat/Gasoline) 122,079 122,500 109,255 124,500 2,000 1.6% Equipment 37,047

• 15,132

800 800

• %

Memberships

• 150
• 150

0.0% 2600 MAINTENANCE

BUDGET TO BUDGET COMPARISON

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2700 STUDENT TRANSPORTATION SERVICES

• Expenditures include those activities concerned with the conveyance of students to and from school as provided by State and

Federal law. The District's main transportation contract will increase by 2%. Overall, there is an expected budgetary savings as a result of the use of propane fuel in our buses that provide transportation to and from school. The District is currently investigating possible rebates that may reduce our cost even further. Diesel fueled buses will be used for extracurricular activities. Since the purchase

• f diesel fuel will be expensed separately, it has been budgeted under Student Activities.

2800 CENTRAL SUPPORT SERVICES

• Activities, other than general administration, which support each of the other instructional and support services programs.

Included here are the cost associated with the Technology Coordinator and support staff and staff development for non- instructional certified and not certified personnel. Technical services show an increase due to the anticipated increase in our technician service contract.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $300,352 $274,936 $271,221 $288,603 $13,667 18.0% Salaries 162,607 135,234 133,305 135,128 (106)

• 0.1%

Benefits 86,251 81,638 76,919 89,536 7,898 9.7% Technical Services 47,915 51,675 55,000 57,750 6,075 11.8% Other Prof. Services 3,386 5,925 4,831 5,725 (200)

• 3.4%

Supplies/Books 132 200 1,106 200 0.0% Equipment

• %

Dues/Fees 60 264 60 264 0.0%

BUDGET TO BUDGET COMPARISON

2800 CENTRAL SUPPORT

2900 OTHER SUPPORT SERVICES

• All other support services not classified elsewhere in the 2000 series. The District contribution to the Midwestern Intermediate

Unit IV is charged here.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $491,833 $548,103 $533,160 $532,018 ($16,085)

• 2.9%

Other Prof. Services 491,833 548,103 533,160 532,018 (16,085)

• 2.9%

2700 STUDENT TRANSPORTATION SERVICES

BUDGET TO BUDGET COMPARISON

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $9,504 $10,500 $9,070 $10,500 $0 0.0% Other Prof. Services 9,504 10,500 9,070 10,500 0.0%

BUDGET TO BUDGET COMPARISON

2900 OTHER SUPPORT SERVICES

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3200 STUDENT ACTIVITIES

• School Sponsored activities under the guidance and supervision of the District staff including school sponsored activities and

school sponsored athletics. Professional Services and Other Professional Services categories are expected to rise due to increased costs for the following areas: Athletic Trainer, athletic security, officials and athletic transportation. The expense of sponsoring home track events has generated an increase in Supplies, along with the allocation of diesel fuel for school sponsored activities and athletics. Equipment costs have been reduced as a result of changes in the uniform replacement cycle and Track Equipment purchases.

5100 DEBT SERVICE/OTHER EXPENDITURES AND FINANCING USES

• This account is used to record and accumulate expenditures incurred to retire current year principal and interest payments on

long-term debt. The District's bond debt is recorded as a debt service transfer. The net increase in Principal and Interest is the direct effect of the new loan and 2011 loan refinancing. This increase is offset by the rent savings.

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $380,287 $420,922 $417,127 $474,239 $53,317 12.7% Salaries 171,959 175,732 175,717 184,545 8,813 5.0% Benefits 45,175 52,877 52,443 63,881 11,004 20.8% Professional Services 62,121 63,878 55,034 74,614 10,736 16.8% Technical Services 11,399 5,800 6,228 6,160 360 6.2% Other Prof. Services 42,246 48,831 60,682 53,559 4,728 9.7% Supplies/Books 29,392 42,502 36,009 74,005 31,503 74.1% Equipment 11,750 21,123 21,912 6,550 (14,573)

• 69.0%

Dues/Fees 6,244 10,179 9,102 10,925 746 7.3%

BUDGET TO BUDGET COMPARISON

3200 STUDENT ACTIVITIES 2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $111,827 $117,284 $117,162 $134,509 $17,225 14.7% Interest 71,827 72,284 72,162 54,509 (17,775)

• 24.6%

Principal 40,000 45,000 45,000 80,000 35,000 77.8% Prior Year Adjustment

• %

BUDGET TO BUDGET COMPARISON

5100 DEBT SERVICES/REFUND PRIOR YEAR RECEIPTS

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5200 FUND TRANSFERS

• Included are transactions that withdraw money from one fund and place it in another without recourse.

The Debt Service Fund increase is a result of minor annual variations in the bond payments.

5900 BUDGETARY RESERVE

• Budgetary Reserve is not an expenditure function or account. It is strictly a budgetary account. In addition to the

appropriations, it is a sound management practice to provide for operating contingencies through a budgetary reserve.

DISTRIBUTION OF EXPENDITURES

The graph below represents the distribution of expenses over the functions: Instructional, Support, Non- Instructional and Other Uses. Instructional 58% Support 31% Non- Instructional 3% Other Financing Uses 8%

2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $924,420 $1,089,532 $1,089,532 $1,090,732 $1,200 0.1% CAPITAL RESERVE FUND 400,000

• %

DEBT SERVICE FUND 519,448 1,089,532 1,089,532 1,090,732 1,200 0.1% CAFETERIA FUND 4,972

• %

ATHLETIC FUND

• %

ACTIVITY FUND

• %

BUDGET TO BUDGET COMPARISON

5200 FUND TRANSFERS 2013-2014 2014-15 2014-15 2015-16 ACTUAL BUDGET ESTIMATED BUDGET $ VARIANCE % VARIANCE TOTAL $0 $50,000 $0 $50,000 $0 0.0% BUDGETARY RESERVE

• 50,000
• 50,000

0.0% BUDGETARY RESERVE

BUDGET TO BUDGET COMPARISON

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CAPITAL RESERVE FUND

The Pennsylvania Department of Education (PDE) does not require a budget of the District's Capital Reserve Fund. The information here is included for information purposes only. As defined by PDE, the Capital Reserve Fund is defined as accounts for {1} moneys transferred during any fiscal year from Appropriations made for any particular purpose which may not be needed, (2) surplus moneys in the General Fund of the treasury of the District at the end of the fiscal year, and {3} interest earnings of the fund itself, Bond proceeds and other local, state or federal revenue received by the school may not be deposited into this fund. No transfers out of this fund are allowable for any purpose.

2012-13 2013-14 2014-15 2015-16 ACTUAL ACTUAL ESTIMATE BUDGET BEGINNING FUND BALANCE $423,659 $390,587 $512,109 $1,060,866 INVESTMENT INCOME 874 1,058 1,098 1,400 TRANSFERS IN 60,214 400,000

• SALE OF FIXED ASSETS
• LOAN/REFINANCING PROCEEDS
• 768,790
• DONATIONS
• INSURANCE PROCEEDS
• TOTAL

$ 61,088 $ 401,058 $ 769,888 $ 1,400 CONTRACTED SVCS-McC RUN

• CONTRACTED SVCS-CAP IMP

87,339 126,295

• BUILDING IMPROVEMENT-ADMIN
• 92,362

999,278 SITE IMPROVEMENT-SOFTBALL 1,005 29,146 104,828

• OTHER - EQUIPMENT

5,816 124,095 23,941

• TOTAL

$ 94,160 $ 279,536 $ 221,131 $ 999,278 ENDING FUND BALANCE $390,587 $512,109 $1,060,866 $62,988

E X P E N S E S

CAPITAL RESERVE SUMMARY

R E V E N U E S