2015-16 Budget Discussion March 16, 2015 West Chester Area School - PowerPoint PPT Presentation

West Chester Area School District 2015-16 Budget Discussion March 16, 2015

West Chester Area School District 2015-16 Budget Goal of March 16 th Property and Finance Committee • Competitive Analysis: Chester County School Districts • History of Millage and Exceptions • Economic Indicators • Options for Balancing the 2015 ‐ 16 Budget • Impact of Governor’s Proposed 2015 ‐ 16 Budget

West Chester Area School District 2015-16 Budget Competitive Analysis

West Chester Area School District 2015-16 Budget

West Chester Area School District 2015-16 Budget

West Chester Area School District 2015-16 Budget

West Chester Area School District 2015-16 Budget

West Chester Area School District 2015-16 Budget

West Chester Area School District 2014-15 Budget Customers and Taxpayers

West Chester Area School District 2014-15 Budget Who are our stakeholders and who are our customers? 32,000 homeowners pay $116 million in RE taxes and all working residents pay $19 million in EIT 1800 commercial and industrial property owners pay $29 million in RE taxes

West Chester Area School District 2015-16 Budget Tax Payer Lens

West Chester Area School District 2015-16 Budget Millage with Maximum Exceptions: $18.9 million more in tax revenues Millage at Act 1 : $3.3 million less in tax revenues

West Chester Area School District 2015-16 Budget Impact of the Economy on our Taxpayers and School District

West Chester Area School District 2015-16 Budget Avg. Annual Increase 5 Year : 11.3% 10 Year : 5.2% 6 Year (since 2008 recession): 12.5%

West Chester Area School District 2015-16 Budget Housing Values 2000 ‐ 2015 Real Estate Bubble

West Chester Area School District 2015-16 Budget Housing Values 2000-2015

West Chester Area School District 2015-16 Budget

West Chester Area School District 2015-16 Budget West Chester Area School District History of Appeals: 2009 ‐ 10 to 2014 ‐ 15 ($000) Total Assessment Property Owner Tax Year Reduction Reduction 2009 ‐ 10 $50,726 $856 2010 ‐ 11 $114,910 $2,022 2011 ‐ 12 $98,294 $1,746 2012 ‐ 13 $108,164 $1,950 2013 ‐ 14 $60,873 $1,119 2014 ‐ 15 $31,975 $600 2009 ‐ 2014 $464,942 $8,549

West Chester Area School District 2015-16 Budget History of Unemployment Rate in Chester County Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2007 3.3 3.2 3.1 2.7 3.0 3.3 3.4 3.4 2.9 2.9 3.0 3.0 3.1 2008 3.6 3.6 3.6 3.2 3.7 3.9 4.3 4.5 3.9 4.1 4.3 4.5 3.9 2009 5.6 6.0 6.0 5.7 6.3 6.6 6.8 6.8 6.3 6.3 6.2 6.2 6.2 2010 7.1 7.2 7.2 6.7 6.9 6.9 7.2 7.1 6.2 6.2 6.2 6.0 6.7 2011 6.5 6.4 6.2 5.7 6.0 6.4 6.8 7.1 5.9 5.5 5.6 5.4 6.1 2012 6.3 6.3 6.1 5.6 5.9 6.7 6.9 6.8 5.8 5.8 5.6 5.9 6.1 2013 6.9 6.4 5.9 5.6 6.0 6.5 6.3 6.7 5.5 5.3 5.3 4.6 5.8 2014 5.2 5.0 4.8 3.8 4.4 4.4 5.0 5.2 3.9 3.5 3.5 3.4 4.3 http://www.bls.gov/lau/data.htm

West Chester Area School District 2015-16 Budget http://www.bls.gov/lau/maps/twmcort.pdf

West Chester Area School District 2015-16 Budget Pennsylvania Labor Statistics: Preliminary December 2014 Philadelphia and Suburbs County Name/State Abbreviation Labor Force Employed Unemployed Unemployment rate % Chester County, PA 268,132 259,045 9,087 3.4 Montgomery County, PA 431,645 415,412 16,233 3.8 Bucks County, PA 338,183 324,074 14,109 4.2 Delaware County, PA 276,572 264,093 12,479 4.5 Philadelphia County/city, PA 637,057 597,682 39,375 6.2 Chester County has the lowest unemployment rate out of all PA Counties.

West Chester Area School District 2015-16 Budget Management of the WCASD Budget: Past, Present and Future

West Chester Area School District 2015-16 Budget Act 1 Index Forecast History and Forecast of the Act 1 Base Index Fiscal Year Act 1 Index SAWW ECI 2006 ‐ 07 3.9% 4.2% 3.5% 2007 ‐ 08 3.4% 2.8% 4.0% 2008 ‐ 09 4.4% 4.3% 4.5% 2009 ‐ 10 4.1% 4.6% 3.6% 2010 ‐ 11 2.9% 2.7% 3.0% 2011 ‐ 12 1.4% 0.9% 1.9% 2012 ‐ 13 1.7% 2.1% 1.3% 2013 ‐ 14 1.7% 2.0% 1.4% 2014 ‐ 15 2.1% 2.6% 1.6% 2015 ‐ 16 1.9% 2.4% 1.4% 2016 ‐ 17 2.2% 2.7% 1.7% 2017 ‐ 18 2.2% 2.8% 1.7% 2018 ‐ 19 2.5% 3.3% 1.7% 2019 ‐ 20 2.6% 3.4% 1.7% Source: Independent Fiscal Office

West Chester Area School District 2015-16 Budget Act 1 Index Impact of New Projections for Act 1 Index to Future Budgets in Forecast Model Revised Real Estate Forecast Forecast Tax Levy Revised Model Tax Model Tax Reduction Forecast Model Forecast Model Levy @ Levy @ for Revised Year Act 1 Index Act 1 Index Act 1 Act 1 Act 1 Index 2016 ‐ 17 2.40% 2.20% $3,649,000 $3,345,000 ‐ $304,000 2017 ‐ 18 2.60% 2.20% $3,977,000 $3,366,000 ‐ $611,000 2018 ‐ 19 2.80% 2.50% $4,310,000 $3,848,000 ‐ $462,000 2019 ‐ 20 n/a 2.60%

West Chester Area School District 2015-16 Budget A B C D E F G H I Managing Retirement Rate Increase In Future Budgets District PSERS Share % Millage Remaining Remaining $s to Employer Pension Cost Increase Net Millage Increase Total Milage Amount of Tax Spend on Other Year Rate Cost * to District Impact Impact Increase Increase ** Budget Increases 2010 ‐ 11 5.64% $2.6 $0.4 0.053 0.3% 2.9% 2.6% $3.8 2011 ‐ 12 8.65% $3.7 $1.2 0.140 0.8% 0.0% ‐ 0.8% ‐ $1.2 2012 ‐ 13 12.36% $5.2 $1.5 0.186 1.0% 1.7% 0.7% $1.0 2013 ‐ 14 16.93% $7.3 $2.1 0.249 1.3% 0.0% ‐ 1.3% ‐ $2.1 2014 ‐ 15 21.40% $9.5 $2.2 0.268 1.4% 2.9% 1.5% $2.2 2015 ‐ 16 25.84% $11.6 $2.0 0.246 1.3% 1.9% 0.6% $1.0 2016 ‐ 17 29.69% $13.6 $2.1 0.248 1.3% 2.2% 0.9% $1.5 2017 ‐ 18 30.62% $14.3 $0.7 0.080 0.4% 2.2% 1.8% $3.0 2018 ‐ 19 31.56% $15.1 $0.7 0.086 0.4% 2.5% 2.1% $3.6 * District Share of Pension Cost is 50% of PSERS Employer Rate ** Tax Increase is Actual for Prior Years and for Future years assumption is Act 1 Index Based on Independent Fiscal Office Projection

West Chester Area School District 2015-16 Budget A B C D E F G H I Managing Retirement, Special Education, Charter School Tuition Increases In Future Budgets PSERS Cost Remaining Remaining $s to Spend Increase to Special Charter School % Millage Amount of Tax on Other Budget Year District Education Tuitions Total Net Millage Impact Increase Increase ** Increases 2010 ‐ 11 $0.4 $1.1 $0.1 $1.7 0.200 1.1% 1.8% $2.6 2011 ‐ 12 $1.2 $0.4 $0.5 $2.1 0.254 1.4% ‐ 1.4% ‐ $2.1 2012 ‐ 13 $1.5 $1.3 $1.0 $3.8 0.464 2.5% ‐ 0.8% ‐ $1.3 2013 ‐ 14 $2.1 $1.4 $0.1 $3.5 0.429 2.3% ‐ 2.3% ‐ $3.5 2014 ‐ 15 $2.2 $0.1 $0.2 $2.5 0.303 1.6% 1.3% $2.0 2015 ‐ 16 $2.0 $1.4 $0.8 $4.3 0.513 2.6% ‐ 0.7% ‐ $1.2 2016 ‐ 17 $2.1 $1.6 $0.5 $4.1 0.491 2.5% ‐ 0.3% ‐ $0.5 2017 ‐ 18 $0.7 $1.7 $0.5 $2.8 0.334 1.6% 0.6% $0.9 2018 ‐ 19 $0.7 $1.7 $0.5 $3.0 0.351 1.7% 0.8% $1.4 * District Share of Pension Cost is 50% of PSERS Employer Rate ** Tax Increase is Actual for Prior Years and for Future years assumption is Act 1 Index Based on Independent Fiscal Office Projection

West Chester Area School District 2015-16 Budget Balancing 2015 ‐ 16 Budget Budget Deficit Expense Reductions in 2015-16 R.E. Taxes to Act 1 Index (1.9%) 2014-15 Local Tax Collections R.E. Taxes for Exceptions (1.1%) 2014-15 Expense Savings Use of Fund Balance

West Chester Area School District 2015-16 Budget Balancing 2015 ‐ 16 Budget R.E. Taxes to Act 1 Index (1.9%) $2.9 Million R.E. Taxes for Exceptions (1.1%) $0 ‐ $1.7 Million Use of Fund Balance $4.4+ Million 2014 ‐ 15 Local Tax Collections • Current Real Estate ? • Transfer Taxes 2014 ‐ 15 Expense Savings • Healthcare Claims ? • Special Education Cost Increases • Other Expense Reductions in 2015 ‐ 16 • Staffing Based on Course Selection/Attrition ? • Healthcare Claims • Other

West Chester Area School District 2015-16 Budget Governor’s Proposed 2015 ‐ 16 Budget : Changes for Public Education