2017-2018 BUDGET PRESENTATION April 4, 2017 Boyertown Area School - PowerPoint PPT Presentation

2017-2018 BUDGET PRESENTATION April 4, 2017 Boyertown Area School District Board of Education

2016 Berks County Schools Real Estate Tax Rate ANTIETAM 37.79 C. WEISER 27.14 B. HEIGHTS 32.30 GOV. MIFFLIN 27.10 EXETER 32.21 SCH. VALLEY 27.07 FLEETWOOD 31.81 TWIN VALLEY 26.77 WYOMISSING 30.07 HAMBURG 26.71 KUTZTOWN 29.95 OLEY VALLEY 26.33 DANIEL BOONE 29.70 WILSON 24.95 MUHLENBERG 28.56 BOYERTOWN 24.27 TULPEHOCKEN 27.70 READING* 17.93 * Reading SD taxpayers voted to exchange HIGHER INCOME tax FOR LOWER PROPERTY tax. Compare Reading SD EIT of 1.5% to Boyertown .5%

2016 Montgomery County Schools Real Estate Tax Rate CHELTENHAM 45.09 SOUDERTON 28.78 POTTSTOWN 39.25 METHACTON 28.74 JENKINTOWN 38.98 HATBORO-HORS 27.49 POTTSGROVE 37.72 LOWER MERION 27.40 NORRISTOWN 34.39 SPRING FORD 26.24 LWR MORELAND 33.32 BOYERTOWN 24.27 UPPER DUBLIN 32.29 NORTH PENN 24.19 SPRINGFIELD 31.66 UPPER PERK 23.64 PERK VALLEY 31.60 COLONIAL 20.96 ABINGTON 30.83 UPPER MERION 18.96 UPR MORELAND 29.40 WISSAHICKON 18.79

Act 1 & Budgeting Below is the BASD 10-year historical Act 1 data: Base BASD BASD Difference FY Index Index % Tax Incr** Base vs. Tax Incr 07-08 3.4% 4.1% 2.2% -1.2% 08-09 4.4% 5.3% 2.6% -1.8% 09-10 4.1% 4.9% 0.0% -4.1% 10-11 2.9% 3.5% 3.7% +0.8% 11-12 1.4% 1.7% 5.5% +2.9% 12-13 1.7% 2.1% 2.3% +0.6% 13-14 1.7% 2.1% 2.5% +0.8% 14-15 2.1% 2.6% 2.6% +0.5% 15-16 1.9% 2.3% 2.5% +0.6% 16-17 2.4% 2.9% 1.5% -0.9% ** Average Tax Increase subject to tax equalization calculation

Act 1 Index Index Calculation for 2017-2018: ECI Index equals 2.5% times: Aid Ratio Allow (.75 + .479 ) x 1.2229 BASD Index (from PDE) 3.1% County Millage Index Increase Berks 24.27 3.1% .75 Mont. 24.27 3.1% .75 1 Mill = $2.3 Million times .75 = $1,725,000

Expenditure Per Student Berks County

Expenditure Per Student Montgomery County

Expenditures Well Invested Academic Results 2016 SAT Results Statewide - 118th out of 646 (Top 18% in Pennsylvania) Berks County Only - 4th out of 18 Montgomery County Only - 17th out of 22 Berks and Montgomery County – 21st out of 40 • Per pupil instructional expenditure in Berks County 16 th lowest of 18 School Districts • Per pupil instructional expenditure in Montgomery County 22 nd out of 22 School Districts

Budget Deficit Update February 7 March 14 Projected Revenue $105,347,105 $105,367,201 Projected Expenditures $111,345,876 $111,017,918 Projected Deficit $ (5,998,771) $ (5,650,717) Use of $2M Committed One-Time Funds PSERS $ 2,000,000 $ 2,000,000 Net Deficit $ (3,998,771) $ (3,650,717) Current Budget does not include any revenue increase as proposed in Governor Wolf’s budget proposal.

Budget Deficit Reduction • Three Ways to Decrease a Budget Deficit: 1. Decrease Expenditures 2. Increase Revenue 3. Use of Fund Balance

Prior Budget to Actual Review • Review of Revenue Budget History • Conservative Projections allowed for Positive Variances • More Optimistic Revenue Projections will minimize Positive Variances • Review of Expenditure Budget History • Expenditure Negative Variances increasing as Optimistic Expense Items are overspent

State Budget Trouble

State Budget Woes The Independent Fiscal Office, a non-partisan state agency, confirmed an anticipated shortfall of at least $2.5 billion by July 1, 2018, reflective of sluggish economic growth, rising health care and pension costs, and an aging workforce. That shortfall can be reduced by substantive changes in public policy.

Deficit Reduction Expenditures

PSERS Mandated Contribution Rate

PSERS EXPENSE

2 Major Expenditure Factors (a.k.a. State Mandates) • Pennsylvania School Employers Retirement System (PSERS) State Mandated Pension Establishes Annual Contribution Rate for All School Districts 11-12 PSERS rate at 8.65% (+ 5.2%) ↑ $1.28 Million 12-13 PSERS rate at 12.36% (+42.9%) ↑ $1.59 Million 13-14 PSERS rate at 16.93% (+37.0%) ↑ $2.25 Million 14-15 PSERS rate at 21.40% (+26.4%) ↑ $2.58 Million 15-16 PSERS rate at 25.84% (+20.7%) ↑ $2.39 Million 16-17 PSERS rate at 30.03% (+16.2%) ↑ $1.99 Million 17-18 PSERS rate at 32.57% (+ 8.5%) ↑ $1.6 Million (est.) • Special Education Expenditures Approximately 20% of BASD Students Special Ed expenditures average ↑ 11% over 7 years 2016-17 2017-18 Increase Special Ed Expense $19.541 M $20.847 M $1.306 M Special Ed % of Budget 17.5% 18.1%

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations/ Professional 1. Reduce from 2.0 FTE to 1.0 FTE middle school librarians ○ JHE and JHW will each have a teacher who is .5 librarian and .5 ELA teacher ○ Library clerk covers library, reduced opportunity for library instruction ○ One open ELA teacher position would not be filled for 2017-18 Reduction = $80,000 (Salary, PSERS, Benefits)

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations/ Professional 2. Reduce 1.0 FTE School Counselor o Transfer 1 counselor from elementary to middle school open position o Elementary reduces by one grade level o No increase to counseling services for students at elementary level o WES, BES, GES, NHUF have 1.0 FTE Counselor, CES, PFES, EES have .5 FTE Counselor Reduction = $98,000 (Salary, PSERS, Benefits)

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations/Professional 3. Close Planetarium ○ No Planetarium sessions for BASD students/Community ○ Reduced community opportunity ○ Teacher retires June 2017 Reduction = $30,000

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Professional 4. Reduce 2.5 special area teachers at elementary level ○ Students continue current amount of special area instruction ○ No opportunity to expand health instruction ○ Continued large class sizes/bubble classes combined ○ Art vacancy not filled, PE to open BASH position, .5 music teacher reassigned to middle school position Reduction = $200,000 (Salary, PSERS, Benefits)

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Professional 5. Reduce .5 BASH Chemistry/Biology ○ Increase class size from 21 to 23 (average/estimated) Reduction = $50,000 (Salary, PSERS, Benefits) 6. Eliminate Elementary Band/Orchestra ○ No opportunity for band/orchestra until middle school ○ Decreased learning/opportunity for 508 students (some students counted twice) ○ Teacher furloughs in music department Reduction = $350,000 (Salary, PSERS, Benefits)

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Administration 1. Reduce Administration ○ Reallocation of administrative assignments ○ Administrative staff increases additional areas of responsibility Reduction = $175,000 (Salary, PSERS, Benefits) 2. Reduce Administrative support ○ Reallocation of office support staff ○ Current support staff increases additional responsibilities Reduction = $25,000 (Salary, PSERS)

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Support 1. Reduce custodial staff ○ Reallocation of staff assignments ○ Redistribution/prioritization of duties Reduction = $130,000 (Salary, PSERS) 2. Reduce recess aide hours across district ○ 6th grade students moving to middle school ○ Some elementary schools will condense lunch/recess periods Reduction = $17,000 (Salary, PSERS)

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Support 3. Reduce paraprofessional hours at elementary level ○ Evaluate support needs due to attrition and replacement Reduction = $22,000 (Salary, PSERS)

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Operations 1. Reduce school and department budgets 5% ○ Less supplies, equipment, needs reprioritzed Reduction = $150,000 2. Reduce three bus runs ○ Redesign district runs ○ Possible longer bus rides, increased students per bus Reduction = $117,000

Program Reduction Considerations • 70% of BASD Budget is Personnel Wages & Benefits Reduction Considerations / Operations 3. Elimination of middle school sports programs ○ Eliminates 26 teams involving 828 students (based on last season, some students counted twice) ○ Reduced opportunity for students to prepare for BASH programs through BASD programs Reduction = $200,000 (stipends, equipment, fees, etc.)

Reduction Considerations Summary JH Librarian $ 80,000 Counselor $ 98,000 Planetarium $ 30,000 Elementary Special Areas $ 200,000 BASH Chem/Bio $ 50,000 Elementary Band/Orchestra $ 350,000 Administration $ 175,000 Administrative Support $ 25,000 Custodial Support $ 130,000 Recess Aides $ 17,000 Paraprofessional $ 22,000 Budgets Reduction $ 150,000 Bus Runs $ 117,000 Middle School Sports $ 200,000 Total $1,644,000

Deficit Reduction Increase Revenue