2017-2018 FINAL BUDGET ADOPTION June 13, 2017 Boyertown Area - PowerPoint PPT Presentation

2017-2018 FINAL BUDGET ADOPTION June 13, 2017 Boyertown Area School District Board of Education

Budget Considerations • The 2017-2018 General Fund Budget has been a challenge • Construction Projects Ongoing – (BASH, MSW, Elementary HVAC) • August 2018 BASH servicing grades 9-12, Junior High Schools becoming middle schools servicing grade 6-8, Elementary Schools provided room for growth serving K-5 • Student and Teacher movement as grades reconfigure • Curriculum/Program of Studies Revisions • Complete Final Phase of BASH 1:1 Initiative • Increasing Mandated Costs – PSERS, Special Education, Charter Tuition • Federal and State Budget Difficulties • Future Education Funding Concerns – (Title I, Title II, ACCESS) • Health Care Expenditures & Governmental Mandates

2017-2018 Budget Development • September 2016 - Budget Packages sent to Building and Department Administrators • October 2016 – Building and Department Meetings to discuss budget assumptions, building needs, and personnel • November 2016 review of budget submissions and entry into financial system as requested • November 29 - Initial Board presentation to review budget items including revenue projections, Act 1 information, and major mandated expenditures • December 2016 – Administrative Personnel projections, review of wage & salary increases, preliminary fringe benefit information • January 17 – Board adopts resolution to not exceed Act 1 Index of 3.1% • February 7 – Governor Wolf’s Commonwealth Budget Address, BASD Budget work session • Budget Work Sessions – March 7, April 4, May 2, May 30 • May 9 - Final Proposed Budget Adoption – start 30 day review period • June 13 - Final Adoption of the 2017-2018 Budget Tonight

Focus on the Future The development of the 2017-2018 budget stressed more than a one-year financial plan. With the goal of becoming a high achieving school district, the School Board and Administration planned to invest in the Boyertown Area students’ education. Important Items Discussed • How will decisions for 17-18 impact the next 5 years? • Replacement of One-Time Fund Balances • Future Impact of Large Expenditure Items like Health Care Costs, PSERS Pension Contribution Increases, Continued Increase in Special Education Students and Service • Building Operations & Maintenance Evaluation – Efficient Utilization of Existing Buildings • Need for Additional Revenue versus Program & Education Service reductions. • Future Tax Increases to Improve District Performance

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 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 The School Board adopted a resolution that the District would not increase the tax rate by more than the Act 1 Index

General Fund Budget Progress February 7 May 9 June 13 Projected Revenue $105,347,105 $106,299,617 $106,347,569 Tax Increase of 3.1% $ 1,750,000 $ 1,750,000 Total Projected Revenue $108,049,617 $108,097,569 Projected Expenditures $111,345,876 $109,461,229 $109,439,014 Projected Deficit $ (5,998,771) $ (1,411,612) $ (1,340,445) Use of One-Time Funds PSERS Committed $ 2,000,000 $ 1,411,612 $ 1,340,445 Net Deficit $ (3,998,771) $ 0 $ 0 Current Budget does include Basic Ed and Special Ed revenue increases 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

Deficit Reduction Expenditures Review

New Secondary Personnel Recommendations Regular Ed/Support Special Education • BASH Administrator • BASH ES Teacher (IDEA) • BASH Clerical • BASH .5 Gifted Teacher • BASH Counselor • MSE LS Teacher • BASH HPE • MS Gifted Teacher • BASH HPE • BASH Custodians (2) • BASH Security Monitor • BASH CAF Monitor (2) • Secondary Orchestra (.5)

New Elementary Personnel Recommended • CES Intervention Teacher • BES .5 Counselor • EES .5 Counselor • PFES .5 Counselor • GES .5 Dean of Students • NHUF .5 Dean of Students • GES Playground Aide

New District-wide Personnel Recommended • School Psychologist • Speech Pathologist • PT Staff Accountant

Personnel Summary Full Time Equivalent Positions Additions Deletions Regular Education Regular Education 1 BASH Guidance Counselor .5 BASH Social Studies 1 BASH HPE .5 JHE Planetarium (Contracted) 1 CES Intervention Teacher 3 WES Grade Teachers .5 Secondary Orchestra 1 BES Grade Teacher Special Education 1 GES Grade Teacher 1 Bash ES Teacher (IDEA) 1 NHUF Grade Teacher .5 BASH Gifted Teacher 1 MSE LS Teacher 0 Professional FTE 1 School Psychologist Support Total .5 FTE Addition .5 Staff Accountant General Funded (.5) FTE

Special Education Expense (Federal Mandate)

Personnel Wages & Benefits Salaries & Benefits Final Year of BAEA Collective Bargaining Agreement (CBA) No Furloughs – Re-Allocation of Positions through Attrition All Non-BAEA Employees budged at 2.5% increase in wages Benefits PSERS Increase from 30.03% to 32.57% Health Insurance – 0% Increase in Premium Staff Contribution percent increase .5% Premium Holiday – December 2017 Internal Service Fund Balance Reduction

Pension Contribution Expense (State Mandate)

Cost Reductions JH Librarian $ 80,000 Counselor $ 98,000 BASH Chem/Bio $ 50,000 Administration $ 175,000 Administrative Clerical $ 25,000 Custodial Support $ 130,000 Recess Aides $ 17,000 Paraprofessional $ 22,000 Budgets Reduction $ 150,000 Bus Runs (3) $ 117,000 Total $ 864,000

Deficit Reduction Increase Revenue

Proposed Revenue Increases State Revenue Assume Governor’s Budget will be adopted as proposed with $100 million added to BEF Local Revenue Maximum tax increase of 3.1% (BASD Act 1 Index) Assessment Increases – Montgomery Co. Growth Student Activity Fees increase to $200 per secondary student for unlimited participation BASH student Parking Fee increase to $100 per year Building Rental Custodial Hourly Fee from $34 to $44

Use of Fund Balance

Fund Balance Usage ➢ $1.34 million in Committed Fund Balance for PSERS included in budget ▪ Projected Balance of PSERS Fund on 6/30/18 is $3.5 million ▪ Step down plan to utilize remaining balance over 5-6 years with proposed .1 mill increase each year slowly replacing the reliance of one-time funding  Capital Projects Fund Transfer of $500,000 for 2017-18 eliminated  Internal Service Fund Balance Reduction Plan - Premium Holiday

Other Funding Sources The following funding sources will be added to the General Fund budget for inclusion in the adoption of the Final Proposed Budget on May 9 and the Final Budget on June 13: Local Pottstown Health & Wellness $ 75,000 State Ready to Learn Block Grant $ 928,175 Federal Title I $ 563,931 Title II $ 93,000 IDEA $1,152,225 ACCESS $ 475,000 Total $3,307,331 Each Funding source has equal revenues and expenditures

Questions & Discussion