Board of School Directors Workshop Session 2018-19 Proposed Final - PowerPoint PPT Presentation

Elizabethtown Area School District Board of School Directors Workshop Session 2018-19 Proposed Final Budget Tuesday May 8, 2018 � “Excellence by CHOICE, Not by Chance”

Opportunities and Threats… Within the 4As Public Education is at a critical point So many opportunities!! “Excellence by CHOICE, Not by Chance”

Opportunities

Opportunities

Challenges and Threats But also some serious challenges and threats • Increasing Unfunded Mandates • Homeless, foster, charter schools • Increasing social support • Free & reduced lunch, mental health • Budget uncertainty / unpredictability • New funding formula, political changes “Excellence by CHOICE, Not by Chance”

Student Learning at Elizabethtown will: Student Learning at Elizabethtown will: PREPARE students for college and career readiness; PROMOTE 21st Century learning skills and processes; ENGAGE students and staff in real world problem solving; BY CAPITALIZING on personalized learning opportunities; PROVIDING a safe and supportive learning environment; EXTENDING beyond the walls of our school buildings by fostering strong relationships with families and the community. “Excellence by CHOICE, Not by Chance”

Goals for Budget • Support student learning within the 4As Support student learning within the 4As! � • Provide safe, clean environment to support support student learning within the 4As! student learning within the 4As! � • Operate as effectively and efficiently as possible to support student learning within the 4As! to support student learning within the 4As! �

Goals for Budget • While planning for 2018-19…. � • We are responsibly preparing for the Future � • Future renovations (Rheems, HSMS, MR?) � • Other capital projects (athletics, maintenance) �

Financial Update 
 High Level View- Current Status 2016-17 2016-17 � 2017-18 � 2017-18 2017-18 � 2017-18 Actual � Actual Budget Budget � Projected Projected � Revenue Revenue � 58,112,553 58,112,553 � 59,654,419 59,654,419 � 59,915,000 � 59,915,000 Expense Expense � 58,018,855 58,018,855 � 60,890,715 60,890,715 � 59,932,679 59,932,679 � Surplus/Deficit � Surplus/Deficit 93,698 93,698 � (1,236,296) (1,236,296) � (17,679)* (17,679)* � • *Result of careful strategic long-term planning � • Savings from changes in last CBA negotiations (health care, etc.) �

PROPOSED FINAL BUDGET Revenue and Expense Projections 5/2/18 Board Update EASD Budget vs Actual Comparison 2018-2019 2017-18 Projected vs 2018-19 2017-2018 2017-2018 Proposed Final Mar Budget (Act 1) Projected Object Budget Dollar Percent Budget May 2018- April 2018 Code 2016-2017 Actual 3.2% Variance Change REVENUES Local 38,213,564 40,241,196 40,500,000 42,062,957 1,562,957 3.86% State 17,790,201 18,868,224 18,870,000 19,570,701 700,701 3.71% Federal 545,000 545,000 545,000 755,000 210,000 38.53% Other 0 0 0 56,548,765 59,654,420 59,915,000 62,388,658 2,473,658 4.13% EXPENSES Salaries 100 Professional Education 18,521,878 19,249,062 19,100,000 19,825,153 725,153 3.80% Administration 2,856,760 2,960,308 2,925,000 3,028,983 103,983 3.55% Other 3,649,655 3,740,566 3,695,000 3,819,586 124,586 3.37% Total Salaries 25,028,293 25,949,935 25,720,000 26,673,722 953,722 3.71% Employee Benefits 200 Group Insurance 66,542 20,967 68,828 59,563 (9,265) -13.46% Social Security Contributions 1,824,736 1,894,705 1,913,855 1,919,098 5,243 0.27% PSERS 7,450,611 8,038,835 8,010,550 8,403,711 393,161 4.91% Tuition Reimbursement 261,213 285,000 250,000 285,000 35,000 14.00% Health Insurance 6,732,488 6,991,980 6,400,000 6,400,000 0 0.00% Other (W/C & UC) 282,089 150,138 226,754 164,549 (62,205) -27.43% Total Employee Benefits 16,617,678 17,381,625 16,869,987 17,177,620 307,633 1.82% 300 & 400 Contracted Services Professional Services 4,496,146 4,059,040 4,050,000 3,668,795 (381,205) -9.41% Property Services 900,032 748,203 750,000 766,636 16,636 2.22% Total Contracted Services 5,396,178 4,807,243 4,800,000 4,435,431 (364,569) -7.60% Charters & Transportation 500 Student Transportation Services 2,361,922 2,687,405 2,680,000 2,764,667 84,667 3.16% Tuition - Charter Schools 1,206,191 1,150,000 1,150,000 1,150,000 0 0.00% Tuition - Other 1,149,423 1,327,000 1,300,000 1,673,342 373,342 28.72% Other Purchased Services 412,791 311,054 350,000 625,378 275,378 78.68% Total Charters & Transportation 5,130,327 5,475,459 5,480,000 6,213,387 733,387 13.38% Supplies 600 General Supplies 1,116,314 1,023,617 1,050,000 1,082,283 32,283 3.07% Energy 821,780 811,959 800,000 822,000 22,000 2.75% Books & Periodicals 199,948 50,570 50,000 33,002 (16,998) -34.00% Supplies & Fees Technology 990,448 970,000 960,600 (9,400) -0.97% Total Supplies 2,138,042 2,876,594 2,870,000 2,897,885 27,885 0.97% 700 Equipment 278,562 17,819 15,000 3,177 (11,823) -78.82% Other 186,157 187,348 185,000 185,155 155 0.08% 800 900 Fund Transfers Fund Transfers 0 0 0 0 358,000 300,000 300,000 885,000 585,000 195.00% Capital Projects Debt Service 3,046,686 3,692,692 3,692,692 3,723,109 30,417 0.82% Total Fund Transfers 3,404,686 3,992,692 3,992,692 4,608,109 615,417 15.41% Budgetary Reserve 200,000 0 200,000 200,000 0 Total Expenses 58,179,924 60,888,715 59,932,679 62,394,486 2,461,807 4.11% Revenue vs Expenses (1,631,159) (1,234,295) (17,679) (5,828)

Financial Update 
 Proposed Budget- High Level View 2018-19 Budget 2018-19 Budget � Revenue Revenue � 62,388,658 62,388,658 � 3.2% tax increase � 3.2% tax increase Expense Expense � 62,394,486 62,394,486 � Surplus/Deficit Surplus/Deficit � (5,828) (5,828) �

EXPENDITURES

EASD - Historical Operating Expenses 70,000,000 � 62,394,486 � 59,932,679 � 60,000,000 � 58,018,855 � 54,129,849 � 53,329,469 � 51,681,238 � 50,000,000 � 47,807,417 � 46,433,519 � 45,987,209 � 44,796,910 � 43,719,530 � 41,248,515 � 40,000,000 � 30,000,000 � 20,000,000 � 10,000,000 � - � 2007-08 � 2008-09 � 2009-10 � 2010-11 � 2011-12 � 2012-13 � 2013-14 � 2014-15 � 2015-16 � 2016-17 � 2017-18 � 2018-19 � • 2017-18 projected � • 2018-19 budget �

Expenditures by Major Function Area 
 2018-2019* Athletics & Extracurricular � Debt and Transfers � 2.1% � 5.9% � Student Supports, Admin, Business, Transport � 28.5% � Instruction � 63.6% � *Proposed

Expenditures by Major Category 
 2018-2019* Other � [CATEGORY NAME] (Debt Property � 0.30% � Service, Cap Reserve) � 0.01% � [PERCENTAGE] � Supplies � 4.64% � Transport., Charter Schools, Tuition � 9.96% � Salaries � 42.75% � Property Svcs � 1.23% � IU, Subs, Prof Serv � 5.88% � Benefits � 27.53% � *Proposed Budget

Expenses- Key Points Salaries: Teachers at contracted increase- 3.25%, but varies by step and level (the range is from 1.17 to 4.8%) Administrators at 3.75% based on performance (as per the Act 93 agreement) Support staff at 3.25% (as in line with the CBA) PSERS Rate= 34.18%, a 4.94% increase over 17-18 rate of 32.57% Health care= budget at 0% increase • Recent plan changes having positive effect Other contracts Adjusted as needed- selected key B&G, Business Office, and other operations contracts “Excellence by CHOICE, Not by Chance”

Personnel Budget Adjustments Adjustments given changing circumstances • Retirees/resignations- Savings of ($475,801) • Not replacing three teaching positions • Shifting existing staff to balance class sizes and increase efficiency • Special ed program- new hires- Addition of $657,473 • Cost avoidance strategy- better outcome than contracting service • Opportunity to offset cost through tuition sale with other member districts • Extends continuity of key Autistic Support program across buildings • No increase in health care budget- 0% “Excellence by CHOICE, Not by Chance”

Reducing Expenses • School calendar changes • Reduction in days for transportation, paras, subs • IU Special ed contract reduction • Cost avoidance strategy- offsets new hires, allows more flexibility in program • Building budget cuts • Principals reviewed and approved “Excellence by CHOICE, Not by Chance”

Capital Improvements Over $1 million budget • Planned projects- security, HVAC, athletics, marquee • Contingency- HVAC, roofing, furniture • Complete list finalized in June “Excellence by CHOICE, Not by Chance”

REVENUE

2018-2019 Sources of Revenue 1% � 31% � Local � State � Federal � 68% � Total Revenue for 2018-2019 Budget = $62,388,658 Assumes 3.2% tax increase

Revenue Key Points • Increase in local sources � • Tax increase- 3.2% (Act 1 index) � • Forecasted growth in EIT, other local sources � • Interest income- improved rates � • State revenue- 0% increase for BEF and SEF � • Federal revenue- increase for ACCESS funding � “Excellence by CHOICE, Not by Chance”