Budget Presentation December 5, 2016 2016-2017 Current Budget - PowerPoint PPT Presentation

Budget Presentation December 5, 2016

§ 2016-2017 Current Budget § 2017-2018 Preliminary Budget § Revenue § Expenses Budget Options §

2016-17 Budget Review Adopted Budget (June) — Revenue $82,989,834 — Expenses $83,222,521 — Deficit -$232,687 — Received $248,612 in additional State funds July/Aug 2016. — Added 2 new Kindergarten teachers to start 2016-17 ($140,000) — Actual 2016-17 Deficit = -$124,075 — Using PSERS reserves to cover the deficit — Projected ending unassigned fund balance $5,127,671

2017-18 Revenue Projection § Local Revenue = $63,018,417 = 75.1% § State Revenue = $20,198,640 = 24.1% § Federal Revenue = $643,887 = 0.8% § SWAP reserve funds use = $500,000 § Total Revenue Generated = $84,360,944

Property Tax Revenue § Current Millage Rate is 18.92 § 2017-18 Act 1 Index is 3.2% § Equate to 0.61 mills § Average homeowner tax bill increase of $100.80 § Generates increase in local revenue of $1,724,698

State Basic Education Funding PA State Funds ARRA Stimulus Funds $7,687,226 $8,000,000 $798,161 $7,185,393 $7,000,000 $704,623 $6,801,065 $6,801,083 $6,000,000 $5,000,000 $6,491,697 $6,490,986 $4,000,000 $6,147,119 $3,000,000 $5,855,476 $2,000,000 $1,000,000 $- 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

State Basic Education Funding - Update — Share slides and data from a State Basic Education Funding Workshop — Participation was by a joint group from: — PASA — PSBA — PASBO — PAIU

Basic E c Educ ducation F n Fund unding g Workshop Wed ednesday, N November er 1 16

PA Public Education System • 3,288 Public Schools • 500 School Districts • 176 Charter Schools • 29 Intermediate Units • 12 Comprehensive Career and Technology Centers • 59 Occupational Career and Technology Centers • 7 State Juvenile Correctional Institutions • 2 School District sponsored Community Colleges 2

School District Funding Total Fe l Fede deral Re l Revenue ue, $1,454, 54,601, 601,058 58 5% Total S l State Re Revenue ue, Total L l Local l Re Revenue ue, 37% $10,022, 022,41 410, 0,134 134 $15,886, 886,60 605, 5,775 775 58% Source: PDE 3

Act 1 Base Index History For the Past Five Years the Base 4. 4.4 Index average is less than 2% Base index average for 4. 4.1 3. 3.9 the last six years is 1.87% 3. 3.4 2.9 2. 2.4 2. 2.1 2. 1. 1.9 1.7 1. 1.7 1. 1. 1.4 200 006- 6-07 07 200 007- 7-08 08 200 008- 8-09 09 200 009- 9-10 10 201 010- 0-11 11 201 011- 1-12 12 201 012- 2-13 13 201 013- 3-14 14 201 014- 4-15 15 201 015- 5-16 16 201 016- 6-17 17 7 Source: PDE

2016-17 Cost Increases 1% Salary Increase $110,000,000 Net Local Share of PSERS $212,014,000 Health Insurance at 4% $108,000,000 Charter School Increase $150,000,000 Special Education Increase $175,000,000 TOTAL COST INCREASES $756,014,000 Act 1 Index Revenue (Adjusted Index) $340,000,000 Shortf tfal all A AFTE TER T Tax Increa ease se $416 16,014, 014,00 000 9

The Resulting Inequity PA had the most inequitable funding when comparing per student spending in the wealthiest school districts to the poorest school districts. Source: Washington Post 3/12/15 20

Basic Education Funding Commission • Commission formed in 2014 • Tasked with developing a BEF formula • Issued recommendations in June 2015 • Widespread, bi-partisan support for formula • Removed politics from process 21

Top 30 Districts in % BEF Increase 2014 2014 M Median 2016-17 2016 17 Loca cal E Eff ffort % I Increa ease se School ool D District Househ usehold 3-yr a avg Capaci city in BEF BEF Income I Index ADM Index ex Conestoga Valley SD 0.9432 4,456.821 1.3700 26.09% York Suburban SD 0.8063 2,930.249 1.3000 22.64% Wyomissing Area SD 0.7917 1,935.455 1.3500 21.56% Derry Township SD 0.8154 3,477.779 1.2200 20.68% Hanover Public SD 1.2004 1,873.701 1.4800 20.50% Jim Thorpe Area SD 0.9548 2,235.790 1.7500 20.19% State College Area SD 1.0704 7,071.132 1.0800 17.12% Quaker Valley SD 0.7444 1,893.993 1.1100 16.70% Manheim Township SD 0.7835 5,803.255 1.2800 16.57% Upper Merion Area SD 0.6937 3,883.531 0.8700 15.60% Parkland SD 0.6676 9,186.635 1.1900 14.19% Lewisburg Area SD 1.0776 1,938.182 1.4800 14.12% Source: PDE East Stroudsburg Area SD 0.9046 7,451.258 1.8500 13.47% Wilkes-Barre Area SD 1.4174 7,476.679 1.6500 13.03% Central York SD 0.8241 6,029.424 1.3700 13.02% 60

Top 30 Districts in % BEF Increase 2014 2014 M Median 2016-17 2016 17 Loca cal E Eff ffort % I Increa ease se School ool D District Househ usehold 3-yr a avg Capaci city in BEF BEF Income I Index ADM Index ex Muhlenberg SD 0.8817 3,585.549 1.3700 12.99% Upper Moreland Township SD 0.8145 3,123.594 1.1800 12.88% Springfield Township SD 0.6243 2,274.984 0.8800 12.88% Camp Hill SD 0.8147 1,249.161 1.2400 12.77% Wilson SD 0.7964 5,994.623 1.3700 12.75% Fox Chapel Area SD 0.6966 4,310.034 1.0200 12.73% Norristown Area SD 0.9529 7,584.842 1.1700 12.42% Abington SD 0.7056 7,715.025 1.0000 12.35% Pocono Mountain SD 0.9681 10,242.488 2.0300 12.25% Cornell SD 1.4662 685.201 1.2500 11.92% Wallenpaupack Area SD 0.9996 3,242.639 1.2200 11.68% Schuylkill Valley SD 0.7966 2,013.891 1.3300 11.66% Source: PDE Pottstown SD 1.1616 3,265.482 1.8600 11.64% South Fayette Township SD 0.6573 2,738.536 1.4100 11.52% Reading SD 1.9770 18,096.506 1.8400 11.49% 61

Previous distribution of BEF Previous basic education funding was distributed through the process of Hold Harmless, where no school district got less than it got in the previous year. State ate B Budget New B Ne Basic c Previous F s FY B Basic c Incr crease i in Basic Educ ucation F n Fundi nding ng Educ ucation F n Fundi nding ng Educ ucation F n Fundi nding ng Lev evel el 62

New distribution of BEF Hold harmless is out, BUT the formula maintains a baseline over time to avoid negative financial impact What’s the difference? What’s the difference? Base Ye Year i is 2014 2014-15 15 • No guarantee that BEF from the previous year will increase even if the total appropriation increases. FY 2015 2015-16 16 • The formula reacts to changes in student BEF I Increa ease e and district factors annually. ($150 m $150 million) FY 2015 2015-16 B 6 BEF EF increase P PLUS 2016 2016-17 B 7 BEF Increase ase ($350 m millio ion) n) 63

Impact of new formula • Predictability and consistency for school districts • Formula is now based on the major cost drivers • Directs resources to districts with greatest needs • Will begin to close the gap between districts based on their funding per student 64

Federal Revenue § Projected Funding remains the same from 2016-17 but the future of Federal Funding is an unknown. § Title I § Title II § Title III

Revenue Breakdown $643,887 $500,000 0.8% $20,198,640 24.1% Local State Federal $63,018,417 SWAP 75.1%

Revenue Review § 2016-17 Total = $82,989,834 § 2016-17 Total = $84,360,944 § Increase of $1,371,110 = 1.65% § Does not include any tax increase projected

Tax Rate History Millage Rates 20.00 18.92 18.57 18.22 19.00 17.76 17.76 17.76 17.76 18.00 17.00 16.00 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Tax Rate History Adopted Act 1 CYSD Full Millage Index % Index 08/09 16.81 4.40% 3.10% 17.03 09/10 17.26 4.80% 2.70% 17.62 10/11 17.76 3.50% 2.90% 17.86 11/12 17.76 1.70% 0.00% 18.06 12/13 17.76 2.00% 0.00% 18.12 13/14 17.76 2.10% 0.00% 18.13 14/15 18.22 2.60% 2.55% 18.23 15/16 18.57 2.40% 1.90% 18.66 16/17 18.92 3.00% 1.90% 19.13

2016-17 York County Tax Rates Southern 18.460 South Western 18.850 CENTRAL 18.920 Hanover 21.390 Dover 21.934 Spring Grove 21.970 South Eastern 22.250 Red Lion 22.350 York Suburban 22.410 Eastern 22.430 Dallastown 22.930 West York 23.470 Northeastern 26.090 York City 33.736

Budget Increase History Percent 4.47% 3.72% 3.30% 2.52% 1.11% 0.50% 0.00% 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

2017-18 Expenses

2017-18 Expenses § Budget changes/increases: § Salaries $1,444,681 § Health Insurance Benefits $1,410,008 § PSERS Retirement $1,204,145 § Special Education Services $597,983 § Social Security $87,366 § Total Expenses Increase = $5,132,946

Salary Costs Dollar Amount $50,000,000 $34,952,696 $35,557,047 $37,191,178 $38,635,860 $45,000,000 $34,930,902 $40,000,000 $34,665,919 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Insurance Costs Dollar Amount $9,230,632 $10,000,000 $7,820,623 $7,696,299 $7,375,096 $8,000,000 $6,510,792 $6,589,875 $6,000,000 $4,000,000 $2,000,000 $0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Pension Contribution Rates Employer Contribution Rate 32.00% 40.00% 30.05% 25.84% 30.00% 21.40% 16.93% 12.36% 8.65% 20.00% 10.00% 0.00% 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18