FINANCIAL AFFAIRS COMMITTEE MEETING February 4, 2020 Cheltenham - PowerPoint PPT Presentation

FINANCIAL AFFAIRS COMMITTEE MEETING February 4, 2020

Cheltenham Mission Statement Drawing on its cultural richness, creativity, and tradition of scholastic excellence, School District the Cheltenham School District strives to nurture each child through a wealth of academic endeavors and community partnerships that provide the skills and vision needed to lead a productive and meaningful life beyond our classroom walls. Mission & Vision Statement With a clear connection between the classroom and the world, the Cheltenham Vision School District will strive for excellence by: Statements 1. inspiring our students to develop principled and knowledgeable responses to the local, national, and global challenges of the 21st century; 2. actively engaging parents in their children’s intellectual, social, and moral education; 3. encouraging faculty and staff to continually broaden the web of connections between their academic disciplines and the world on which they depend; 4. stimulating dynamic leadership of building and district administrators; and 5. creating partnerships with community individuals, institutions, organizations, and businesses that model real-world connections for all students. 2

2019/ 2019/20 20 Cost t Sav avings ngs ü Attritional savings as of January 31, 2019 - $505,703 • Salaries - $337,249 • Benefits - $168,454 ü Copier Lease renewal - $12,000 ü Copier quota implementation - savings unknown at this time ü CHS 1:1 Chromebook lease renewal - $26,000 ü 2019 Debt Refinancing Plan - $323,891 - one time savings* ü Preliminary MCIU Transportation Costs - $600,000 • 2018/19 costs payable in 2019/20 report reflects a preliminary payment to the MCIU in the amount of $1.4 million • MCIU transported less CSD students in 2018/19; amount is based on the budget submitted to PDE by the MCIU - June 2020 payment will be based on a reconciliation of that amount to actuals so this number may change

2019/ 2019/20 20 Unan Unanti ticipat pated d Expe pendi nditur tures Currently tracking major budgeted expenditures: ü Transportation ü Special Education ü Student Services As of January 31, 2019, there has been no major changes to previously reported unanticipated expenditures.

2019-20 2019-20 2019-20 Variance - Variance - Fiscal Projection Budget - $ YTD - $ Encumb $ % Year - % Year-End REVENUES Local 93,724,350 89,108,578 4,615,772 95.08% 93,724,350 State 25,097,232 9,163,225 15,934,007 36.51% 25,097,232 Federal 735,042 106,805 628,237 14.53% 735,042 Fund Balance 2,733,728 - 2,733,728 0.00% 2,374,031 TOTAL REVENUES and FUND BALANCE 122,290,352 98,378,608 23,911,744 80.45% 58.33% 121,930,655 EXPENDITURES 100 - Salary 51,819,415 25,506,127 - 26,313,288 49.22% 51,482,166 200 - Benefits 31,099,303 15,540,728 - 15,558,575 49.97% 31,910,849* 300 – Prof/Tech Svcs 7,790,352 4,048,264 1,834,217 1,907,871 75.51% 7,790,352 400- Purchased Property Svcs 1,450,432 825,062 187,403 437,967 69.80% 1,410,000* 500 – Other Purchased Svcs 14,490,290 5,654,718 2,108,910 6,726,662 53.58% 14,002,670* 600 - Supplies 3,768,152 2,081,396 245,324 1,441,432 61.75% 3,786,101 700 - Property 168,706 103,152 61,101 4,453 97.36% 168,706 800 - Other Objects 5,352,027 4,017,714 14,258 1,320,055 75.34% 5,352,027 900 – Other Financing Uses 6,351,675 1,870,000 - 4,481,675 29.44% 6,027,784* TOTAL EXPENDITURES 122,290,352 59,647,161 4,451,213 58,191,978 52.41% 58.33% 121,930,655 Projections: * Indicates where cost savings have been applied; series 200 - Benefits reflects not applying the one time cost savings of premium holiday at $980,000

2019-20 2019-20 2019-20 Variance - Variance - Fiscal Projection Budget - $ YTD - $ Encumb $ % Year - % Year-End REVENUES Local 93,724,350 89,108,578 4,615,772 95.08% 93,724,350 State 25,097,232 9,163,225 15,934,007 36.51% 25,097,232 Federal 735,042 106,805 628,237 14.53% 735,042 Fund Balance 2,733,728 - 2,733,728 0.00% 2,374,031 TOTAL REVENUES and FUND BALANCE 122,290,352 98,378,608 23,911,744 80.45% 58.33% 121,930,655 EXPENDITURES Salaries/Benefits 82,918,718 41,046,855 - 41,871,863 49.50% 83,393,015* Transportation 7,949,850 2,615,057 776,120 4,558,678 42.66% 7,400,000* Tuition – Cyber/Charter School 1,160,000 662,350 559,880 (62,230) 105.36% 1,222,230 Tuition - Other 4,433,426 1,734,361 719,188 1,979,877 55.34% 4,433,426 Debt Service 10,786,675 4,781,389 - 6,005,286 44.33% 10,462,784 Equipment/Software Platforms 968,197 876,058 118,240 (26,101) 102.70 994,298 Other 14,073,486 7,931,091 2,277,785 3,864,605 72.54% 14,024,902* TOTAL EXPENDITURES 122,290,352 59,647,161 4,451,213 58,191,975 52.41% 58.33% 121,930,655 Projections: * Indicates where cost savings have been appliedSalaries/Benefits reflects not applying the one time cost savings of premium holiday at $980,000

REVENUES and EXPENDITURES PROJECTED OVER TIME 130,000,000 122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 120,000,000 120,816,065 121,930,655 122,219,773 122,219,773 122,219,773 122,290,352 110,000,000 98,378,608 96,941,487 100,000,000 90,598,175 83,091,963 90,000,000 79,072,985 80,000,000 70,000,000 58,191,975 54,795,618 60,000,000 53,170,837 47,004,698 50,000,000 40,000,000 35,910,494 30,000,000 21,950,542 20,000,000 12,768,875 10,000,000 August September October November December January Budgeted Revenues/Expenditures Projected Revenues/Expenditures Actual Revenues Actual Expenditures

1 2 0 2 - 0 2 0 2 T E G D U B E T A D P U

2020 2020-21 21 Budge udget t Goal als ü Reduce budgetary dependency on Fund Balance Ø Expenditure reductions ü Continue to maximize cost efficiencies in the overall operating budget Ø Reduce re-occurring expenditures in objects 300 - 500 ü Continue to support student achievement/outcomes Ø Double down on current programs Ø Year 2 - Curriculum Plan Ø Year 5 - Strategic Plan

Total Estimated Savings from To Cost Reduction Recommendations - as Co as o of J Januar anuary 2020 2020 Salaries/Benefits - $744,421 ü Attrition ü Collective Bargaining Agreements ü Staff Efficiency Analysis Transportation - $44,100 ü Late Buses • Ridership efficiency at CHS/CBK • Eliminate at EP Student Services - $91,663 ü Analysis of contractual services Total Estimated Savings as of January 2020: $880,184

Wh What i is n next? • CSD approved the 2020-21 Preliminary Budget on January 14, 2020 • 2020-21 Preliminary Budget was submitted to PDE • Deadline to submit Referendum Exceptions to PDE is February 13, 2020 • Deadline for PDE to notify Districts if Exceptions are approved is March 4, 2020 • PDE deadline for Certification of Homestead funding is April 15, 2020 • 2020-21 Proposed Final Budget adoption deadline is May 2020 • 2020-21 Final Budget adoption deadline is June 2020

Re Referendum Exceptions -- -- Ho How w do they wo work? k? A district that adopts a preliminary budget with real estate taxes that exceed its index may seek approval for referendum exceptions to increase tax rates by more than its adjusted index Section 333 of the Taxpayer Relief Act, as amended by Act 25 of 2011, provides for four exceptions that require approval by PDE • School Construction - Form A Grandfathered Debt • School Construction - Form B Electoral Debt • Special Education Expenditures • Retirement Contributions If one or more referendum exceptions are approved by PDE, a school district may increase the tax rate by more than its index without seeking voter approval

Re Referendum Exceptions -- -- Ho How w do they wo work? k? PDE shall approve the request if a review of the data demonstrates that the district qualifies for one or more of the exceptions. If approved, PDE will determine the dollar amount of the expenditure for which the exception is sought and the tax rate increase required to fund the exception If denied, the district must either: 1. Reduce the tax rate increase to no more than the Act 1 Inde 2. Submit a referendum question for voter approval in the next primary election

Re Referendum Exceptions -- -- 2019/ 2019/20 20 Dat ata 501 PENNSYLVANIA SCHOOL DISTRICTS • 386 districts adopted the Opt-Out resolution • 92 districts submitted a Preliminary Budget with the tax rate over index - all 92 districts adopted a final budget that included exceptions • 19 districts submitted a Preliminary Budget with the tax rate within index • 2 districts operated on January - December basis and was not included in the count • 1 district was not subject to preliminary budget requirements of Act 1