North Penn School District 2020-2021 Budget Update April 14, 2020 - PowerPoint PPT Presentation

North Penn School District 2020-2021 Budget Update April 14, 2020

Budget Timeline Finance Committee Meeting 5/4 Board Direction on Tax Rate Adoption of Proposed Final Budget 5/12 Board Worksession Adoption of Final Budget 6/18 Board Action Meeting

2.6%

Act 1Exceptions Special Education $1,541,260

Act 1Exceptions Special Education +0.84% 3.43%

0%

$13.1 M Deficit Budget

7.06% To Balance

Updates… • Moved the purchase of 3,500 ChromeBooks for grades 7-9 from the 2020-21 budget to the current year. Reduced the 2020-21 budget by $1,330,000 • Tax rebate program question

CARES Act Funding • $982,412 estimated • Distributed by State • Distribution or grants? • General prescribed guidelines for use • Supplement state budget?

Fund Balance Breakdown 6/30/19 Description Amount Nonspendable (inventory & prepaid items) $343,826 Assigned for self-funded insurance $2,700,000 Committed to PSERS $16,806,523 Unassigned (7.76%) $21,264,066 Total Fund Balances $41,114,415

10-Year Projections Type of Economic Recovery

V

U

L

Projection Assumptions • 0% tax increase for 2020-21 (Act 1 thereafter) • Act 1 tax increase every year • Special education exception for 2020-21 (Act 1 thereafter)

V Projection Assumptions • Sharp recovery after 1 year • Near “return to normal” • Very optimistic

V Projection Assumptions • Tax base contraction • Reduced tax collection • No growth in EIT and transfer taxes • Near zero interest rates for 2 years

V Projection Assumptions • Lower Act 1 index - 30 bps most years • No change in PSERS projections • Reduced spending

U Projection Assumptions • Recovery after 2 years • Near “return to normal” • More realistic but still optimistic

U Projection Assumptions • Tax base contraction • Reduced tax collection • No growth in EIT and transfer taxes • Near zero interest rates for 3 years

U Projection Assumptions • Lower Act 1 index - 40 bps most years • No change in PSERS projections • Reduced spending

Budget Scenario Current Budget Deficit -$13,017,732 Act 1Increase - 2.60% $4,786,870 Anticipated Retirements $750,000 Budgetary Reserve $1,500,000 Potential Positive Variances (0.50%) $2,744,686 Projected Ending Deficit -$3,236,176

Tax Scenarios Average Tax Additional Remaining Homestead Increase Revenue Deficit Increase 0.00% $0.00 $13,017,732 $0 1.00% $1,853,392 $11,164,340 $39 1.50% $2,770,899 $10,246,833 $58 2.00% $3,698,302 $9,319,430 $77 2.60% $4,786,870 $8,230,862 $100 3.43% $6,327,829 $6,689,902 $132

Next Steps • Staffing recommendations • Remove items from 2020-21 budget and purchase this fiscal year. • Refine and update data based on new information • Closely monitor EIT and transfer tax collection • Direction on tax rate

Discussion