Northeastern School District Preliminary Budget Presentation 2015-2016 School Year The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.
Preliminary Budget Summary DESCRIPTION 2015-16 BUDGET SUMMARY TOTAL REVENUE $ 61,155,102 - TOTAL EXPENDITURES $ 62,754,782 Budget deficit ($ 1,600,000) (rounded) Use of Fund Balance $ 500,000 TAXES: to Adjusted $ 850,000 Index Total budget deficit ($ 250,000)
What helped this budget? REVENUE EXPENDITURES Budgeting growth again in local 5 teacher retirements revenue for interim, EIT , RE transfer. Less LERTA exemption added $400k. More state funding for retirement Did not budget for LTS and ETS as due to higher retirement wages from FMLA, sabbatical and CRL contribution. should offset Budgeted ABG and SS/HS grant Tuition reimbursement reduced $100k Tax increase to adjusted index Locking in utility and diesel fuel at lower rates for budget savings
Possible Budget Concerns… REVENUE CONCERNS EXPENDITURE CONERNS Is the current trend in interim real Employer contribution to estate, RE transfer and EIT going to RETIREMENT . Rate increased +20%. continue? State doesn’t support cyber/charter Employer contribution to HEALTH school funding costs. ABG will INSURANCE. Rate increased 9.3%. hopefully be continued as budgeted. Hope state continues to support LIU costs are growing at a fast pace. retirement payments Need continued tax increases to try Need to keep doing debt refinancing to balance budget to maintain lower debt service exp.
Budget Steps Forward… Understand that the fiscal crisis in PA education is not over with salaries, PSERS, health insurance and charter tuition cost growth > total revenue growth A pprove LERTA for 3 year term through 2017 and beyond – promotes LT local revenue growth. Employee staff maintained – supports student achievement and efficiency. Labor negotiations will hopefully produce health insurance savings – (not included) Continued debt refinancing – holds down cost- potential for 2015-16 (not included) Consider bringing in-house LIU program(s) that strategically fit. In other areas, evaluate whether services are better served in-house or outsourced. Use part of committed fund balance to balance budget – planned to ease into millage Increase taxes to state limit - maximums revenue. Annualize Capital Reserve transfers for physical plant maintenance and for artificial turf and track. Keep on the horizon the eventual need for a new high school and upkeep for Annex Ctr/pool area
Savings and Taxes SAVINGS TAXES 2013-14 audit results added $1.35M to If Tax resolution approved, as fund balance w/ planned allocation of recommended, the tax increase limits savings. would be +.64 mils or 2.5%. $500k use of fund balance committed Tax resolution also means No to PSERS to offset nearly $600k in exceptions included in this budget retirement cost increase Transfer $175k to Capital Reserve fund
Budget Opportunities Budget Opportunities to watch… Hoping local assessed values and additional LERTA properties will occur to help local rev. District qualified for 4 year grant called Safe School/Healthy Children – grant revenue and expenditure mostly offset. State subsidies (except retirement) are presented at a 0% increase. Debt refinancing possible, more retirements possible. Act 93 and NEA contracts expire June 30, 2015. Productive negotiations could produce LT health insurance savings. Last 2 years of audit savings has afforded opportunity to commit fund balance to PSERS, poss. $1.5M and draw down beginning 2015-16, and add to Capital Reserve. May have some savings for 2014-15.
Local State Federal
Revenue Growth % - 10 year History 13.85% 11.80% 8.86% 6.96% 5.95% 5.26% 3.48% 2.99% 2.69% 2.50% 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 B2014-15 B2015-16 -2.65%
Group Life Insurance 2015 -16 Benefit Budget $30,000 0 % Social Security $2,008,703 1 3 % Health Insurance Group Life Insurance $6,470,941 4 1 % Social Security Retirement Tuition Reimbursement Unemployment Compensation Worker's Compensation Retirement $6,784,952 Health Insurance 4 3 % Worker's Compensation $165,000 1 % Unemployment Compensation Tuition Reimbursement $250,000 $20,000 0 % 2 %
16.0% Expenditure Growth % - 10 year History 14.0% 12.0% 10.0% 8.0% 14.3% 13.4% 6.0% 10.3% 8.7% 4.0% 7.7% 6.8% 4.9% 2.0% 3.9% 3.5% 1.9% 0.0% 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 B2014-15 B2015-16 -2.5% -2.0% -4.0% % exp growth
14.00% Fund Balance % of Expenditures Budget - 10 year History 12.00% 10.00% 8.00% 12.37% 6.00% 10.73% 8.42% 8.33% 4.00% 7.94% 7.46% 6.77% 6.35% 5.23% 4.22% 2.00% 3.62% 0.00% 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 B2014-15 B2015-16 Fund Balance as a % of Budget
TAXES: District Perspective Real Estate Millage Increase based on Adjusted No Exceptions assessed property value Index to be filed 1 mil = $1.3M in new reoccurring +2.5% revenue Additional Real Estate Revenue $850,000 $0 projected
TAXES: Taxpayer Perspective Real Estate Millage Increase based on $ 100k $ 150k $ 200k assessed property value Tax increase: Adjusted Index to 2.5% +$ 64 +$ 96 +$ 128 Real Estate Tax bill at 26.25mils w/o $2,625 $3,937. $5,250 H/F excl 5
Preliminary Budget 2015-16
Northeastern School District Questions and Answers
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