Northeastern School District Proposed Final Budget Presentation - PowerPoint PPT Presentation

Northeastern School District Proposed Final Budget Presentation 2019-2020 School Year The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.

Preliminary Budget Summary DESCRIPTION 2019-20 BUDGET SUMMARY TOTAL REVENUE $ 71,358,849 - TOTAL EXPENDITURES -$70,745,983 Gross surplus (rounded) $ 612,866 Use of Fund Balance $ 0 Budgetary Reserve $ (600,000) Other RE Tax increase $ 0 Budget surplus $ 12,866 Note: Above #s include transfer to Capital Reserve CR – For Maintenance $ (400,000) CR – For replacement tech/furniture $ ( 50,000) HS Renovations $ (450,000)

Big Picture 2019-20 BUDGET • Revenue – Largest projected increases from local and state – Comment on Governor’s state proposed budget and district’s state budget • Expenditures – Largest budgeted increases – Decisions already made – Decisions that still need to be made

2019-20 Revenue Tax for HS Renovations, $224,000 , Federal, $728,620 , 1% 0% State, $24,304,963 , 34% Local, 46,101,266 , 65% Local State Federal Tax for HS Renovations

10 year Revenue History 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - A2010-11 A2011-12 A2012-13 A2013-14 A2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20

8.0% Revenue % - 10 yr History 6.72% 7.0% 6.1% 6.0% 5.62% 5.55% 5.0% 3.96% 3.84% 4.0% 3.61% 3.0% 1.91% 2.0% 1.0% 0.0% A2010-11 A2011-12 A2012-13 A2013-14 A2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20 -0.32% -1.0% -2.0% -2.36% -3.0%

2019-20 Expenditures Transfer to Capital Reserve, $500,000 , 1% Transfer HS renovations, $450,000 , 0% Budgetary Reserve, $600,000 , 1% Special Requests, $437,455 , 0% Other, $16,893,568 , 24% Salary, $28,352,079 , 40% Debt Service, $5,840,786 , 8% Benefits, $18,322,096 , 26% Salary Benefits Debt Service Other Special Requests Transfer to Capital Reserve Transfer HS renovations Budgetary Reserve

Salary • By contract: – Professional = TBD - contract expires 6/30/19 – Central Office administrators = under individual contracts – raise TBD – Act 93 Administrators = TBD – expires 6/30/19 • Budgeted but Board decides: – Confidential = +2.3% (index) – Classified = 1 vertical step on matrix (+2.7%) AND REVISED hourly rate matrix from YC SD data. – Co-/Extra-curricular = longevity only, Extra-curricular stipends TBD as they are under contract neg.

2019-20 BENEFITS Group Life Insurance; $26,000 ; 0% Social Security; $2,122,006 ; 12% Health Insurance; $5,976,843 ; 34% Worker's Compensation; $200,000 ; 1% Unemployment Compensation; $15,000 ; 0% Retirement; $9,273,030 ; 52% Tuition Reimbursement; $225,000 ; 1% Group Life Insurance Social Security Retirement Tuition Reimbursement Unemployment Compensation Worker's Compensation Health Insurance

Benefits: Health Insurance • Funding rate to LBT: – As of 6/30/18, $4.5M as net position in LBT – For 2019-20, +3% medical rate approved • District cost at $6M (incl +3% funding) • Current employee cost sharing: – Premium share = +3% increase – Deductible at $500/$1500 – Spousal surcharge at $100/mth

Total Exp % Growth -10 yr History 6.0% 4.9% 4.80% 5.0% 4.6% 4.2% 3.95% 4.0% 3.6% 3.5% 3.3% 3.0% 1.9% 2.0% 1.0% 0.0% 2010-11 2011-12 2012-13 2013-14 2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20 -1.0% -2.0% -2.5% -3.0%

Expenditure Growth % (2018-19 to 2019-20) 7.0% 6.1% 6.0% 5.0% 4.0% 4.0% 3.0% 2.2% 2.2% 2.0% 1.6% 1.0% 0.0% Salary Benefits Debt Service Other Total Series1

Total Fund Balance % - 10 yr History 20.00% 18.26% 18.00% 15.86% 16.00% 14.00% 12.64% 12.00% 11.20% 10.00% 9.27% 8.63% 8.54% 8.00% 6.35% 6.00% 4.26% 3.62% 4.00% 2.00% 0.00% A2010-11 A2011-12 A2012-13 A2013-14 A2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20

3 Year Budgt Forecast $- Forecast 2020-21 Forecast 2021-22 Forecast 2022-23 $(100,000) $(200,000) $(300,000) $(400,000) $(500,000) $(600,000) $(700,000) $(800,000) $(900,000)

TAXES: District Perspective DISTRICT Perspective Index No Exceptions Real Estate Millage Increase +2.3% to be filed 1 mil = $1.4M in new reoccurring revenue Adjusted Index +3.1% Additional Real Estate Revenue possible $840,000 to $0 through tax increase $1,134,000

TAXES: Taxpayer Perspective TAXPAYER Perspective $ 100k $ 150k $ 200k Real Estate Millage Increase based on assessed property value Tax increase: Adjusted Index to 3.1% +$ 81 +$ 122 +$ 162 Real Estate Tax bill at 27.06mils w/o H/F excl $ 2,706 $ 4,059 $ 5,412

Board to consider… • Salary – Any Confidential, Classified, co-curricular, and extra-curricular raises will need board approval. – Labor negotiations still needed w/ NEA and Act 93 administrators – Classified hourly rate matrix proposed – New special staffing requests presented and reduced again – Permission to bring YC average data for Confidential employees • Benefits – Health insurance – major part of labor negotiations TBD. • Academics and Operations – >$100k of safe schools funding proposed. Most likely safe schools grant (part B) rd time. submitted in October and again in Feb will need to be done a 3 – Contract decisions completed: • Questeq (technology) • Legal services • GF Other – Redistricting the elementary buildings – may still need 1 more public bus TBD – Revenue – Governor’s budget offers more $, but not added to budget. – Maintain budgetary reserve to mitigate some uncertainty.

Board to consider… • General Fund Balance – Keeping unassigned fund balance as a % of total budgeted expenditures between 4% - 8%. – Recommend moving any funds >8% of unassigned fund balance to Capital Reserve for future capital needs. – $2.0M of committed and assigned fund balance for use towards PSERS. Consider holding for now since PSERS continues to raise the employer rate % level. • Other Funds – Keeping fund balances strong in LBT for labor negotiations and HI budget forecasts – Timing and funding of new artificial turf and new high school (or major renovations) needed • Taxes – See the HS master plan to determine if the current annual tax increase of +0.16 mils is correct. – Caution using “budget surplus” for too many reoccurring expenditures as it may have long term tax implications. – Budget Tax resolution Board approved limiting any tax increase for next year

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