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2015-2016 BUDGET PRESENTATION  GOVERNOR’S BUDGET PROJECTIONS AND EXPECTATIONS  FAIRFIELD AREA SCHOOL DISTRICT PROJECTED REVENUES, MILLAGE, AND INDEX.

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Presentation on theme: "2015-2016 BUDGET PRESENTATION  GOVERNOR’S BUDGET PROJECTIONS AND EXPECTATIONS  FAIRFIELD AREA SCHOOL DISTRICT PROJECTED REVENUES, MILLAGE, AND INDEX."— Presentation transcript:

1 2015-2016 BUDGET PRESENTATION  GOVERNOR’S BUDGET PROJECTIONS AND EXPECTATIONS  FAIRFIELD AREA SCHOOL DISTRICT PROJECTED REVENUES, MILLAGE, AND INDEX  CAPITAL ITEMS INCLUDED IN PROPOSED BUDGET  FAIRFIELD AREA SCHOOL DISTRICT PROJECTED EXPENSES AND DEFICIT  TIMELINES  DISCUSSION/QUESTIONS

2 GOVERNOR’S BUDGET  Proposed Tax Increases Directly Imposed on Taxpayer and Businesses  Personal Income Tax Hike From 3.07% to 3.7%  Sales Tax Hike to 6.6% With Additional Items Being Taxed  Cigarette Tax  Tax on Other Tobacco Products  Severance tax (Natural Gas)  Bank Shares Tax  Corporate Tax Reform

3 WHAT DOES THIS POTENTIALLY MEAN FOR US?  Part of the Governor’s goal is to increase educational spending while decreasing the state deficit and decreasing property taxes  Restore the cut to the Accountability Block Grant  Restore the Educational Assistance Program  Restore partial Charter School reimbursement  Restore funding for Dual Enrollment Programs  Increase funding for Career and Technical Education  Increase funding for Early Childhood Education  Increase in Special Education funding based on dynamic formula  Maintain funding at current levels for Transportation, School Food Services, and Safe School Initiatives

4 OTHER PROPOSED CHANGES  Cyber Charter School Reform – Establish a statewide tuition rate at $5,950 for regular education students and a rate based on expense category for special education students with a minimum of $8,985 and a maximum of $44,387  Currently the district pays $9,043.46, per student, for regular education and $17,622 for special education to charter schools and expense is budgeted to be approximately for the 2015-2016 fiscal year  Proposal to fully fund pension obligations by reducing excessive investment management fees, reducing high risk investment strategies, eliminating the charter/cyber charter pension double dip, and ensuring all contributions are paid in full  School districts should see a reduction in their employer contribution in 2016-2017 through allocation of monies from increased Liquor Control Board profits  The increase from 2014-2015 to 2015-2016 is 20.7% and equates to approximately $153,923 for the Fairfield Area School District net of anticipated reimbursement.

5 CONTINUED…..  Fund Balance Restrictions – no school district could raise real property taxes unless the adopted budget includes a fund balance that has an estimated ending UNASSIGNED fund balance equal to or less than 4% of its total expenditures  The Governor’s Budget also includes an increase in minimum wage from $7.25 to $10.10  For the Fairfield Area School District this equates to approximately $975 in additional payroll dollars for the general fund  Basic Education Funding Commission must issue a report by June 10, 2015 with recommendations for a new formula  Items discussed include the elimination of hold harmless  Enrollment  Demographics  Other expenses

6 ACCOUNTABILITY  The budgeted increase to Basic Ed Funding does not come without strings  Districts are required to submit a plan to PDE by May 15, 2015  Describe the intended use of funds  Show how funds will increase student success with 9 Benchmarks established  14 Prescribed Uses of Funding  Plan will be approved by June 15, 2015  Keep in mind, final budget approval is due by June 30, 2015

7 PROPERTY TAX RELIEF  Governor wishes to “Reduce the average homeowner’s property tax by 50%...many senior citizens will see their property taxes eliminated altogether.”  A very long formula results in 114 school districts receiving 100% residential property tax reduction, 83 at only 25% and the median remaining at 53%  Not having a philosophical or political discussion on the effects on the individual as this is to broad and varied

8 DOLLARS FOR FAIRFIELD Governor’s Budgeted Effect on Fairfield Area School District $220,111 Increase in Basic Ed Subsidy and Block Grant $35,619 Increase in Special Education Funding $155,905 Decrease in Charter School Expense 41.63% Decrease in Real Property Taxes Net Effect On School District Budget Would Be $411,635

9 FAIRFIELD AREA SCHOOL DISTRICT 2015-2016 PROJECTED REVENUE ANALYSIS  2015-2016 Adjusted Base Index 2.3%  Current Millage Rate9.6898  Maximum Allowable Millage Rate9.9127 (Increase of.2229)  Potential New Revenue$183,657  Cost for Median Taxpayer ($219,100)$47.00  Cost Per $100,000 of Assessed Value$22.00  2015-2016 Projected Revenues$16,316,877

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13 2015-2016 PROJECTED EXPENDITURES  $16,851,711 CURRENT PROJECTED DEFICIT $534,834

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15 300 Prof & Tech Services 322 Prof/Educ IU641,708771,982746,915786,273835,300753,464 323 Prof/Educ Other Ed Agencies75,0011,23517,80026,100126,100 324 Prof/Ed Svc Training6,210950 329 Prof/Educ Services Other13,2623,1934,7606,1113,5505,600 330 Other Professional Services195,595246,188113,763126,969124,424231,406 340 Technical Services175,61141,72171,60668,31860,54160,591 348 Prof and Tech Services7,4361,27617,3898,86822,58010,750 350 Security1,6284,3444,5202,000 390 Health and Wellness200500 TOTAL 300's1,033,6121,139,361957,2961,025,0931,078,4651,190,411 400 Property Services 410 Cleaning Services18,45337,2715,9975,3546,8008,000 422 Electricity326,506204,920169,281155,332175,000165,000 424 Water & Sewer12,94612,34814,88416,46515,00016,500 430 Repair & Maint110,295103,434110,74197,292118,653200,527 438 Tech Maint and Repair30,86333,14544,48123,81420,37641,902 440 Rentals8,2107,3867,5109,5567,4008,660 460 Pest Control790000 TOTAL 400's507,273398,583352,893307,813343,229440,589

16 500 Other Purchased Services 510 Contracted Services800,896825,125819,937810,380832,974874,654 520 Insurance43,40543,67254,66567,22868,11561,251 530 Communications38,74022,17635,81212,55718,75516,550 538 Tech Telecom Service25,96854,85219,17020,25020,99022,800 540 Advertising2,0152,3021,0802,3101,5271,600 550 Printing6,4893,5282,0812255000 560 Tuition582,076601,556905,014904,494835,608878,178 580 Travel38,03619,71921,62024,58019,70522,705 590 Misc17,16511,48611,57522,87512,59612,342 TOTAL 500's1,554,7911,584,4151,870,9531,864,9011,810,7701,890,080 600 Supplies 610 General359,606217,630220,596303,054230,664223,572 618 Computer Software100,14790,542120,660137,258133,808137,203 621 Natural Gas110,24679,70769,51385,00070,000 622 Electricity99,008 624 Oil6,9557,535 626 Gasoline/Diesel16,5865,2417,5573,6894,0725,072 640 Books & Periodicals131,35138,64286,82668,350120,77926,228 648 Educ Software and Licensing Fees69,58838,7443,760 650 Educational Software/Licenses3,94835,70354,53278,720 TOTAL 600's783,242501,046523,054625,102628,855540,795

17 700 Property 710/720 Site Improvement11,35724,241863 750 New Equipment213,34425,58623,85781,8204,08113,129 758 Tech Equip-Original168,929128,4086,30727,22924,58226,264 760 Replacement Equipment5,908121,10421,33231,75533,35938,810 768 Tech Equip-Replacement1,0806,56555,91095,99163,23760,459 TOTAL 700's400,618305,904108,269236,795125,259138,662 800 Other Objects Dues and Fees37,38841,71440,59650,47540,21245,988 Judgements against LEA59,000 TOTAL14,092,35313,898,56813,633,58314,141,90514,467,95715,301,526 Debt Service Interest645,369644,398703,192700,650678,075653,034 Principal1,217,5891,289,447872,138893,009891,000897,151 Contributions Debt Service-Refunded Bonds4,780,670 Refunds of Prior Year Receipts9,3054,743201 TOTAL DEBT SERVICE1,872,2636,714,5151,580,0741,593,8601,569,0751,550,185 FUND TRANSFERS340,03963,11916,570134,481751,0250 Total Expenditures16,304,65520,676,20315,230,22715,870,24616,788,05716,851,711 Budgetary Reserve FINAL EXPENDITURES16,304,65520,676,20315,230,22715,870,24616,788,05716,851,711

18 2015-2016 CAPITAL EXPENDITURES  ELEMENTARY PLAYGROUND$20,000  ELEMENTARY CARPET REPLACEMENT$20,000  UPGRADE AUDITORIUM SOUND SYSTEM$25,000  UPGRADE AUDITORIUM LIGHTING$7,000  REPLACE EAST AND WEST ENTRANCE DOORS$12,000  ELEMENTARY SCHOOL CABLE RUN$15,779  EVERYDAY MATH CURRICULUM$24,039  ELEMENTARY MOBILE LAB/CART$10,200  MIDDLE SCHOOL MOBILE LAB/CART$10,200  IP VIDEO CAMERAS$5,000  REPLACE HIGH SCHOOL GYM WALL MATS$4,500

19 2015-2016 CAPITAL EXPENDITURES, cont’d  HIGH SCHOOL TEACHER LAPTOPS$16,800  SERVERS$14,400 TOTAL EXPENSE CONSIDERED TO BE ONE-TIME AND NOT NECESSARILY OPERATIONAL IN NATURE $184,918

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23 FUND BALANCE ANALYSIS 2013-2014 ENDING FUND BALANCE $2,676,139 2014-2015 PROJECTED ENDING FUND BALANCE $2,051,518 ($624,621 ) 2014-2015 Projected Capital Expense2014-2015 Actual to Date Cafeteria Debt $172,000$153,042 Roof Repair $450,000$397,330 Chiller Repair $40,000$0 Parking Lot Sealing $20,000$0 Circulating Pumps $12,000$14,000 Playground $10,000$0 Heat Conversion in Maintenance $7,000 $711,000 $15,000 $579,372

24 MILLAGE ANALYSIS 2011-20122012-20132013-20142014-20152015-2016 MILLAGE9.29539.49059.6898 ASSESSED VALUE $877,452,300$869,943,900$869,526,700$867,305,800 ADJUSTED INDEX 2.1% 2.6%2.3% INCREASE.1952.1993No IncreaseUnknown REVENUE IMPACT $162,678$164,711Loss of $208,082 in current period and going forward Potential $183,657

25 STANDARD AND POOR’S RATINGS  A+ Long Term Rating and A+ on Existing Debt  Determined based on local wealth, improved financial position after achieving two consecutive general fund operating surpluses, and moderate debt burden with limited capital needs  District’s household effective buying income (EBI) is strong at 124% of the national level  Overall debt burden is moderate at $3,509 per capita or 3.2% of market value  Carrying charges are moderate at 10% of total governmental fund expenditures in 2014  Debt amortization is average with 50% of debt being retired in 10 years

26 TIMELINES  To date the index has been published and the board, in a timely manner, adopted the resolution stating it would not raise taxes beyond the index. District timelines then revert to the original timelines in place prior to Act 1.  MAY 1, 2015 – State required to notify districts of the amount of the allocation of property tax reduction funding. This only occurs if there are enough funds in the Property Tax Relief Fund. For the 2014-2015 fiscal year the district received $459,775 which equated to $191 per taxpayer.  At this same time, districts are to receive a certified report from the county assessor with information on the homestead and farmstead properties in the district.  MAY 31, 2015 – Deadline for district to adopt 2015-2016 proposed final budget  JUNE 10, 2015 – Deadline for district to make the proposed final budget available for public inspection ----This must be done 20 days prior to final budget adoption date, whatever that may be  JUNE 20, 2015 – Deadline for district to offer public notice of its intent to adopt the 2015-2016 final budget ---- This must be done 10 days prior to final adoption, whatever date that may be  JUNE 30, 2015 – Deadline for district to adopt the final budget and the homestead/farmstead resolution

27 DISCUSSION, SOLUTIONS AND QUESTIONS


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