Presentation on theme: "Spring Cove School District 2014/15 Budget Workshop April 28, 2014."— Presentation transcript:
Spring Cove School District 2014/15 Budget Workshop April 28, 2014
Spring Cove School District Agenda for the evening: Review the Current Proposed Budget Review of Act 1 Index/Exceptions Comments/Discussions
Spring Cove School District Budget Timeline District must adopt a Proposed Final Budget by May 30, 2014 and a Final Budget by June 30,2014. Board Meetings to Follow May 12, 2014 - Special Meeting, Committee of the Whole May 19, 2014 - Regular Board, Proposed Budget June 16, 2014 - Special Meeting, Committee of the Whole June 23, 2014 - Regular Board, Final Budget
Spring Cove School District Major Budget Factors Expenditure Side Salaries & Wages Benefits – Retirement and Healthcare Salaries/benefits reflect Life Skills, K4, and attrition savings Debt – Interest and Principal Revenue Side Federal Governor's Budget – Basic Education Funding Ready to Learn Block Grant Local Effort
Spring Cove School District Current Proposed Budgeted Expenditures Instruction$13,519,881 Support Services$ 6,955,022 Operation of Non-Instructional Services$ 380,132 Facilities Acq/Construction/Improvements$ 41,500 Financing/Budgetary Reserve$ 2,795,556 Total Expenditures$23,692,091 Increase from 2013/14$ 1,036,633
Spring Cove School District
K4 Program Estimated 2014/15 Costs (4 Classrooms) Personnel – Salaries$203,908 Personnel – Benefits$128,562 Supplies$ 7,600 Property$ 16,000 Total Cost$356,070 Less: Ready to Learn Allocation($273,461) Less: Est. Savings from Life Skills($152,716) Remaining Savings($70,107)
Spring Cove School District Retirement 2014/15 Retirement - percentage change from 16.93% to 21.4% (4.47% increase) Total increased retirement cost for the 2014/15 year: $494,000 (271,000) Less State Reimbursement $223,000 Net Increase 2015/16, 2016/17, and 2017/18 retirement contribution rates are projected to increase to 25.84%, 29.27%, and 30.25% respectively.
Spring Cove School District Projected Retirement Increases (salaries frozen beyond 2014/15) 2015/16$448,000 (4.44% increase) 2016/17$782,000 (7.87% cumulative) 2017/18$877,000 (8.85% cumulative)
Spring Cove School District Healthcare Format of Coverage Administrators and Teachers – An IRS qualified high-deductible plan with deductibles of $1,250 and $2,500. Every dollar paid up to the deductible. Support Staff – Non-qualified plan with a deductible of $2,000 and $4,000. Copays do apply to this plan. Employees working more than 1,274 hours. Employees pay $600 per year. Combined annual premium is $1,876,000 Premium increase at 4% is $73,000 Includes PPACA (“Obamacare”) fee of $25,000
Spring Cove School District Debt Service 2009 Series Bonds Refinancing: Net PV savings of $101,683 Debt Service will increase by $202,000 in 2014/15 and then level off going forward Debt & interest payments for the 2014/15 year: $1,983,971 ( 234,047) Less State Reimbursement $1,749,924 Net Cost
Spring Cove School District Special Education Legislative Update With an additional $20 million proposed in the budget for special education, the Senate and House are gearing up to discuss Senate Bill 1316 (sponsored by Sen. Pat Browne) and House Bill 2138 (sponsored by Rep. Bernie O’Neil), which implements the recommendations of the Special Education Funding Commission and proposes a formula for the distribution of NEW special education dollars. The bill also proposes a new charter school special education tuition calculation that is based more upon the actual costs of charter school special education students instead of on the special education costs of each resident school district.
Spring Cove School District Special Education Costs The cost of providing for the needs of a Special Education student in fulfilling their Individual Education Plan (IEP) continues to carry a cost significantly higher than that for the cost of a regular education student. PDE-363 Calculation Regular Education Student$ 7,901.16 Special Education Student$15,747.28
Spring Cove School District Cyber Charter Schools Current enrollment and costs: Regular Education24 students$ 189,628 Special Education 4 Students$ 62,989 Total Cost$ 252,617 Spring Cove Cyber – 18 students – down from 25 in 2012/13.
Spring Cove School District Athletic Program Costs Athletic Fund Costs-Net$ 20,562 General Fund Athletic Costs$ 318,510 Total Program Cost$ 339,072 Percentage of General Fund Budget -- 1.34%
Spring Cove School District Act 1 Index Act 1 Index for Spring Cove SD in 2014-15 is 2.8% A 2.8% tax increase would generate approximately $239,000 of additional tax revenue and cost the average homeowner approximately $35 more Millage increase at 2.8% is 3.16 mills Assessed value growth would increase tax revenue by an additional $130,000
Spring Cove School District Exceptions to the Index Debt Service Exception To Consider: For the purpose of liquidating debt prior to Act 1. In all cases, the equivalent amount of tax increase is eliminated after the debt is liquidated. Current debt service payments extend through 2025. Pension Exception To Consider: The law recognizes increases in required contributions to PSERS as exceptional.
Spring Cove School District Exceptions to the Index Debt Service Exception of approximately $201,000, which equates to 2.66 mills Pension Exception of approximately $141,000, which equates to 1.87 mills Net increase of $223,000 - $141,000 = $82,000 Total millage increase available to the District with index and exceptions is 7.69 mills (6.8% increase) and would cost the average homeowner $84 more Total new revenue of $711,000 at maximum increase
Spring Cove School District Property Tax Collection Rates (5-year historical) 2007/08 – 92.7% 2008/09 – 93.7% 2009/10 – 94.5% 2010/11 – 93.1% 2011/12 – 92.6% Average – 93.3%
Spring Cove School District Millage History YearMillageIncreasePercentage 2010/11108.3753.002.8% 2011/12108.3750.000.0% 2012/13110.8652.492.3% 2013/14112.8652.001.8% 2014/15120.555*7.696.8% 5yr Average112.2073.0362.7%
Spring Cove School District
REVENUES 2013/142014/152014/15 APPROVEDPROPOSEDINC/(DEC) OVER BUDGETBUDGET2013/14 LOCAL10,109,67311,635,8101,526,137 STATE11,328,18611,597,848 269,662 FEDERAL 855,832 569,000 (286,832) TOTAL22,293,69123,802,6581,508,967
Spring Cove School District Federal Revenues Reduced Title II funding by $114,000 based on current year allocations. More information to come next month… Reduced Medical Access by $95,000 due to changes in rules.
Spring Cove School District State Revenues State Funding – each school district will receive the same amount of Basic Education Funding it received in 2013/14. Spring Cove’s allocation is $7,421,433 Ready to Learn – the Governor's Budget proposes $341 million in total funding, including $241 million in new Ready to Learn funding added to existing Accountability Block Grant of $100 million. Increases in State Revenue by its share of PSERS, Social Security, and Debt Service only.
Spring Cove School District Ready to Learn Block Grant Each school district will receive an amount equal to its 2013/14 PA Accountability Grant allocation, plus a “Student- Focused Funding Supplement” Spring Cove’s allocation consists of $113,085 Accountability Grant and $273,461 Ready to Learn; Total of $386,546 There is still uncertainty concerning this funding and many restrictions attached to it.
Spring Cove School District Local Funding Property Tax at the Current Millage $8,555,023 Transfer to Capital Reverse$ 151,585 Earned Income Tax$1,116,482 Other taxes, Per Cap etc.$ 736,743 Other, pass thru etc.$ 390,738 Est. Life Skills Tuition from other LEAs$ 255,000 Act 1 Index$ 239,511 Referendum Exceptions$ 342,313
Spring Cove School District Budget Summary Revenues$ 23,802,658 Expenditures 23,032,091 Budgetary Reserve 660,000 Total Expenditures _23,692,091 Net Surplus$ 110,567
Spring Cove School District Funds of the District (as of June 30, 2013) Cafeteria Fund$ 339,051 Athletic/Activities Fund$ 96,322 Capital Projects Fund$ 97,388 General Fund$ 7,602,282
Spring Cove School District General Fund Balance (as of June 30, 2013) Restricted --$ 102,992 Assigned --$1,974,576 -- Long Term Debt $ 750,000 -- Capital Projects $3,275,000 -- Capital Projects* Unassigned --$3,374,714 $ 849,714* Committed --$ 400,000 -- Employee Benefits $1,000,000 -- Fiscal Stabilization *Assigned $2,525,000 to Capital Projects in January ‘14
Spring Cove School District Contact your State Representatives (links to PASBO website) Send a quick letter to your Senator Send a quick letter to your House member