Consideration to Post the 2017-18 Proposed Final Budget Central Bucks School District Consideration to Post the 2017-18 Proposed Final Budget April 25, 2017 Introduction: Thanks to the Board and administrative team for the many-many hours spent working on this budget and the effort that went into this budget. Remember we started the budget process with a 50 mill deficit, 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Budget Components Revenue Review Expenditure Review Millage Impact Budget Summary Tonight we will take a look at the major issues impacting the 2004-05 General Fund budget and review major changes to revenues and expenditures. 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Revenues 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget State Subsidy Update 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget CBSD - 2017-18 Major State and Federal Revenue Estimates 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Local Revenues 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Real Estate Transfer Tax Trend Indicator of Home Sales Within the School District 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Interim Real Estate Tax Trend Indicator of Real Estate Construction Growth Within the School District 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Earned Income Tax Trend Tax on Local Wage Earners. Indicator of Wage Growth and Employment Growth. 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Real Estate Assessed Value Trend Shows the general change in real estate value within a community This chart is an attempt to show what is happening across the district with real estate development. It shows the value that new construction adds. Looking at the past 10 years you can see that the growth in the assessed value of real estate in recent years is nowhere near the growth that was seen from the 90’s to 2001. The assessed values are not providing the natural real estate tax revenue growth that we have seen in the past which then places more pressure on real estate millage. During the slow growth period is when we needed to start our major construction projects. 4/25/2017 2017-04-25 Proposed Final Budget
Local Sources of Revenue for CBSD 12/2/2018 4/25/2017 2017-04-25 Proposed Final Budget
State Sources of Revenue for CBSD 12/2/2018 4/25/2017 2017-04-25 Proposed Final Budget
Historical State Revenue for CBSD 12/2/2018 * Does not include retirement, FICA, gambling rebate, and one-time debt reimbursement 4/25/2017 2017-04-25 Proposed Final Budget
Federal and Other Sources of Revenue for CBSD 12/2/2018 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Expenses 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget CBSD Enrollment Enrollment is Expected to Continue to Decline Over the Next Several Years We currently have 20,026 students in our schools. We don’t see a downward trend in enrollment anytime in the foreseeable future. Looking at PDE enrollment projections through 2012 shows CB enrollment exceeding 24,000. Enrollment projections don’t go past 2012. Its interesting to see that our student enrollment has more than doubled over the past 20 years. I think its interesting to note that through 2006 that PDE projects the enrollment of students in bucks county as a whole to increase by 1,620 students and by 2012 the county will experience a net loss of 1,100 students. Obviously some districts in the county will be losing enrollment as CB continues to gain in enrollment. 2017-04-25 Proposed Final Budget 4/25/2017
Projected Staffing for 2017-18 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Expense Summary 4/25/2017 2017-04-25 Proposed Final Budget
Revenue and Expense Summary 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Millage Impact 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Millage Calculation There is no Proposed Millage Increase The Act 1 Real Estate Tax Increase Limit = Base Inflation Index of 2.5% + 1.0% Retirement Exception = 3.5% or 4.3 Mills The 2017-18 Proposed Millage Rate is 124.1 mills = 0% Increase For the Typical Homeowner Assessed @ 40,000 = 40,000 x 124.1 mills = $4,964 = no increase Explain chart When you get to Act 72 millage limit, remind them that districts in NJ, Oh, and Del stop at that point under referendum because that want to have something banked for lean years. 4/25/2017 2017-04-25 Proposed Final Budget
Act 1 Tax Index + Exceptions 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget General Trends Debt Payments are Declining - Reduces Budget Pressure General Inflation is Low - Reduces Budget Pressure Improving Energy Efficiency/Costs - Reduces Budget Pressure State Revenues Equal to Pre-Recession Levels Health Insurance Expenses, increasing 10.75% Retirement Expenses will Increase by 8.5% Federal Title 2 funding cut by $280,000 May need to use Fund Balance of $1,390,519 in 2017-18 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Summary Local Real Estate Assessed Values are on the Rise Unemployment Continues to Decline Retirement Expenses Continue to be a Stress Point for the Budget The District is Committed to Continuous Improvement Technology – iPad, Laptop, and Wireless Initiative Expand Extra Duty Responsibilities (EDR’s) – MS Sports and Clubs Meeting the Needs of our Special Education Students Expanding the Middle School Curriculum 4/25/2017 2017-04-25 Proposed Final Budget
2017-04-25 Proposed Final Budget Next Steps… Board of School Directors Consideration to Publicly Post the 2017-18 Proposed Final Budget of $331,862,458 The State Budget Form will be posted on our website over the next several days Consider Final Budget Adoption on June 14th Superintendent & Cabinet Develop Recommendations to Effectively Implement Program Initiatives 4/25/2017 2017-04-25 Proposed Final Budget