1. Community Presentations
Budget Planning
Community Presentations

2. Agenda
Thank You!
Points of Pride
School Budget

3. Hiroto Saito–1st Chair Violin PA All State Orchestra
Congressional Art Contest Winners
Hiroto Saito–1st Chair Violin PA All State Orchestra
Bethel Springs Elementary School–1st place in Elementary Division of the DCIU STEAM Design Challenge
GV Hall of Fame

4. 2017-18 Budget Preparation & Overview

5. What are the major parameters for creating the school district budget?
The Act 1 Index is used to determine the maximum tax increases for each tax the school district levies.The base index is calculated by averaging the percent increases in the Pennsylvania statewide average weekly wage and the Federal employment cost index for elementary/secondary schools.
This year the Act Index is 2.5%.

6. What are the major parameters for creating the school district budget?
Projected Expenses
Our business department reviews not only the current year’s expenses, but also a four year projection model that details negotiated salary increases, benefits, debt service, and a number of other data points.
Projected Revenues
Local, state, and federal sources.
The most reliable for the school district is local revenue, which accounts for approximately 81% of the total budget. State revenue represents 18% with federal subsidies representing 1%.

7. Major Areas of Expense
Other: Vo-Tech, Textbooks, Professional Development, Maintenance and Repairs, Equipment, Supplies, Other Benefits, etc.

8. Major Sources of Revenue

9. A Tough Model to Sustain
Compounding the district’s reliance on property taxes is the fact that state and federal monies provide less than 20% of total funding yet contribute significantly to expenses through unfunded mandates.

10. Unfunded Mandates–Pension
32.57 cents of every dollar the district spends in salaries goes to state pensions.
Next year we face a 8.5% year-to-year increase in pension contribution. This equals a net increase of approximately $500,000.
The net contribution rate has gone from 3.57% in to % next year–a $6.5M increase in 10 years.
The district has subcontracted custodian and food services in order to lessen some of the burden of pensions and other related fixed costs. Although we are projecting a current savings of approximately $200K, we expect this savings to increase as staffing levels change.

11. Unfunded Mandates–Pupil Services
Special Education:
21% (approximately 900 students) of our students are classified as special education.
We spend approximately $18M annually to educate these students.
The district faces a $600K decrease in federal Medical Access Funding which has been used in the past to offset our Special Education expenses.
Gifted Education:
Expenses total approximately $600K (approximately 500 students)
English Language Learners:
The district is mandated to provide language acquisition services for non-native speaking students.
Enrollment growth up 20%
The cost to the district is approximately $125K at consortium pricing.
Less than $2M from state and federal govs for special ed.

12. Unfunded Mandates–Transportation
The District spends approximately $4.6M a year on student transportation for public and private school students. Annually, GVSD transports 5,221 students to 47 different schools.
To find cost savings in this area, the district hired a consultant last year to study subcontracting and other measures. As a result of the study the district is in the process of consolidating stops to ensure that our routes are as efficient as possible. The consultant, however, did not recommend subcontracting as he believed that although there would be a one time savings of selling the fleet, based on the number of students and the large geographic region to which they are transported, the district would not realize an annualized savings.

13. Unfunded Mandates–Charter Schools
The District pays approximately $490,000 a year to charter schools. The majority of these funds are paid to cyber charter schools.
Cyber Charters operate on a fraction of the costs of typical brick and mortar schools. The district recently started its own cyber school in an attempt to get these cyber charter school students back into the district.

14. Unfunded Mandates–State Assessments and Core Standards
Loss of instruction and HUGE hidden expenses such as the expense of rewriting curriculum, textbook purchases, etc.
Currently, students miss 15 to 20 days of instruction due to PSSA and Keystone testing.

15. Mandates of the Past, Present, & Future
Building Projects
The district must account for its annual “mortgage payment” of $11.5M.
This expense pays for past, present, and future building and capital projects. These projects are in large part due to the massive enrollment growth that has occurred in the district over the last two decades.
GVSD is still ranked as one of the fastest growing districts in Pennsylvania with a 116% enrollment increase since 1996.

16. Student Enrollment Year Student Population Teacher Headcount 2014-15
4,749
392
4,767
4,838 (up from 4,818 in October)
–Projected
4854
The table shows enrollment over the last three years and next year’s projected enrollment. Meanwhile, the district has maintained efficient staffing allocations as headcount has remained static over the same period of time.

17. Expenses Continued–Employee Contracts
The district is obligated by law to collectively bargain with the majority of its employees.
Currently, the district has agreements with all of its employee groups; consequently, the negotiated terms are locked for a set period of time. These terms affect the budget in the areas of salaries and health care.

18. Expenses Continued–Employee Contracts
Salaries
Salaries for all but the administrative groups are collectively bargained.
All groups are currently working under existing contracts through..., and salaries will increase annually by approximately 2.5%.
Salaries represent 47% of the total preliminary budget.
Our teachers’ salaries are in the midrange for Delaware County.

19. Expenses Continued–Employee Contracts
Health Care
The district’s rates are projected to go up by approximately 2.8% next year or approximately $300,000. Health care represents 9% of the total preliminary budget.
Due to the Affordable Care Act, the district is experiencing an increase in the use of Specialty Drugs by our members which has significantly increased our prescription costs in the last several years. Prescription drugs costs represent approximately 3% of the preliminary budget.

20. So, what have you done this year?
Subcontracting–Food Service & Custodial Services
$200K Annually
$421, year end estimated savings
Open Education Resources
$15K for the first course–will grow and could potentially net over 3K per course
Transportation Efficiencies
Thru February 2017, approximately $32K this amount will grow once the new routing software is implemented
Guaranteed Energy Savings Projects
GESA 1–$600K Annually
GESA 2–$150K Annually
Self Insurance Model
Estimated 4 year savings $2.77M
Education Foundation
Raised over $30K since October
Advertising Revenue
Raise over $100K annually

21. Questions?