1. Solanco School District 2016-17 Preliminary Final Budget
May 2, 2016
Regularly scheduled Board meeting
7:30 PM - Central Office

2. May 2, 2016 Preliminary Final Budget
Solanco School District
General Fund Preliminary Budget
25-Apr-16
Revenue Summary: Local Tax Rates
Est Assessment
1,900,000,000
Actual
Current
Proposed
Proposed Increase
Proposed Incr %
Current Real Estate (Mills)
0.3509
2.90%
Current Earned Income
1.15%
0.0000
0.00%
Current Real Estate Transfer Tax
1/2 of 1%
Note: 2.9% increase keeps Solanco SD within the District's Act 1 Cap index for
Property Tax revenues estimated from projected Net Taxable Assessment of :
$ 1,900,000,000
Proposed Increase Per $100,000 Assessed Value: $
= Increase (annually) for each $100,000 in assessed value
Average Home Owner Tax increase (Based on $152,620 Assessment) = $

3. May 2, 2016 Revenues: Preliminary Final Budget
Revenue sources and % share:
Revenues Sources $'s:
Actual
Actual
Actual
Budget
Proposed
Local
28,287,077
28,630,345
29,814,012
30,367,487
31,978,050
State
16,407,104
17,136,128
17,781,054
18,337,539
19,182,107
Federal
2,432,398
2,625,710
2,202,989
2,187,381
2,113,000
Other
3,839
3,571
67,791
405,000
Total Revenue:
47,130,418
48,395,754
49,865,846
51,297,407
53,678,157
Total Expenditures:
47,096,048
47,989,897
49,499,661
52,952,670
55,751,935
Varaince: Revenues over Expenditures
34,370
405,857
366,185
(1,655,263)
(2,073,778)
Revenues Sources %:
60.0%
59.2%
59.8%
59.6%
34.8%
35.4%
35.7%
5.2%
5.4%
4.4%
4.3%
3.9%
0.0%
0.1%
0.8%
100.0%

4. Revenue Source Shares

5. Expenditure Functions Instruction and Support

6. Expenditure Functions Student Activities and Finance Uses

7. Expenditures by Object

8. Benefit Object Composite (26.1%)

9. Total State Revenue - Last Five Years
STATE REVENUES
Actual
Budget
Total State Solanco Funding
16,129,851
16,407,104
17,136,128
17,781,054
18,337,539
19,182,107
Less State pension (1/2 of total)
917,147
1,234,252
1,800,938
2,227,500
2,878,953
3,413,991
State Net to Solanco
15,212,703
15,172,852
15,335,190
15,553,554
15,458,586
15,768,117
3,052,257
Total Inc
2,496,843
PSERS Incr
5 year total net increase
555,413
Total State dollar Growth to Solanco Net of Pension dollars
3.7%
State net over 5 years or annual avg of
0.73%
Avg annual times 35.7% of budget or .26% of total budget
0.26%

10. Selective State Changes from January preliminary
State Budget Solanco Re-cap: Selected Four Major State Revenue Funding Streams
[These Line items only]
Budget
Estimated
Budget
"State" from 15-16
Jan 2016
BEF
9,841,000
10,184,000
May 2016
9,740,861
9,935,678
194,817
Variance -
(100,139)
(248,322)
RTL
330,147
427,715
97,568
SEF
2,095,000
2,195,210
2,275,210
2,074,719
2,116,213
41,494
(120,491)
(158,997)
Total Net Impact
(123,062)
(309,751)
$ ,879
Total cash variance from preliminary budget
(432,813)
Pension (rev only)
PSERS
2,878,953
2,872,000
3,354,763
*Increase in State Share ( state pays 50% of the total pension cost)
482,763
816,642
* Note: Board must pay 'its' share from Local funds
(482,763)
$ (148,884)

11. 2016 -17 State Total as Budgeted
Projected Increase in Total State funds to Solanco....is approximately $200K less than the mandated 16.2 % pension increase...with credit due...they are paying their share... The budget started in that negative position and all other funds must lift from there. Also...State will ‘defer’ social security payments in May and June --- until July and August --- and we will be instructed to ‘accrue’ those funds back to fiscal year (about $120K in cash).

12. Five functions: 80% of Spending; Share 1100 Function

13. Share 1200 Function

14. Share 2600, 2700, 2300’s

15. Athletics & Extra-curricular

16. Long-term share trend: Salary -- 40.8%

17. Long-term share trend: Benefits -- 26.1% to Total Exp

18. Long-term share trend: Benefits -- 64% to Payroll

19. Long-term share trend: Salary & Benefits to Total Exp

20. Solanco SD Pension Total Employer (Gross & Net) Payments
Pension Detail
Solanco SD Pension Total Employer (Gross & Net) Payments
Fiscal Year
Gross Pension (for Total Budget)
Gross Annual $ Inc. / Dec*
Annual % Inc. / Dec
PSERS' ECR (as a% of PYRL)
*NET Annual $ Inc. / Dec = Board Local share
Cumulative Since 2010
1,230,298
6.46%
1,013,409
38,150
3.9%
4.78%
19,075
1,232,757
219,348
21.6%
5.64%
109,674
128,749
1,878,790
646,033
52.4%
8.65%
323,017
451,766
2,615,717
736,927
39.2%
12.36%
368,464
820,229
3,587,705
971,988
37.2%
16.93%
485,994
1,306,223
4,528,511
940,806
26.2%
21.40%
470,403
1,776,626
Budget
5,593,966
1,065,455
23.5%
25.84%
532,727
2,309,353
Proposed
6,827,982
1,234,016
16.2%
30.03%
617,008
2,926,361
Note: In based on an estimated June 2016 assessed value, and millage at as proposed; a 1% Property tax increase yields Approx. $220,688.
* The District must pay the entire (100%) of the pension amount due and then receives (from the state as state revenue line item) approximately 1/2 of the payment as state revenue.

21. Increases were cumulative. & will ‘stay’ with us for two decades
Increases were cumulative...& will ‘stay’ with us for two decades....unless the GA can find other funding solutions

22. Perhaps after 7 years----?
Pension Projections Looking Ahead FY
*% of Payroll
Yr over Yr Increase as equated to a % of PYRL
Rate of increase
30.03
3.85
16.2%
30.62
0.59
2.0%
31.56
0.94
3.1%
32.23
0.67
2.1%
32.02
-0.21
-0.7%
* All rates subject to change by PSERS board, GA mandate, subsequent legislation and combinations thereof.

23. Property Tax Assessment Base

24. January Tax Assessment Estimate---vs Actual YTD
Assessment Growth: School District Fiscal Year (FY)
For FY Budget
Month / Year
Assessment
Prior yr Increase
Increase %
FY Period of Growth
6/1/2011
1,808,469,000
25,282,000
1.41%
5/31/2012
1,813,591,000
5,122,000
0.28%
6/1/2013
1,839,381,300
25,790,300
6/3/2014
1,860,655,600
21,274,300
1.15%
6/4/2015
1,879,493,000
18,837,400
1.01%
ytd
4/1/2016
1,894,725,200
15,232,200
0.81%
Budget #'s used in January (and current)
1,900,000,000
Total
1,870,000,000 GF
Proposed mills
5,274,800
Apr, May?
$ ,671
Close

25. Solanco Vs the County

26. Earned income Tax --- Positive trend

27. 2016-17 Other items/considerations
Total Enrollment remains stable to slight decline; charter enrollment remains stable to slight decline
Staffing expectations anticipate retirement impact, non-replacements, re-assigned resources, internal position changes, needed new hires.
Several significant health care strategies remain in the forefront to slow medical trend impact
Plan changes, HDHCP (2K/4K), Aetna Jan 1, Rx Jul 1
General fund budget teams with food service, health trust, and Capital Reserve to deliver all services and leverage capital requirements

28. Variance as a % of Budget
Two to Three Year Budget strategy to allow for growth into the future with ability to adjust and react to environmental changes inclusive of opportunities...potential for Pension draw down to be delayed to
Budget to Budget vs Estimated Actual to Multi-year Budget Planning
Bottom Line: Leveraging Current position and resources for current year planning; Building budget Capacity to exploit one time opportunities and drive resources to students; Multi-year Positioning moving forward
Solanco School District Proposed Budget Budget to Budget Comparison
May 2, 2016 Preliminary
Budget
Budget
Increase $
Increase %
Revenues
$ 51,297,407
$ 53,678,157
$ 2,380,749
4.64%
Expenditures
$ 52,952,670
$ 55,751,935
$ 2,799,265
5.29%
Variance
$ (1,655,263)
$ (2,073,778)
$ (418,515)
 Exceptions?
Pension Draw Down
$ ,000 $
Net Variance
$ (1,355,263)
$ (1,773,778)
Variance as a % of Budget
-2.56%
-3.18%
$ (1,473,778)
-2.64%
To underspend the budget by 2% is the equivalent of $1.1 million dollars; with the resources available, deliberate and effective 'investment' in sustainable programs for students and staff requires planning and the ability/agility to take advantage of opportunities when presented. This flexibility ensures there is no "rush" to spend without diligent thought, nor need to increase the tax rate just to "close gaps".

29. Next Steps Approve Preliminary Final 2016-17 Budget for advertising
Targeted Final Budget adoption is June 6, 2016 (need 30 days)
May and June board meetings; approvals for various equipment purchases and project implementations
Await final State budget numbers...wait for state 16-17?