1. Preliminary Budget
February 11, 2019

2. Budget Timeline
February 1, 2019 Deadline for Board to give public notice of intent to adopt preliminary budget (10 days in advance of adoption)
February 4, 2019 Finance Committee Meeting – MDLKC, 7:00 PM
Long-Range Plan for Facilities
February 11, 2019 Review and adopt preliminary budget and tentative tax rates
February 25, 2019 Submit proposed tax increase to PDE   
March 4, 2019 Finance Committee Meeting – MDLKC, 7:00 PM
Commonwealth Budget
State Revenues Revised
Long-Range Plan for Technology

3. Mission Statement
The mission of the Kennett Consolidated School District is to provide a quality education that increases the achievement of every student in order for all to become successful and thoughtful contributors to society.

4. Summary

5. Preliminary Budget Proposed Real Estate Tax Increase
mills
Appropriation of Fund Balance
$714,330
Budget Deliberations
Finance Committee Meetings
First Monday of the month
Next meeting – February 4, 2019
Open to the public
Governor’s Commonwealth Budget
Presentation – February 5, 2019
Act 1 Index of 2.3%
No referendum exceptions are required

6. Proposed Tax Increase

7. Average Residential Tax Increase

8. Expenditures

9. Expenditures
Total Expenses – $88,253,792

10. Expenditures
Total Expenses – $88,253,792

11. Budget Development Foundation
Salaries
Collective Bargaining Agreement with Kennett Education Association – Expires June 30, 2021
Act 93 Agreement – Expires June 30, 2020
All other employees – Act 1 Index to 3% Maximum
No new positions
No retirements
No furloughs/outsourcing

12. Budget Development Foundation
Benefits
Medical
First Look Renewal – -0.65%
Budget – 0%
Prescription
First Look Renewal – -6.36%
Pennsylvania School Employees Retirement Contribution Rate
Certified by PSERS – 34.29%
Increase of 2.57%
Vision, Life, and Disability Insurance
Trend Analysis
Worker’s Compensation
SDIC Estimate

13. What’s New School Resource Officers
Full-time Southern Chester County Regional Police Department
Middle School, Bancroft Elementary, New Garden Elementary
Part-Time Kennett Township Police Department
Greenwood
Budget Impact – $0 (Offset - Reduction of Contracted Security)
Curriculum – English Language Arts Textbooks
Budget Impact – $310,000
CCRES Aides
Budget Impact – $253,000
Technology Equipment
Budget Impact – $50,000
Facility Improvements
Budget Impact – $25,000
Debt Service
Budget Impact – $242,000

14. Budget Development Foundation
Allocations
Instructional Buildings
2.3% Increase
Department Allocations
Special Education
CCIU Projection
Student Transportation
Krapf Bus Company Agreement
Annual Consumer Price Index or Minimum 2%
Occupational Education
CCIU Tuition Formula
Paraprofessionals
CCRES Agreement
Act 1 Index
Charter School Tuition
Current Enrollment x Tuition Rates x Act 1 Index
Debt Service
No new debt

15. Expenditures DESCRIPTION 2018-19 BUDGET 2019-20 PRELIMINARY
$ INC (DEC)
% INC(DEC)
Salaries
$ 31,211,567
$ 31,991,800
$ ,233
2.50%
Employee Benefits
21,013,177
21,451,670
438,493
2.09%
Purchased Prof. Svcs.
6,873,902
6,772,218
(101,684)
-1.48%
Purchased Property Svcs.
1,404,662
1,463,397
58,735
4.18%
Other Contracted Svcs.
14,658,451
14,900,080
241,629
1.65%
Supplies
2,865,617
3,168,758
303,141
10.58%
Equipment
626,152
708,887
82,735
13.21%
Other Objects
1,619,131
1,781,982
162,851
10.06%
Other Financing Uses
5,930,000
6,015,000
85,000
1.43%
TOTAL EXPENDITURES
$ 86,202,659
$ 88,253,792
$ 2,051,133
2.38%

16. Expenditure Drivers Salaries (100) Benefits (200) Existing Salaries
Impact – $780,233
2.50% Increase
Restore night custodians to 40hrs/week
No new positions
No retirements
Benefits (200)
Pennsylvania School Employees Retirement System
Impact – $539,988 (Net Impact After State Subsidy – $269,990)
5.18% Increase
Social Security
Impact – $82,835
3.50% Increase
Workers’ Compensation
Impact – $36,533
23.96% Increase

17. Benefits DESCRIPTION 2018-19 BUDGET 2019-20 PRELIMINARY $ INC (DEC)
Life Insurance
$27,521
$28,178
$657
2.39%
Income Protection
61,914
63,390
$ ,476
2.38%
Vision
88,377
84,904
$ (3,473)
-3.93%
Social Security
2,365,386
2,448,221
$ ,835
3.50%
Retirement
10,434,027
10,974,015
$ ,988
5.18%
Tuition
234,000 $
0.00%
Unemployment Comp.
38,323
38,873 $
1.44%
Workers Compensation
152,485
189,018
$ ,533
23.96%
Medical
5,213,976
5,047,483
$ (166,493)
-3.19%
Dental
451,954
455,332
$ ,378
0.75%
Prescription
1,865,214
1,808,256
$ (56,958)
-3.05%
Other Benefits
80,000
TOTAL ALL BENEFITS
$ 21,013,177
$ 21,451,670
$ ,493
2.09%

18. PSERS History/Projections Employer Contribution Rates

19. Expenditure Drivers Purchased Professional Services
CCIU Marketplace Services/Other
Special Education Services
Impact – $0
Purchased Property Services
Capital Improvements
Impact – $25,000

20. Expenditure Drivers Other Contracted Services Equipment
Charter School Tuition
Impact – $0
Student Transportation through Krapf Contract
Impact – $64,633
Occupational Education through CCIU
Impact – $173,496
Approved Private School Tuition
Impact – ($71,504)
Instructional Assistants through CCRES
Impact – $253,132
Equipment
Student Technology
Impact – $50,000

21. Charter School Tuition Fast Facts
Regular Education Tuition Rate – $13,062
Special Education Tuition Rate – $31,104
Traditional and Cyber Charter Schools
Tuition rates are identical
Current Enrollment
Regular Education – 143
Special Education – 47
Avon Grove Charter School
Total Budgeted Expense - $3,450,000

22. Revenues

23. Revenues
Total Revenues - $88,253,792

24. Revenues
Total Revenues - $88,253,792

25. Revenues – State 2018-19 2019-20 DESCRIPTION BUDGET PRELIMINARY
$ INC (DEC)
% INC (DEC)
BASIC ED SUBSIDY
$5,804,224
$5,798,182
(6,042)
-0.10%
SPECIAL ED SUBSIDY
1,880,469
1,875,489
(4,980)
-0.26%
TRANSPORTATION SUBSIDY
1,400,000 -
0.00%
RENTAL & SINKING FUND
462,239
493,829
31,590
6.83%
HEALTH SERVICES
86,000
PROPERTY TAX REDUCTION ALLOCATION
1,439,156
READY TO LEARN BLOCK GRANT
400,617
SOCIAL SECURITY
1,182,693
1,224,110
41,417
3.50%
RETIREMENT
5,217,009
5,487,007
269,998
5.18%
TOTAL REVENUE FROM STATE SOURCES
$17,872,407
$18,204,390
$331,983
1.86%

26. State Revenue Drivers Rental Fund (Debt) Payment Reimbursement
Basic Education
Adjusted to Allocation
Impact – ($6,042)
Special Education
Impact – ($4,980)
Student Transportation
Adjusted to Allocation
Impact – $19,925
Rental Fund (Debt) Payment Reimbursement
Adjusted to Accommodate Debt Schedule
Impact – $31,590
Pennsylvania School Employees Retirement System
State’s Obligation to Reimburse 50% of the Certified Contribution Rate
Impact – $269,998

27. Revenues – Local 2018-19 2019-20 DESCRIPTION BUDGET PRELIMINARY
$ INC (DEC)
% INC (DEC)
CURRENT REAL ESTATE
$57,934,718
$59,491,769
$1,557,051
2.69%
INTERIM REAL ESTATE
300,000 -
0.00%
PUBLIC UTILITY TAX
70,000
64,500
(5,500)
-7.86%
EARNED INCOME
4,400,000
4,570,000
170,000
3.86%
TRANSFER TAX
900,000
DELINQUENT TAX
1,775,000
EARNINGS ON INVESTMENTS
325,000
420,000
95,000
29.23%
IDEA
535,002
500,000
(35,002)
-6.54%
RENTALS/CONTRIBUTIONS/MISC. REVENUE
308,363
FUND BALANCE APPROPRIATION
714,330
TOTAL REVENUE FROM LOCAL SOURCES
$67,262,413
$69,043,962
$1,781,549
2.65%

28. Local Revenue Drivers Real Estate Tax
Effect of increased millage rate
Impact – $1,289,821
Growth of assessment base
Impact – $267,230
Earned Income Tax through Keystone Collections Group
Impact – $170,000
Interest Earnings from Investments
Impact – $95,000
IDEA Funding through CCIU
Impact – ($35,002)

29. Act 1 Index

30. Maximum Tax Increase Calculation
Percentage
Mills
Modified Act 1 Index
2.30%
Allowable Exceptions
Retirement Contributions
$ ,574
0.0069
Special Education Expenditures $ -
Maximum Tax Increase with Exceptions
2.32%

31. Where to go from here? Finance Committee Meetings
First Monday – February through June
Evaluate Commonwealth Budget Implications
Governor’s Presentation on February 5, 2019
Potential Legislative Actions
Capitalize on Retirements
Track Enrollment and Class Sizes for Staffing Recommendations

32. QUESTIONS