Mar 6, 2018 - Certified Assessment Value from Montgomery County Board of Assessment ... Primarily in Earned Income Tax a
Financial Affairs Committee Meeting March 6, 2018
2018-19 Budget
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OBJECTIVES FOR 2018-19 BUDGET Maximizing educational opportunities and resources for students • Centered on district goals and strategic plan pathways üStudent Growth and Achievement üSchool Climate and Culture üProfessional Learning üHolistic Experiences üCyclical Facility Maintenance Maintaining financial stability and accountability
2018-19 BUDGET PRIORITIES • Meeting all contractual obligations • Maintain existing level of academic programs and services • Maximize cost savings: • • • • •
Reallocation of transportation contract savings Review of current staffing structure - district-wide Exploration of energy savings Minimize/eliminate non-essential expenditures Monitoring overtime and additional pay
2016-17 Actual
2017-18 Budget
2018-19 Preliminary Budget
Revenues Local Current Real Estate Taxes
78,928,094
80,049,460
84,945,709
Act 511 Taxes
4,877,220
4,582,840
4,610,139
Other Local Revenue
4,553,373
3,686,715
4,100,308
23,243,257
23,772,019
20,824,354
931,242
617,116
917,116
963,550
1,677,271
113,671,700
117,074,897
State Federal Fund Balance Total Revenues
112,533,186
*For preliminary discussion, includes anticipated Property Tax Relief funding; will be reallocated to state revenue in May 2018
4
Property Tax Relief Funding The Taxpayer Relief Act, Act 1 of Special Session 1 of 2006, was signed into law on June 27, 2006. The Taxpayer Relief Act provides for property tax reduction allocations to be distributed by the Commonwealth to each school district. Property tax reduction will be through a “homestead or farmstead exclusion.” Generally, most owner occupied homes and farms are eligible for property tax reduction. Only a primary residence is eligible for property tax relief. Property Tax Relief funding is certified by PDE in May. For budgeting purposes, property tax revenue is not reduced by the Property Tax Relief funding until the allocations are certified. Once allocations are certified, state revenue will be increased by allocation and local revenue (tax revenue will be reduced)
5
Revenue Assumptions ØReal Estate Tax Revenue
• Certified Assessment Value from Montgomery County Board of Assessment Appeals for the 2018 tax year - $1,865,868,280 • Slight increase from 2017-18 • Continue to monitor assessment appeals and impact on county assessment
• Act 1 Index of 2.4% or 1.1028 mills will generate an additional $1,983,651 • • • •
Impact on Median Assessed homeowner ($144,290) = increase of $13.26/month or $159.13/year Value of a mill is $1,798,970 Every 0.10% of an increase will generate $82,927 in additional tax revenue Every 0.10% of an increase will increase the millage rate 0.046 mills
ØOther Local Revenue trend continues between 2-3% growth ØUtilization of $1,677,271 in fund balance ØState Revenue
• Reflects 2017-18 allocations Ø February 2018 State Budget Address calls for an increase in BEF and Special Education funding totaling
$159,311
ØFederal Revenue
• Includes addition of $300,000 for ACCESS draw down
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Revenue Budget Development Revenue Drivers: • Tax increase of 2.4% (Index) has been factored into real estate tax revenue • Real estate collection rate - 96.4% • Overall increase of 2-3% in other local revenue
• Primarily in Earned Income Tax and Earnings on Investments
• Utilization of Fund Balance for non-recurring expenditures • Curriculum writing and materials; strategic plan initiatives; STEM, PBL and Innovation initiatives; and building improvements
Revenue Variables: • Assessment remains flat-lined • Lack of Federal and State funding for mandated initiatives 7
Act 1 Index - History
Year
Act 1 Index
CSD Tax Increase
2006-07
3.90%
2007-08
Year
ACT 1 Index
CSD Tax Increase
6.88%
2013-14
1.70%
1.70%
3.40%
8.49%
2014-15
2.10%
3.26%
2008-09
4.40%
5.16%
2015-16
1.90%
1.90%
2009-10
4.10%
5.34%
2016-17
2.40%
1.30%
2010-11
2.90%
6.01%
2017-18
2.50%
1.90%
2011-12
1.40%
0.00%
2018-19
2.40%
2012-13
1.70%
0.00%
Expenditure Description
Object
2016-17 Actual
2017-18 Approved Budget
2018-19 Preliminary Budget
100
Salaries
50,100,819
51,259,100
53,371,314
200
Benefits
29,052,769
28,917,310
30,574,066
300
Prof & Tech Services
7,825,080
5,119,409
5,071,843
400
Purchased Property Services
1,721,733
1,925,447
1,258,025
500
Other Purchased Services
13,627,271
12,456,438
11,806,438
600
Supplies
2,369,031
3,199,022
3,221,757
700
Equipment
740,370
468,622
204,672
800
Other Objects
5,795,022
6,176,352
6,826,782
900
Other Uses of Funds
1,280,000
4,150,000
4,740,000
112,512,095
113,671,700
117,074,897
Total Expenditures
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Expenditure Assumptions Contractual Obligations Account for approximately 88% of the budget • Salaries/Benefits • Operations including utilities, insurance and leases • Technology operational and educational renewals • Transportation • Debt Service
Strategic Plan • Year 1 - exploration • Year 2 - exploration/adoption • Year 3 - exploration/adoption
Analysis of existing programs and value-added Facility maintenance and building improvements 10
Expenditure Budget Development Expenditure Drivers: • Salaries
• Increased approximately 4.1% from the 2017-18 budget • $1.5 million increase in CEA salaries • $181,000 increase in Administrative salaries • BEC contract expires June 30, 2018; salaries reflect status quo
• PSERS
• Contribution rate increased from 32.57% to 33.43% (0.86%) • Net impact of approximately $1.2 million to budget
• Transportation
• Net reduction of $650,000 • Factoring cost savings from new contract and overall increase in IU Special Education transportation expenditures • Savings was reallocated to offset expenditures in other categories
Expenditure Variables: • Strategic Plan - Year 3 • Facility maintenance and building improvements • Special Education - IU Transportation and Placements
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RECOMMENDED BUDGET WILL CONTINUE TO SUPPORT… …COLLABORATION FOR THE FUTURE OF OUR STUDENTS
What’s New for the 2018-19 Budget?? Expenditure increases are dominated by contractual salary increases and PSERS rate increase • 2017-18 budget addressed key stakeholders concerns regarding CSD climate and culture • Staffing and resources added for student wellness and culture
No request for additional staff unless cost neutral
• Budget Administrators requested over $2.5 million of additional staffing (includes salaries and benefits) • Current National School Climate calls for increased security • Staff • Building Improvements
Reduction in expenditures allocated for strategic plan initiatives Reallocated resources for Curriculum Development Reallocated resources to expand PBL to include 10th grade cohort 13
2016-17 Actual
2017-18 Budget
2018-19 Preliminary Budget
REVENUES Local
88,358,687
88,319,015
93,656,156
State
23,243,257
23,772,019
20,824,354
931,242
617,116
917,116
963,550
1,677,271
112,533,186
113,671,700
117,074,897
100 - Salary
50,100,819
51,259,100
53,371,314
200 - Benefits
29,052,769
28,917,310
30,574,066
300 - Prof/Tech Svcs
7,825,080
5,119,409
5,071,843
400 - Purchased Property Svcs
1,721,733
1,925,447
1,258,025
13,627,271
12,456,438
11,806,438
600 - Supplies
2,369,031
3,199,022
3,221,757
700 - Property
740,370
468,622
204,672
800 - Other Objects
5,795,022
6,176,352
6,826,782
900 - Other Financing Uses
1,280,000
4,150,000
4,740,000
112,512,095
113,671,700
14 117,074,897
Federal Fund Balance TOTAL REVENUES
-
EXPENDITURES
500 - Other Purchased Svcs
TOTAL EXPENDITURES
CSD Fund Balance CLASSIFICATION Unassigned Assigned: Building Improvements Committed: Budget Capital Projects Non-Spendable: Inventory Pre-paid Items TOTAL
Actual Ending Est. Ending Est. Ending June 30, 2016 June 30, 2017 June 30, 2018 6,752,711 8,748,158 7,070,887 4,795,447
1,111,193
1,111,193
874,743 4,400,000
963,550 6,000,000
1,677,271 6,000,000
100,130 764,196
100,130 764,196
100,130 764,196
17,687,227
17,687,227
16,723,677
Educational Excellence
VS.
C N A FIN
Y T I L I B A T S IAL
2018-19 PDE BUDGET TIMELINE DATE
ACTION
September 2017
•
PDE publishes 2018-19 Act 1 Index
December 2017
• •
Certify/File Sterling Act Tax Credit Data Residential homestead notification
•
Opt-out resolution or 2017-18 proposed preliminary budget available for public inspection
February 2018
• • •
Adopt 2017-18 Preliminary Budget Approve elected tax collector compensation Publish intent to apply for referendum exceptions
March 2018
•
File referendum exception request with PDE
May 2018
• • •
Notification of property tax relief allocation from PDE Appointment of tax collector Adopt 2017-18 Proposed Final Budget and available for public inspection
June 2018
• •
Publish intent to adopt 2017-18 Final Budget Adopt 2017-18 Final Budget
January 2018
2018-19 CSD BUDGET TIMELINE DATE
ACTION
September 2017
•
Compile budgetary data
October 2017 - December 2017
• • •
Adopt Opt-out Resolution or proceed with Preliminary Budget Compile budgetary data Certify/File Sterling Act Tax Credit Data
January 2018
•
Finalize 1st look budget or Preliminary Budget
February 2018
•
Present 1st look at budget at Financial Affairs Committee or Preliminary Budget Adoption
March 2018 - April 2018
• •
Update and Finalize budget Present budget updates at select Financial Affairs Committee meetings
• •
Present Proposed Final Budget at Financial Affairs Committee Adopt Proposed Final Budget at Legislative Meeting and available for public inspection
• • •
Present Final Budget at Financial Affairs Committee Publish intent to adopt 2017-18 Final Budget Adopt 2017-18 Final Budget at Legislative Meeting
May 2018
June 2018
NEXT STEPS… • Provide three (3) year comprehensive historical review of revenue and expenditures • Continue to work with Administration on finding reductions in building and or departmental budgets
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2017-18 Budget - $ FUND BALANCE USED
963,550
2017-18 YTD - $ -
Variance $ 963,550
Variance %
Fiscal Year %
2016-17 %
-
66.67%
-
REVENUES Local
88,319,015
86,020,178
2,298,837
97.40%
97.72%
State
23,772,019
9,688,612
14,083,407
40.76%
48.95%
617,116
336,715
280,401
54.56%
69.38%
TOTAL REVENUES
112,708,150
96,045,505
16,662,645
85.22%
66.67%
-
TOTAL REVENUES/FUND BALANCE
113,671,700
96,045,505
17,626,195
84.49%
66.67%
88.13%
100 - Salary
51,259,100
29,711,218
21,547,882
57.96%
58.57%
200 - Benefits
28,917,310
17,491,187
11,426,123
60.49%
59.03%
300 – Prof/Tech Svcs
5,119,409
4,936,104
183,305
96.42%
89.03%
400- Purchased Property Svcs
1,925,447
1,176,801
748,646
61.12%
64.09%
12,456,438
7,318,286
5,138,152
58.75%
63.09%
600 - Supplies
3,199,022
2,656,794
542,228
83.05%
67.43%
700 - Property
468,622
324,576
144,046
69.26%
92.99%
800 - Other Objects
6,176,352
5,943,878
232,474
96.24%
142.85%
900 – Other Financing Uses
4,150,000
4,150,000
100.00%
85.59%
113,671,700
73,708,844
Federal
EXPENDITURES
500 – Other Purchased Svcs
TOTAL EXPENDITURES Note: Expenditure YTD figures include encumbrances
39,962,856
64.84%
66.67%
65.58%
2017-18 Budget - $ FUND BALANCE USED
963,550
2017-18 YTD - $ -
Variance $ 963,550
Variance %
Fiscal Year - %
2016-17 %
-
66.67%
-
REVENUES Local
88,319,015
86,020,178
2,298,837
97.40%
97.72%
State
23,772,019
9,688,612
14,083,407
40.76%
48.95%
617,116
336,715
280,401
54.56%
69.38%
TOTAL REVENUES
112,708,150
96,045,505
16,662,645
85.22%
66.67%
-
TOTAL REVENUES/FUND BALANCE
113,671,700
96,045,505
17,626,195
84.49%
66.67%
88.13%
80,176,410
47,202,405
32,974,005
58.87%
58.57%
Transportation
7,170,369
3,718,254
3,452,115
51.86%
49.15%
Tuition – Cyber/Charter School
1,573,259
960,455
612,804
61.05%
99.38%
Tuition - Other
3,080,282
1,789,951
1,290,331
58.11%
52.55%
10,326,352
10,093,878
232,474
97.75%
108.31%
1,281,932
1,191,927
90,005
92.98%
80.35%
10,063,096
8,751,974
1,311,122
86.97%
-
113,671,700
73,708,844
39,962,856
64.84%
Federal
EXPENDITURES Salaries/Benefits
Debt Service Equipment/Software Platforms Other TOTAL EXPENDITURES Note: Expenditure YTD figures include encumbrances
66.67%
65.58%