2017-2018BUDGET PRESENTATION

May 2, 2017Boyertown Area School District

Board of Education

DRAFT

Looking to the Future Based on 5 Year Budget Projection and Assumptions

■ How will decisions in 16-17 & 17-18 impact the next 5 years?

■ Consideration of Future Tax Increases■ 2018-2019 and 2019-2020 will require tax increases and

possible use of exceptions (No Act 1 Resolution)■ The use of one-time fund balance must be replaced■ Health Care is cyclical - 0% increases are not projected■ Special Education costs will continue to rise■ PSERS increasing but at slower rate■ Building operations and maintenance evaluation –

Pine Forge Annual Operating Budget?■ Without additional revenue, programs and services will

continue to be considered for reduction or elimination

2016 Berks County SchoolsReal Estate Tax Rate

ANTIETAM 37.79 B. HEIGHTS 32.30EXETER 32.21FLEETWOOD 31.81WYOMISSING 30.07KUTZTOWN 29.95DANIEL BOONE 29.70MUHLENBERG 28.56 TULPEHOCKEN 27.70

C. WEISER 27.14GOV. MIFFLIN 27.10SCH. VALLEY 27.07TWIN VALLEY 26.77HAMBURG 26.71OLEY VALLEY 26.33 WILSON 24.95BOYERTOWN 24.27READING* 17.93

* Reading SD taxpayers voted to exchange HIGHER INCOME tax FOR LOWER PROPERTY tax. Compare Reading SD EIT of 1.5% to Boyertown .5%

2016 Montgomery County Schools Real Estate Tax Rate

CHELTENHAM 45.09POTTSTOWN 39.25JENKINTOWN 38.98POTTSGROVE 37.72NORRISTOWN 34.39LWR MORELAND 33.32UPPER DUBLIN 32.29SPRINGFIELD 31.66 PERK VALLEY 31.60ABINGTON 30.83UPR MORELAND 29.40

SOUDERTON 28.78METHACTON 28.74HATBORO-HORS 27.49LOWER MERION 27.40SPRING FORD 26.24BOYERTOWN 24.27NORTH PENN 24.19UPPER PERK 23.64COLONIAL 20.96UPPER MERION 18.96WISSAHICKON 18.79

Act 1 Index Index Calculation for 2017-2018:ECI Index equals 2.5%times: Aid Ratio Allow(.75 + .479) x 1.2229BASD Index (from PDE) 3.1%

County Millage Index IncreaseBerks 24.27 3.1% .75Mont. 24.27 3.1% .75

1 Mill = $2.3 Million times .75 = $1,725,000

The School Board adopted a resolution that the District would not increase the tax rate by more than the Act 1 Index

Budget Deficit Update

February 7 April 4 May 2Projected Revenue $105,347,105 $105,367,201 $106,191,693Tax Increase of 3.1% $ 1,750,000Total Projected Revenue $107,916,693Projected Expenditures $111,345,876 $111,017,918 $110,167,918Projected Deficit $ (5,998,771) $ (5,650,717) $ (2,251,225)Use of One-Time FundsPSERS Committed $ 2,000,000 $ 2,000,000 $ 2,000,000Net Deficit $ (3,998,771) $ (3,650,717) $ (251,225)

Current Budget does include Basic Ed and Special Ed revenue increases as proposed in Governor Wolf’s budget proposal

Budget Deficit Reduction

• Three Ways to Decrease a Budget Deficit:1. Decrease Expenditures2. Increase Revenue3. Use of Fund Balance

Deficit ReductionExpenditures Review

New Secondary Personnel Recommendations

Regular Ed/Support■ BASH Administrator■ BASH Clerical■ BASH Counselor■ BASH HPE ■ BASH HPE■ BASH Custodians (2)■ BASH Security Monitor■ BASH CAF Monitor (2)■ Secondary Orchestra (.5)

Special Education■ BASH ES Teacher (IDEA)■ BASH .5 Gifted Teacher■ MSE LS Teacher■ MS Gifted Teacher

New ElementaryPersonnel Recommended■ CES Intervention Teacher

■ BES .5 Counselor

■ EES .5 Counselor

■ PFES .5 Counselor

■ GES .5 Dean of Students

■ NHUF .5 Dean of Students

■ GES Playground Aide

New District-widePersonnel Recommended■ School Psychologist

■ Speech Pathologist

■ PT Staff Accountant

Personnel SummaryFull Time Equivalent Positions

AdditionsRegular Education

1 BASH Guidance Counselor

1 BASH HPE

1 CES Intervention Teacher

.5 Secondary Orchestra

Special Education

1 Bash ES Teacher (IDEA)

.5 BASH Gifted Teacher

1 MSE LS Teacher

1 School Psychologist

Support

.5 Staff Accountant

DeletionsRegular Education.5 BASH Social Studies.5 JHE Planetarium (Contracted)3 WES Grade Teachers1 BES Grade Teacher1 GES Grade Teacher1 NHUF Grade Teacher

0 Professional FTETotal .5 FTE AdditionGeneral Funded (.5) FTE

Special Education Expense (Federal Mandate)

Personnel Wages & BenefitsSalaries & Benefits

Final Year of BAEA Collective Bargaining Agreement (CBA)

All Non-BAEA Employees budged at 2.5% increase in wages

Benefits

PSERS Increase from 30.03% to 32.57%

Health Insurance – 0% Increase in Premium

Staff Contribution percent increase .5%

Premium Holiday – December 2017

Internal Service Fund Balance Reduction

Pension Contribution Expense (State Mandate)

Remaining Cost Reduction Considerations After 4/4/17

JH Librarian $ 80,000Counselor $ 98,000BASH Chem/Bio $ 50,000Administration $ 175,000Administrative Clerical $ 25,000Custodial Support $ 130,000Recess Aides $ 17,000Paraprofessional $ 22,000Budgets Reduction $ 150,000Bus Runs (3) $ 117,000

Total $ 864,000

Deficit ReductionIncrease Revenue

Proposed Revenue Increases

State RevenueAssume Governor’s Budget will be adopted as proposed with $100 million added to BEF

Local RevenueMaximum tax increase of 3.1% (BASD Act 1 Index)Assessment Increases in April & MayStudent Activity Fees increase to $200 per secondary student for unlimited participation

Use of Fund Balance

Fund Balance Usage➢$2 million in Committed fund balance for PSERS included in

budget▪ Projected Balance of PSERS Fund on 6/30/18 is $2.8

million▪ Plan to utilize remaining balance over 3 years with

proposed replacement of one-time funds with tax increases or further expenditure or program reductions

Capital Projects Fund Transfer of $500,000 for 2017-18 eliminated

Internal Service Fund Balance Reduction Plan - Premium Holiday

Budget Deficit ReductionApril 4 May 2

Projected Revenue $105,367,201 $105,367,201Local Revenue (Activity Fees to $200) $ 120,000Local Revenue (Assessment Increases) $ 240,803State Subsidy Increase (Gov. Budget) $ 438,689Tax Increase of 3.1% $ 1,750,000Total Projected Revenue $107,916,693Projected Expenditures $111,017,918 $111,017,918Capital Projects Transfer $ (500,000)Premium Holiday (Use of Internal Service) $ (350,000)Projected Expenditures $110,167,918Projected Deficit $ (5,650,717) $ (2,251,225)PSERS Committed $ 2,000,000 $ 2,000,000Net Deficit $ (3,650,717) $ (251,225)

Debt Service Expense

Remaining Cost Reduction Considerations After 4/4/17

JH Librarian $ 80,000Counselor $ 98,000BASH Chem/Bio $ 50,000Administration $ 175,000Administrative Clerical $ 25,000Custodial Support $ 130,000Recess Aides $ 17,000Paraprofessional $ 22,000Budgets Reduction $ 150,000Bus Runs (3) $ 117,000

Total $ 864,000

Budget Deficit Reduction

• Ways to Decrease a Budget Deficit:Decrease Expenditure

Which programs to cut?How many employees to furlough?Which services are reduced?

Budget Deficit Reduction

• Ways to Decrease a Budget Deficit:Increase Revenue

Raise parking feesRaise facility rental fees

Budget Deficit Reduction

• Ways to Decrease a Budget Deficit:Use of Fund Balance

How much additional one-time funds to use?How do we replace in the future?

Other Funding SourcesThe following funding sources will be added to the General Fund budget for inclusion in the adoption of the Final Proposed Budget on May 9 and the Final Budget on June 13:LocalPottstown Health & Wellness $ 75,000StateReady to Learn Block Grant $ 928,175FederalTitle I $ 563,931Title II $ 93,000IDEA $1,152,225ACCESS $ 475,000Total $3,307,331Each Funding source has equal revenues and expenditures

Future Meetings

May 9, 2017 School Board Meeting – Education Center – 6:30 pm• (Adoption of Final Proposed Budget)

May 30, 2017 Budget Work Session – Education Center – 6:30 pm

June 13, 2017 School Board Meeting – Education Center – 6:30 pm• (Adoption of Final Budget)

Questions & Discussion