2017-2018 budget presentation · 2017-2018 budget presentation april 4, 2017 boyertown area school...

2017-2018BUDGET PRESENTATION

April 4, 2017

Boyertown Area School District

Board of Education

2016 Berks County SchoolsReal Estate Tax Rate

ANTIETAM 37.79

B. HEIGHTS 32.30

EXETER 32.21

FLEETWOOD 31.81

WYOMISSING 30.07

KUTZTOWN 29.95

DANIEL BOONE 29.70

MUHLENBERG 28.56

TULPEHOCKEN 27.70

C. WEISER 27.14

GOV. MIFFLIN 27.10

SCH. VALLEY 27.07

TWIN VALLEY 26.77

HAMBURG 26.71

OLEY VALLEY 26.33

WILSON 24.95

BOYERTOWN 24.27

READING* 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 & BudgetingBelow is the BASD 10-year historical Act 1 data:

Base BASD BASD DifferenceFY Index Index % Tax Incr** Base vs. Tax Incr

07-08 3.4% 4.1% 2.2% -1.2%

08-09 4.4% 5.3% 2.6% -1.8%

09-10 4.1% 4.9% 0.0% -4.1%

10-11 2.9% 3.5% 3.7% +0.8%

11-12 1.4% 1.7% 5.5% +2.9%

12-13 1.7% 2.1% 2.3% +0.6%

13-14 1.7% 2.1% 2.5% +0.8%

14-15 2.1% 2.6% 2.6% +0.5%

15-16 1.9% 2.3% 2.5% +0.6%

16-17 2.4% 2.9% 1.5% -0.9%

** Average Tax Increase subject to tax equalization calculation

Act 1 Index

Index Calculation for 2017-2018:

ECI Index equals 2.5%

times: Aid Ratio Allow

(.75 + .479) x 1.2229

BASD Index (from PDE) 3.1%

County Millage Index Increase

Berks 24.27 3.1% .75

Mont. 24.27 3.1% .75

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

Expenditure Per StudentBerks County

Expenditure Per StudentMontgomery County

Expenditures Well Invested Academic Results

2016 SAT Results

Statewide - 118th out of 646 (Top 18% in Pennsylvania) Berks County Only - 4th out of 18Montgomery County Only - 17th out of 22Berks and Montgomery County – 21st out of 40

• Per pupil instructional expenditure in Berks County 16th lowest of 18 School Districts

• Per pupil instructional expenditure in Montgomery

County 22nd out of 22 School Districts

Budget Deficit Update

February 7 March 14

Projected Revenue $105,347,105 $105,367,201

Projected Expenditures

$111,345,876 $111,017,918

Projected Deficit $ (5,998,771) $ (5,650,717)

Use of $2M Committed One-Time Funds

PSERS $ 2,000,000 $ 2,000,000

Net Deficit $ (3,998,771) $ (3,650,717)

Current Budget does not include any revenue increase as proposed in Governor Wolf’s budget proposal.

Budget Deficit Reduction

•Three Ways to Decrease a Budget Deficit:

1. Decrease Expenditures

2. Increase Revenue

3. Use of Fund Balance

Prior Budget to Actual Review

•Review of Revenue Budget History•Conservative Projections allowed for Positive

Variances•More Optimistic Revenue Projections will

minimize Positive Variances

•Review of Expenditure Budget History•Expenditure Negative Variances increasing as

Optimistic Expense Items are overspent

State Budget Trouble

State Budget Woes

The Independent Fiscal Office, a non-partisan state agency,

confirmed an anticipated shortfall of at least $2.5 billion by

July 1, 2018, reflective of sluggish economic growth, rising

health care and pension costs, and an aging workforce. That

shortfall can be reduced by substantive changes in public

policy.

Deficit ReductionExpenditures

PSERS Mandated Contribution Rate

PSERS EXPENSE

2 Major Expenditure Factors(a.k.a. State Mandates)

• Pennsylvania School Employers Retirement System (PSERS)

State Mandated Pension

Establishes Annual Contribution Rate for All School Districts

11-12 PSERS rate at 8.65% (+ 5.2%) ↑ $1.28 Million

12-13 PSERS rate at 12.36% (+42.9%) ↑ $1.59 Million





17-18 PSERS rate at 32.57% (+ 8.5%) ↑ $1.6 Million (est.)

• Special Education Expenditures

Approximately 20% of BASD Students

Special Ed expenditures average ↑ 11% over 7 years

2016-17 2017-18 Increase

Special Ed Expense $19.541 M $20.847 M $1.306 M

Special Ed % of Budget 17.5% 18.1%

Program Reduction Considerations

• 70% of BASD Budget is Personnel Wages & Benefits

Reduction Considerations/ Professional

1. Reduce from 2.0 FTE to 1.0 FTE middle school

librarians

○ JHE and JHW will each have a teacher who is

.5 librarian and .5 ELA teacher

○ Library clerk covers library, reduced

opportunity for library instruction

○ One open ELA teacher position would not be

filled for 2017-18

Reduction = $80,000 (Salary, PSERS, Benefits)



Reduction Considerations/ Professional

2. Reduce 1.0 FTE School Counselor

o Transfer 1 counselor from elementary to

middle school open position

o Elementary reduces by one grade level

o No increase to counseling services for

students at elementary level

o WES, BES, GES, NHUF have 1.0 FTE

Counselor, CES, PFES, EES have .5 FTE

Counselor




Reduction Considerations/Professional

3. Close Planetarium

○ No Planetarium sessions for BASD

students/Community

○ Reduced community opportunity

○ Teacher retires June 2017

Reduction = $30,000



Reduction Considerations / Professional

4. Reduce 2.5 special area teachers at elementary

level

○ Students continue current amount of special

area instruction

○ No opportunity to expand health instruction

○ Continued large class sizes/bubble classes

combined

○ Art vacancy not filled, PE to open BASH

position, .5 music teacher reassigned to

middle school position




Reduction Considerations / Professional

5. Reduce .5 BASH Chemistry/Biology

○ Increase class size from 21 to 23

(average/estimated)


6. Eliminate Elementary Band/Orchestra

○ No opportunity for band/orchestra until

middle school

○ Decreased learning/opportunity for 508

students (some students counted twice)

○ Teacher furloughs in music department




Reduction Considerations / Administration

1. Reduce Administration

○ Reallocation of administrative assignments

○ Administrative staff increases additional

areas of responsibility


2. Reduce Administrative support

○ Reallocation of office support staff

○ Current support staff increases additional

responsibilities

Reduction = $25,000 (Salary, PSERS)



Reduction Considerations / Support

1. Reduce custodial staff

○ Reallocation of staff assignments

○ Redistribution/prioritization of duties


2. Reduce recess aide hours across district

○ 6th grade students moving to middle school

○ Some elementary schools will condense

lunch/recess periods




Reduction Considerations / Support

3. Reduce paraprofessional hours at elementary

level

○ Evaluate support needs due to attrition and

replacement




Reduction Considerations / Operations

1. Reduce school and department budgets 5%

○ Less supplies, equipment, needs reprioritzed

Reduction = $150,000

2. Reduce three bus runs

○ Redesign district runs

○ Possible longer bus rides, increased students

per bus

Reduction = $117,000



Reduction Considerations / Operations

3. Elimination of middle school sports programs

○ Eliminates 26 teams involving 828 students

(based on last season, some students counted

twice)

○ Reduced opportunity for students to prepare

for BASH programs through BASD programs

Reduction = $200,000 (stipends, equipment, fees, etc.)

Reduction Considerations Summary

JH Librarian $ 80,000Counselor $ 98,000Planetarium $ 30,000Elementary Special Areas $ 200,000BASH Chem/Bio $ 50,000Elementary Band/Orchestra $ 350,000Administration $ 175,000Administrative Support $ 25,000Custodial Support $ 130,000Recess Aides $ 17,000Paraprofessional $ 22,000Budgets Reduction $ 150,000Bus Runs $ 117,000Middle School Sports $ 200,000

Total $1,644,000

Deficit ReductionIncrease Revenue

Revenue Increases

Limited Options

Student Activity Fees - $100 student total $120,000

BASH Parking Fees - $50 permit total $20,000

Facility Rental Increase – total $160,000

Assessment Increase Projected at 1% increase adding $200,000 results from March to May County Reports

Tax Increase up to Act 1 Limit of 3.1% would generate $1.75 Million

Current Deficit $5,650,717

Use of one-time $ $2,000,000

Less: 3.1% Tax increase $1,725,000

Remaining Deficit $1,925,717

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 @ $500,000 for 2017-18

Internal Service Fund Balance Reduction Plan - Premium Holiday

Fund Balance Usage

Caution must be used when considering further use of fund balance considering plan to deplete the PSERS funds

Additional use of fund balances will create larger deficits in the next 1-2 years; larger deficits than tax increases could fund


•Ways to Decrease a Budget Deficit:

Decrease Expenditure

Which programs to cut?

How many employees to furlough?

Which services are reduced?

Reduction in BASD activities



Increase Revenue

Raise tax revenue

Raise activity fees

Raise parking fees

Raise facility rental fees



Use of Fund Balance

How much one-time funds to use?

PSERS Committed Fund

Internal Service - Healthy Holiday

Capital Projects Transfer

How do we replace in the future?

Looking to the Future

•How will this year impact the next 5 years?•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•Future Tax Increases•2018-2019 and 2019-2020 will require tax increases and possible use of exceptions (No Act 1 Resolution).•Without additional revenue, programs and services will continue to be reduced or eliminated.

Future Meetings

• April 18, 2017 Budget Work Session – Junior High East – 6:30 pm

• April 25, 2017 School Board Meeting – Education Center - 6:30 pm

• 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

2017-2018 budget presentation · 2017-2018 budget presentation april 4, 2017 boyertown area school...

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