elementary parish and school financial update secretariat for education department for catholic...
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Elementary Parish and School Financial Update
Secretariat for Education
Department for Catholic Schools
2005-2006
Consolidated Operating (Deficit)/SurplusParishes with Schools
Millions of Dollars
($5.00)
($4.50)
($4.00)
($3.50)
($1.50)
-5
-4.5-4-3.5-3-2.5-2-1.5-1-0.50
90-91 92-93 Proj 93-4 Proj 94-5 Proj 95-6
Funding as % of School Expenses (91-92)Pittsburgh and U.S. Catholic Schools
Pittsburgh
Parish Subsidy
52%Tuition34%
Other14%
U.S. Catholic
Tuition51%
Parish Subsidy
34%
Other15%
Median Tuition Rates (1990-91)Pittsburgh and U.S. Catholic
$600
$970
$0 $200 $400 $600 $800 $1,000
MedianTuition
U.S. CatholicPittsburgh
Policy Summary
Basic Funding Formula – Tuition 60% – Subsidy 25% – Development/Fundraising 10%– Other 5%
All parishes give 10% minimum (35% maximum) of income
No borrowing to finance operating deficits
Elementary School FundingTuition as a % of School Expense
51%51%
34%
45%47%
50%52% 52%
0%
10%
20%
30%
40%
50%
60%
91-92 96-97 97-98 99-00 01-02 02-03 03-04 04-05
Elementary Tuition Rate History
1st Child $ 2nd Child 3rd ChildRate Change Rate Rate
91-92 600 92-93 700 100
93-94 850 150
94-95 1,000 150
99-00 1,750 100 975 375 00-01 1,850 100 1,040 475 01-02 1,950 100 1,110 570 02-03 2,100 150 1,225 650 03-04 2,200 100 1,320 680 04-05 2,350 150 1,350 735 05-06 2,550 200 1,500 900
Elementary School FundingParish Subsidy as a % of School Expense
28%27%27%27%29%30%
34%38%
52%
0%
10%
20%
30%
40%
50%
60%
91-92 96-97 97-98 99-00 00-01 01-02 02-03 03-04 04-05
Fund Raising/Donations as a % of School Expense
13.0%14.0%
13.5%13.0%
12.0%11.0%10.0%
9.0%
5.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
91-92 96-97 97-98 98-99 99-00 01-02 02-03 03-04 04-05
Diocese of Pittsburgh: Funding as % of School Expenses 1991-92 and 2004-05
1991-92
Parish Subsidy
52%Tuition34%
Other14%
2004-05
Tuition51%
Parish Subsidy
28%
Other21%
Consolidated Operating (Deficit)/SurplusParishes with Schools
Millions of Dollars
$2.40
$0.90
$1.10
$0.90
($0.02)
($0.80)
($3.50)
($1.50)
-4
-3
-2
-1
0
1
2
3
90-91 92-93 96-97 97-98 98-99 99-00 00-01 01-02
Tuition as a % of School ExpensePittsburgh and US Catholic Average
1991-92 2003-04Pittsburgh 34% 51%
US Catholic Average 51% 61%
Subsidy as a % of Parish Income(Parishes with Schools)
30%29%29%27%
29%31%
34%
37%
44%
10%
15%
20%
25%
30%
35%
40%
45%
50%
91-92 96-97 97-98 98-99 00-01 01-02 02-03 03-04 04-05
Consolidated Operating (Deficit)/SurplusParishes with Schools
Millions of Dollars
($5.40)
($3.10)
($2.60)
$2.40 $0.90
$1.10
$0.90
($0.02)($0.80)($3.50)
($1.50)
-6
-5
-4
-3
-2
-1
0
1
2
3
90-91
92-93
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
Parish Borrowing to Fund Operational Expense
# of AmountYear Parishes Borrowed1998 21 1,808,584 1999 24 1,834,116 2000 14 800,355 2001 13 900,345 2002 22 1,167,791 2003 32 2,052,652 2004 43 3,705,992
Health Insurance Rates
2001-02 2006-07 5 Year Increase
-Individual 3,376 5,762 2,386 71%
-Family 8,776 17,982 9,207 105%
Utility History and ProjectionParishes with Schools
(Millions)
Proj Proj04-05 05-06 06-07
Parish and School 8.2 11.0 15.0
-1 Year Change 2.8 4.0
Gas is expected to increase about 50% and electric at least 15%.
Catholic PK to 8 Enrollment History(Thousands)
22.3
23.8
25.3
26.3
27.2
27.9
28.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
98-99 99-00 00-01 01-02 02-03 03-04 04-05
A large portion of this decline is in the City of Pittsburgh. City public schools have experienced similar or greater declines than city Catholic schools.
Public PK to 8 Enrollment History(Allegheny, Beaver, Butler, Lawrence, Washington)
233,000
253,000
272,000
279,000
210,000
220,000
230,000
240,000
250,000
260,000
270,000
280,000
99-00 03-04 08-09 13-14
Decline between 1999-2000 and 2003-04 was 6,300 students or 2.3%. Projected decline to 2013-204 is over 39,000 or 14.5%.
Public PK to 8 Enrollment History(Allegheny County)
143,000
156,000
169,000
175,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
99-00 03-04 08-09 13-14
Decline between 1999-2000 and 2003-04 was 5,300 students or 3.0%. Projected decline to 2013-204 is over 26,000 or 16%.
K-8 Market Share(Allegheny, Beaver, Butler, Lawrence and Washington Counties)
1999-2000 2001-2002 2003-2004Total K-8 Population 224,468 220,451 211,737
# in Catholic Schools (K-8) 24,280 22,755 20,465
% in Catholic Schools * 10.8% 10.3% 9.7%
* About 5.6% of available students nationwide are in Catholic schools.
Diocesan Tuition Assistance
$2,600,000
$2,500,000
$2,470,000
$2,450,000
$565,000
$500,000
$260,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
95-96 99-00 01-02 02-03 03-04 04-05 05-06
Outside Funding Sources Catholic Schools
$7,987,000
$7,202,000
$6,916,000
$3,858,000
$1,709,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
95-96 01-02 02-03 03-04 04-05
Critical Parishes/Schools
About 30 parishes with schools are in critical financial condition.
About 10 parishes without schools are in critical financial condition
Critical Parishes/Schools: Next Steps
1. Individual meetings will be held with diocesan staff to thoroughly review operations and budget assumptions
2. School and parish budgets must be balanced and include a reasonable amount of debt service for re-paying accumulated debt
3. Parish subsidy may need to be significantly reduced or even temporarily eliminated in order to balance the parish budget
Critical Parishes/Schools: Next Steps
4. No borrowing of funds for operations will be permitted
5. All bills need to be paid including employee benefits/insurance. Any residual debt will be included as an expense in the following year’s operating budget with tuition increased accordingly.
Critical Parishes/Schools: Next Steps
6. Expense reductions, including staff and programs, need to implemented
7. Tuition will be set at the rates needed and may require significant increases.
Critical Parishes/Schools: Next Steps
8. Viable enrollment goals with registration deadlines will be set
9. Elementary school grant funds will decrease necessitating a reduction in grants
Checklist for All SchoolsTo Remain Financially Viable
1. Establish a balanced school budget: a. Project a reasonable enrollment
b. Include only the amount of subsidy the parish can afford
c. Determine a reasonable amount of fund raising based on history
d. Include your (reduced) elementary grant
Checklist for All SchoolsTo Remain Financially Viable
e. Add any liabilities from previous school year (e.g. unpaid bills, advanced tuition used)
f. Include accurate expense amounts for utilities, benefits and insurance.
g. Critically examine staffing levels each year in relation to enrollment and adjust.
Checklist for All SchoolsTo Remain Financially Viable
h. Reduce expense, including staff, where possible.
i. Increase tuition in order to balance.
2. Pay all insurance bills (primarily employee benefits) on time and in full.
3. Encourage parents to apply for aid.
Checklist for All SchoolsTo Remain Financially Viable
4. Do not re-enroll families with unpaid tuition balances unless funding is secured to pay the balance in full.
5. Share financial information with parents via letters and meetings.
6. Call diocesan staff for assistance and support.
Goals for Quality Education
Faith Formation/Catholic Identity
Academic Excellence
Support from Parents and Community
Financial Stability