North Penn School District
!
2015-2016 Proposed
Final Budget
May 12, 2015
!
!
Tonight’s Agenda
• Proposed final budget review
• Expenditure highlights
• Revenue highlights
• Tax impact
Budget Challenges
PSERS PSERS
PSERS
Budget Snapshot
• $234.9 M budget
• $7.86 M increase in expenses over 14-15
• 3.46% increase in expenses over 14-15
• Budget deficit of $2.56 M after Act 1 base
increase (1.9%)
• 3.49% to balance budget
Budget Comparison
Fiscal Year
Budget
Revenues
Expenses
Surplus
(Deficit)
2015-2016
$232,337,878
$234,898,007
-$2,560,129
2014-2015
$223,077,924
$227,035,981
-$3,958,057
$ Change
$9,259,954
$7,862,027
$1,397,927
% Change
4.15%
3.46%
-35.32%
Prelim. to Proposed Final Budget Comparison
Fiscal Year
Budget
Revenues
Expenses
Surplus
(Deficit)
Proposed Final
$232,337,878
$234,898,007
-$2,560,129
Preliminary
$231,233,115
$237,992,464
-$6,759,349
$ Change
$1,104,763
-$3,094,457
$4,199,220
% Change
0.48%
-1.30%
-62.12%
Expenditure Increase Factors
PSERS
$6,470,181
Salaries (includes 7.9 FTE new positions)
$4,350,363
Technology capital lease
$1,305,127
New debt for Hatfield project
$214,985
Textbook adoptions
$1,099,323
Bus lease
$95,272
Total increase in major items
$13,535,251
Act 1 index revenue @1.9%
$3,063,152
Expenditures by Object
0%
5%
3% 2%
5%
2%
4%
51%
27%
Salaries
Benefits
Purchased Professional Services
Purchased Property Services
Other Purchased Services
Supplies
Equipment
Other Objects (Debt Interest)
Transfers & Debt Principal
Act I Index
5%
4.4%
4.1%
3.9%
3.75%
3.4%
2.9%
2.5% 2.6%
2.5%
2.1%
1.7% 1.7%
2.2% 2.2%
1.9%
1.4%
1.25%
0%
19
18
17
16
15
14
13
12
11
10
09
08
07
06
-2
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-0
-0
-0
0
9
8
7
6
5
4
3
2
1
0
9
8
7
Act 1 Exceptions
• Retirement
• Special education
• Electoral debt
• Grandfathered debt
Act 1 Exceptions
• Retirement = $2,127,389
• 3.22% total tax increase with exceptions
• $433,171 deficit remaining
Retirement Rate
Year
Employer Rate
Gross $
% Rate Inc.
2010-11
5.64%
$6,117,388
Base
$9,142,160
53%
58,518,276
2011-12
8.65%
2012-13
12.36%
$12,608,373
43%
2013-14
16.93%
$18,817,162
37%
2014-15
21.40%
$24,120,696
26%
2015-16
25.84%
$30,590,877
21%
Retirement Rate
40%
32%
24%
16%
8%
0%
08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Employer Rate
Retirement as a % of Budget
14%
11%
8%
6%
3%
0%
10-11
11-12
12-13
13-14
Retirement % of Budget
14-15
15-16
Audited Fund Balance 6/30/14
Description
Amount
Nonspendable (inventory & prepaid items)
$204,370
Committed to PSERS
$14,406,187
Assigned for self-funded insurance
$5,700,000*
Unassigned (7.46%)
$17,755,761
Total Fund Balances
$38,066,318
Projected Fund Balance 6/30/15
Description
Amount
Nonspendable (inventory & prepaid items)
$204,370
Committed to PSERS
$14,406,187
Assigned for self-funded insurance
$2,700,000
Unassigned (8.24%)
$18,644,141
Total Fund Balances
$35,954,698
Projected Fund Balance 6/30/16
Description
Amount
Nonspendable (inventory & prepaid items)
$204,370
Committed to PSERS
$13,406,187
Assigned for self-funded insurance
$2,700,000
Unassigned (7.27%)
$17,084,012
Total Fund Balances
$33,394,569
Unassigned Fund Balance
$19,000,000
$15,200,000
$11,400,000
$7,600,000
$3,800,000
$0
15
14
13
12
11
10
09
08
-1
-1
-1
-1
-1
-1
-1
-0
6
5
4
3
2
1
0
9
Bu
et
dg
.
oj
Pr
Ending Fund Balance
Revenue Allocation
1%
19%
Local
80%
State
Federal
Local Revenue Allocation
1%
1%
8%
2%
Real estate/interims
EIT
Transfer tax
Delinquent tax
Other
88%
Tax Base History
$7,200,000,000
$7,120,000,000
$7,040,000,000
$6,960,000,000
$6,880,000,000
$6,800,000,000
08-09
09-10
10-11
11-12
12-13
Assessed value
13-14
14-15
15-16
Earned Income Tax
$15,000,000
$15,327,539
$15,000,000
$14,489,809
$13,900,000
$13,750,000
$13,029,723
$12,987,036
$12,788,785
$12,873,137
$12,912,015
2011
2012
$12,500,000
$11,250,000
$10,000,000
2008
2009
2010
2013
2014
2015 (Budget) 2016 (Budget)
The chart shows the total earned income tax for each year. The district
experienced negative growth during the recession. Measure of fiscal health and
an indicator of economic conditions
State Revenue Allocation
4%
10%
21%
14%
34%
11%
7%
Basic Ed
Special Ed
Transportation
Property Tax Reduction
Retirement
Social Security
Other
State Sources of Revenue
!
• Governor Wolf proposed budget • Basic education and special education
• $828,220 proposed increase • $500,000 budgeted
Tax Impact
Tax
Inc.
County
Average
Average Homestead
Homestead # Properties Homestead
Tax
Assessment
Tax Inc.
Reduction
1.9% Montgomery $147,965
3.7%
Bucks
$22,000
25,016
$65
$198
43
$103
$198
Next Steps
• Continued review of revenues and expenses
• Refinement of current year estimates
• Refine and update data based on new information
Budget Timeline
5/12
Proposed final budget
adoption
Board work session
5/26
Budget
update
Finance committee meeting
!
6/18
Final budget adoption
Board action meeting