2013-2014 Preliminary Budget
March 18, 2013
Previous Year’s Budget Reductions
•
Elimination of Teaching Positions
• Special
•
•
•
•
•
•
•
•
•
Education/Two Elementary
Elimination of Administrative Position
Elimination of Technology Summer Workers
Reduction of Summer Maintenance Workers
Reduction of Capital Improvements
Energy Curtailment Programs
New Athletic/Band Fee
Reduction in Variable Debt
Elimination of Weekend Security
Reduction of Contracted Services
TOTAL REDUCTIONS $658,546
Budget Development Assumptions
•
No Salary Increases
• All
•
•
•
•
Employees
No Change in Benefit Plans
No Furlough/Outsourcing
No Additional Programs
Two New Teaching Positions
• Elementary
•
Sp. Ed., High School Social Studies
No Additional Allocations
• By
Building
• By Department
•
•
•
No Additional Debt
No New Revenue Sources
No Additional State & Federal Revenue
• Except
PSERS Retirement Reimbursement
Expenditures
Salaries
Benefits
Salaries
41%
Prof. Svcs.
Property Svcs.
Contracted Svcs.
Supplies/Equipment
Debt Service
Benefits
21%
Expenditures
2013-14
DESCRIPTION
Salaries
Employee Benefits
2012-13
PROPOSED
BUDGET
BUDGET
$ 30,415,980
$
30,500,751
$ INC(DEC)
%
INC(DEC)
$
84,771
0.28%
13,558,938
15,438,865
$
1,879,927
13.86%
Purchased Prof. Svcs.
5,452,876
5,719,740
$
266,864
4.89%
Purchased Property Svcs.
1,927,772
1,905,088
(22,684)
-1.18%
10,054,668
10,393,738
$
339,070
3.37%
2,083,664
2,168,410
$
84,746
4.07%
447,175
438,190
$
(8,985)
-2.01%
Other Objects
3,183,456
3,031,792
$
(151,664)
-4.76%
Other Financing Uses
5,050,000
5,255,500
205,500
4.07%
2,677,545
3.71%
Other Contracted Svcs.
Supplies
Equipment
TOTAL ALL OBJECTS
$ 72,174,529
$
74,852,074
$
$
PSERS History/Projections
Employer Contribution Rates
35%
30.87%
29.15%
30%
28.30%
25.80%
25%
21.31%
20%
16.93%
15%
12.36%
10%
8.65%
6.46%
6.04%
5%
4.61%
3.77%
1.94%
0%
1.09% 1.15%
4.23%
4.69%
7.13%
4.76% 4.78%
5.64%
30.14%
30.76%
30.93%
Expenditure Growth - Other
Special Education
• Medical/Prescription Insurance
• Technology Services
• Charter School Tuition
• Student Transportation Services
• Legal Fees
• Psychological Services
•
Revenues
1.5%
1.7%
18.5%
Local
State
Federal
Fund Balance
78.3%
Revenues – Local
DESCRIPTION
2012-13 BUDGET
2013-14 BUDGET
$ INC(DEC)
% INC(DEC)
CURRENT REAL ESTATE
$
50,489,372
$
52,155,883
$
1,666,511
3.3%
INTERIM REAL ESTATE
$
300,000
$
250,000
$
(50,000)
-16.7%
PUBLIC UTILITY TAX
$
70,000
$
70,000
$
-
0.0%
EARNED INCOME
$
3,400,000
$
3,400,000
$
-
0.0%
TRANSFER TAX
$
700,000
$
700,000
$
-
0.0%
DELINQUENT TAX
$
1,250,000
$
1,250,000
$
-
0.0%
EARNINGS ON INVESTMENTS
$
101,328
$
50,000
$
(51,328)
-50.7%
IDEA
$
478,614
$
565,257
$
86,643
18.1%
RENTALS/FEES
$
150,018
$
150,000
$
(18)
0.0%
MISCELLANEOUS
$
50,000
$
50,041
$
41
0.0%
FUND BALANCE APPROPRIATION
$
1,094,440
$
1,243,112
$
148,672
13.6%
$
58,083,772
$
59,884,293
$
1,800,521
3.1%
Budget Crisis…why?
Revenues
Expenditures
Chester County Assessment Changes
$900,000
2010-11 Revenue from Changes in Tax Base
2011-12 Revenue from Changes in Tax Base
$700,000
2012-13 Revenue from Changes in Tax Base
2013-14 Revenue from Change in Tax Base
$500,000
$300,000
$100,000
-$100,000
-$300,000
-$500,000
-$700,000
-$900,000
West Chester
Unionville
Tred-Easttown
Phoenixville
Oxford
Owen J. Roberts
Octorara
Kennett
Great Valley
Downingtown
Coatesville
Avon Grove
CUMULATIVE IMPACT OF ASSESSMENT APPEALS SINCE 2010
KENNETT CONSOLIDATED SCHOOL DISTRICT
Annual Tax Assessment Hearing Results 2010 - 2013
Municipality
Original Assessment
KENNETT SQUARE BOROUGH
$
12,110,550
NEW GARDEN
EAST MARLBOROUGH
KENNETT
Total
$
Lost Revenue
$
Assessment Reduction
7,655,465
4,455,085
169,415,179
51,650,645
39,293,650
28,783,471
10,510,179
255,433,690
196,779,614
58,654,076
$
402,633,729
27.746
$
$
221,065,824
527,903,714
Millage Rate
Revised Assessment
3,475,741
Net Real Estate Tax Lost - $2,350,717
$
125,269,985
Interim Taxes, Transfer Taxes, and Interest Revenue
4,500,000
4,000,000
$3,935,501
3,500,000
3,000,000
$2,935,000 Revenue Lost
2,500,000
2,000,000
1,500,000
$1,000,000
1,000,000
500,000
0
2007
2013-14 Preliminary Budget
SUMMARY
Real Estate Tax Rate History
Millage Rate
30
25
20
19.349
20.237
20.873
21.57
21.95
23.14
23.9537
24.7781
25.7293
26.7303
27.746
15
10
5
0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Budget Shortfall $2,909,655
Tax Increase
Fund
Balance
Expenditure
Reduction
Real Estate Tax Millage Analysis*
Budget
Budget
% Increase/
2012-13
2013-14
$0
26.7303
28.3901
1.66
6.21%
$1,058,826
26.7303
27.8415
1.11
4.16%
$1,094,440
26.7303
27.8230
1.09
4.09%
$1,243,112
26.7303
27.7460
1.02
3.80%
$2,000,000
26.7303
27.3538
0.62
2.33%
$2,326,344
26.7303
27.1847
0.45
1.70%
$2,500,000
26.7303
27.0947
0.36
1.36%
Increase
(Decrease)
Fund Balance Appropriations
Proposed Tax Increase
Max Increase with Exceptions
Increase at Act 1 Index
* Net Value of a Mill - $1,929,883
Bottom Line
•
Proposed Real Estate Tax Increase
•
•
•
Apply for Act 1 Exceptions
•
•
Special Education & PSERS
Appropriation of Fund Balance
•
•
3.8% Increase
27.7460 Mills
$1,243,112
Begin Process of Budget Deliberations
•
Finance Committee Meetings
• First
Monday of Every Month
Long Term Planning
• Initiatives to Reduce Recurring Expenditures
•
Prepared Statements
Please hold questions to the end of all presentations
PROPOSED STATE EDUCATION BUDGET
PROPOSED STATE EDUCATION BUDGET
COMPARISON OF KCSD PROPOSED 2013-14 BUDGET TO GOVERNOR'S PROPOSED BUDGET
ACCOUNT DESCRIPTION
KCSD
GOVERNOR'S
2013-14
PROPOSED
VARIANCE
PROPOSED
BUDGET
INC(DEC)
BASIC ED SUBSIDY
$
4,944,283
CHARTER SCHOOLS
$
SPECIAL ED SUBSIDY
$
EDUCATIONAL ASSISTANCE
$
TRANSPORTATION SUBSIDY
$
1,525,661
$
RENTAL & SINKING FUND
$
462,000
HEALTH SERVICES
$
PROPERTY TAX REDUCTION ALLOCATION
1,641,323
$
$
$
5,110,050
1,633,616
-
$
$
$
165,767
(7,707)
$
-
1,525,661
$
-
$
462,000
$
-
86,000
$
86,000
$
-
$
1,390,637
$
1,390,637
$
-
PA ACCOUNTABILITY GRANT
$
128,446
$
128,446
$
-
SOCIAL SECURITY
$
1,160,811
$
1,160,811
$
-
RETIREMENT
$
2,493,041
$
2,161,651
$
(331,390)
TOTAL REVENUE FROM STATE SOURCES
$
13,832,202
$
13,658,872
$
(173,330)
RETIREMENT EXPENSE REDUCTION
$
5,151,821
$
4,467,143
$
684,678
$
511,348
NET CHANGE TO KCSD PRELIMINARY BUDGET
-
$
Millage Reduction Equivalent
0.26
Reduced Millage Requirement under Governor's Proposal
2.8%
Passport for Learning Block Grant
•
•
$1.0 Billion to School Districts over 4 years
Kennett’s Grant $1,829,390
•
•
•
Year 1 – 2014-15 Grant Amount $365,878
4 Targeted Uses
•
School Safety
•
Ready by 3
•
Individualized Learning
•
STEM Initiatives
Contingent on the Privatization of State Liquor Stores
MIDDLE SCHOOL PROPERTY
SUBDIVISION PLAN
Outsourcing Deliberations
Tentative Time Line
•
Custodial Staff
•
Presentation
• February
•
•
18, 2013
1, 2013
Board Action
• April
6, 2013
Presentation
• March
•
Committee Discussion
• April
•
Instructional/Teaching
Assistants
Alternative Proposals
• March
•
4, 2013
•
Committee Discussion
• May
•
18, 2013
6, 2013
Board Action
• May
13, 2013
Comments and Questions
Comments@kcsd.org
CUSTODIAL OUTSOURCING
ALTERNATIVE PROPOSAL 1
REORGANIZATION
Custodial Outsourcing
Alternative Proposal 1
Reorganization
•
•
•
•
Elimination of 6 night custodial positions
•
2 employees by attrition
•
4 employees by layoffs
Reduce all remaining night custodial positions from 40
hours/week to 37.5 hours/week
Reorganization of remaining day and night custodial
staff to maximize performance and building
coverage
Total estimated savings - $356,104
CUSTODIAL OUTSOURCING
ALTERNATIVE PROPOSAL 2
SALARY AND BENEFIT REDUCTION
Custodial Outsourcing
Alternative Proposal 2
Salary and Benefit Reduction
•
Option 1
•
•
•
•
Major changes to existing healthcare plans for all custodial
and maintenance personnel (15% cost reduction)
Elimination of 2 positions through attrition
Option 2
•
•
•
•
Reduction of custodial salaries by 6.5%
Reduction of custodial and maintenance salaries by 5.0%
Major changes to existing healthcare plans for all custodial
and maintenance personnel (15% cost reduction)
Elimination of 2 positions through attrition
Total estimated savings - $330,000
INSTRUCTIONAL/TEACHING ASSISTANTS
OUTSOURCING ANALYSIS
Instructional/Teaching Assistants
Outsourcing Analysis
All staffing was based on equivalent
existing employees’ hours and work
schedule.
• All qualifications of contracted employees
would meet or exceed the qualifications as
dictated by the District and the
Pennsylvania Department of Education.
• Two agencies have submitted proposals
based on our solicitation.
• Lead time for transition to outsourcing
arrangement is 60 days after award of
contract.
•
Instructional/Teaching Assistants
Outsourcing Analysis
$2,500,000
$2,000,000
$2,163,132
$172,307
$1,675,298
$681,999
$1,716,228
$1,369,805
$1,500,000
$1,000,000
$1,308,826
$500,000
$0
Employees
SALARY
Market Rates
BENEFITS
Hold Harmless
Rates
PSERS/SS
Rate
Improvement
CONTRACTED
Instructional/Teaching Assistants
Outsourcing Analysis
$900,000
$793,327
$800,000
$700,000
$487,834
$600,000
$446,904
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Market Rates
Hold Harmless Rates
Rate Improvement
SAVINGS
Patient Protection and Affordable Healthcare Act if applicable would reduce savings by an estimated $104,000
DISTRICT WIDE SALARY REDUCTION
All Employee Salary Reduction
2013-2014 Budgeted Salaries
$537,231
$1,942,182
Total Salaries
$28,773,685
$179,702
$2,469,429
$2,987,516
$20,657,625
KEA
KCESPA
Administration
Custodial/Maintenance
Confidential
Food Service
All Employee Salary Reduction
Employee
Classification
Average Per
Pay Reduction
@ $450,000
(1.56%)
Average Per
Pay Reduction
@ $1,000,000
(3.48%)
Average Per
Pay Reduction
@ $1,500,000
(5.21%)
KEA
$39
$87
$131
KCESPA
$16
$37
$55
Administration
$78
$174
$261
Maintenance/
Custodial
$24
$53
$79
Confidential
$46
$103
$154
Food Service
$18
$40
$60