North Penn School District
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2016-2017 Preliminary
Budget
January 12, 2016
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2 Minute Budget
Absolute Beginners
Follow the Money
6/30
30.03%
$6.4 M
2.4%
$8.3 M
1:1
Montgomery
Budget?
What Budget?
2/9
5/10
6/16
Budget Summary
• $250.1 M budget
• $15.0 M increase in expenses over 15-16
• 6.4% increase in expenses over 15-16
• Budget deficit of $8.3 M after Act 1 base
increase • 7.45% to balance budget
Budget Comparison
Fiscal Year
Budget
Revenues
Expenses
Surplus
(Deficit)
2016-2017
$241,799,423
$250,123,639
-$8,324,216
2015-2016
$232,556,883
$235,164,428
-$2,607,545
$ Change
$9,242,540
$14,959,211
-$5,716,671
% Change
4.0%
6.7%
219%
Expenditure Increase Factors
PSERS
$6,400,801
Salaries
$4,315,040
Digital age teaching/learning initiative
$1,150,225
New debt for Montgomery project
$319,694
North Montco debt
$129,080
Band uniforms & instruments
$170,000
Existing charter schools
$304,500
Total increase in major items
$12,789,340
Act 1 index revenue @ 2.4%
$3,942,557
District Allocation by Function
1%
6%
28%
65%
Instruction
Support Services
Non-Instructional Support
Other Expenditures and Financing
Allocation by Object
2%
0%
3%
5%
5%
2%
4%
50%
29%
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%
2.4%
2.1%
1.7%
1.7%
1.9%
1.4%
1.25%
0%
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
Act 1 Exceptions
• Retirement = $1,882,888
• Special ed = $2,050,100
• 4.79% total tax increase with exceptions
• $4.4 M deficit remaining
Retirement Rate
Year
Employer Rate
Gross $
% Rate Inc.
2010-11
5.64%
$6,117,388
Base
2011-12
8.65%
$9,142,160
53%
2012-13
12.36%
$12,608,373
43%
2013-14
16.93%
$18,817,162
37%
2014-15
21.40%
$24,470,530
26%
2015-16
25.84%
$30,610,915
20%
2016-17
30.03%
$37,011,716
16%
58,518,276
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 20-21 21-22
Employer Rate
Retirement as a % of Budget
16%
13%
10%
6%
3%
0%
10-11
11-12
12-13
13-14
14-15
Retirement % of Budget
15-16
16-17
Operating Budget Changes
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
11-12
12-13
13-14
14-15
15-16
16-17
Fund Balance Breakdown 6/30/15
Description
Amount
Nonspendable (inventory & prepaid items)
$278,976
Committed to PSERS
$14,406,187
Assigned for self-funded insurance
$2,700,000
Unassigned (7.7%)
$19,251,511
Total Fund Balances
$36,636,674
$20,000,000
Unassigned Fund Balance
History
$16,000,000
$12,000,000
$8,000,000
$4,000,000
$0
08-09
09-10
10-11
11-12
12-13
13-14
Ending Fund Balance
14-15
15-16
16-17
Revenue Allocation
1%
20%
Local
79%
State
Federal
Local Revenue Allocation
1%
1%
8%
1%
Real estate/interims
EIT
Transfer tax
Delinquent tax
Other
89%
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
13-14
Assessed value
14-15
15-16
16-17
Earned Income Tax
$17,000,000
$16,440,290
$15,327,539
$15,250,000
$15,200,000
$15,000,000
$14,489,809
$13,500,000
$13,029,723 $12,987,036
$12,912,015
$12,788,785 $12,873,137
$11,750,000
$10,000,000
2008
2010
2012
2014
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
9%
4%
20%
14%
37%
10%
6%
Basic Ed
Special Ed
Transportation
Property Tax Reduction
Retirement
Social Security
Other
Basic Ed Subsidy
$10,000,000
$9,700,000
$9,294,750
$8,949,801 $8,941,887
$8,750,000
$8,720,101 $8,720,101
$8,712,614
$8,465,658
$7,845,300
$7,467,160
$7,500,000
$6,250,000
$5,000,000
2008
2009
2010
2011
2012
2013
2014
2015
2016
The chart shows the total state subsidy for basic
education. Measure of state support.
2017
Basic Ed Subsidy %
6%
5.20%
5%
5.00%
4.90%
4.70%
4.60%
4.40%
4.20%
4.10%
4%
4.10%
4.00% 4.00% 4.00%
3.70%
3%
2%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
The chart shows the percentage of basic education funding as it
relates to the total revenues. Measure of relative state share of funding.
Tax Scenario
Tax
Increase
County
Average
Homestead
Assessment
Average
Homestead
Change
2.4%
Montgomery
$147,965
$84
0.50%
Bucks
$22,000
$14
Next Steps
• Budget meetings with admin team
• Line item review of all revenues and expenses
• PSERS rate stabilization fund utilization analysis
• Refine and update data based on new information
• State and Federal allocations
• Labor agreements
Budget Timeline
1/21
Preliminary budget adoption
Board action meeting
5/10
Proposed final budget
adoption
Board work session
6/16
Final budget adoption
Board action meeting