2015-2016
Preliminary
Budget
February 2, 2015
Mission Statement
The Mission of the Kennett Consolidated School District is to provide a quality
education that increases the achievement of every student in order for all to
become successful and thoughtful contributors to society.
Expenditures
Expenditures
$8,181,196
Salaries
$2,652,293
Benefits
$29,725,454
$13,083,711
Prof. Svcs.
Property Svcs.
Contracted Svcs.
$1,703,047
Supplies/Equipment
$6,418,233
Debt Service
$17,298,133
Total Expenses - $79,062,067
Expenditures
10%
Salaries
3%
Benefits
38%
17%
Prof. Svcs.
Property Svcs.
Contracted Svcs.
2%
Supplies/Equipment
8%
Debt Service
22%
Total Expenses - $79,062,067
Budget Development Foundation
– Salaries
▪
▪
▪
▪
Collective Bargaining Agreement
Act 93 Agreement
All Other Employees – Act 1 Index to 3% Maximum
New Teaching Positions
– High School S.T.E.M.
– Special Education - 2 Positions
– Middle School Social Studies
▪
▪
▪
▪
Biology Remediation Program
Ready to Learn Summer Tutoring Program
No Retirements
No Furloughs/Outsourcing
Budget Development Foundation
– Benefits
▪ Medical/Prescription/Dental Insurance
– First Look Projections
▪ Pennsylvania School Employees Retirement Contribution Rate
– Certified by PSERS
▪ Vision, Life, and Disability Insurance
– Trend Analysis
▪ Worker’s Compensation
– SDIC Estimate
Budget Development Foundation
– Allocations
▪ Instructional Buildings
– 1.9% Increase
▪ Department Allocations
– No Increase
▪ Special Education
– CCIU Projection
▪ Student Transportation
– Krapf Bus Company Agreement
▪ Annual Consumer Price Index or Minimum 2%
▪ Occupational Education
– CCIU Tuition Formula
▪ Paraprofessionals
– CCRES Agreement
▪ Act 1 Index
▪ Charter School Tuition
– Current Enrollment x (Tuition Rates x Act 1 Index)
▪ Debt Service
– No Increase
Expenditures
2014-2015
BUDGET
DESCRIPTION
Salaries
$
Employee Benefits
Purchased Prof. Svcs.
Purchased Property Svcs.
Other Contracted Svcs.
Supplies
Equipment
Other Objects
Other Financing Uses
TOTAL ALL OBJECTS
$
28,886,644
2015-2016
PRELIMINARY
BUDGET
$
29,725,454
$ INC (DEC)
$
% INC(DEC)
838,810
15,832,667
17,298,133
1,465,466
5,893,175
6,418,233
525,058
1,870,288
1,703,047
(167,241)
12,585,090
13,083,711
498,621
2,246,872
2,202,820
(44,052)
438,190
449,473
11,283
2,448,364
2,296,196
(152,168)
5,695,500
5,885,000
189,500
75,896,790
$
79,062,067
$
3,165,277
2.90%
9.26%
8.91%
-8.94%
3.96%
-1.96%
2.57%
-6.22%
3.33%
4.17%
Expenditure Drivers
▪ Salaries
– Existing Salaries
▪ Impact - $676,200
– 2.3% Increase
– Three New Teaching Positions
▪ Impact - $162,610
– 0.6% Increase
– Includes $10,000 for a Biology Remediation Program
▪ Benefits
– Pennsylvania School Employees Retirement System
▪ Impact - $1,351,861 (Net Impact After State Subsidy- $619,375)
– Prescription Insurance
▪ Impact - $167,758
Benefits
Life Insurance
2015-2016
PRELIMINARY BUDGET
2014-2015
BUDGET
DESCRIPTION
$
25,753
$
26,479
$ INC (DEC)
$
% INC(DEC)
726
2.82%
Income Protection
54,651
55,725
1,074
1.97%
Vision
74,838
88,817
13,979
18.68%
Social Security
2,221,182
2,253,623
32,441
1.46%
Retirement
6,213,503
7,565,364
1,351,861
21.76%
320,000
245,000
(75,000)
-23.44%
Unemployment Comp.
45,781
40,000
(5,781)
-12.63%
Workers Compensation
162,810
166,648
3,838
2.36%
4,726,502
4,709,316
(17,186)
-0.36%
483,669
475,425
(8,244)
-1.70%
1,423,978
1,591,736
167,758
11.78%
80,000
80,000
Tuition
Medical
Dental
Prescription
Other Benefits
TOTAL ALL BENEFITS
$
15,832,667
$
17,298,133
$
1,465,466
0.00%
9.26%
PSERS History/Projections
Employer Contribution Rates
35%
32.22%
30%
29.27%
25.84%
25%
21.4%
20%
16.93%
15%
12.36%
10%
5%
1.09%
0%
Act 110 of 2010
PSERS Rate “Collars”
▪ The rate caps limit the amount the pension
component of the employer contribution rate
can increase over the prior year’s rate as follows:
– FY 2011-12 – not more than 3.0%
– FY 2012-13 – not more than 3.5%
– FY 2013-14 – not more than 4.5%
– Thereafter – not more than 4.5%
The estimate for 2015-2016 prior to the rate caps being
established was 33.49% which would have translated to an
additional net budgetary increase of $1.1 million.
Expenditure Drivers
▪ Purchased Professional Services
– Home and Community Services
▪ Impact – $322,035
▪ Personal Care Assistants
– CCIU Market Place Services/Other
▪ Impact - $141,456
▪ Special Education Services
– Security and Safety Services
▪ Impact - $61,000
▪ Middle School Security Guard
Expenditure Drivers
▪ Purchased Property Services
– Electricity Savings
▪ Impact - ($167,700)
▪ Other Contracted Services
– Occupational Education Tuition
▪ Impact - $180,666
– CCRES Paraprofessionals
▪ Impact - $208,445
– Affordable Care Act - $100,000
- Core Services - $20,456
– Extended School Year - $36,000
- Substitutes - $16,620
– High School Study Hall Monitor - $35,050
– Charter School Tuition
▪ Impact - $114,000
Charter School Tuition
▪ Fast Facts
– Regular Education Tuition Rate - $10,345
– Special Education Tuition Rate - $24,175
– Traditional and Cyber Charter Schools
AGCS Enrollment
26%
▪ Tuition Rates are Identical
– Current Enrollment
74%
▪ Regular Education – 157
▪ Special Education – 49
– Avon Grove Charter School
Regular Ed.
– Total 2015-16 Budgeted Expense - $2,750,000
Special Ed.
Revenues
Revenues
$1,026,990
$714,330
$11,683,186
Local
$3,839,237
State - PSERS
State - Other
Federal
Fund Balance
$61,798,324
Total Revenues - $79,062,067
Revenues
1%
1%
15%
Local
5%
State - PSERS
State - Other
Federal
Fund Balance
78%
Total Revenues - $79,062,067
Revenues – State
DESCRIPTION
2014-2015
2015-16
BUDGET
PRELIMINARY
$ INC (DEC)
% INC (DEC)
$5,135,000
$5,135,000
$0
0.00%
SPECIAL ED SUBSIDY
1,641,323
1,641,323
-
0.00%
TRANSPORTATION SUBSIDY
1,440,000
1,440,000
-
0.00%
362,000
560,408
198,408
54.81%
86,000
86,000
-
0.00%
1,379,058
1,379,058
-
0.00%
128,446
-
(128,446)
-100.00%
-
304,781
304,781
1,110,591
1,136,616
26,025
2.34%
3,106,752
$14,389,170
3,839,237
$15,522,423
732,485
$1,133,253
23.58%
7.88%
BASIC ED SUBSIDY
RENTAL & SINKING FUND
HEALTH SERVICES
PROPERTY TAX REDUCTION ALLOCATION
PA ACCOUNTABILITY GRANT
READY TO LEARN BLOCK GRANT
SOCIAL SECURITY
RETIREMENT
TOTAL REVENUE FROM STATE SOURCES
State Subsidy Increases
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
5-Year
Increase in
State
Subsidy
$3,003,993
8,000,000
6,000,000
4,000,000
2,000,000
-
2011-12
2012-13
2013-14
2014-15
2015-16 Budget
Basic Education
Other State Subsidies
Special Education Subsidy
Transportation Subsidy
Authority Rental Reimbursement
Medical & Dental Subsidy
Property Tax Reduction
Accountability Grant\Ready to Learn
FICA Reimbursement
Retirement Reimbursement
State Subsidy Increases
18,000,000
16,000,000
5-Year
Increase in
PSERS
Subsidy
$2,571,567
14,000,000
12,000,000
10,000,000
8,000,000
5-Year
Increase in
All Other
State
Subsidies
$432,336
6,000,000
4,000,000
2,000,000
-
2011-12
2012-13
2013-14
2014-15
2015-16 Budget
Basic Education
Other State Subsidies
Special Education Subsidy
Transportation Subsidy
Authority Rental Reimbursement
Medical & Dental Subsidy
Property Tax Reduction
Accountability Grant\Ready to Learn
FICA Reimbursement
Retirement Reimbursement
State Revenue Drivers
▪ Rental and Sinking Fund
– State’s Share of Debt Service Obligation
▪ Impact - $148,000
– PDE’s Moratorium on Plan Con Projects Removed
– Bancroft Elementary School Debt Service Issues are Eligible for Reimbursement
– CCIU’s Debt Service for TCHS
▪ Impact - $48,000
▪ Pass-Through Funding
▪ Ready To Learn Grant
– Combined with Accountability Block Grant
▪ Impact - $176,335
▪ Pennsylvania School Employees Retirement System
– State’s Obligation to Reimburse 50% of the Certified Contribution Rate
▪ Impact - $732,485 (Net Impact After Mandatory Contribution is an Expense of $619,375)
Revenues – Local
DESCRIPTION
2014-2015
BUDGET
2015-16
PRELIMINARY
$ INC (DEC)
% INC (DEC)
$52,677,984
$54,210,008
$1,532,024
2.91%
400,000
400,000
-
0.00%
73,000
73,000
-
0.00%
3,650,000
3,900,000
250,000
6.85%
700,000
700,000
-
0.00%
1,450,000
1,700,000
250,000
17.24%
50,000
50,000
-
0.00%
IDEA
565,257
565,257
-
0.00%
RENTALS/FEES/MISCELLANEOUS
150,000
150,000
-
0.00%
FACILITY USAGE/CONTRIBUTIONS
50,059
50,059
-
0.00%
714,330
$60,480,630
714,330
$62,512,654
$2,032,024
0.00%
3.36%
CURRENT REAL ESTATE
INTERIM REAL ESTATE
PUBLIC UTILITY TAX
EARNED INCOME
TRANSFER TAX
DELINQUENT TAX
EARNINGS ON INVESTMENTS
FUND BALANCE APPROPRIATION
TOTAL REVENUE FROM LOCAL SOURCES
Local Revenue Drivers
▪ Real Estate Tax
– Imposition of Increased Millage Rate
▪ Impact - $1,398,343
– Growth of Assessment Base
▪ Impact - $133,681
▪ Delinquent Real Estate Tax
– Liens Filed with Chester County Tax Claim Bureau
▪ Impact - $250,000
▪ Earned Income Tax
– Collections Through Keystone Collection Group
▪ Impact - $250,000
Interim Real Estate Taxes
1,000,000
900,000
$893,284
800,000
$691,571
700,000
600,000
500,000
$417,250
$405,286
$400,000 $400,000
400,000
300,000
$245,391
$198,738
200,000
$176,233
100,000
0
2008
2009
2010
2011
2012
2013
2014
2014-15 2015-2016
Budget
Transfer Taxes
1,200,000
1,000,000
$997,550
$788,695
800,000
$701,374
$683,944
$710,079
$653,733
$700,000
$700,000
2014-15
Budget
2015-16
Budget
$623,290
600,000
400,000
200,000
0
2008
2009
2010
2011
2012
2013
2014
Earned Income Taxes
4,500,000
$4,077,297
$3,860,952
4,000,000
$3,900,000
$3,650,000
3,500,000
$3,446,846
$3,492,318
$3,393,938
$3,451,401
$3,144,285
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2008
2009
2010
2011
2012
2013
2014
2014-15
Budget
2015-16
Budget
Delinquent Taxes
2,500,000
$2,053,482
2,000,000
$1,786,340
$1,700,000
$1,498,661
$1,453,960
1,500,000
$1,450,000
$1,346,243
$1,083,191
$1,031,744
1,000,000
500,000
0
2008
2009
2010
2011
2012
2013
2014
2014-15
Budget
2015-16
Budget
Earnings from Investments
1,200,000
$1,133,042
1,000,000
800,000
$579,652
600,000
400,000
200,000
$154,298
$101,328
$47,642
$42,296
$54,727
$50,000
$50,000
2012
2013
2014
2014-15
Budget
2015-16
Budget
0
2008
2009
2010
2011
Summary
Preliminary Budget
▪ Proposed Real Estate Tax Increase
– 2.67% Increase
– 28.6871 Mills
▪ Apply for Act 1 Exceptions
– PSERS Contributions
▪ Appropriation of Fund Balance
– $714,320
▪ Begin Process of Budget Deliberations
– Finance Committee Meetings
▪ First Monday of Every Month
▪ Next Meeting – March 2, 2015
▪ Open to the Public
▪ Governor Wolf’s Budget
– Proposed Budget Release in March
Historical Millage Rates
35
30
24.7781
25
23.1400
23.9537
2008-09
2009-10
25.7293
26.7303
27.4520
27.9406
28.6871
2013-14
2014-15
2015-16
Budget
21.9500
20
15
10
5
0
2007-08
2010-11
2011-12
2012-13
Historical Millage Percentage Increase
6.00%
5.4%
5.00%
4.00%
3.8%
3.5%
3.9%
3.4%
3.00%
2.00%
2.7%
1.8%
2.6%
1.7%
1.00%
0.00%
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
Budget
Average Real Estate Tax
7,000
6,000
4,956
5,000
4,628
5,146
5,346
5,490
5,588
5,737
2013-14
2014-15
2015-16
Budget
4,791
4,390
4,000
3,000
2,000
1,000
0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Average Real Estate Tax Increase
250
238
200
200
190
163
165
144
150
149
98
100
76
50
0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
Budget
Real Estate Tax Rate History
Act 1 Index
Millage Increase
Budget Increase
8.0%
6.86%
7.0%
6.0%
5.0%
4.17%
4.1%
4.0%
3.89%
3.80%
3.50%
3.40%
2.9%
3.0%
2.70%
2.33%
2.0%
1.7%
1.85%
1.4%
2.38%
1.7%
2.71%
2.1%
1.78%
2.67%
1.9%
1.0%
0.0%
-1.0%
-0.91%
-2.0%
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16 Budget
Questions?