2015-16 Proposed Final Budget
Presentation (May 11, 2015)
Selinsgrove Area School District
GENERAL FUND FINANCIAL STATEMENT
(Current financial position)
2013-14
Actual
Beginning Balance
2014-15
Budget
2014-15
Projected
$ 8,082,703
$ 7,846,270
$ 8,757,776
Revenues
$ 37,944,959
$ 39,026,090
$ 39,183,741
Expenditures
$ 35,919,886
$ 39,371,589
$ 38,130,917
Surplus/(Deficit)
$ 2,025,073
$
$ 1,052,824
Transfer out to
Capital Reserve
(345,499)
$ (1,350,000)
Transfer out to
Debt Service
Ending Balance
$ 8,757,776
$ 7,500,771
$
(600,000)
$
(400,000)
$ 8,810,600
2
2014-15 BUDGET SAVINGS (Current Yr.)
Adopted budget balance
Personnel Salary Savings (2.5%)
Fringes/Benefit Savings
Medical insurance savings
Transportation savings
Facilities budget savings
All other department savings (net)
Revenues over budget
Not using budgetary reserve
Total Savings (projected surplus) 2.7%
$(345,500)
$ 269,000
$ 98,000
$ 436,000
$ 128,000
$ 76,000
$ 14,000
$ 182,000
$ 195,000
$1.05 million
3
TOTAL FUND BALANCES AT 6-30-15
Designations (“buckets”)
Balance
Restricted - Special Ed ACCESS
$
348,981
Nonspendable - Inventory of Supplies
$
32,709
Nonspendable – Prepaid Expenses
$
67,547
Committed – Retiree Healthcare
$ 2,318,334
Committed - Future PSERS Expenses
$ 3,214,716
Committed – Educational Resources
$
Unassigned Balance
$ 2,521,924
306,389
(6.3% of budget)
TOTAL GENERAL FUND RESERVES
$ 8,810,600 (23.1% of budget)
DEBT SERVICE FUND RESERVES
$ 1,871,228
CAPITAL RESERVE FUND RESERVES
$ 1,855,910
TOTAL ALL GOV’T FUNDS RESERVES
$ 12,537,738
4
FUTURE CAPITAL RESERVE PROJECTS – Importance of
maintaining a healthy Capital Reserve Fund
Project
Amount
Project start date
Intermediate school roof project
$ 251,700
Summer 2015
Middle school addition
(total cost of
$818,000 balance from food service)
$ 344,000
Summer 2015
High school bleacher replacement
$ 163,100
Summer 2015
Football field turf replacement
$ 247,300
as needed
(total cost of $313,000)
Other expenses: annual summer maintenance projects for carpeting,
paving, vehicle replacement, roof restoration. Middle school HVAC
system replacement, Intermediate school building controls upgrade
(possible performance contract), stadium track surface replacement,
renovation of science labs at MS & HS . Fund used to offset any
unforeseen major equipment replacement.
5
2015-16 BUDGET SUMMARY
FLOW OF FUNDS – GENERAL FUND
Beginning Fund Balance
Revenues
(without tax increase)
Expenditures
Deficit
$ 8,810,600
$39,807,709
$41,475,773
( $1,668,064)
Transfer in from Educational
Resources Reserve
$ 125,000
Transfer in from PSERS Reserve
$ 321,472
Adj Deficit before tax increase
( $1,221,592)
Proposed 1.58 mills (2.5%) Act
1 allowable tax increase
$392,666
Operating Deficit to be covered
from unassigned fund balance
( $828,926)
Ending Fund Balance
$ 7,535,202
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REVENUE HIGHLIGHTS






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Moderately growing local economy
1.58 mill real estate tax increase (2.5%) and a 0.6%
growth in the overall real estate base
Earned Income Tax collections budgeted with a 3%
increase from proj 14-15 collections
Basic education subsidy level funding (state funding is
uncertain at this point) (Gov. proposal 6.6% increase)
Special education subsidy level funding
Accountability Block Grant level funding
Increase in Keystone Literacy Grant Year 4 funding of
$93,000 (four year total grant funds of $2.98 million)
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2015-16 REVENUE BY SOURCE
FEDERAL
4%
STATE
35%
$1.6 M
LOCAL
61%
$14.2 M
$24.4 M
State averages: Local 54%, State 41%, Federal 3%, Other 2%
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HISTORICAL REVENUES BY SOURCE
local
$25
$20
millions
state
$15
$10
$5
federal
$-
11-12
12-13
13-14
14-15
15-16
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EXPENDITURE HIGHLIGHTS






Six teacher retirements at end of 14/15 school year
(replacing all positions)
2.5 new teaching positions in budget – 5th grade, MS
math, part-time HS gifted
Salary increases per personnel contracts – teachers
4.5% salary plus 1.65% steps, administrators 3.5%,
classified 4.5%
PSERS rate increase from 21.40% to 25.84%
Medical insurance premium increase of 3.8%
Building and technology budgets level funded (5th
year at reduced funding)
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EXPENDITURE HIGHLIGHTS





Transfer out to debt service fund reduced by
$400,000 (debt service reserves to be used)
Capital reserve transfer of $96,000 reflects JacksonPenn rental income
New Middle school math textbook series ($125,000)
New part-time PIMS coordinator (shared service)
Total budget of $41.48 million – overall increase of
$2.1 million or 5.3% from 14/15 original budget
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MAJOR EXPENDITURE INCREASES
EXPENSE
INCREASE FROM
14-15 Budget
EMPLOYER SHR OF
RETIREMENT EXP
$ 1,022,992
25.7%
EMPLOYEE SALARY/WAGES
$ 749,580
4.1%
OTHER EMPLOYEE BENEFITS
$ 145,000
2.3%
SUN TECH CONTRIBUTIONS
$ 110,172
12.1%
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2015-16 EXPENDITURE ANALYSIS
Supplies, textbooks, equipment ,repairs, travel
Discretionary
3%
Contractual/Fixed
97%
Personnel costs, student tuition, transportation, utilities, debt service
13
HISTORICAL USE OF FUNDS
$20,000,000
Wages/Salaries
$15,000,000
Fringes/Benefits
Professional Svcs
$10,000,000
Property Svcs
Purchased Svcs
Supplies
$5,000,000
Equipment
Debt Service
Transfers Out
$-
11-12
12-13
13-14
14-15
15-16
Personnel costs make up 75% of total budget
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FUTURE BUDGET CONCERNS

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Modest economic recovery producing inadequate
local and state revenue growth
Act 1 index will remain low
Uncertainty at the state level (supportive Governor
but reluctant legislature)
New basic education funding formula
Shift away from property tax towards less predictable
income and sales taxes
Teacher contract ends next year 6/30/16
Unfunded Pension system - PSERS rate
increases to reach 32% of payroll
15
PROJECTED PSERS RATE
Employer % Rate
35
30
29.69
25
21.40
20
25.84
16.93
15
12.36
10
8.65
5
0
30.62
31.56 32.23
4.78
5.64
09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
PSERS Rate
Fiscal Year
16
NET PSERS COST TO DISTRICT
10 Year Analysis
17
FUTURE BUDGET PROJECTIONS
18
GENERAL FUND PROJECTED ENDING
FUND BALANCE
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PROPOSED FINAL BUDGET SUMMARY
“THE BOTTOM LINE”
REVENUES
(with 1.58 mill real est incr)
EXPENSES
USE OF FUND BALANCE
($125,000
FROM EDUCATIONAL RESOURCES, $321,472
FROM PSERS, & $828,926 UNASSIGNED)
MILLAGE INCREASE
% INCREASE
TOTAL MILLS
1 mill = $248,500 in revenue
INCREASE TO AVG HOMEOWNER
Homestead/Farmstead credit $133
$40,200,375
($41,475,773)
$ 1,275,398
1.58
2.5%
64.99
$43
($3.59 per month)
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PRESENTATION SUMMARY
(POINTS TO REMEMBER)

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Financial reserves (fund balance) – very
strong position in the short term
State funding is uncertain (new funding
formula, tax shift away from real estate)
Significant budget challenges remain for the
future – PSERS, Healthcare, teacher contract
Importance of long-term budgeting
decisions and forecasting
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