The Finance Committee is recommending the
following:

The Board authorize the intent to adopt the
Proposed Preliminary Budget for 2016-17
and the intent to apply for Act 1 Exceptions
to the Pennsylvania Department of Education
(PDE) and authorize administration to
advertise the intent. (Formal adoption to
occur at the January 26, 2016 Board Meeting)
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



Flexibility
Early Action
Uncertainty of 2015-16 State Budget
Uncertainty of 2016-17 State Budget
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
The initial run of the 2016-17 general fund draft
budget indicates the following:
◦ Administrative discussions during budget justification
sessions resulted in the following draft budget:
“Draft” Revenues
“Draft” Expenditures
“Draft” Deficit

$91,557,372
$98,390,262
$ 6,832,890
The draft budget includes a tax increase of .5309
mills, for a total millage rate of 22.6556 mills;
the maximum allowed by the Act 1 index of 2.4%.
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Other Taxes
$3,157,473
3.4%
Other Local Revenues
$3,031,124
Real Estate
Taxes
$70,971,410
77.5%
3.4%
State Revenues
$12,845,668
14.0%
Federal Revenues
$645,873
0.8%
Other
$905,824
0.9%
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2016-17 Act 1 Index set by PDE at 2.4%.
• Translates to additional millage of .5309 mills or $1,620,040 in real
estate tax revenue available to balance the 2016-17 budget.
• Local revenue was based on past history and four months of current
history. (98% Real Estate Tax collection rate and increase valuation)
• State subsides budgeted at the 2014-15 level.
• Continuation of state’s reimbursement of 50% of the costs of employer
share of social security and retirement.
• Federal revenues were budgeted at the 2015-16 level.
• Other revenues includes using $903,324 of the PSERS Rate Stabilization
Committed Fund Balance.
State revenues will be revisited once the Governor's 2016-17 budget
becomes fully known on February 9, 2016.
Overall revenues are increasing by $2,138,000 over the total
budgeted for 2015-16.
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Benefits
$27,090,551
27.5%
Contracted Professional
Services
$3,934,315
4.0%
Purchased Property
Services
$2,249,998
2.3%
Other Purchased Services
$7,076,813
7.2%
Supplies/Books/Utilities
$2,148,008
2.2%
Equipment/Furniture
$224,635
0.2%
Dues/Fees/Debt
Interest/Reserve
$4,652,091
Salaries
$43,459,588
44.2%
Fund Transfers
$3,514,854
3.6%
4.7%
Principal on Debt/Other
$4,039,409
4.1%


Salaries are projected to increase $1,012,681. Budgeted
salaries include recently approved Collective Bargaining
Agreements.
Benefit costs are projected to increase by $3,168,413
◦ Health Benefits - $1,063,427
◦ Retirement - $1,997,000




Pupil Personnel budget (excluding salary and benefits)
has an increase of $481,436.
Support Services budget (excluding salary and benefits)
has a decrease of $187,852.
Debt Service budget has an increase of $1,376,150.
Transfers Out budget has a decrease of $4,298,445.
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◦ PSERS contribution is increasing by $1,997,000, net effect
$998,500 after state reimbursement.
◦ District’s share for 2016-17 was budgeted at 29.69%, up
from the 2015-16 rate of 25.84%.
◦ PSERS contributions are projected to grow in future years as
follows:
YEAR
EMPLOYER
PERCENTAGE
PERCENT CHANGE
2015-2016
25.84%
20.75%
2016-2017
29.69%
14.90%
2017-2018
30.62%
3.13%
2018-2019
31.56%
3.07%
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
Curriculum Initiative Fund and Technology Funds - Transfers to these
funds are budgeted at $2,741,122
◦ Curriculum - $910,800
◦ Technology - $1,830,322


Capital Reserve (Ongoing maintenance) – Transfer to the Capital Projects
fund was budgeted at $773,732.
Budgetary Reserve-Contingency for Personnel includes positions from
2015-16 that were not filled, or are reoccurring as well as new staffing
requests for 2016-17. Additional time is needed to review these
requests in more detail.
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Health Care Benefits
Utilities
Fuel
Capital Improvement Costs
Anticipated Retirements
Revised Estimates
Additional Revenue
Act 1 Exceptions
Use of Fund Balance
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


Special Education Expenditures - $708,281
Equates to .2257 Mills or 1.02%
Retirement Contributions - $1,391,227
Equates to .4370 Mills of 1.975%
Combined $2,099,508
Equates to .6627 Mills or 2.995% above the
Act 1 Index of 2.4% (5.395% Total)
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Unaudited
Category
2014-15
Fund Balance
Committed for Capital Projects
$ 5,021,679
Committed for Facility Initiatives
$ 4,488,139
Committed for Curriculum Initiatives $
90,201
Committed for Technology Initiatives $
-0Committed for Retirement Escrow
$ 3,501,864
Committed for ERIP & Comp Absences $ 557,803
Unassigned
$ 7,700,947
Total
$21,360,633
Used in
2015-16 or
Not Available
($ 978,068)
($ 4,473,498)
($ 1,171,005)
($ 557,803)
($ 219,899)
($ 7,400,273)
Available Use of
Fund Balance
2016-17
$ 4,043,611
$
14,641
$
90,201
$
-0$ 2,330,859
$
-0$ 7,481,048
$13,960,360
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THANK YOU!
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