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NESHAMINY SCHOOL DISTRICTFINAL 2018-19 BUDGET

Neshaminy Board of

School Directors

June 19, 2018

BUDGET CALENDAR 2018-19January 2018

Proposed Preliminary Budget “First Look”, January 16 [Business Operations Committee]

Proposed Preliminary Budget Adoption, January 23

February 2018

Preliminary Budget Adoption, February 13

April 2018 Budget progress review, April 3 [Business Operations Committee]

May2018 Proposed Final Budget Review, May 9 [Business Operations Committee]

Proposed Final Budget Adoption, May 22

June 2018

Additional Budget Review Opportunity, June 11 [Business Operations Committee]

Final Budget Adoption, June 19

BUDGET ASSUMPTIONS - HIGHLIGHTS

• PSERS rate 33.43% [0.86 rate increase]

• Act 1 Index allows for a maximum real estate tax increase of 2.4% or approximately $2,880,805 [not included in the Preliminary Budget]

• Originally State Basic and Special Ed subsidies were assumed to remain flat [In actuality, these increased a total of $82,859 based on the State’s budget.]

SIGNIFICANT COST CATEGORIES

• Salaries

• Pension

• Health Care

• Charter Schools

• Special Education

• Transportation

• Debt Service

PENSION (PSERS) IS A COST DRIVER

0.00

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

25,000,000.00

30,000,000.00

Pension Health Care(med/script)

Charter Schools Special Education Transportation Debt Service

Cost Drivers

Actual 2013-2014 Actual 2014-2015 Actual 2015-2016 Actual 2016-2017 Adjusted Budget 2017-2018 Budget 2018-2019

PENSION – HISTORY AND FUTURE

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Pension

PSERS IMPACT

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Total Salaries (PSERS eligible) 71,729,455$ 73,291,212$ 73,966,443$ 74,553,693$ 78,140,448$ 79,751,509$

Percent Contribution 16.93% 21.40% 25.84% 30.03% 32.57% 33.43%

Retirement Expense 12,143,797 15,684,319 19,112,929 22,388,474 25,450,344 26,660,929

$ increase 3,540,522$ 3,428,610$ 3,275,545$ 3,061,870$ 1,210,586$

Notes:

1. 2017-18 and 2018-19 are budgeted salaries

3. PSERS eligible salaries are approximately 99% of the total salaries

4. Percent contribution based on rates released by PSERS on December 9, 2017 - subject to change

PSERS (actual) PSERS (Budget)

CLOSING THE GAP: PROPOSED PRELIMINARY FINAL

Original Gap (approved preliminary budget) (8,132,015.00)$

Various Phases of Cuts/Adjustments 2,981,677.00$

New Gap (5,150,338.00)$

Act 1 Tax Increase 2.4% (3.7 mills) 2,880,805.00$

New Gap (Final Budget) (2,269,533.00)$

PSERS (use of $2M from committed fund balance) 2,000,000.00$

Budget Gap as of 6.19.18 (269,533.00)$

(use assigned fund balance - high school)

CHANGES TO PROGRAMMING THAT SAVE DOLLARS

Transportation

Additional van purchases allow for NSD to bring back some BCIU contracted runs at a reduced cost

Bringing Special Education Services and Programs back into the District

Elementary: Autistic Support Level 2

Middle School: Autistic Support Level 2

Retirement savings

Adjustment in salaries due to the “breakage” from retired senior staff to new teacher salaries

NEW ACADEMIC INITIATIVES, CONTINUED PROGRAMMING TO HIGHLIGHT

1. Expansion of the AVID (Advancement Via Individual Determination) program

2. Expansion of the Bucks County College Senior Year Experience

3. Increased classroom technology --- Grades K-12 Increased number of iPads (grades K and 1)

Increased number of devices for high school students – Chromebooks in 9th grade

4. Continued Preschool Opportunities (possible increase in number of classes)

5. Updating Language Arts Literacy program (Superkids) –Grade 2

6. Reconfiguration of the delivery of instruction and increased teaching sections for English Language Development program.

LRFP – 2018-19 PROJECTS

Long Range Facilities Plan

Priority PROJECT SCHOOL ESTIMATE

1 Elevator NHS 343,900.00$

2 Pool Drain Repairs Poquessing 50,000.00$

3 Wall Repairs Poquessing 100,000.00$

4 Stadium Bleacher Repairs NHS 200,000.00$

5 Neshaminy HS Roof - Areas H1, K6, K7, K8 NHS 661,000.00$

6 Albert Schweitzer - Hallway Roof Restoration Schweitzer 145,405.00$

7 Sandburg (rooftop) Sandburg 275,000.00$

8 NHS Parking Lot NHS 40,000.00$

9 Poquessing Parking Lot Poquessing 60,000.00$

10 Security Replacement/Upgrades All 500,000.00$

2,375,305.00$

CHANGE IN REVENUE

Local Tax Increase

Act I Increase Included: $2,880,805

Allowable Exceptions Not Taken: $753,576

[Impact on Average Residential Assessment of $27,587: $102/year]

Basic Education Funding (State Subsidy)

2017-18: $13,371,061

2018-19: $13,522,236

INCREASE of $151,175

Special Education Funding (State Subsidy)

2017-18: $6,297,252

2018-19: $6,228,936

DECREASE of $68,316

Local Sources, 74.3%

State , 23.5%

Federal, 0.7% 1.1%0.1%

Local Sources

State

Federal

Committed FundBalance

Assigned Fund Balance

Neshaminy School District2018-2019

Revenue/Funding Sources

Neshaminy School District 2018-2019

Expenditure Budget

Salaries, 44.3%

Benefits, 26.8%

8.0%

2.5%7.0%

3.7%

0.8% 3.5% 3.4%

Salaries

Benefits

Purchased Prof. Services

Purchased Property Services

Other Purchased Services

Supplies

Property

Other Objects

Other Fund Uses

Neshaminy School District2018-19

Expenditure Budget by Function

Instructional Programs,

63.6%

Support Services, 27.9%

1.1%0.6%

6.8% Instructional Programs

Support Services

Non-Instructional Services

Facilities Improvement Services

Other Financing Services

HISTORICAL LOOK AND USE OF FUND BALANCE

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

TOTAL BUDGET 166,425,592$ 172,033,915$ 175,651,483$ 178,999,077$ 181,608,249$ 181,536,275$

3.37% 2.10% 1.91% 1.46% -0.04%

REVENUE

Local, State, Federal

Revenue 160,490,863$ 164,056,954$ 167,229,034$ 170,159,832$ 175,917,388$ 178,515,922$

Rollover Purchase Orders 54,449$ 216,048$ 398,831$ 34,080$ 239,429$ 750,820$ Anticipated Unassigned

Fund Balance

Appropriation 5,880,280$ 7,760,913$ 8,023,618$ 5,805,165$ 3,451,432$

Use of Assigned Fund

Balance - High School 269,533$

Use of Committed Fund

Balance -- PSERS 2,000,000$ 2,000,000$ 2,000,000$

Use of Committed Fund

Balance -- Technology 1,000,000$

TOTAL REVENUE 166,425,592$ 172,033,915$ 175,651,483$ 178,999,077$ 181,608,249$ 181,536,275$

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THANK YOU