Mt. Lebanon School DistrictPreparation of Base Budget for 2018-2019

In e t t o Ch re

▶ Sustain the quality “Mt. Lebanon” educational experience in:◦ Academics◦ Arts◦ Athletics◦ Activities

▶ Guiding Philosophy: Continuous Improvement

Mission Statement: To provide the best education possible for each and every student.

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Revenues

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Real Estate Tax 65%Other Taxes 10%State Subsidies 23%Local Sources 1%Federal Grants 1%

Where the money comes from…..

Expenditures

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Where the money goes….

Salaries 48%Fringes 30%Debt 11%Consumables 2%Services 9%Other <1%

Student-Centered Budgeting

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An approach that keeps student learning at the core of the resource allocation and decision-making process.

▶ Limitation on millage rate due to Act 1 of 2006 ◦ Index= 2.4% increase plus allowable exceptions◦ Index= .57 mills + Allowable Exceptions .01

= .58 maximum capacity

▶ PSERS Rate increase from 32.57% to 33.43% ◦ (2.6% increase)

▶ State Budget for 2018-2019 still uncertain◦ preliminary governor’s budget shows an increase $95,000

▶ Teachers Union labor negotiations in process

General Budget Issues for 2018-2019

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2017-2018 2018-2019 Up/Down

Elementary 2381 2362 -19

Middle Schools 1366 1364 -2

High School 1753 1770 18

Total 5500 5496 -4

Early Enrollment Projections 2018-2019*

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*No significant change anticipated

▶ District-wide teacher staffing needs ◦ PDE guidelines for ratios (nurses, special

education, etc.)

▶ Legislatively approved State funding levels◦ By June 30

▶ Federal funding allocations

Information Not Yet Finalized

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Staffing Changes

Since 2009 we have reduced –

Administrators:● Re-organization resulted in a net

reduction of 7 administrative positions.

Teachers:● No furloughs● Reductions through attrition whenever

possible

Support staff:● Furloughs of part-time clerical workers● Reductions through attrition whenever

possible● Elimination of 3 specialist positions● Addition of ABA classrooms required

PCAs

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30 -20%88 -12%32 -9%77 -8%

39 +5%437 -2%703 -5%

5,361 5,500 +2.6%

▶ PSERS rate increase from 32.57% to 33.43% ◦ (2.6% increase) – a .15 mill increase

▶ Index is 2.4% - or .57 mills

▶ Contractual salary increases for most staff

▶ Negotiations with Teachers Union

▶ Eleven teacher retirements (includes mid-year)

Employee Issues for 2018-2019

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PSERS Contributions Rise

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▶ Healthcare cost increase – 1.9% increase◦ average increase since 2015 has been 2.2%◦ employee groups are paying more in contributions

▶ Current employee healthcare contributions between 10.5-11.5% of premium for all employee groups

Healthcare Costs for 2018-2019

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Historical Tax Rate Increases(2013 was a reassessment year and had a decrease in millage rate of 4.52 mills)

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July 1 Millage Increase % Increase2006 .38 1.6%2007 .00 0.0%2008 .25 1.1%2009 .30 1.3%2010 2.52 (HS Bond) 10.5%2011 .00 0.0%2012 .50 1.9%2013 -4.52 (reassessment) n/a2014 .54 2.4%2015 .40 1.7%2016 .38 1.6%2017 .00 0.0%

Average .48 2.0%

▶ Earned Income Tax – current collections are just at budget projections

▶ Realty Transfer Taxes - revenues are trending near budgeted amounts

▶ State PlanCon funding – is being paid by the State

▶ Tuition for International Students is slightly below our budgeted expectations

◾ 14/15 = 2016-2017◾ 13/9 = 2017-2018

▶ Capital Projects - We continue to fund Capital Projects from operating funds remaining at year end (and through bond refinancing)

Current Year Budget Trends

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▶ Revenues (anticipated) $98.6M ▶ Expenditures (estimated) $99.4M▶ Use of Fund Balance $750,000

First Draft Base Budget 2018-2019

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▶ Remains Out of Balance - $1.5M (.54 mills) ◾ 1 Mill = $2,681,824◾ 13th out of 43 school districts in Allegheny Co.

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First Draft Base Budget 2018-2019

▶ NAMM Best Communities for Music Education - 9th consecutive year▶ Global Studies Program - 2017 Bringing the World to Pennsylvania:

K-16 Collaboration Award▶ School Digger - Ranked MTLSD #3 in PA and Markham the #1

elementary school in PA▶ National Merit Finalists -11▶ Cum Laude Society-82 students inducted▶ ACT – English: tied 5 year high; Math: 5 year high▶ Niche.com - The District AND all 10 of our individual schools received

an "A+" ranking from this site. ◦ The District ranked #3 in region and # 7 in the State. ◦ JMS and MMS ranked #1 and #2, respectively, for the best

middle school teachers in the State.▶ U.S. News & World Report- Mt. Lebanon High School received a

Silver Ranking among best high schools in the nation.▶ Quality Infrastructure and buildings for learning and teaching

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Return on Investment –ROI

▶ Continue to review prepare detailed budget

▶ Review staffing for potential reductions

▶ Review funding from Capital Fund

▶ Board provides further direction

▶ Board Approves Proposed Budget◦ April (post on website)

▶ Board Approves Final Budget◦ May

▶ Budget information is available at www.MTLSD.org/budget

Administration Prepares Information for Board Review

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