spring cove school district 2014/15 · spring cove school district exceptions to the index debt...
TRANSCRIPT
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Spring Cove School District 2014/15 Budget Workshop April 28, 2014
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Spring Cove School District
Agenda for the evening:
Review the Current Proposed Budget
Review of Act 1 Index/Exceptions
Comments/Discussions
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Spring Cove School District
Budget Timeline
District must adopt a Proposed Final Budget by May 30, 2014 and a Final Budget by June 30,2014.
Board Meetings to Follow
May 12, 2014 - Special Meeting, Committee of the Whole
May 19, 2014 - Regular Board, Proposed Budget
June 16, 2014 - Special Meeting, Committee of the Whole
June 23, 2014 - Regular Board, Final Budget
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Spring Cove School District
Major Budget Factors
Expenditure Side
• Salaries & Wages
• Benefits – Retirement and Healthcare
• Salaries/benefits reflect Life Skills, K4, and attrition savings
• Debt – Interest and Principal
Revenue Side
• Federal
• Governor's Budget – Basic Education Funding
• Ready to Learn Block Grant
• Local Effort
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Spring Cove School District
Current Proposed Budgeted Expenditures
Instruction $13,519,881
Support Services $ 6,955,022
Operation of Non-Instructional Services $ 380,132
Facilities Acq/Construction/Improvements $ 41,500
Financing/Budgetary Reserve $ 2,795,556
Total Expenditures $23,692,091
Increase from 2013/14 $ 1,036,633
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Spring Cove School District
42.02%
22.18% 3.86%
3.05%
10.19%
4.82%
1.33%
5.58% 6.97%
Expense Summary
Salaries
Benefits
Purchased Prof & Tech
Purchased Property Svs
Other Purchased Service
Supplies
Equipment
Interest, Dues, Fees
Other Financing Uses
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Spring Cove School District
K4 Program Estimated 2014/15 Costs (4 Classrooms)
Personnel – Salaries $203,908 Personnel – Benefits $128,562 Supplies $ 7,600 Property $ 16,000
Total Cost $356,070 Less: Ready to Learn Allocation ($273,461) Less: Est. Savings from Life Skills ($152,716) Remaining Savings ($70,107)
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Spring Cove School District
Retirement
2014/15 Retirement - percentage change from 16.93% to 21.4% (4.47% increase)
Total increased retirement cost for the 2014/15 year:
$494,000
(271,000) Less State Reimbursement
$223,000 Net Increase
2015/16, 2016/17, and 2017/18 retirement contribution rates are projected to increase to 25.84%, 29.27%, and 30.25% respectively.
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Spring Cove School District
Projected Retirement Increases (salaries frozen beyond 2014/15)
2015/16 $448,000 (4.44% increase)
2016/17 $782,000 (7.87% cumulative)
2017/18 $877,000 (8.85% cumulative)
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Spring Cove School District
Healthcare
Format of Coverage
• Administrators and Teachers – An IRS qualified high-deductible plan with deductibles of $1,250 and $2,500. Every dollar paid up to the deductible.
• Support Staff – Non-qualified plan with a deductible of $2,000 and $4,000. Copays do apply to this plan.
• Employees working more than 1,274 hours.
• Employees pay $600 per year.
• Combined annual premium is $1,876,000
• Premium increase at 4% is $73,000
• Includes PPACA (“Obamacare”) fee of $25,000
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Spring Cove School District
Debt Service
2009 Series Bonds Refinancing: Net PV savings of $101,683
Debt Service will increase by $202,000 in 2014/15 and then level off going forward
Debt & interest payments for the 2014/15 year:
$1,983,971
( 234,047) Less State Reimbursement
$1,749,924 Net Cost
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Spring Cove School District
Special Education Legislative Update
With an additional $20 million proposed in the budget for special education, the Senate and House are gearing up to discuss Senate Bill 1316 (sponsored by Sen. Pat Browne) and House Bill 2138 (sponsored by Rep. Bernie O’Neil), which implements the recommendations of the Special Education Funding Commission and proposes a formula for the distribution of NEW special education dollars.
The bill also proposes a new charter school special education tuition calculation that is based more upon the actual costs of charter school special education students instead of on the special education costs of each resident school district.
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Spring Cove School District
Special Education Costs
• The cost of providing for the needs of a Special Education student in fulfilling their Individual Education Plan (IEP) continues to carry a cost significantly higher than that for the cost of a regular education student.
PDE-363 Calculation
• Regular Education Student $ 7,901.16
• Special Education Student $15,747.28
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Spring Cove School District
Cyber Charter Schools
Current enrollment and costs:
Regular Education 24 students $ 189,628
Special Education 4 Students $ 62,989
Total Cost $ 252,617
Spring Cove Cyber – 18 students – down from 25 in 2012/13.
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Spring Cove School District
Athletic Program Costs
• Athletic Fund Costs-Net $ 20,562
• General Fund Athletic Costs $ 318,510
• Total Program Cost $ 339,072
• Percentage of General Fund Budget -- 1.34%
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Spring Cove School District
Act 1 Index
Act 1 Index for Spring Cove SD in 2014-15 is 2.8%
A 2.8% tax increase would generate approximately $239,000 of additional tax revenue and cost the average homeowner approximately $35 more
Millage increase at 2.8% is 3.16 mills Assessed value growth would increase tax revenue by an
additional $130,000
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Spring Cove School District
Exceptions to the Index
Debt Service Exception To Consider: For the purpose of liquidating debt prior to Act 1. In
all cases, the equivalent amount of tax increase is eliminated after the debt is liquidated. Current debt service payments extend through 2025.
Pension Exception To Consider: The law recognizes increases in required
contributions to PSERS as exceptional.
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Spring Cove School District
Exceptions to the Index
Debt Service Exception of approximately $201,000, which equates to 2.66 mills
Pension Exception of approximately $141,000, which equates to 1.87 mills Net increase of $223,000 - $141,000 = $82,000
Total millage increase available to the District with index and exceptions is 7.69 mills (6.8% increase) and would cost the average homeowner $84 more
Total new revenue of $711,000 at maximum increase
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Spring Cove School District
Property Tax Collection Rates (5-year historical)
2007/08 – 92.7%
2008/09 – 93.7%
2009/10 – 94.5%
2010/11 – 93.1%
2011/12 – 92.6%
Average – 93.3%
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Spring Cove School District
Millage History
Year Millage Increase Percentage
2010/11 108.375 3.00 2.8%
2011/12 108.375 0.00 0.0%
2012/13 110.865 2.49 2.3%
2013/14 112.865 2.00 1.8%
2014/15 120.555* 7.69 6.8%
5yr Average 112.207 3.036 2.7%
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Spring Cove School District
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Spring Cove School District
REVENUES
2013/14 2014/15 2014/15
APPROVED PROPOSED INC/(DEC) OVER
BUDGET BUDGET 2013/14
LOCAL 10,109,673 11,635,810 1,526,137
STATE 11,328,186 11,597,848 269,662
FEDERAL 855,832 569,000 (286,832)
TOTAL 22,293,691 23,802,658 1,508,967
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Spring Cove School District
Federal Revenues
• Reduced Title II funding by $114,000 based on current year allocations. More information to come next month…
• Reduced Medical Access by $95,000 due to changes in rules.
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Spring Cove School District
State Revenues
• State Funding – each school district will receive the same amount of Basic Education Funding it received in 2013/14. Spring Cove’s allocation is $7,421,433
• Ready to Learn – the Governor's Budget proposes $341 million in total funding, including $241 million in new Ready to Learn funding added to existing Accountability Block Grant of $100 million.
• Increases in State Revenue by its share of PSERS, Social Security, and Debt Service only.
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Spring Cove School District
Ready to Learn Block Grant
• Each school district will receive an amount equal to its 2013/14 PA Accountability Grant allocation, plus a “Student-Focused Funding Supplement”
• Spring Cove’s allocation consists of $113,085 Accountability Grant and $273,461 Ready to Learn; Total of $386,546
• There is still uncertainty concerning this funding and many restrictions attached to it.
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Spring Cove School District
Local Funding
• Property Tax at the Current Millage $8,555,023
• Transfer to Capital Reverse $ 151,585
• Earned Income Tax $1,116,482
• Other taxes, Per Cap etc. $ 736,743
• Other, pass thru etc. $ 390,738
• Est. Life Skills Tuition from other LEAs $ 255,000
• Act 1 Index $ 239,511
• Referendum Exceptions $ 342,313
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Spring Cove School District
Budget Summary
• Revenues $ 23,802,658
• Expenditures 23,032,091
Budgetary Reserve 660,000
• Total Expenditures _23,692,091
• Net Surplus $ 110,567
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Spring Cove School District
Funds of the District (as of June 30, 2013)
• Cafeteria Fund $ 339,051
• Athletic/Activities Fund $ 96,322
• Capital Projects Fund $ 97,388
• General Fund $ 7,602,282
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Spring Cove School District
General Fund Balance (as of June 30, 2013)
• Restricted -- $ 102,992 • Assigned -- $1,974,576 -- Long Term Debt $ 750,000 -- Capital Projects $3,275,000 -- Capital Projects* • Unassigned -- $3,374,714 $ 849,714* • Committed -- $ 400,000 -- Employee Benefits
$1,000,000 -- Fiscal Stabilization *Assigned $2,525,000 to Capital Projects in January ‘14
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Spring Cove School District
Contact your State Representatives
(links to PASBO website)
• Send a quick letter to your Senator
• Send a quick letter to your House member