Transcript 2015-2016 BUDGET PRESENTATION

2015-2016
BUDGET PRESENTATION
 GOVERNOR’S
BUDGET PROJECTIONS AND
EXPECTATIONS
 FAIRFIELD AREA SCHOOL DISTRICT PROJECTED
REVENUES, MILLAGE, AND INDEX
 CAPITAL ITEMS INCLUDED IN PROPOSED BUDGET
 FAIRFIELD AREA SCHOOL DISTRICT PROJECTED
EXPENSES AND DEFICIT
 TIMELINES
 DISCUSSION/QUESTIONS
GOVERNOR’S BUDGET
 Proposed
Tax Increases Directly Imposed
on Taxpayer and Businesses

Personal Income Tax Hike From 3.07% to 3.7%

Sales Tax Hike to 6.6% With Additional Items Being
Taxed

Cigarette Tax

Tax on Other Tobacco Products

Severance tax (Natural Gas)

Bank Shares Tax

Corporate Tax Reform
WHAT DOES THIS POTENTIALLY MEAN FOR US?









Part of the Governor’s goal is to increase educational spending
while decreasing the state deficit and decreasing property
taxes
Restore the cut to the Accountability Block Grant
Restore the Educational Assistance Program
Restore partial Charter School reimbursement
Restore funding for Dual Enrollment Programs
Increase funding for Career and Technical Education
Increase funding for Early Childhood Education
Increase in Special Education funding based on dynamic
formula
Maintain funding at current levels for Transportation, School
Food Services, and Safe School Initiatives
OTHER PROPOSED CHANGES

Cyber Charter School Reform – Establish a statewide tuition rate at $5,950
for regular education students and a rate based on expense category for
special education students with a minimum of $8,985 and a maximum of
$44,387

Currently the district pays $9,043.46, $9,416.64 per student, for
regular education and $17,622 $20,042.57 for special education to
charter schools and expense is budgeted to be approximately for the
2015-2016 fiscal year

Proposal to fully fund pension obligations by reducing excessive investment
management fees, reducing high risk investment strategies, eliminating the
charter/cyber charter pension double dip, and ensuring all contributions
are paid in full

School districts should see a reduction in their employer contribution in
2016-2017 through allocation of monies from increased Liquor Control
Board profits

The increase from 2014-2015 to 2015-2016 is 20.7% and equates to
approximately $153,923 for the Fairfield Area School District net of
anticipated reimbursement.
CONTINUED…..

Fund Balance Restrictions – no school district could raise real
property taxes unless the adopted budget includes a fund
balance that has an estimated ending UNASSIGNED fund balance
equal to or less than 4% of its total expenditures

The Governor’s Budget also includes an increase in minimum
wage from $7.25 to $10.10
 For the Fairfield Area School District this equates to
approximately $975 in additional payroll dollars for the
general fund
 Basic
Education Funding Commission must issue a report by June
10, 2015 with recommendations for a new formula
 Items discussed include the elimination of hold harmless
 Enrollment
 Demographics
 Other expenses
ACCOUNTABILITY
 The
budgeted increase to Basic Ed Funding does not
come without strings
 Districts are required to submit a plan to PDE by
May 15, 2015
 Describe the intended use of funds
 Show how funds will increase student success
with 9 Benchmarks established
 14 Prescribed Uses of Funding
 Plan will be approved by June 15, 2015
 Keep in mind, final budget approval is due by
June 30, 2015
PROPERTY TAX RELIEF
 Governor
wishes to “Reduce the average
homeowner’s property tax by 50%...many senior
citizens will see their property taxes eliminated
altogether.”
A
very long formula results in 114 school districts
receiving 100% residential property tax
reduction, 83 at only 25% and the median
remaining at 53%
 Not
having a philosophical or political discussion
on the effects on the individual as this is to
broad and varied
DOLLARS FOR FAIRFIELD
Governor’s Budgeted Effect on Fairfield Area School District

$220,111 Increase in Basic Ed Subsidy and Block Grant

$35,619 Increase in Special Education Funding

$155,905 Decrease in Charter School Expense

41.63%
Decrease in Real Property Taxes
Net Effect On School District Budget Would Be $411,635
FAIRFIELD AREA SCHOOL DISTRICT
2015-2016
PROJECTED REVENUE ANALYSIS

2015-2016 Adjusted Base Index
2.3%

Current Millage Rate
9.6898

Maximum Allowable Millage Rate
(Increase of .2229)
9.9127

Potential New Revenue
$183,657

Cost for Median Taxpayer ($219,100)
$47.00

Cost Per $100,000 of Assessed Value
$22.00

2015-2016 Projected Revenues
$16,316,877
$16,366,129
REVENUE UPDATES AND REVISIONS

INCREASE INTEREST EARNED
$5,000

DECREASE LIU TRANSPORATION REIMBURSEMENT
($1,000)

DECREASE IDEA FUNDING
($10,000)

ELIMINATE SUMMER SCHOOL TUITION
($3,000)

INCREASE READY TO LEARN BLOCK GRANT
$53,631

INCREASE PERKINS GRANT FUNIDNG
$9,417

DECREASE IN BOND EXPENSE REIMBURSEMENT
($4,796)
$49,252
LOCAL REVENUE
6111 Real Estate Taxes
6112 Interim Real Estate Taxes
6113 Public Utilities
6114 Pay in Lieu of Taxes
6151 Wage Taxes
6153 Realty Transfer
6154 Amusement Taxes
6400 Delinquent Taxes
6510 Interest
6700 Rev - Student Activities
6831 Rev - Intermediate Sources, FED
6832 - IDEA through IU
6836 - Race to the Top
6910 Rentals
6920 Contributtions and Donations
6940 Tuition
6990 Miscellaneous Revenues
6970 Revenue Provided from Other Funds
6991 Prior Year Refunds
TOTAL LOCAL REVENUES
2011-2012
Actual
7,346,507
26,530
12,870
8,622
1,861,261
125,035
22,941
249,419
6,209
25,820
0
127,290
12,757
36,633
91,065
7,559
0
95,278
10,055,796
2012-2013
Actual
7,485,754
3,131
12,565
8,626
1,837,767
107,622
21,316
275,696
39,239
26,419
17,608
129,662
1,344
12,335
26,087
100,200
14,686
3,138
10,123,195
2013-2014
Actual
7,584,017
13,177
12,242
8,626
2,289,974
124,728
20,718
298,193
37,904
29,991
10,767
148,063
5,236
12,370
55,337
150,280
47,193
0
0
10,848,815
2014-2015
Budget
7,389,536
4,910
12,300
8,626
1,837,766
80,000
22,000
190,000
7,000
25,400
15,000
127,000
2015-2016
Proposed
7,421,641
4,910
12,250
8,626
1,837,766
90,000
20,000
200,000
30,000
25,000
10,000
117,000
12,000
25,000
130,000
8,000
0
0
9,894,538
12,000
25,000
121,455
8,000
0
0
9,943,648
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
STATE REVENUE
ActualActual
Actual
Actual
Budget
Proposed
7110 Basic Instruct. Subsidy
3,282,362 3,282,361 3,351,124 3,342,746 3,342,746
7140 Charter School
0
0
0
0
7160 Section 1305 & 1306
30,443
17,938
8,965
0
5,000
7220 Vocational Education
17,719
41,271
24,909
24,294
24,200
7250 Migratory Children
0
0
0
0
7270 Special Education
611,435
611,435
611,435
611,435
611,435
7272 Early Intervention
0
0
0
0
7291 Educational Assistance
0
0
0
0
7310 Transportation
340,014
357,678
376,754
357,678
350,000
7320 Rental Subsidy
195,274
190,194
186,429
186,559
182,561
7330 Medical & Dental
22,559
21,851
20,958
22,000
20,900
7340 Supp Reim/State Prop Tax Reduction459,726
459,720
459,715
459,775
459,775
118,631
7500 Extra Grants
64,734
61,542
64,733
194,193
7810 Social Security
264,977
248,260
249,598
238,481
264,879
7820 Retirement
259,076
359,240
497,815
696,132
895,837
TOTAL STATE REVENUES
5,548,319 5,651,490 5,852,433 6,133,293 6,275,964
FEDERAL REVENUE
8514 Title l
8515,8516,8518,8519 Title ll, Title V
8521 Vocational Education
8690 Federal Grants in Aid
8701 IDEA Part B (Stimulus)
8703 ARRA Title I Part A
8705 Title II D Technology (Stimulus)
8708 State Fiscal Stabilization
8709 Ed Jobs Subsidy
8810 Access- Medical Reimbursement
TOTAL FEDERAL REVENUES
Actual Actual
94,307
33,494
12,000
0
0
0
0
0
0
0
139,801
2011-2012
OTHER FINANCING USES
Actual Actual
9120 Proceeds - Bonds and Leases
3,970,000
9200 Proceeds-Financing
934,244
9330
0
9400 Sale of Fixed Assets
10,100
9500 Refund - Pr Yr Expenditures
0
9611 Receipts from Other LEAs
0
TOTAL FINANCING
4,914,344
TOTAL REVENUES WITH FINANCING
20,658,260
Actual
103,363
14,647
18,907
3,617
140,534
2012-2013
Actual
0
0
0
0
0
0
0
15,915,219
Actual
90,841
49,437
17,098
0
0
0
0
0
0
0
157,376
2013-2014
Actual
109,175
0
0
377
0
0
109,552
16,968,176
Budget
92,083
31,972
11,550
0
0
0
0
0
0
0
135,605
2014-2015
Budget
Proposed
98,113
31,987
16,417
0
0
0
0
0
0
0
146,517
2015-2016
Proposed
0
0
0
0
0
0
0
16,163,436
0
0
0
0
0
0
0
16,366,129
2015-2016
PROJECTED EXPENDITURES
$16,851,711
 $16,842,188

CURRENT PROJECTED DEFICIT
$534,834
$476,059
Deficit Reduction of $58,775 04/21/15
EXPENDITURE UPDATES AND REVISIONS

ADDITIONAL BOND SAVINGS FROM RESTRUCTURE

PERKINS EXPENSE OFFSET BY GRANT FUNDS
($20,128)
$10,606
($9,522)
2010-2011
Actual
100 Salaries
110 Administration
114 Sabbatical
120 Instruction
130 Extracurricular
140 Technical
150 Clerical
160 Maintenance
170 Operational
180 Custodial
187 Security Police
190 Aides
TOTAL 100's
200 Benefits
210 Insurance
220 Social Security
230 Retirement
240 Tuition Reimbursement
250 Unemployment
260 Worker's Comp
270 Health Insurance
TOTAL 200's
2011-2012
Actual
714,773
599,631
4,996,952
199,022
401,661
139,308
236,414
10,260
218,969
6,917,359
11,113
493,067
364,446
110,116
0
11,371
1,867,956
2,858,070
2012-2013
Actual
2013-2014
Actual
2014-2015
Budget
2015-2016
Proposed
4,786,270
210,771
82,725
460,914
50,094
89,253
218,153
584,500
0
4,813,492
220,648
86,896
399,569
51,593
92,160
200,205
597,029
28,568
4,925,038
245,215
88,780
363,095
52,693
94,980
205,006
608,149
0
4,990,681
251,500
90,792
366,046
53,868
96,534
208,406
628,194
0
5,137,359
227,740
87,452
354,457
55,070
98,698
212,575
127,091
6,624,902
144,742
6,593,805
124,160
6,724,564
132,306
6,798,282
131,954
6,933,499
8,723
537,404
578,686
171,671
38,211
46,219
1,862,728
3,243,642
8,897
494,061
783,402
79,358
18,393
34,125
1,768,482
3,186,718
7,295
500,265
1,121,647
83,220
1,283
46,419
1,547,035
3,307,162
7,220
520,068
1,455,513
90,000
20,000
46,136
1,503,948
3,642,885
7,360
530,412
1,791,616
90,000
5,000
50,000
1,648,950
4,123,338
300 Prof & Tech Services
322 Prof/Educ IU
323 Prof/Educ Other Ed Agencies
324 Prof/Ed Svc Training
329 Prof/Educ Services Other
330 Other Professional Services
340 Technical Services
348 Prof and Tech Services
350 Security
390 Health and Wellness
TOTAL 300's
400 Property Services
410 Cleaning Services
422 Electricity
424 Water & Sewer
430 Repair & Maint
438 Tech Maint and Repair
440 Rentals
460 Pest Control
TOTAL 400's
641,708
771,982
75,001
746,915
1,235
13,262
195,595
175,611
7,436
3,193
246,188
41,721
1,276
4,760
113,763
71,606
17,389
1,628
1,033,612
1,139,361
18,453
326,506
12,946
110,295
30,863
8,210
37,271
204,920
12,348
103,434
33,145
7,386
79
398,583
507,273
957,296
786,273
17,800
6,210
6,111
126,969
68,318
8,868
4,344
200
1,025,093
835,300
26,100
950
3,550
124,424
60,541
22,580
4,520
500
1,078,465
753,464
126,100
5,600
231,406
60,591
10,750
2,000
500
1,190,411
5,997
169,281
14,884
110,741
44,481
7,510
0
352,893
5,354
155,332
16,465
97,292
23,814
9,556
0
307,813
6,800
175,000
15,000
118,653
20,376
7,400
0
343,229
8,000
165,000
16,500
200,527
41,902
8,660
0
440,589
500 Other Purchased Services
510 Contracted Services
520 Insurance
530 Communications
538 Tech Telecom Service
540 Advertising
550 Printing
560 Tuition
580 Travel
590 Misc
TOTAL 500's
600 Supplies
610 General
618 Computer Software
621 Natural Gas
622 Electricity
624 Oil
626 Gasoline/Diesel
640 Books & Periodicals
648 Educ Software and Licensing Fees
650 Educational Software/Licenses
TOTAL 600's
800,896
43,405
38,740
25,968
2,015
6,489
582,076
38,036
17,165
1,554,791
825,125
43,672
22,176
54,852
2,302
3,528
601,556
19,719
11,486
1,584,415
819,937
54,665
35,812
19,170
1,080
2,081
905,014
21,620
11,575
1,870,953
810,380
67,228
12,557
20,250
2,310
225
904,494
24,580
22,875
1,864,901
832,974
68,115
18,755
20,990
1,527
500
835,608
19,705
12,596
1,810,770
874,654
61,251
16,550
22,800
1,600
0
878,178
22,705
12,342
1,890,080
359,606
100,147
217,630
90,542
110,246
220,596
120,660
79,707
303,054
137,258
69,513
230,664
133,808
85,000
223,572
137,203
70,000
7,535
3,689
68,350
4,072
120,779
5,072
26,228
35,703
625,102
54,532
628,855
78,720
540,795
99,008
6,955
16,586
131,351
69,588
783,242
5,241
38,642
38,744
501,046
7,557
86,826
3,760
3,948
523,054
700 Property
710/720 Site Improvement
750 New Equipment
758 Tech Equip-Original
760 Replacement Equipment
768 Tech Equip-Replacement
TOTAL 700's
800 Other Objects
Dues and Fees
Judgements against LEA
TOTAL
Debt Service
Interest
Principal
Contributions
Debt Service-Refunded Bonds
Refunds of Prior Year Receipts
TOTAL DEBT SERVICE
FUND TRANSFERS
Total Expenditures
Budgetary Reserve
9,305
1,872,263
340,039
16,304,655
FINAL EXPENDITURES
16,304,655
11,357
213,344
168,929
5,908
1,080
400,618
24,241
25,586
128,408
121,104
6,565
305,904
863
23,857
6,307
21,332
55,910
108,269
81,820
27,229
31,755
95,991
236,795
4,081
24,582
33,359
63,237
125,259
21,899
26,264
38,810
60,459
147,432
37,388
40,596
50,475
40,212
45,988
14,092,353
41,714
59,000
13,898,568
13,633,583
14,141,905
14,467,957
15,312,132
645,369
1,217,589
644,398
1,289,447
703,192
872,138
700,650
893,009
678,075
891,000
572,906
957,151
6,714,515
63,119
20,676,203
4,743
1,580,074
16,570
15,230,227
201
1,593,860
134,481
15,870,246
1,569,075
751,025
16,788,057
1,530,057
0
16,842,189
20,676,203
15,230,227
15,870,246
16,788,057
16,842,189
4,780,670
2015-2016
CAPITAL EXPENDITURES

(430)
 (430)
 (430)
 (430)
ELEMENTARY PLAYGROUND
ELEMENTARY CARPET REPLACEMENT
UPGRADE AUDITORIUM SOUND SYSTEM
UPGRADE AUDITORIUM LIGHTING
$20,000
$20,000
$25,000
$7,000

(430) REPLACE EAST AND WEST ENTRANCE DOORS
(438) ELEMENTARY SCHOOL CABLE RUN
(650) EVERYDAY MATH CURRICULUM
$12,000
$15,779
$24,039


(758)
 (758)
 (758)
 (760)

ELEMENTARY MOBILE LAB/CART
MIDDLE SCHOOL MOBILE LAB/CART
IP VIDEO CAMERAS
REPLACE HIGH SCHOOL GYM WALL MATS
$10,200
$10,200
$5,000
$4,500
2015-2016
CAPITAL EXPENDITURES, cont’d

(768) HIGH SCHOOL TEACHER LAPTOPS
$16,800

(768) SERVERS
$14,400
TOTAL EXPENSE CONSIDERED TO BE ONE-TIME AND
NOT NECESSARILY OPERATIONAL IN NATURE
$184,918
Staffing
Building
District
District
HS
HS
District
District
District
Description
Superintendent
Assistant to the Superintendent
World Language Teacher
Transfer 1/2 Eng to HS for Full
Maintenance
Transportation/Business Office Clerk
Increase hours by .5 IDEA Aides & Elem Aides
Qty
Cost
1 $160,448.00
1 $126,000.00
0.5 $38,750.00
0.5
$0.00
1
$0.00
8 $14,242.00
Curriculum
Building
MOVED TO YEAR 2
Athletics
MOVED TO YEAR 2
Elem
HS/MS
Grades 11 & 12
Description
EDM Grades K-6
Calculators
Laptops
Sport
VB, Bball, gym class Replace HS Gym Wall Mats
FB, Gsoc, Bsoc
Build 1-2 Ticket Booths
JHFH, JHBBball
Uniforms
Qty
Cost
170 $24,039.35
150 $2,250.00
195 Laptops $61,245.00
Cost
$4,500.00
$9,000.00
$5,000.00
Maintenance
GRANT FUNDS 14-15
Building
HS/MS
HS/MS
HS/MS/Elem
HS/MS
HS
HS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
HS/MS
Elem
Elem
Elem
Elem
Maintenance
Maintenance
Equipment
Equipment
Site
Site
Description
Boiler
Clock Systems
Locks & Keying System
Replace Gym, East & West Entrance Doors
Flooring Systems
Painting
Restroom Facilities - Hand Dryers
Electrical System
Automatic Temperature Controls
Roofing System - Repairs to HS/MS.
Auditorium Sound System
Auditorium Light System
Exterior Building Walls
Card Access System
Bleachers
Additions
Building Security
Televisions
Water Fountains
Furniture
Phase I of Playground
Boiler
Flooring Systems
Locks & Keying System
On-Line Work Order System
MSDS On-Line System
Chevrolet Truck
Two-way Radios
Blacktop Sealing
Sewer Lines/Pump Stations/Grease Traps
Qty
1
Cost
$3,000.00
$2,000.00
$12,000.00
$12,000.00
$15,000.00
$2,000.00
$2,500.00
$25,000.00
$7,000.00
$3,000.00
$29,300.00
$2,000.00
$1,000.00
$20,000.00
$20,000.00
$0.00
$4,000.00
$2,000.00
$35,000.00
$3,000.00
$20,000.00
$1,000.00
MOVED TO YEAR 2
MOVED TO YEAR 2
NO MAINTENANCE REDUCED
MOVED TO YEAR 2
REDUCED TO 20
MOVED TO YEAR 2
MOVED TO YEAR 2
REDUCED TO 30
REDUCED TO 30
MOVED TO YEAR 2
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Tech
Nagios Monitoring/Alert Software
Papercut
TekNet Renewal
Vmware Server Software/Virtual
HP Server
HP Server
Mounting of 3 LCD Projectors to wall
Cable Runs from mounted LCD to Plate
Close up Projection Mounting Arms for LCD
HP Color Printers
HP POE Switches
HS Teacher Laptops
HP Laptops
Wireless to Press Box
Network Access Control
IP Video Camera's
Cart for Mobile Lab
MS Mobile Lab
Elem Mobile Lab
Elem School Wireless Project Cable Run
HS/MS Wireless Cable Runs
213/Café Cable Runs
3@379
3@500
3 @ 209
10@ $319
4@ $1450
20 @ $600
5 @ $600
2 @ $1200
30 @ $300
30 @ $300
$1,900.00
$1,995.00
$11,264.00
$4,902.00
$8,200.00
$6,200.00
$1,137.00
$1,500.00
$627.00
$3,190.00
$5,800.00
$13,600.00
$3,000.00
$500.00
$61,725.00
$5,000.00
$2,400.00
$9,000.00
$9,000.00
$15,779.00
$25,713.00
$2,078.59
FUND BALANCE ANALYSIS
2013-2014 ENDING FUND BALANCE
$2,676,139
2014-2015 PROJECTED ENDING FUND BALANCE $2,051,518
($624,621)
2014-2015 Projected Capital Expense
2014-2015 Actual to Date
Cafeteria Debt
$172,000
$153,042
Roof Repair
$450,000
$397,330
Chiller Repair
$40,000
$0
Parking Lot Sealing
$20,000
$0
Circulating Pumps
$12,000
$14,000
Playground
$10,000
$0
Heat Conversion in Maintenance
$7,000
$711,000
$15,000
$579,372
MILLAGE ANALYSIS
2011-2012
2012-2013
2013-2014
2014-2015
9.2953
9.4905
9.6898
9.6898
ASSESSED
VALUE
$877,452,300
$869,943,900
ADJUSTED
INDEX
2.1%
2.1%
2.6%
2.3%
INCREASE
.1952
.1993
No Increase
Unknown
REVENUE
IMPACT
$162,678
$164,711
Loss of
$208,082
in current
period and
going forward
Potential
$183,657
MILLAGE
2015-2016
$869,526,700 $867,305,800
STANDARD AND POOR’S RATINGS

A+ Long Term Rating and A+ on Existing Debt

Determined based on local wealth, improved financial
position after achieving two consecutive general fund
operating surpluses, and moderate debt burden with
limited capital needs

District’s household effective buying income (EBI) is
strong at 124% of the national level

Overall debt burden is moderate at $3,509 per capita or
3.2% of market value

Carrying charges are moderate at 10% of total
governmental fund expenditures in 2014

Debt amortization is average with 50% of debt being
retired in 10 years
TIMELINES







To date the index has been published and the board, in a timely manner,
adopted the resolution stating it would not raise taxes beyond the index.
District timelines then revert to the original timelines in place prior to Act 1.
MAY 1, 2015 – State required to notify districts of the amount of the
allocation of property tax reduction funding. This only occurs if there are
enough funds in the Property Tax Relief Fund. For the 2014-2015 fiscal year
the district received $459,775 which equated to $191 per taxpayer.
At this same time, districts are to receive a certified report from the county
assessor with information on the homestead and farmstead properties in the
district.
MAY 31, 2015 – Deadline for district to adopt 2015-2016 proposed final
budget
JUNE 10, 2015 – Deadline for district to make the proposed final budget
available for public inspection ----This must be done 20 days prior to final
budget adoption date, whatever that may be
JUNE 20, 2015 – Deadline for district to offer public notice of its intent to
adopt the 2015-2016 final budget ---- This must be done 10 days prior to
final adoption, whatever date that may be
JUNE 30, 2015 – Deadline for district to adopt the final budget and the
homestead/farmstead resolution
DISCUSSION, SOLUTIONS
AND QUESTIONS