Transcript SCASD Budget Presentation

2014-2015
PROPOSED FINAL
BUDGET
State College Area School District
May 5, 2014
Budget Process
• Board passed an Accelerated Budget Opt Out
Resolution on January 13, 2014
• Certified the tax rate to be within the 2.1% Act 1
index for 2014-15
• Proposed final budget presented for adoption – May
5, 2014
• Budget Hearing – June 2, 2014 at 131 West Nittany
Ave (7:00 p.m.)
• Final budget presented for adoption – June 9, 2014
• Reopen budget after passage of the State Budget, if
necessary
General Fund Budget
• Accounts for the expenses related to general
operations of District
• Supports other funds
• Debt service
• Capital reserve
• General Fund Budget must be adopted by June
30th
Act 1
• Limits school district tax increases to an inflationary
index (Act 1 Index)
• Act 1 Index is 2.1% for 2014-15
• Exceptions available to tax above the index for
increases in certain expenses
• Exceptions available for PSERS (pension) cost only
• No exceptions were requested for 2014-15
Proposed Tax Increase
• Proposed tax increase 1.95%
• Second lowest tax increase since 1998-1999
• Lowest proposed tax increase compared to cohort
and other Centre County School Districts
• Maintains lowest tax rate of all districts in Centre
County
• Millage rate would increase from 38.75 to 39.5056
• Impact of tax increase for average residential
homeowner - $54
Cohort and Centre County School
Districts Real Estate Tax
2014-15
Projected Tax
Increase
Exceptions
Act 1 Index
2013-14
Millage Rate
2014-15
Proposed Rate
Bellefonte
2.38%
0.00%
2.70%
47.4107
48.5392
Bald Eagle
3.96%
1.06%
2.90%
50.5500
52.5500
Penns Valley
4.20%
1.60%
2.60%
43.2348
45.0489
State College
1.95%
0.00%
2.10%
38.7500
39.5056
Tredyffrin-Easttown
3.20%
1.10%
2.10%
Cumberland Valley
2.10%
0.00%
2.10%
Parkland
2.10%
0.00%
2.10%
Lower Merion
4.11%
2.01%
2.10%
North Allegheny
9.56%
7.46%
2.10%
Abington
4.53%
2.43%
2.10%
Fund Balance
• Proposed Final Budget includes:
• Use of PSERS Fund Balance of $598,424
• Use of Legal Liability Fund Balance of $550,000
• Addition to Capital Reserve Fund of $4,656,500
• Increase in Unassigned General Fund Balance of
$324,123
• Brings General Fund percentage of operating expense to 7.8%
• Within allowed limit of less than or equal to 8%
Revenue
• Local
• District primarily locally funded
• State
• Projected level funding with exception of PSERS
reimbursement
• Federal
• Projected level with small decrease in Title funds
2014-15 Revenue by Source
FEDERAL SOURCES
$645,000 1%
STATE SOURCES
$20,502,507 16%
LOCAL SOURCES
$104,009,000 83%
Local Revenue
$1,100,000
$1,500,000
$2,949,000
$15,560,000
REAL ESTATE TAX
EARNED INCOME TAX
REALTY TRANSFER TAX
DELINQUENT REAL ESTATE TAX
OTHER
$82,900,000
Historical Real Estate Tax Percentage Change
7.00%
6.17%
6.00%
5.60%
5.25%
4.89% 4.99%
5.00%
4.10%
3.80%
4.00%
3.70%
3.50%
3.30%
3.13%
3.00%
3.00%
2.70%
2.65%
2.40%
1.95%
2.00%
1.00%
0.00%
-0.50%
-1.00%
2014-15 Proposed Budget
Expense By Category
Salaries
57,930,679
46%
Health Insurance
12,359,179
10%
PSERS
12,230,840
10%
Other Benefits
5,961,928
5%
Professional Services
4,170,202
3%
Purchased Property Services
2,062,916
2%
Charter Schools
5,095,152
4%
Other Purchased Services
5,120,408
4%
Supplies/Equipment
5,739,856
5%
Minor Capital Projects
2,055,717
2%
13,253,931
10%
Other Uses of Funds
Total
Total Salaries and Benefits
125,980,808
88,482,626
70%
Expense Increase
• Total change in expense - $4.7 million increase
• PSERS - $2.7 million
• Health Insurance - $1.3 million
• Salaries - $764,000
• Debt Service – ($904,000)
• Other Net Increases- $840,000
PSERS
• Percentage of salary paid for employees’ pensions
• Rates have increased from 5.64% of qualifying
salary expense in 2010-11 to 21.4% for 2014-15
• District has established a fund balance to offset a
portion of PSERS costs beginning with the 2014-15
budget year
• Board elected not to utilize exceptions for PSERS
available for 2014-15
State Budget
• Supposed to be passed by June 30 each year
• District must pass budget by June 30
• Possible reopening after state budget is passed
2014-15 Budget
• For more information on the budget process
including all handouts that are related to the
budget go to
www.scasd.org/page/23254