Transcript SAINT CLAIR AREA SCHOOL BOARD PUBLIC REQUEST FOR PROPOSALS PRESENTATION August 19, 2015 11/6/2015

SAINT CLAIR AREA SCHOOL BOARD
PUBLIC REQUEST FOR PROPOSALS
PRESENTATION
August 19, 2015
11/6/2015
Agenda
• Ten year financial history
• What the Saint Clair Area Board of Education did to
address our fiscal situation (structural deficit)
• Why the Saint Clair Area Board submitted Requests for
Proposals (RFPs) for High School Programming
• High School Programming Proposals
Saint Clair Area School Board –August 2015 Board
Meeting
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Financial Comparison 10 Years
2003-2004
Cyber/Charter School
Costs
2013-2014
Percentage
Variance
$8,711.54
$446,230.45
5022.29%
PSERS
$75,984.40
$460,193.82
505.64%
High School Special
Education
$73,200.12
$449,533.20
510.02%
Special Education
(Inclusive K-12)
HS Tuition per Student
$989,294.14 $2,424,698.68
145.09%
$7,435 $10,123
51.90% (2009) (2015)
$6,365.23
$9,669.04
Transportation Costs
$362,518.45
$619,887.38
70.99%
Health Care Costs
$487,341.08 $1,139,270.98
133.77%
Debt. Service Payment
$484,651.88
State Revenue
$412,867
(1998)
$458,705.00
-5.35%
$2,344,289.47 $3,069,039.38
30.92%
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Debt of Local Districts
• Information obtained from Republican and Herald June 1, 2015
Blue Mountain
Tamaqua Area
Shenandoah Valley
Schuylkill Haven
Pine Grove Area
North Schuylkill
Mahanoy Area
Tri-Valley
Saint Clair Area
Pottsville
Minersville Area
Williams Valley
Year End 2013-2014
$52,332,680.00
$23,571,243.00
$19,232,830.00
$17,872,291.00
$17,795,783.00
$16,550,858.00
$13,395,770.00
$13,241,129.00
$12,860,350.00
$8,859,994.00
$7,675,363.00
$400,764.00
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Summary: 5 Year Impact of Flat Funding
• Saint Clair Area has experienced tremendous increases in
Cyber/Charter School costs, PSERS contributions, High
School Special Education costs, Transportation costs,
Health Care costs, High School Tuition per student costs,
and other Special Education costs (approximately $3.2
million difference in ten years).
• The District has received flat funding from the State for
the past five years. The District simply could not keep up
with these dramatic increases.
Saint Clair Area School Board –August 2015 Board
Meeting
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What the District did to Address the
Structural Deficit of our Budget
• Changed from a fully funded to self-funded health care
•
•
•
•
consortium.
Increased taxes.
We evaluated and adjusted all required student services
in a way that brought maximum savings to the school
district.
Furloughed 12 professional staff, lost two professional
positions, lost 3 para-professional positions, and one
maintenance position through attrition.
Utilized the Department of Education for advice relative to
our short term and long term budgetary obligations,
including the retention of a Financial Advisor, PFM, to help
us with our long term budget modeling.
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What the District did to Address the
Structural Deficit of our Budget cont.
• School districts with whom we had contracts allowed us to
extend our payment terms. These school districts included
Pottsville Area, Schuylkill Haven and Intermediate Unit 29.
• Dr. Andrew Smarkanic of the North Schuylkill School District,
Mrs. Lorraine Felker of the Schuylkill Haven School District,
and Dr. Diane Niederriter of IU29 were very helpful to our
district in dealing with our structural deficit.
• This past summer we restructured a portion of our debt to level
out our net debt service payments at $600,000.
• One area we had not examined for savings was our high
school program costs. The agreement we had with Pottsville
was 26 years old. We felt a need to examine all aspects of the
agreement to be fiscally responsible to the tax payers of our
district.
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Around the State
Information obtained from The PASA-PASBO Report June 2015
Sample size was 346 of the state’s 500 districts.
The following is reported as planned projections for 20152016:
• 41% have or plan to reduce staff
• 23% have or plan to reduce or eliminate programs
• More than 70% have or plan to raise local property taxes
• More than 55% have or plan to raise above the index
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Why we Submitted a Requests for
Proposals
• Our five year budget modeling revealed to us that the
Saint Clair Area School District could not remain a viable
district under the Pottsville Tuition agreement.
Saint Clair Area 5 Year Projected Ending
Fund Balance
Old Agreement with
Pottsville
2016-2017
$587,317
2017-2018
$120,160
2018-2019
-$729,578
2019-2020
-$1,954,112
2020-2021
-$3,154,112
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Meeting
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Saint Clair Area School District
Pottsville
Overall General Fund Chart
(Actual)
2012
Act_3
(Actual)
2013
Act_2
(Budget)
2014
Act_1
(Budget)
2015
BudgetVar
(Projected)
2016
Projected_1
(Projected)
2017
Projected_2
(Projected)
2018
Projected_3
(Projected)
2019
Projected_4
(Projected)
2020
Projected_5
10,495,758
10,616,518
(120,760)
10,627,001
11,094,181
(467,180)
10,761,567
11,611,295
(849,728)
10,896,741
12,121,193
(1,224,452)
708,090
587,331
587,331
120,151
120,151
(729,577)
(729,577)
(1,954,029)
REVENUES VS. EXPENDITURES
Total Revenues
Total Expenditures
Operating Balance
9,233,552
10,008,249
(774,697)
9,448,421
10,690,504
(1,242,083)
9,585,590
10,174,778
(589,187)
10,722,974
9,876,554
846,420
10,282,170
9,665,581
616,589
GENERAL FUND BALANCE
Beginning of the Year
End of the Year
1,851,049
1,076,352
1,076,352
(165,731)
(165,731)
(754,918)
(754,918)
91,501
91,501
708,090
GENERAL FUND GAP ANALYSIS
11,700,000
11,200,000
10,700,000
Total Revenues
10,200,000
Total Expenditures
9,700,000
9,200,000
2012
2013
2014
2015
2016
2017
2018
2019
Using the same calculations, in school year 2020-2021, SCASD estimates
over a negative $3 million fund balance
Saint Clair Area School Board –August 2015 Board
Meeting
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2020
Why we Submitted a Request for
Proposals cont.
• Initially, prior to merger discussions, we asked Pottsville Area
School District for a reduction in tuition cost, which was
refused.
• Early in 2014, we entered into discussions with the Pottsville
Area School District concerning the merger of our two districts.
Pottsville Area School Board voted against the proposed
merger.
• With merger being unsuccessful, we again attempted to
negotiate a long term agreement, but a mutually satisfactory
agreement could not be reached that ensured the long-term
viability of our district. A one year agreement was reached at a
discounted flat rate of $1,737,455, which is discounted
approximately $200,000.
• Therefore, we had no alternative but to request proposals from
neighboring school districts to determine what competitive high
school costs would be to our district.
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ACADEMIC FACTORS
SCHUYLKILL NORTH
POTTSVILLE
HAVEN
SCHUYLKILL
School Performance
Profile
78.3
75
72.8
Graduation Rates
(@ 4 yrs.)
88.5%
89.1%
86.5%
Attendance
90.8%
93.9%
93.7%
357
356
334
SAT Score Ranking
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Meeting
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RFPs Tuition Proposals
Pottsville
Schuylkill Haven
North Schuylkill
Regular Education Tuition
Rate will be based on the
state calculation annually.
The tuition rate will include a
discount as follows:
School years 2016-21:
Regular Education per pupil
cost -$5,775 (with a
maximum increase of 5%
annual increase based on
actual costs) Average Special
Education per pupil costs additional $5,000.
School years 2016-17
through 2019-20: Regular
Education per pupil cost $5,000. Special Education
per pupil cost - $9,500.
Year One: 14%
Year Two: 10%
Year Three: 8%
Year Four: 8%
Year Five: 8%
Special Education Per Pupil
Cost: Full tuition charge for
all such pupils by using actual
costs of each program.
Costs for school years 202126: Average Regular
Education per pupil costs $8,000 (with a maximum
increase of 5% annual
increase based on actual
costs). Average Special
Education per pupil costs additional $5,000.
Year 2020-22 Regular
Education per pupil cost $5,500. Special Education per
pupil cost - $10,000.
Year 2022-24 Regular
Education per pupil cost $6,000. Special Education per
pupil cost - $10,000.
Year One equates to
a discount of 43%.
Year One equates to a
discount of 35%.
Saint Clair Area School Board –August 2015 Board
Meeting
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High School Programming Funding
Proposals (2016-2021)
FUNDING FORMULA
POTTSVILLE
SCHUYLKILL
NORTH
HAVEN
SCHUYLKILL
2016-2017
$2,110,000
$1,491,000 $1,191,000
2017-2018
$2,440,000
$1,639,000 $1,250,000
2018-2019
$2,731,000
$1,844,000 $1,358,000
2019-2020
$2,964,000
$2,058,000 $1,462,000
2020-2021
$3,045,000
$2,168,000 $1,480,000
FIVE YEAR TOTAL
$13,290,000
$9,200,000 $6,741,000
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Meeting
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High School Programming Funding
Proposals (2021-2026)
SCHUYLKILL
NORTH
POTTSVILLE
HAVEN
SCHUYLKILL
FUNDING FORMULA
2021-2022
$2,935,830
$2,356,000
$1,675,000
2022-2023
$2,898,569
$2,402,000
$1,636,500
2023-2024
$2,743,278
$2,216,400
$1,536,000
2024-2025
$2,768,755
$2,156,400
$1,480,000
2025-2026
$2,805,755
$2,243,200
$1,480,000*
$27,442,187
$20,574,000
$14,548,000
TEN YEAR TOTALS
The Pottsville calculation was based on a past 10 year average, which included approximate $400 increase per pupil per
year. In these calculations, a 1st year increase of $400 per pupil and a 9 year increase of $200 per pupil per year tuition
calculation was used.
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How Each Proposal Affects
the Saint Clair End Fund Balance and
Real Estate Taxes
POTTSVILLE
SCHUYLKILL
NORTH
HAVEN
SCHUYLKILL
2016-2017
$624,806
$1,244,807
$1,543,798
2017-2018
$200,755
$1,543,619
$2,231,609
2018-2019
-$648,983
( Increase 7 Mills)
$1,538,489
$2,712,478
2019-2020
-$1,913,458
(Increase 12 Mills)
$1,219,951
$2,998,939
2020-2021
-$3,113,458
(Increase 19 Mills)
$901,413
$3,000,000
Saint Clair Area School Board –August 2015 Board
Meeting
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Five Year Projections
Submitted by the Districts
Total Fund Balances as of June 30, 2014
POTTSVILLE
$11,157,713.00
SCHUYLKILL HAVEN
$6,740,585.00
NORTH SCHUYLKILL
$10,668,461.00
Projected Annual
Operating Balance
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
FIVE YEAR TOTAL
POTTSVILLE
SCHUYLKILL
HAVEN
-$6,599,398 -$305,288
-$6,193,960 -$530,138
-$5,177,166
NA
-$5,000,000
NA
-$4,500,000
NA
-$4,500,000
NA
-$31,970,524
NA
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Meeting
NORTH
SCHUYLKILL
$266,659
-$70,119
-$460,998
-$648,718
-$438,527
-$531,142
-$1,882,845
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Unique Factors Based
on Pottsville Area’s RFP
• Saint Clair Area and Pottsville Area have had a tuition
agreement for high school students for the past 26 years.
• There are currently freshmen through seniors enrolled.
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Unique Factors Based
on Schuylkill Haven’s RFP
• Schuylkill Haven has a dual enrollment program with Penn
State Schuylkill which allows students to earn college
credits at Schuylkill Haven High School. Classes are
taught by Penn State professors.
• Schuylkill Haven offers a virtual academy where students
have the option to take online courses in addition to their
scheduled courses.
• A Senior Research Project and Community Service
Requirement. This starts in the junior year and is
completed under assigned faculty advisors.
• All graduating Saint Clair Area Seniors will be issued a
Saint Clair Area School District Diploma. There will be a
Saint Clair Area Valedictorian and Salutatorian.
Saint Clair Area School Board –August 2015 Board
Meeting
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Unique Factors Based
on North Schuylkill’s RFP
• North Schuylkill will hire a Transition Coordinator to work with 7th and 8th grade
•
•
•
•
•
•
Saint Clair Area students in the transition to North Schuylkill High School. This
Transition Coordinator will work in the Saint Clair Area Elementary/Middle
School.
North Schuylkill will provide an office at the High School for Saint Clair
Administration, Guidance, and Special Education in an effort to provide ongoing
support for our high school students.
All graduating Saint Clair Area Seniors will be issued a Saint Clair Area School
District Diploma. There will be a Saint Clair Area Valedictorian and Salutatorian.
North Schuylkill recently acquired Cardinal Brennan – 96 acres and 2 gyms.
The North Schuylkill High School was renovated in 2015.
North Schuylkill will provide an activities bus to transport students back to Saint
Clair.
North Schuylkill plans to embrace Saint Clair Community and Saint Clair Area
Traditions: Schedule a Saint Clair Area Homecoming Football Game, revive the
Saint Clair Area “Bell” at specified football games, and incorporate the Saint
Clair Area Fleur de lis in their high school logo.
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Meeting
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Closing
• The Saint Clair Area School Board is faced with a serious
decision.
• We welcome input from the public in order to aid us in our
decision making process.
• We have scheduled meetings with officials from the three
districts that have submitted proposals prior to making a
final determination as to the path the Saint Clair Area
School District will follow.
Contact us at:
[email protected]
[email protected]
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