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Spring Cove School District

Spring Cove School District. 2014/15 Budget Workshop April 28, 2014. Spring Cove School District. Agenda for the evening : Review the Current Proposed Budget Review of Act 1 Index/Exceptions Comments/Discussions. Spring Cove School District. Budget Timeline

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Spring Cove School District

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  1. Spring Cove School District 2014/15Budget WorkshopApril 28, 2014

  2. Spring Cove School District Agenda for the evening: • Review the Current Proposed Budget • Review of Act 1 Index/Exceptions • Comments/Discussions

  3. 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

  4. 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

  5. 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

  6. Spring Cove School District

  7. 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)

  8. 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.

  9. 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)

  10. 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

  11. 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

  12. 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.

  13. 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

  14. 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.

  15. 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%

  16. 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

  17. 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.

  18. 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

  19. 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%

  20. 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%

  21. Spring Cove School District

  22. 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

  23. 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.

  24. 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.

  25. 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.

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

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