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2014-2015 Proposed Final Budget

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

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2014-2015 Proposed Final Budget

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  1. 2014-2015 Proposed Final Budget State College Area School District May 5, 2014

  2. 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

  3. 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

  4. 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

  5. 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

  6. Cohort and Centre County School Districts Real Estate Tax

  7. 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%

  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

  9. 2014-15 Revenue by Source

  10. Local Revenue

  11. Historical Real Estate Tax Percentage Change

  12. 2014-15 Proposed BudgetExpense By Category

  13. 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

  14. 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

  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

  16. 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

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