2009-2010 Proposed Budget
May 14, 2009
Presentation Highlights
Budget Process
Expenditures
Revenues Budget Options Property Tax Relief Next Steps
Budget Process
Budget Process
Accelerated timeline Administrative reviews Board Budget Committee review – January 15 Posted preliminary budget – January 23 Adopted preliminary budget – February 12 Adopt proposed final budget – May 14 Refine budget data Adopt final budget – June 18
Administrative Budget Committee
Paul Long Don Harm Kevin McHugh Diane Paul Bettie Ann Rarrick Dan DiLorenzo Tom Gillette Joanne Godzieba
Lisa Becker Dave Bowman Dave Hughes Joe Masgai Shawn Neely Patti Steckroat Isabel Miller
Other Contributors
Budget Managers Principals/Assistant Principals Curriculum Coordinators Supervisors Faculty Support Staff
Expenditures
PROPOSED EXPENDITURE BUDGET 2009-2010
Debt Service/Other 7.4% Materials 5.4%
Services 12.3%
Salaries 55.6%
Benefits 19.3%
Proposed Budget Expenditures
Total Increase Percent $176,425,000 $ 2,371,000 + 1.4 %
Expenditure Budget History
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010*
* Proposed
5.9% 6.0% 4.2% 5.0% 5.5% 3.9% 1.4%
Revenues
PROPOSED REVENUE BUDGET 2009-2010
Fund Balance 1.1% Federal Revenue 0.9%
State Revenue 18.9%
Local Revenue 79.1%
Proposed Budget Revenue
Revenue before tax increase Fund balance appropriation Real estate tax increase Proposed Budget revenue
RET Increase %
$169,340,113 2,000,000 5,084,887 $176,425,000
4.1%
Proposed Tax Increase
RET Increase $ 5,084,887
Requires a real estate tax increase of:
4.1% 5.9 mills $185 for average assessment of 31,304
Index and Exceptions
PDE index Current millage Allowable millage increase Total allowable millage 4.1% 145.0 5.9 150.9
The Board elected not to apply for exceptions allowed by Act 1 for costs out of the District’s control.
Tax Increase by Municipality*
Proposed Budget $ 125 $ 247 $ 116 $ 136 $ 185
Falls Lower Makefield Tullytown Yardley District-wide
* Based on average assessment of 31,304
Budget Options
Achieving 4.1%
Revenue assumptions - Assessments - Commonwealth Budget - Federal economic stimulus funds Expenditure reductions - Broad based, share the burden - All schools & all support departments - Consider many options & prioritize - Impacts staffing, programs, services, supplies
Achieving 4.1%
Expenditure Examples: - Reduce administrators/supervisors (5)* - Reduce professional staff (8)* - Reduce clerical and maintenance staff (9)* - Reduce demonstration teachers (10) - Reduce overtime and per diem work - Reduce PAT hours
* Through attrition
Achieving 4.1%
Expenditure Examples: - Reduce benefits & withholdings for staff reductions - Restructure Extra K and IST - Discontinue Foundations First classes - Suspend Coop Ed and Service Learning - Reduce transportation service - Defer textbook purchases - Continue energy conservation program
Property Tax Relief (State Gaming Funds)
Property Tax Relief
Budget Secretary certified $595,000,000 available for property tax relief in 2009-2010
Pennsbury’s allocation is $4,157,502.92
Estimated relief per homestead/farmstead = $234 (Last year = $241) District must reduce property taxes by this amount through homestead/farmstead exclusion
Property Tax Relief
County Assessor certifies HS/FS properties for each district by May 1 School Board sets the real estate tax rate District computes HS/FS exclusion through complex formula Board adopts resolution implementing HS/FS exclusion HS/FS exclusion noted on tax bills
Next Steps
Recommendation
Board approves Proposed Budget as presented Board provides direction regarding acceptable RET increase Administration continues budget review
Administrative Review
Update Revenue Budget: - May assessments - Changes to Commonwealth Budget - Stimulus funds Revise Expenditure Budget: - Staffing - Medical benefits analysis - Insurance premiums - Review other budget options
Administrative Review
A 1% reduction in RET = $1,250,000 (est.)
A RET increase of < 4.1% will require deeper educational cuts
Future Concerns
Economic outlook - Interest rates - Housing market PSERS Rate increase 2012-2013 Facility projects
Public Input
School Board public meetings and hearings
(all times p.m.)
- May 14: Special Meeting, 8:00 @ Fallsington - May 21: Board Budget Committee, 5:30 @ Fallsington - May 21: Regular Meeting, 8:00 @ Fallsington - June 4: Budget Hearing, 7:00 p.m. @ Walt Disney - June 11: Agenda Meeting, 8:00 @ Fallsington - June 18: Regular Meeting, 8:00 @ Fallsington
Questions & Comments