Methacton School District by liaoqinmei

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									  Methacton School
      District


2011-12 Budget Presentation

                   June 2, 2011
                  Introduction


   Budget Status, Goals & Challenges
   Sources of Revenue
   Expenditures
   Fund Balance
   2012-13 Budget Concerns
   Summary
                  Budget Status
•Timeline
    – September–February – Work towards Preliminary Budget Approval
    – March-May – Continue Development with Board & Public
    – May 17 – Proposed Budget Adopted
    – June 21 – Final Adoption

•Budget Available for Public Inspection – May 18

•Approval of State Budget and Potential Subsidy Increases

•Act 1 Impact
    – Real Estate Tax Limit – 1.40%
    – Proposed Tax Increase – 2.89%
    – Taxpayer Relief Act Reduction – $224.51
    – Approved Exceptions – Additional 3.7% Tax Increase Potential
   Goals of 2011-12 Budget
    Maintain Educational Quality with
      Reduced Funding Support:

•Balance Budget with Reduced Funding
•Support District Mission
•Preservation of Program and Class Size
•Maximization of Instructional Staff
•Continuation of Curriculum Development
Challenges in Budget Building

•Historic Loss of State Funding
•Loss of Federal Stimulus Funds
•Real Estate Market Impact
  – Low Collections in Interim Tax Collections
  – Stagnant R/E Transfer Tax Collections
  – Stagnant Earned Income Tax Collections
•Balancing the Budget with a Decrease in
 Revenues
  Revenue Loss – as of May 17
• Real Estate Taxes
   – Collection Rate Drop                $ 159,905
   – Re-assessment Losses                  400,000
   – Shannondell Re-assessment Loss        400,000
• State Revenue
   –   Basic Ed Subsidy (ARRA)            $585,227
   –   Gaming Funds (Homestead Credit)      65,893
   –   Special Ed Subsidy                   69,293
   –   Charter School                      161,123
   –   Accountability Block Grant          262,842
   –   Transportation Subsidy              204,000
   –   FICA Subsidy                        612,481
• Federal Funds
   – ARRA Stimulus Funds                   537,443
   Revenues by Source
90.0%
80.0%
70.0%
60.0%
                                          2008-09
50.0%
                                          2009-10
40.0%
                                          2010-11
30.0%
                                          2011-12
20.0%
10.0%
 0.0%
        Local   State   Federal   Other
        Revenue Distribution
•   Local Taxes           $72,129,940   79.4%
•   Other Local Revenue     1,609,000    1.8
•   State Revenue          13,411,381   14.8
•   Federal Revenue         1,065,000    1.2
•   Financing Proceeds      1,038,709    1.1
•   Fund Balance            1,550,000    1.7
• Total                   $90,804,030
         Expenditures – Proposed
•   Salaries             Up   1.32% $572,221
•   Benefits             Down 1.25% 247,485
•   Building Budget      Down 7.72% 102,705
•   Department Budgets   Down 2.21%  312,606
•   Debt Service         Down 2.41%  295,330

• Total Budget           Down   .42% $ 385,904

• Ave Increase Last 5 Years     5.03%
         Mandated Programs
•   Non-Public Transportation
•   Special Education
•   PSERS (Retirement) Contribution
•   Chapter 4 Regulations
•   Nurses
•   Librarians
    Expenditure Breakdown
•   Salaries            $44,000,884   48.6%
•   Benefits             19,473,392   21.4
•   Debt Service         10,924,415   12.0
•   Instructional Costs   8,578,103    9.4
•   Non-Instructional     7,827,236    8.6

    Total             $90,804,030
Expenditures by Function
        Mandated PSERS Rate
        Projections/Contributions
•    2010-11      5.64%       2,481,650
•   *2011-12       8. 65%     3,806,076
•   *2012-13      12.19%      5,363,708
•   *2013-14      16.69%      7,343,748
•   *2014-15      21.18%      9,319,387

    *Using Same Base Salary
     Balancing the Budget

Utilize Fund Balance
Reduce Staffing Levels
Reduce Programs and Services
Reductions to Buildings and
 Departments
Reduce Debt Service Allocation
Balancing the Budget in Dollars

Revenue Loss               $2,414,425

Tax Increase               $1,778,521
*Fund Balance                 250,000
Reduce Expenditures           385,904

 * Total Fund Balance Use   $1,250,000
Fund Balance Usage
           7
               6.04   6.07
           6
           5                 4.42   4.26    4.36
           4
Millions                                           3.11
           3
           2
           1
           0
               2007   2008   2009   2010    2011   2012
                             Fund Balance
          2011-12 Reductions
•   Building Budgets              $ 102,705
•   Department Budgets              312,606
•   Debt Service Interest           295,330
•   Teaching Staff – Salary/Benes 1,000,000
•   Admin Staff – Salary/Benes      171,430
•   Food Service Transfer           150,000
         Program Reductions
•   Transitional-1 Classes
•   Arcola 7th Grade Realignment
•   Arcola 8th Grade Realignment
•   Skyview Family & Consumer Science
•   Math Specialists
 County Rankings – 21 Districts
• Overall Cost per Pupil        14th
  – Average per District   $17,105
  – Methacton               15,755

• Millage                       13th
• Administrative Costs          18th
• Enrollment                    8th

• Wealth          State         30th
• Wealth          County        13th
             Millage Impact
Revenues                      $89,025,509
Expenditures                   90,804,030
Surplus (Deficit)             ($1,778,521)
R/E Value Per Mill             $2,419,603
Current Millage                     25.58
Additional Millage Required            .74
Proposed Millage Rate               26.32
Percentage Increase                2.89%
Tax Increase Ave Household        $130.07
              Tax Impact
• Average Residential Assessment   $176,378

• 2010-11 Tax Bill                   4,511.75
• 2011-12 Tax Bill                   4.642.27
• Increase                             130.52

• Homestead/Farmstead Credit           224.51
         Qualified Exceptions
Subject to Act 1 Limit         $870,972
Act 1 Index Limit                1.40%
Debt Service Exception         $527,514
Percentage Increase                .84%
PSERS Exception                $666,748
Percentage Increase               1.07%
Special Education Exception   $1,136,627
Percentage Increase               1.83%
Total Allowable Increase          5.14%
   2012-13 Budget Issues
• Act 1 Index - 1.1%
• Probable Loss of Exceptions
• PSERS Rate increase from 8.65% to
  12.19%
• Contractual Salary Increases
• Healthcare Premium Increase
• Future of Economy
          Looking Forward

•   Final Budget Approval - June 21
•   Implement Budget Reductions
•   2011-12 Budget Prep begins in September
•   2011-12 Act 1 Index Range     .9 – 1.1%
•   PSERS Rate Estimate             12.19%
Comments/Questions

								
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