2014-2015 proposed final budget state college area school district may 5, 2014
TRANSCRIPT
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2014-2015 PROPOSED FINAL BUDGET
State College Area School DistrictMay 5, 2014
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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
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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
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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
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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
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Cohort and Centre County School Districts Real Estate Tax
2014-15 Projected Tax
Increase Exceptions Act 1 Index2013-14
Millage Rate2014-15
Proposed Rate
Bellefonte 2.38% 0.00% 2.70% 47.4107 48.5392
Bald Eagle 3.96% 1.06% 2.90% 50.5500 52.5500
Penns Valley 4.20% 1.60% 2.60% 43.2348 45.0489
State College 1.95% 0.00% 2.10% 38.7500 39.5056
Tredyffrin-Easttown 3.20% 1.10% 2.10%
Cumberland Valley 2.10% 0.00% 2.10%
Parkland 2.10% 0.00% 2.10%
Lower Merion 4.11% 2.01% 2.10%
North Allegheny 9.56% 7.46% 2.10%
Abington 4.53% 2.43% 2.10%
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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%
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Revenue
• Local• District primarily locally funded
• State• Projected level funding with exception of PSERS reimbursement
• Federal• Projected level with small decrease in Title funds
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2014-15 Revenue by Source
LOCAL SOURCES 104009000 83%
STATE SOURCES 20502507 16%
FEDERAL SOURCES 645000 1%
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Local Revenue
$82,900,000
$15,560,000
$1,500,000 $1,100,000 $2,949,000
REAL ESTATE TAX
EARNED INCOME TAX
REALTY TRANSFER TAX
DELINQUENT REAL ESTATE TAX
OTHER
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Historical Real Estate Tax Percentage Change
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Proposed
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
5.25%
3.13%
4.89% 4.99%
4.10%
6.17%
3.50%
5.60%
3.80%
-0.50%
3.70%
3.30%3.00%
2.65%2.40%
2.70%
1.95%
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2014-15 Proposed BudgetExpense By Category
Salaries 57,930,679 46%
Health Insurance 12,359,179 10%
PSERS 12,230,840 10%
Other Benefits 5,961,928 5%
Professional Services 4,170,202 3%
Purchased Property Services 2,062,916 2%
Charter Schools 5,095,152 4%
Other Purchased Services 5,120,408 4%
Supplies/Equipment 5,739,856 5%
Minor Capital Projects 2,055,717 2%
Other Uses of Funds 13,253,931 10%
Total 125,980,808
Total Salaries and Benefits 88,482,626 70%
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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
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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
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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
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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