casd's 2016-2017 proposed budget

8/17/2019 CASD's 2016-2017 Proposed Budget

1/29

1

Proposed General Fund Budget

May 11, 2016

May 11, 2016


2/29

2

May 2: Budget Enacted, Fiscal Code EnactedMay 11, 2016


3/29

3

29,038,503

30,882,663

33,046,059

31,934,276 31,536,497

32,802,99633,346,432

35,376,055

37,013,756

39,647,374

1,299,672 1,523,331 995,680 1,212,883 1,268,6941,959,815

2,953,398

4,193,524

5,421,944

6,658,040

27,738,831

29,359,332

32,050,379

30,721,393 30,267,80330,843,181 30,393,034

31,182,531 31,591,812

32,989,334

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Commonwealth Funding for CASD04/19/2016 1110

Total State Funding for education increases each year

to "record" levels. However, most of the additional

funds in the last few years pay for increases in

retirement contributions for existing staff. Very littleis left for additional teachers or classroom needs.

Total State Funding

Five year average growth rate of 4.85%.

Ten year average growth rate of 3.52%.

Total State Funding less Retirement Subsidies



Retirement Subsidies



May 11, 2016


4/29

4

2016-2017 Major Cost Growth Drivers

to retain the existing staff at CASD without new hires

CASD2015-2016

Estimated

2016-2017

Anticipated

Payroll 51,900,000 53,457,000 1,557,000 3.00%

Health Care 13,135,000 14,527,310 1,392,310 10.60%

Dental Care 706,000 727,180 21,180 3.00%

Retirement (net cost; after subsidy) 6,705,480 8,026,569 1,321,089 19.70%

Tuition Reimbursements 535,000 545,000 10,000 1.87%

Workmen's Compensation 359,000 373,000 14,000 3.90%

Compensation 73,340,480 77,656,059 4,315,579 5.88%

Change

May 11, 2016


5/29

Payroll

Almost all employees will receive at least a

3.0% pay increase for 2016-2017.

With a projected total payroll of $51.9 millionin 2015-2016, an increase of almost $1.6

million is expected.

5

May 11, 2016


6/29

Health Care

After years of very slowly growing health care

costs, CASD’s renewal for 2016-2017 is anincrease of 10.6%.

With projected costs of $13.1 million in 2015-

2016, an increase of $1.4 million is expected.

6

May 11, 2016


7/29

Retirement

2016-2017 will be another fiscal year with a

large increase in the retirement contributionrate. The underlying rate increase is 16.2%,

and pay raises drive the cost up further.

With projected net (the Commonwealth

subsides half of the total) costs of $6.7 million

in 2015-2016, an increase of $1.3 million is

expected.7

May 11, 2016

40 00%


8/29

8

1 1 . 3

2 %

1 1 . 9

2 %

1 2 . 3

6 % 1

3 . 7

0 %

1 2 . 5

8 %

1 2 . 3

4 %

1 1 . 8

6 %

1 0 . 4

6 %

9 . 9

6 %

9

. 2 2 %

8 . 8 4 %

9 . 3

2 %

9 . 0

6 %

9 . 2

6 %

9 . 9

0 %

9 . 9

0 %

9 . 9

0 %

9 . 9

0 %

1 0 . 6

6 %

1 0 . 6

6 %

1 1 . 0

4 %

1 1 . 7

0 % 1

3 . 3

1 %

1 3 . 3

1 %

1 3 . 3

1 %

1 3 . 3

1 %

1 5 . 0

0 %

1 5 . 0

0 %

1 6 . 0

0 %

1 7 . 0

6 %

1 9 . 3

1 %

2 0 . 0

4 %

1 9 . 9

0 %

1 9 . 5

4 %

1 9 . 2

7 %

1 9 . 6

8 %

1 9 . 1

6 %

1 4 . 9

0 %

1 4 . 2

4 %

1 3 . 1

7 %

1 1 . 0

6 %

1 1 . 7

2 %

1 0 . 6

0 %

8 . 7

6 %

6 . 0

4 %

4 . 6

1 %

1 . 9

4 %

1 . 0

9 %

1 . 1 5 %

3 . 7

7 %

4 . 2

3 %

4 . 6

9 %

6 . 4

6 %

7 . 1

3 %

4 . 7

6 %

4 . 7

8 %

5 . 6

4 %

8 . 6

5 %

1 2 . 3

6 %

1

6 . 9

3 %

2 1 . 4

0 %

2 5 . 8

4 %

3 0 . 0

3 %

3 2 . 0

4 % 3

3 . 2

7 %

3 4 . 2

0 %

3 3 . 5

1 %

3 3 . 5

1 %

3 3 . 7

5 %

3 3 . 8

4 %

3 3 . 9

4 %

3 4 . 1

8 %

3 4 . 3

0 %

3 2 . 1

0 %

3

2 . 2

0 %

3

2 . 3

1 %

3 2 . 4

3 %

3 2 . 5

8 %

3 2 . 7

2 %

3 2 . 8

8 %

3 3 . 0

3 %

1 8 . 1

2 %

1 4 . 2

7 %

1 2 . 4

6 %

1 0 . 4

3 %

8 . 8 0 %

7 . 2

8 %

5 . 9

3 %

4 . 5

5 %

4 . 1

4 %

4 . 0

0 %

3 . 8

8 %

3 . 7

5 %

3 . 6

2 %

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1 9 5 4 - 1 9 5 5

1 9 5 5 - 1 9 5 6

1 9 5 6 - 1 9 5 7

1 9 5 7 - 1 9 5 8

1 9 5 8 - 1 9 5 9

1 9 5 9 - 1 9 6 0

1 9 6 0 - 1 9 6 1

1 9 6 1 - 1 9 6 2

1 9 6 2 - 1 9 6 3

1 9 6 3 - 1 9 6 4

1 9 6 4 - 1 9 6 5

1 9 6 5 - 1 9 6 6

1 9 6 6 - 1 9 6 7

1 9 6 7 - 1 9 6 8

1 9 6 8 - 1 9 6 9

1 9 6 9 - 1 9 7 0

1 9 7 0 - 1 9 7 1

1 9 7 1 - 1 9 7 2

1 9 7 2 - 1 9 7 3

1 9 7 3 - 1 9 7 4

1 9 7 4 - 1 9 7 5

1 9 7 5 - 1 9 7 6

1 9 7 6 - 1 9 7 7

1 9 7 7 - 1 9 7 8

1 9 7 8 - 1 9 7 9

1 9 7 9 - 1 9 8 0

1 9 8 0 - 1 9 8 1

1 9 8 1 - 1 9 8 2

1 9 8 2 - 1 9 8 3

1 9 8 3 - 1 9 8 4

1 9 8 4 - 1 9 8 5

1 9 8 5 - 1 9 8 6

1 9 8 6 - 1 9 8 7

1 9 8 7 - 1 9 8 8

1 9 8 8 - 1 9 8 9

1 9 8 9 - 1 9 9 0

1 9 9 0 - 1 9 9 1

1 9 9 1 - 1 9 9 2

1 9 9 2 - 1 9 9 3

1 9 9 3 - 1 9 9 4

1 9 9 4 - 1 9 9 5

1 9 9 5 - 1 9 9 6

1 9 9 6 - 1 9 9 7

1 9 9 7 - 1 9 9 8

1 9 9 8 - 1 9 9 9

1 9 9 9 - 2 0 0 0

2 0 0 0 - 2 0 0 1

2 0 0 1 - 2 0 0 2

2 0 0 2 - 2 0 0 3

2 0 0 3 - 2 0 0 4

2 0 0 4 - 2 0 0 5

2 0 0 5 - 2 0 0 6

2 0 0 6 - 2 0 0 7

2 0 0 7 - 2 0 0 8

2 0 0 8 - 2 0 0 9

2 0 0 9 - 2 0 1 0

2 0 1 0 - 2 0 1 1

2 0 1 1 - 2 0 1 2

2 0 1 2 - 2 0 1 3

2 0 1 3 - 2 0 1 4

2 0 1 4 - 2 0 1 5

2 0 1 5 - 2 0 1 6

2 0 1 6 - 2 0 1 7

2 0 1 7 - 2 0 1 8

2 0 1 8 - 2 0 1 9

2 0 1 9 - 2 0 2 0

2 0 2 0 - 2 0 2 1

2 0 2 1 - 2 0 2 2

2 0 2 2 - 2 0 2 3

2 0 2 3 - 2 0 2 4

2 0 2 4 - 2 0 2 5

2 0 2 5 - 2 0 2 6

2 0 2 6 - 2 0 2 7

2 0 2 7 - 2 0 2 8

2 0 2 8 - 2 0 2 9

2 0 2 9 - 2 0 3 0

2 0 3 0 - 2 0 3 1

2 0 3 1 - 2 0 3 2

2 0 3 2 - 2 0 3 3

2 0 3 3 - 2 0 3 4

2 0 3 4 - 2 0 3 5

2 0 3 5 - 2 0 3 6

2 0 3 6 - 2 0 3 7

2 0 3 7 - 2 0 3 8

2 0 3 8 - 2 0 3 9

2 0 3 9 - 2 0 4 0

2 0 4 0 - 2 0 4 1

2 0 4 1 - 2 0 4 2

2 0 4 2 - 2 0 4 3

2 0 4 3 - 2 0 4 4

2 0 4 4 - 2 0 4 5

2 0 4 5 - 2 0 4 6

2 0 4 6 - 2 0 4 7

2 0 4 6 - 2 0 4 7

PSERS Contribution Rate History and Projections - December 201504/14/2016 1112

2016-2017 PSERS rate,

certified 12/8/2015

May 11, 2016


9/29

9

1 , 7 8 4 , 5 7 4

2 , 5 9 5 , 8 4 7

3 , 0 4 1 , 7 1 0

2 , 0 9 4 , 3 2 2

2 , 2 3 5 , 4 5 1

2 , 5 7 2 , 8 2 9

3 , 9 2 5 , 8 1 9 5

, 9 0 0 , 4 8 4

8 , 3 9 0 , 6 8 1

1 0 , 7 7 1 , 1 7 6

8 9 2 , 2 8 7

1 , 2 9 7

, 9 2 4

1 , 5 2 0 , 8 5 5

1 , 0 4 7 , 1 6 1

1 , 1 1 7 , 7 2 6

1 , 2 8 6 , 4 1 5

1 , 9

6 2 , 9 1 0

2 , 9 5 0 , 2 4 2

4 , 1 9 5 , 3 4 1

5 , 3 8 5 , 5 8 8

1 3

, 0 8 9 , 6 0 1

1 6 , 0 5 3 , 1 3 7

1 7 , 2 5 7 , 1

2 2

6 , 5 4 4 , 8

0 1

8 , 0 2 6 , 5 6 9

8 , 6 2 8 , 5 6 1

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Retirement Expenses (note: Commonwealth subsidizes 50%)

Retirement (Gross)

Retirement (Net)

Retirement (Gross Projection)

Retirement (Net Projection)

04/22/2016 1514

May 11, 2016

30 000 000


10/29

10

7

, 8 4 6 , 7 3 8

8 , 7 4 5 , 2 1 1

8 , 9 1 8 , 5 5 7

8 , 5 3 0 , 5 7 7

9 , 0 8 2 , 7 9 7

9 , 5 6 4 , 5 5 6

9 , 3 8 9 , 1 0 7

1 0 , 0 8 8 , 5 5 8

1 1 , 2 2 5 , 6 6 4

1 1 , 4 1 3 , 2 3

9

1 1 , 9 8 8 , 1 3 7

1 3 , 2 5 2 , 8 8 8

1 4 , 1 7 2 , 7 1 3

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Health Care Expenses

Health Care

Health Care (Projection)

04/14/2016 1356

May 11, 2016

30 000 000


11/29

11892,287 1,297,924

1,520,855 1,047,161 1,117,726 1,286,4151,962,910

2,950,2424,195,341

5,385,588

7,846,738

8,745,2118,918,557

8,530,5779,082,797

9,564,5569,389,107

10,088,558

11,225,664

11,413,239

6,544,8018,026,569 8,628,561

11,988,137

13,252,888

14,172,713

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Retirement and Health Care Expenses

Health Care

Retirement (Net)

04/22/2016 1514

$21.3

million

total, anincrease

of $2.7

million

May 11, 2016


12/29

12

2016-2017 Major Cost Growth Driversincreases in compensation for existing staff

CASD2015-2016

Estimated

2016-2017

Anticipated

Payroll 51,900,000 53,457,000 1,557,000 3.00%

Health Care 13,135,000 14,527,310 1,392,310 10.60%

Dental Care 706,000 727,180 21,180 3.00%

Retirement (net cost; after subsidy) 6,705,480 8,026,569 1,321,089 19.70%

Tuition Reimbursements 535,000 545,000 10,000 1.87%

Workmen's Compensation 359,000 373,000 14,000 3.90%

Compensation 73,340,480 77,656,059 4,315,579 5.88%

Change

$4.3 million in additional compensation expense provides funds for ZERO

additional staff members to support a rapidly growing student population.

May 11, 2016


13/29

13

2016-2017 Major Cost Growth Drivers

increases in anticipated special needs / other placements

Special Needs and Other Placements Change

Multi-Handicapped contracted services 263,000

Early Intervention contracted services 31,000

Behavioral Intervention contracted services 250,000

Total Increase over 2015-2016 544,000

May 11, 2016


14/29

Student Enrollment

Chambersburg Area School District is one of

the fastest growing school districts inPennsylvania.

– From 2012-2013 to 2014-2015

19th fastest growing of 500 by total enrollment.

State-wide data for 2015-2016 not yet available.

CASD 2015-2016 enrollment increase was above the

recent growth trend.

14

May 11, 2016


15/29

15

May 11, 2016


16/29

Student Enrollment Growth

including 2015-2016

District wide: Accelerating rapidly

– 10 year average growth @ 73 students per year



– 2012-2013 8,856 students

– 2013-2014 8,895 students, an increase of 39



16

May 11, 2016


17/29


including 2015-2016

High School: Fastest CASD growth – 10 year average growth @ 27 students per year



17

May 11, 2016


18/29


including 2015-2016

Middle School: Flat to declining


– 5 year average growth @ -23 students per year

– 3 year average growth @ -30 students per year

18

6th grade 7th grade 8th grade Middle School

2015-2016 677 654 658 1,989

2018-2019

(students currently

in 3rd, 4th & 5th)

742 754 715 2,211

Increase 65 100 57 222

May 11, 2016


19/29


including 2015-2016

Elementary: Strong growth




• The current K (712) and 1st (690) classes are smaller than

the current 2nd (763), 3rd (742), 4th (754), and 5th (715)

classes. Enrollment forecast studies predicted a temporary

decrease, but also a return to 720+ class sizes.

19

May 11, 2016


20/29

20

2016-2017 Sources of Revenue Increaseswithout a real estate tax rate increase

CASD Change

Earned Income Tax 142,000

Growth of Real Estate Tax Base 700,000

Basic Education, Special Education Funding, Ready to Learn Grant 975,000

Transportation Subsidy 100,000

Additional Revenue without a Real Estate Tax Rate Increase 1,917,000

May 11, 2016

10.00%


21/29

21

3 . 9 0 %

3 . 4 0 %

4 . 4 0 %

4 . 1 0 %

2 . 9 0 %

1 . 4 0 % 1

. 7 0 %

1 . 7 0 %

2 . 1 0 %

1 . 9 0 %

2 . 4 0

%

4 . 7 0 %

4 . 1 0 %

5 . 3 0 %

4 . 9 0 %

3 . 4 0 %

1 . 7 0 %

2 . 1 0 %

2 . 1 0 %

2

. 6 0 %

2 . 4 0

%

3 . 0 0 %

4 . 5 9 %

2 . 7 1 %

7 . 2 0 %

7 . 1 5 %

5 . 4 9 %

8 . 8 1 %

5 . 2 9 %

4 . 9 0 %

5 . 5 0 %

3 . 5 0 %

0 . 0 0 %

1 . 0 0 %

2

. 6 0 %

2 . 4 0

%

0.00%

2.00%

4.00%

6.00%

8.00%

2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Real Estate Tax Rate Increases - Chambersburg Area School District

Act 1 Base Index

Act 1 Adjusted Index

Approved Real Estate Tax Increase

05/02/2016 1414

May 11, 2016


22/29

22

2016-2017 Sources of Revenue Increaseswith a real estate tax rate increase

CASD Change

Earned Income Tax 142,000

Growth of Real Estate Tax Base 700,000

Basic Education, Special Education Funding, Ready to Learn Grant 975,000

Transportation Subsidy 100,000

Real Estate Tax Rate Increase at Adjusted Index of 3.0% 2,000,000

Additional Revenue with a Real Estate Tax Rate Increase 3,917,000

May 11, 2016


23/29

Option #1

Maintain $2.2 million Budget Deficit

This option doesn’t eliminate the deficit, butrather keeps it from growing.

Introduces severe reductions in funding for

supplies, textbooks, and equipment.

– Reductions lower levels than 2011-2012.

– Holds the line on staff reductions.

23

May 11, 2016

4,000,000


24/29

24

2,114,651

910,325

467,581553,270

834,708

1,724,7391,688,191

2,161,973

1,899,167

208,975

1,192,4681,153,386

951,475 927,225

764,118

908,238

800,452

1,061,471 1,061,806

620,455

0

1,000,000

2,000,000

3,000,000

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Budget

2016-2007

Proposed

Purchased Items

Equipment

Textbooks, Instructional Media

04/13/2016 0908

May 11, 2016


25/29

Option #2

Eliminate Budget Deficit

This option’s objective is to eliminate the

budget deficit in a single fiscal year.

In addition to the previously described budget

reductions, staff reductions are all butessential.

– The expenditure equivalent of 27 staff reductionswould be needed for another $2.2 million in

budget savings.

25

May 11, 2016


26/29

2016-2017 Proposed Budget

The PDE-2028 budget document is based on

option #1.

– $130,078,747 planned expenditure.

– $3,000,000 budgetary reserve. For several years, the budget has included a $5 million

budgetary reserve. Projections indicate CASD will not

have enough fund balance to support $5 million.

– $133,078,747 maximum expenditure.

26

May 11, 2016


27/29

2016-2017 Proposed Budget

– $127,845,880 anticipated revenue.

– 101.378 mills real estate tax rate.

3.0% Act 1 adjusted base index increase.

27

May 11, 2016


28/29

Next Steps

May 11, 2016 – Tentative Budget vote

May 25, 2016 – Budget Hearing – A separate meeting, usually held on the same evening as,

and immediately prior to, the regular Board meeting.

June 15, 2016 – Budget Adoption vote – Must occur at least 30 days after tentative budget vote

28

May 11, 2016


29/29

29

Proposed General Fund Budget

May 11, 2016

May 11, 2016

casd's 2016-2017 proposed budget

Documents