2015-2016 G ENERAL F UND B UDGET BUDGET PROCESS Resolution Pursuant to Taxpayer Relief Act by...

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2015-2016 GENERAL FUND BUDGETBUDGET PROCESS

Resolution Pursuant to Taxpayer Relief Act by

January 29, 2015

Resolution Passed January 26, 2015, won’t

increase taxes more than 2.7% - from 17.34

mills to 17.80

PROPOSED BUDGET DEADLINE MAY 31, 2015,

MADE AVAILABLE REVIEW OR

DUPLICATION 2O DAYS PRIOR TO ADOPTION

FINAL ACTION NOT TAKEN UNTIL AFTER 10 DAYS PUBLIC NOTICE:

JUNE 30, 2015ADOPTION DEADLINE

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PUBLIC PARTICIPATION

Proposed Final budget must be available for public inspection no later than June 10,2015.

Public notice of intent to adopt the final budget must be published no later than June 20,2015.

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BUDGET ELEMENTS• Tax Levies• State Appropriations• Federal Programs

REVENUES

• Salaries and Benefits• Program budgets-books, supplies,

equipment• Building budgets-maintenance,

utilities, debt serviceEXPENDITURES

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EXPENDITURES MANDATED OR REQUIRED TO BE SPENT

CONTRACTUA

L•SALARI

ES•BENEFI

TS

STATE MANDATE

•SPECIAL EDUCATION

•CHARTER AND CYBER SCHOOL

•ENGLISH AS SECOND LANGUAGE

•KEYSTONE EXAMS

FEDERAL

MANDATE

•SPECIAL EDUCATION

•TESTING REQUIREMENTS FOR NCLB

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HISTORICAL EXPENDITURES

45%

22%

2%

2%

3%

5%

8%

1%

3%

1%

1%

1%

4%3%

2013-14 Expenditures

SALARIES BENEFITS PROF SERVICESPROPERTY SERVICES CHARTER SCHL TUITION OTHER TUITIONSTUDENT TRANSPORTATION OTHER PURCH SERV SUPPLIESEQUIPMENT BOND INTEREST MISCELLANEOUSBOND PRINCIPAL FUND TRANSFERS

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SALARIES AND BENEFITS 2014-15

SALARIES SALARIES AND BENEFITS REPRESENT THE

LARGEST PERCENTAGE OF BUDGETED EXPENDITURES

CURRENTLY THERE IS ONLY ONE PLANNED TEACHER RETIREMENT THAT WILL NOT REQUIRE A REPLACEMENT

TWO RETIREES ARE AT THE TOP OF THE SCHEDULE AND WILL BE REPLACED WITH BEGINNING TEACHERS

THERE WILL BE ONE ENGLISH TEACHER AT THE HIGH SCHOOL TRANSFERRED TO A VACANT ENGLISH POSITION AT THE MIDDLE SCHOOL.

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SALARY AND WAGE INCREASES

Almost all staff salary increases are governed by collective bargaining or Act 93(Administrative staff agreements).

Teachers 161 positions-- 2.46% increase Administrators 13 positions– 2.46% increase Confidential/Technical 7 positions—2.0%

increase Secretaries 13 positions--1% increase Custodians/Maintenance 27 positions --1%

increase

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BENEFIT TRENDS HEALTH INSURANCE 10% INCREASE 2015-16

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

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RETIREMENT RATE INCREASES

2011-12 2012-13 2013-14 2014-15 2015-16

8.65% 12.36% 16.93% 21.4% 25.84%

2011-12 2012-13 2013-14 2014-15 2015-16

$1,171,525

$1,594,131

$2,226,017

$2,811,570

$3,434,701

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STUDENT TUITION COSTS

AUDITED BUDGETED BUDGETED

2013-14 2014-15 2015-16

OTHER LOCAL EDUCATING AGENCIES $280,060.00 $247,095.00 $240,872.00

CHARTER SCHOOL $829,294.00 $768,000.00 $813,000.00

PRIVATE NONPROFIT PLACEMENTS $207,749.00 $264,807.00 $362,364.00

VENANGO TECHNOLOGY CENTER $1,072,364.00 $1,135,519.00 $1,151,879.00

APPROVED PRIVATE SCHOOLS $12,663.00 $72,795.00 $72,794.00

PRIVATE RESIDENTIAL REHAB INSTITUTIONS $28,269.00 $17,000.00

OTHER $175.00

TOTAL $2,150,514.00 $2,488,216.00 $2,657,909.00

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DEBT SERVICE

Existing debt is for Central Elementary and the High School Stadium

About 4.5% total school expenditures -- constant amount. Debt is “wrapped around”.

All debt now refinanced at lower rate of interest

Current debt service on the Stadium is paid for from the Capital Reserve fund(Fund 32)

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CHANGE IN DEBT SERVICE

2013-14 2014-15 2015-16$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

PrincipalInterest

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2015-16 PROJECTED EXPENDITURES

SALARIES42%

BENEFITS26%

PROFESSIONAL SERVICES

2%

PROPERTY SERVICES

2%

CHARTER SCHL TUITION

3%

OTHER TUITION6%

STUDENT TRANSPORTA-

TION6%

OTHER PUR-CHASED SERVICES

3%

SUPPLIES4%

EQUIPMENT2%

BOND INTEREST1%

BOND PRINCIPAL4%

CONTINGENCY1%

MISCELLANEOUS0%

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REVENUESREVENUES CONSIST OF LOCAL, STATE AND FEDERAL REVENUE

IN 2013-14, THE LAST AUDITED YEAR, LOCAL REVENUE WAS 39%

STATE REVENUE WAS 57%

FEDERAL REVENUE WAS 4%

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LOCAL REVENUES 2015-16

86%

4%

5%

5%

RE AND EI TAXIDEADELINQUENT R.E. TAXREMAINING

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STATE REVENUE-THE GOVERNORS BUDGET

RESTORATION OF PAST FUNDING

RESTORATION OF THE $159 MILLION CUT TO ACCOUNTABILITY BLOCK GRANT IN 2011-12

RESTORATION OF THE $47 MILLION CUT TO THE TUTORING GRANT IN 2011-12

PARTIAL CHARTER SCHOOL REIMBURSEMENT RESTORATION

PARTIAL RESTORATION OF BEF CUTS AMOUNTING TO $54 MILLION FROM 2009-10

Source: PASBO

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COMPARATIVE STATE BUDGETS

2014-15 ESTIMATED GOVERNOR'S BUDGET 2015-16 FRANKLIN BUDGET 2015-16

?BASIC EDUCATION $11,216,596 $11,521,797 $11,521,797

ACCOUNTABILITY BLOCK GRANT $0 $258,752 $258,752

EAP(TUTORING GRANT) 0 $82,314 0

CHARTER SCHOOL REIMB 0 $86,732

ADDITIONAL BEF RESTORATION 0 $147,842

READY TO LEARN BLOCK GRANT $305,201 $0

$11,521,797 $12,097,437 $11,780,549

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BUDGET 2015-16– REVENUES MUST EQUAL EXPENDITURES

REVENUES $30,696,099

EXPENDITURES $31,848,634

DIFFERENCE ($1,152,535)

REDUCE STAFF

USE OF FUND BALANCE

ECONOMIES OF SCALE

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FUTURE CONSIDERATIONS: PSERS OBLIGATIONS

Fiscal yr Ending June

Total EmployerContrib. %

Estimated Wages 2.0%

Projected Total Employer Contribut.

Net Contribut.(50% State Reimbuse)

14/15 0.2140 13,310,593 2,848,467 1,424,233

15/16 0.2584 13,451,621 3,475,899 1,737,949

16/17 0.2969 13,720,653 4,073,662 2,036,831

17/18 0.3062 13,995,066 4,285,289 2,142,645

18/19 0.3156 14,274,968 4,505,180 2,252,590

19/20 0.3223 14,560,467 4,692,839 2,346,419

20/21 0.3202 14,851,677 4,755,507 2,377,753

21/22 0.3190 15,148,710 4,832,439 2,416,219

22/23 0.3196 15,451,684 4,938,358 2,469,179

23/24 0.3190 15,760,718 5,027,669 2,513,835

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FUTURE CONSIDERATIONS

SHRINKING STUDENT ENROLLMENT According to October 1, enrollment numbers

there has been a decrease of 313 students over the last 11 years.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

ElementarySecondary

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SAVINGS IN CLOSING UTICA-STAFF

5 TEACHERS- @ $66,544.06—Bachelor second step and individual benefits $332,720

2 CUSTODIANS- $12.19 - $12.59 an hour and family benefits $100,062

SECRETARY- $44,926

ADMINISTRATOR- $93,809

CAFETERIA STAFF- $26,000

TOTAL $597,517

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SAVINGS IN OTHER AREAS

Snowplowing and Lawn Care $7400

Electricity $16,000

Maintenance and Repair $12,000

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ADDITIONAL SAVINGS

Travel and Communications $7,300

Custodial Supplies $2,000

Natural Gas $12,200

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TECHNOLOGY COSTS

Computers need replaced $30,000

Wireless connectivity $6,000VOIP $11,000

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2013-14 EXPENDITURES PER STUDENT

CENTRAL SANDYCREEK VICTORY UTICA$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00

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UTICA EXPENDITURES PER YEAR-AUDITED

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

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CONCLUSIONS

BUDGET IS TENTATIVE—WAITING FOR FIRM COSTS ON SOME ITEMS, SUCH AS RIU TUITION

STATE SHARE IS OPEN TO INTERPRETATION- IF WE ASK FOR NOTHING WE WILL GET NOTHING

A TAX HIKE TO THE MAX IS INCLUDED-247,599 MORE COLLECTED

SHRINKING ENROLLMENT, INCREASING SPECIAL COSTS AND INCREASING PSERS REMAIN PROBLEMS