Proposed Final Budget€¦ · Budget ($33,096,976) divided into Objects, or subjects, of expense...

Proposed Final Budget

Finance Committee Meeting

March 19, 2018

6:00 PM

Budget Discussion

• March 19th

– State Budget Update

– Staffing Analysis

– 2018-2019 Budget

– Proposed Final Budget Recommendation

LASD Budget Presentation – Preliminary Final Budget 2

LASD Budget Presentation – Preliminary Final Budget 3

LASD Budget Presentation – Preliminary Final Budget 4

LASD Budget Presentation – Preliminary Final Budget 5

LASD Budget Presentation – Preliminary Final Budget 6

LASD Budget Presentation – Preliminary Final Budget 7

Mandated Expense Increases

■ PSERS increase = $224 million in new contributions

■ Special Education Increases

■Charter School and Cyber Charter School Increases

Career & Technical Education ■ $10 million: CTE formula

■ $15 million: secondary/post-secondary access to STEM and computer science courses/programs

■ $5 million: expand STEM/computer science educator and staff development

■ $5 million: post-secondary computer science programs

■ $10 million: to prepare students/adults for jobs in STEM

■ $5 million: employer engagement in post-secondary ed

Ready to Learn Block Grant ■Level-funded at $250 million

■You receive the same amount as last year

Comprehensive

Charter School Reform

Top Concerns.

▪ The funding formula for charter schools must be changed to reflect the actual cost needed to educate students in these alternative environments.

▪ The cost of special education students attending charter schools must reflect the

actual cost to instruct students through the IEP process. ▪ Over-identification of special education students by charter schools must be

addressed.

Research for Action Study: The Fiscal Impact of Charter School Expansion. ▪ Legacy costs of charter school tuition is 44% - 68%. ▪ The total fiscal impact on local districts grows as more students depart for charters. ▪ Small districts suffer a lager fiscal impact.

EITC, ESA’s, 529’S, and the

Forces of Privatization

EITC: Education Improvement Tax Credits. Businesses can reduce

their state taxes by contributing to EITC Programs, which are mostly

private school oriented. – THUNDERBOLT FOUNDATION –

LASD receives $950 per year for AP Exams

ESA: Education Savings Accounts. Money is withdrawn from the

districts basic subsidy and sent to an account for the parents of

students in the lowest 15% of schools.

529 Plan: Now can be used for K-12 Education Expenses.

Choice and Privatization Forces will be strong in the 2018

election cycle.

Property Tax Reform 3 options to generate $7.4 billion to eliminate residential property taxes (via SB 76 proponents)

Option 1 Option 2 Option 3

PIT to 4.67% PIT to 3.3% PIT to 4.3%

No SUT increase SUT to 7% SUT to 7%

No SUT base expansion

SUT base expansion (SB 76)

No SUT base expansion

Federal Education Funds FY 2018

• An overall budget appropriations bill has not been authorized by

congress yet.

• The current continuing resolution goes through Feb. 8 and

another is likely through mid-March.

• AASA has cautioned school leaders not to expect any increase

in federal funds for 2018-2019.

• Unfortunately, level funding will be considered a win.

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Future of PlanCon

PlanCon line item was zeroed out of the 2015-16 and 2016-17 state

budgets.Plan to borrow to cover state reimbursements was developed

(implemented in spring 2016).

Moratorium on new PlanCon projects went into effect May 2016. The

moratorium expired on July 1, 2017, but was reinstated retroactively

through the 2017 school code bill in November 2017.

16 Member Legislative School Construction and Reconstruction Advisory

Committee - Report delayed.

15

STAFFING ANALYSIS

16 LASD Budget Presentation – Preliminary Final Budget

STAFFING ANALYSIS February 8, 2016

Support staff wages were reviewed and adjusted according to area comparables 12/2/17; indicates increased starting rates

Littlestown Area School District

Above Comps

Equal to

Below Comps

Secretary/Aides Starting Rate

Grounds Human Capital

Nurse/Technology Starting Rate

Bus Driver Starting Rate

Food Service Starting Rate

Teacher Starting Salary

Maintenance Starting Rate

Teacher Average Salary

Maintenance Human Capital

Classroom Size

Custodial Starting Rate

Administrative Salaries

Custodial Human Capital

Administrative Human Capital

Grounds Starting Rate

Littlestown Area School District

806

59

473

34

614

49

0

100

200

300

400

500

600

700

800

Student Enrollment Teacher

ACES MAMS LHS

TEACHER/ENROLLMENT BY BUILDING

Littlestown Area School District

5

7

15

0

2

4

6

8

10

12

14

16

Special Classes

ACES MAMS LHS

Elective Teachers by Building

Classroom Size K-8

20 21 21.5

22.2

20.5

25.7

22.4 22.4 22.7

6 7

6 6 6 6 7 7 7

0

5

10

15

20

25

30

Class Size Teacher per grade

Littlestown Area School District

Core Teachers Grades 9-12

5

6

5 5

4

5

6

7

Social Studies English Math Science

Teacher per subject

Littlestown Area School District

Littlestown Area School District

ACES MS HS DO BUS MAINT CAFÉ TOTAL

ADMIN 2 2 3 5 1 1 1 15

SECRETARY 2.5 2 3.5 6 14

TA/PA 8 1.5 2.5 12

CUST/MAINT 4.5 3 6 1 5 19.5

LPN 1 1 2

TECHNOLOGY 1 1 2

BUS DRIVERS 17 17

CAFÉ 28 28

TOTAL 18 8.5 17 12 19 6 29 109.5

STAFF PER BUILDING PER GROUP

2018-2019 BUDGET

23 LASD Budget Presentation – Preliminary Final Budget

2018-2019 Budget

24

.3589 Mill Increase 0 Mill Increase

Revenues $32,451,238 $31,997,949

Expenses $32,692,189 $32,692,189

To/(From) Fund Balance ($240,951) ($694,240)

Technology Reserve ($404,787) ($404,787)

Proposed Final Budget ($645,829) ($1,099,027)

LASD Budget Presentation – Preliminary Final Budget

25 LASD Budget Presentation – Preliminary Final Budget

Local Effort 60%

State Subsidy 39%

Federal Subsidy 1%

Funding by Major Function

Real Estate, $15,009,052, 78%

Earned Income, $3,750,000, 19%

PerCapita, $90,000, 1%

Other, $471,900 , 2%

Local Effort

26

Regular Ed 45%

Special Ed 16%

Voc Ed 4%

Other Instr 1%

Non Public School 0%

Student Svcs 3%

Staff Svcs 4%

Admin 6%

Pupil Health 1%

Business 1%

Opn & Maint 6%

Stu Trans Svcs 4%

Central Svc 1%

Othr Supt Svc 0%

Stu Act & Athletic 2%

Comty Svc 0%

Debt Svc 6%

Interfund Xfer 1%

Budget Resrv 0%

Budget ($33,096,976) divided into Functions, or departments, of expense

66% of budget - instruction (in-classroom)

LASD Budget Presentation – Preliminary Final Budget

27

Budget ($33,096,976) divided into Objects, or subjects, of expense

LASD Budget Presentation – Preliminary Final Budget

Wages 42%

Benefits 26%

Purch Srvc 9%

Property Srvc 1%

Tuition Trans Comm 9%

Supply & Energy 4%

Equipment 2%

Dues Fees Interest 4% Debt/Other

3%

66% of budget - wages and benefits

Budget Update

.3589 Mill Increase 0 Mill Increase

Preliminary Budget – December 2017 ($195,829) ($649,118)

District Savings/Additional Revenue $258,878 $258,878

District Priorities ($304,000) ($304,000)

School Safety ????? ?????

To/(From) Fund Balance ($240,951) ($694,240)

Technology Reserve ($404,787) ($404,787)

Proposed Final Budget ($645,829) ($1,099,027)

28 LASD Budget Presentation – Preliminary Final Budget

Fund Balance and Capital Reserve

29

Based on a .3589 Mill Increase

LASD Budget Presentation – Preliminary Final Budget

Budget Proposals Option A Option B

.3589 Mill Increase .2316 Mill Increase

Preliminary Budget – December 2017 ($195,829) ($354,459)

District Savings/Additional Revenue $258,878 $258,878

District Priorities ($304,000) ($224,000)

School Safety ????? ?????

To/(From) Fund Balance ($240,951) ($319,581)

Technology Reserve ($404,787) ($404,787)

Proposed Final Budget ($645,829) ($724,368)

30 LASD Budget Presentation – Preliminary Final Budget

Option A – 3.1% increase with all District Priorities Option B – 2.0% increase removing $80,000 from Priorities

31 LASD Budget Presentation – Preliminary Final Budget

Next Budget Discussion

• April 16th Work Session

– Proposed Final Budget

32 LASD Budget Presentation – Preliminary Final Budget