2015-2016 BUDGET PRESENTATION

GOVERNOR’S BUDGET PROJECTIONS AND EXPECTATIONS

FAIRFIELD AREA SCHOOL DISTRICT PROJECTED REVENUES, MILLAGE, AND INDEX

CAPITAL ITEMS INCLUDED IN PROPOSED BUDGET

FAIRFIELD AREA SCHOOL DISTRICT PROJECTED EXPENSES AND DEFICIT

TIMELINES DISCUSSION/QUESTIONS

GOVERNOR’S BUDGET

Proposed Tax Increases Directly Imposed on Taxpayer and Businesses Personal Income Tax Hike From 3.07% to 3.7% Sales Tax Hike to 6.6% With Additional Items

Being Taxed Cigarette Tax Tax on Other Tobacco Products Severance tax (Natural Gas) Bank Shares Tax Corporate Tax Reform

WHAT DOES THIS POTENTIALLY MEAN FOR US?

Part of the Governor’s goal is to increase educational spending while decreasing the state deficit and decreasing property taxes

Restore the cut to the Accountability Block Grant Restore the Educational Assistance Program Restore partial Charter School reimbursement Restore funding for Dual Enrollment Programs Increase funding for Career and Technical Education Increase funding for Early Childhood Education Increase in Special Education funding based on dynamic

formula Maintain funding at current levels for Transportation,

School Food Services, and Safe School Initiatives

OTHER PROPOSED CHANGES Cyber Charter School Reform – Establish a statewide tuition rate at

$5,950 for regular education students and a rate based on expense category for special education students with a minimum of $8,985 and a maximum of $44,387

Currently the district pays $9,043.46, per student, for regular education and $17,622 for special education to charter schools and expense is budgeted to be approximately for the 2015-2016 fiscal year

Proposal to fully fund pension obligations by reducing excessive investment management fees, reducing high risk investment strategies, eliminating the charter/cyber charter pension double dip, and ensuring all contributions are paid in full

School districts should see a reduction in their employer contribution in 2016-2017 through allocation of monies from increased Liquor Control Board profits

The increase from 2014-2015 to 2015-2016 is 20.7% and equates to approximately $153,923 for the Fairfield Area School District net of anticipated reimbursement.

CONTINUED….. Fund Balance Restrictions – no school district could raise real

property taxes unless the adopted budget includes a fund balance that has an estimated ending UNASSIGNED fund balance equal to or less than 4% of its total expenditures

The Governor’s Budget also includes an increase in minimum wage from $7.25 to $10.10 For the Fairfield Area School District this equates to

approximately $975 in additional payroll dollars for the general fund

Basic Education Funding Commission must issue a report by June 10, 2015 with recommendations for a new formula Items discussed include the elimination of hold harmless Enrollment Demographics Other expenses

ACCOUNTABILITY

The budgeted increase to Basic Ed Funding does not come without strings

Districts are required to submit a plan to PDE by May 15, 2015 Describe the intended use of funds Show how funds will increase student success

with 9 Benchmarks established 14 Prescribed Uses of Funding

Plan will be approved by June 15, 2015Keep in mind, final budget approval is due by

June 30, 2015

PROPERTY TAX RELIEFGovernor wishes to “Reduce the average

homeowner’s property tax by 50%...many senior citizens will see their property taxes eliminated altogether.”

A very long formula results in 114 school districts receiving 100% residential property tax reduction, 83 at only 25% and the median remaining at 53%

Not having a philosophical or political discussion on the effects on the individual as this is to broad and varied

DOLLARS FOR FAIRFIELD Governor’s Budgeted Effect on Fairfield Area

School District

$220,111 Increase in Basic Ed Subsidy and Block Grant

$35,619 Increase in Special Education Funding $155,905 Decrease in Charter School Expense 41.63% Decrease in Real Property Taxes

Net Effect On School District Budget Would Be $411,635

FAIRFIELD AREA SCHOOL DISTRICT 2015-2016

PROJECTED REVENUE ANALYSIS 2015-2016 Adjusted Base Index

2.3% Current Millage Rate

9.6898 Maximum Allowable Millage Rate

9.9127 (Increase of .2229) Potential New Revenue

$183,657 Cost for Median Taxpayer ($219,100)

$47.00 Cost Per $100,000 of Assessed Value

$22.00 2015-2016 Projected Revenues

$16,316,877

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016LOCAL REVENUE Actual Actual Actual Budget Proposed

6111 Real Estate Taxes 7,346,507 7,485,754 7,584,017 7,389,536 7,421,6416112 Interim Real Estate Taxes 26,530 3,131 13,177 4,910 4,9106113 Public Utilities 12,870 12,565 12,242 12,300 12,2506114 Pay in Lieu of Taxes 8,622 8,626 8,626 8,626 8,6266151 Wage Taxes 1,861,261 1,837,767 2,289,974 1,837,766 1,837,7666153 Realty Transfer 125,035 107,622 124,728 80,000 90,0006154 Amusement Taxes 22,941 21,316 20,718 22,000 20,0006400 Delinquent Taxes 249,419 275,696 298,193 190,000 200,0006510 Interest 6,209 39,239 37,904 7,000 25,0006700 Rev - Student Activities 25,820 26,419 29,991 25,400 25,0006831 Rev - Intermediate Sources, FED 0 17,608 10,767 15,000 11,0006832 - IDEA through IU 127,290 129,662 148,063 127,000 127,0006836 - Race to the Top 1,344 5,2366910 Rentals 12,757 12,335 12,370 12,000 12,0006920 Contributtions and Donations 36,633 26,087 55,337 25,000 25,0006940 Tuition 91,065 100,200 150,280 130,000 124,4556990 Miscellaneous Revenues 7,559 14,686 47,193 8,000 8,0006970 Revenue Provided from Other Funds 0 0 0 06991 Prior Year Refunds 95,278 3,138 0 0 0

TOTAL LOCAL REVENUES 10,055,796 10,123,195 10,848,815 9,894,538 9,952,648

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016STATE REVENUE ActualActual Actual Actual Budget Proposed

7110 Basic Instruct. Subsidy 3,282,362 3,282,361 3,351,124 3,342,746 3,342,7467140 Charter School 0 0 0 07160 Section 1305 & 1306 30,443 17,938 8,965 0 5,0007220 Vocational Education 17,719 41,271 24,909 24,294 24,2007250 Migratory Children 0 0 0 07270 Special Education 611,435 611,435 611,435 611,435 611,4357272 Early Intervention 0 0 0 07291 Educational Assistance 0 0 0 07310 Transportation 340,014 357,678 376,754 357,678 350,0007320 Rental Subsidy 195,274 190,194 186,429 186,559 187,3577330 Medical & Dental 22,559 21,851 20,958 22,000 20,9007340 Supp Reim/State Prop Tax Reduction 459,726 459,720 459,715 459,775 459,7757500 Extra Grants 64,734 61,542 64,733 194,193 65,0007810 Social Security 264,977 248,260 249,598 238,481 264,8797820 Retirement 259,076 359,240 497,815 696,132 895,837

TOTAL STATE REVENUES 5,548,319 5,651,490 5,852,433 6,133,293 6,227,129

FEDERAL REVENUE ActualActual Actual Actual Budget Proposed

8514 Title l 94,307 103,363 90,841 92,083 98,1138515,8516,8518,8519 Title ll, Title V 33,494 14,647 49,437 31,972 31,9878521 Vocational Education 12,000 18,907 17,098 11,550 7,0008690 Federal Grants in Aid 0 0 0 08701 IDEA Part B (Stimulus) 0 0 0 08703 ARRA Title I Part A 0 3,617 0 0 08705 Title II D Technology (Stimulus) 0 0 0 08708 State Fiscal Stabilization 0 0 0 08709 Ed Jobs Subsidy 0 0 0 08810 Access- Medical Reimbursement 0 0 0 0

TOTAL FEDERAL REVENUES 139,801 140,534 157,376 135,605 137,100

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016OTHER FINANCING USES ActualActual Actual Actual Budget Proposed

9120 Proceeds - Bonds and Leases 3,970,000 0 109,175 0 09200 Proceeds-Financing 934,244 0 0 0 09330 0 0 0 0 09400 Sale of Fixed Assets 10,100 0 377 0 09500 Refund - Pr Yr Expenditures 0 0 0 0 09611 Receipts from Other LEAs 0 0 0 0 0

TOTAL FINANCING 4,914,344 0 109,552 0 0

TOTAL REVENUES WITH FINANCING 20,658,260 15,915,219 16,968,176 16,163,436 16,316,877

2015-2016 PROJECTED EXPENDITURES

$16,851,711

CURRENT PROJECTED DEFICIT $534,834

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016Actual Actual Actual Actual Budget Proposed

100 Salaries110 Administration 714,773 599,631 584,500 597,029 608,149 628,194114 Sabbatical 0 28,568 0 0120 Instruction 4,996,952 4,786,270 4,813,492 4,925,038 4,990,681 5,137,359130 Extracurricular 199,022 210,771 220,648 245,215 251,500 227,740140 Technical 82,725 86,896 88,780 90,792 87,452150 Clerical 401,661 460,914 399,569 363,095 366,046 354,457160 Maintenance 50,094 51,593 52,693 53,868 55,070170,180,190 Oper./Cust./Aides 139,308 89,253 92,160 94,980 96,534 98,698180 Custodial 236,414 218,153 200,205 205,006 208,406 212,575187 Security Police 10,260190 Aides 218,969 127,091 144,742 124,160 132,306 131,954TOTAL 100's 6,917,359 6,624,902 6,593,805 6,724,564 6,798,282 6,933,499

200 Benefits210 Insurance 11,113 8,723 8,897 7,295 7,220 7,360220 Social Security 493,067 537,404 494,061 500,265 520,068 530,412230 Retirement 364,446 578,686 783,402 1,121,647 1,455,513 1,791,616240 Tuition Reimbursement 110,116 171,671 79,358 83,220 90,000 90,000250 Unemployment 0 38,211 18,393 1,283 20,000 5,000260 Worker's Comp 11,371 46,219 34,125 46,419 46,136 50,000270 Health Insurance 1,867,956 1,862,728 1,768,482 1,547,035 1,503,948 1,648,950TOTAL 200's 2,858,070 3,243,642 3,186,718 3,307,162 3,642,885 4,123,338

300 Prof & Tech Services322 Prof/Educ IU 641,708 771,982 746,915 786,273 835,300 753,464323 Prof/Educ Other Ed Agencies 75,001 1,235 17,800 26,100 126,100

324 Prof/Ed Svc Training 6,210 950329 Prof/Educ Services Other 13,262 3,193 4,760 6,111 3,550 5,600

330 Other Professional Services 195,595 246,188 113,763 126,969 124,424 231,406340 Technical Services 175,611 41,721 71,606 68,318 60,541 60,591348 Prof and Tech Services 7,436 1,276 17,389 8,868 22,580 10,750350 Security 1,628 4,344 4,520 2,000

390 Health and Wellness 200 500 500TOTAL 300's 1,033,612 1,139,361 957,296 1,025,093 1,078,465 1,190,411

400 Property Services410 Cleaning Services 18,453 37,271 5,997 5,354 6,800 8,000422 Electricity 326,506 204,920 169,281 155,332 175,000 165,000424 Water & Sewer 12,946 12,348 14,884 16,465 15,000 16,500430 Repair & Maint 110,295 103,434 110,741 97,292 118,653 200,527438 Tech Maint and Repair 30,863 33,145 44,481 23,814 20,376 41,902440 Rentals 8,210 7,386 7,510 9,556 7,400 8,660460 Pest Control 79 0 0 0 0TOTAL 400's 507,273 398,583 352,893 307,813 343,229 440,589

500 Other Purchased Services510 Contracted Services 800,896 825,125 819,937 810,380 832,974 874,654520 Insurance 43,405 43,672 54,665 67,228 68,115 61,251530 Communications 38,740 22,176 35,812 12,557 18,755 16,550538 Tech Telecom Service 25,968 54,852 19,170 20,250 20,990 22,800540 Advertising 2,015 2,302 1,080 2,310 1,527 1,600550 Printing 6,489 3,528 2,081 225 500 0560 Tuition 582,076 601,556 905,014 904,494 835,608 878,178580 Travel 38,036 19,719 21,620 24,580 19,705 22,705

590 Misc 17,165 11,486 11,575 22,875 12,596 12,342TOTAL 500's 1,554,791 1,584,415 1,870,953 1,864,901 1,810,770 1,890,080

600 Supplies610 General 359,606 217,630 220,596 303,054 230,664 223,572618 Computer Software 100,147 90,542 120,660 137,258 133,808 137,203621 Natural Gas 110,246 79,707 69,513 85,000 70,000622 Electricity 99,008624 Oil 6,955 7,535626 Gasoline/Diesel 16,586 5,241 7,557 3,689 4,072 5,072640 Books & Periodicals 131,351 38,642 86,826 68,350 120,779 26,228648 Educ Software and Licensing Fees 69,588 38,744 3,760650 Educational Software/Licenses 3,948 35,703 54,532 78,720TOTAL 600's 783,242 501,046 523,054 625,102 628,855 540,795

700 Property710/720 Site Improvement 11,357 24,241 863750 New Equipment 213,344 25,586 23,857 81,820 4,081 13,129758 Tech Equip-Original 168,929 128,408 6,307 27,229 24,582 26,264760 Replacement Equipment 5,908 121,104 21,332 31,755 33,359 38,810768 Tech Equip-Replacement 1,080 6,565 55,910 95,991 63,237 60,459TOTAL 700's 400,618 305,904 108,269 236,795 125,259 138,662

800 Other ObjectsDues and Fees 37,388 41,714 40,596 50,475 40,212 45,988Judgements against LEA 59,000

TOTAL 14,092,353 13,898,568 13,633,583 14,141,905 14,467,957 15,301,526

Debt ServiceInterest 645,369 644,398 703,192 700,650 678,075 653,034

Principal 1,217,589 1,289,447 872,138 893,009 891,000 897,151

ContributionsDebt Service-Refunded Bonds 4,780,670Refunds of Prior Year Receipts 9,305 4,743 201TOTAL DEBT SERVICE 1,872,263 6,714,515 1,580,074 1,593,860 1,569,075 1,550,185

FUND TRANSFERS 340,039 63,119 16,570 134,481 751,025 0Total Expenditures 16,304,655 20,676,203 15,230,227 15,870,246 16,788,057 16,851,711Budgetary Reserve

FINAL EXPENDITURES 16,304,655 20,676,203 15,230,227 15,870,246 16,788,057 16,851,711

2015-2016 CAPITAL EXPENDITURES

ELEMENTARY PLAYGROUND $20,000 ELEMENTARY CARPET REPLACEMENT $20,000 UPGRADE AUDITORIUM SOUND SYSTEM $25,000 UPGRADE AUDITORIUM LIGHTING $7,000 REPLACE EAST AND WEST ENTRANCE DOORS $12,000 ELEMENTARY SCHOOL CABLE RUN $15,779 EVERYDAY MATH CURRICULUM $24,039 ELEMENTARY MOBILE LAB/CART $10,200 MIDDLE SCHOOL MOBILE LAB/CART $10,200 IP VIDEO CAMERAS $5,000 REPLACE HIGH SCHOOL GYM WALL MATS $4,500

2015-2016 CAPITAL EXPENDITURES, cont’d

HIGH SCHOOL TEACHER LAPTOPS$16,800

SERVERS$14,400

TOTAL EXPENSE CONSIDERED TO BE ONE-TIME AND NOT NECESSARILY

OPERATIONAL IN NATURE

$184,918

StaffingBuilding Description Qty Cost

District Superintendent 1 $160,448.00District Assistant to the Superintendent 1 $126,000.00HS World Language Teacher 0.5 $38,750.00HS Transfer 1/2 Eng to HS for Full 0.5 $0.00District MaintenanceDistrict Transportation/Business Office Clerk 1 $0.00District Increase hours by .5 IDEA Aides & Elem Aides 8 $14,242.00

CurriculumBuilding Description Qty Cost

Elem EDM Grades K-6 170 $24,039.35HS/MS Calculators 150 $2,250.00

MOVED TO YEAR 2 Grades 11 & 12 Laptops 195 Laptops $61,245.00

Athletics Sport CostVB, Bball, gym class Replace HS Gym Wall Mats $4,500.00

MOVED TO YEAR 2 FB, Gsoc, Bsoc Build 1-2 Ticket Booths $9,000.00JHFH, JHBBball Uniforms $5,000.00

Maintenance Building Description Qty CostHS/MS Boiler 1 $3,000.00HS/MS Clock Systems

HS/MS/Elem Locks & Keying System $2,000.00HS/MS Replace Gym, East & West Entrance Doors $12,000.00

HS Flooring Systems $12,000.00HS Painting $15,000.00

HS/MS Restroom Facilities - Hand Dryers $2,000.00HS/MS Electrical SystemHS/MS Automatic Temperature ControlsHS/MS Roofing System - Repairs to HS/MS. $2,500.00HS/MS Auditorium Sound System $25,000.00HS/MS Auditorium Light System $7,000.00HS/MS Exterior Building WallsHS/MS Card Access SystemHS/MS Bleachers $3,000.00HS/MS Additions

GRANT FUNDS 14-15 HS/MS Building Security $29,300.00HS/MS Televisions $2,000.00HS/MS Water Fountains $1,000.00HS/MS FurnitureElem Phase I of Playground $20,000.00Elem BoilerElem Flooring Systems $20,000.00Elem Locks & Keying System $0.00

Maintenance On-Line Work Order System $4,000.00Maintenance MSDS On-Line System $2,000.00

Equipment Chevrolet Truck $35,000.00Equipment Two-way Radios $3,000.00

Site Blacktop Sealing $20,000.00Site Sewer Lines/Pump Stations/Grease Traps $1,000.00

MOVED TO YEAR 2 Tech Nagios Monitoring/Alert Software $1,900.00MOVED TO YEAR 2 Tech Papercut $1,995.00NO MAINTENANCE REDUCED Tech TekNet Renewal $11,264.00MOVED TO YEAR 2 Tech Vmware Server Software/Virtual $4,902.00

Tech HP Server $8,200.00Tech HP Server $6,200.00Tech Mounting of 3 LCD Projectors to wall 3@379 $1,137.00Tech Cable Runs from mounted LCD to Plate 3@500 $1,500.00Tech Close up Projection Mounting Arms for LCD 3 @ 209 $627.00Tech HP Color Printers 10@ $319 $3,190.00Tech HP POE Switches 4@ $1450 $5,800.00

REDUCED TO 20 Tech HS Teacher Laptops 20 @ $600 $13,600.00Tech HP Laptops 5 @ $600 $3,000.00

MOVED TO YEAR 2 Tech Wireless to Press Box $500.00MOVED TO YEAR 2 Tech Network Access Control $61,725.00

Tech IP Video Camera's $5,000.00Tech Cart for Mobile Lab 2 @ $1200 $2,400.00

REDUCED TO 30 Tech MS Mobile Lab 30 @ $300 $9,000.00REDUCED TO 30 Tech Elem Mobile Lab 30 @ $300 $9,000.00

Tech Elem School Wireless Project Cable Run $15,779.00MOVED TO YEAR 2 Tech HS/MS Wireless Cable Runs $25,713.00

Tech 213/Café Cable Runs $2,078.59

FUND BALANCE ANALYSIS2013-2014 ENDING FUND BALANCE $2,676,139

2014-2015 PROJECTED ENDING FUND BALANCE $2,051,518

($624,621)2014-2015 Projected Capital Expense

2014-2015 Actual to Date

Cafeteria Debt $172,000

$153,042

Roof Repair $450,000

$397,330

Chiller Repair $40,000

$0

Parking Lot Sealing $20,000

$0

Circulating Pumps $12,000

$14,000

Playground $10,000

$0

Heat Conversion in Maintenance $7,000 $711,000

$15,000$579,372

MILLAGE ANALYSIS

2011-2012

2012-2013 2013-2014 2014-2015 2015-2016

MILLAGE 9.2953 9.4905 9.6898 9.6898

ASSESSED VALUE

$877,452,300

$869,943,900

$869,526,700

$867,305,800

ADJUSTED INDEX

2.1% 2.1% 2.6% 2.3%

INCREASE

.1952 .1993 No Increase Unknown

REVENUEIMPACT

$162,678 $164,711 Loss of $208,082in current period and

going forward

Potential $183,657

STANDARD AND POOR’S RATINGS

A+ Long Term Rating and A+ on Existing Debt

Determined based on local wealth, improved financial position after achieving two consecutive general fund operating surpluses, and moderate debt burden with limited capital needs

District’s household effective buying income (EBI) is strong at 124% of the national level

Overall debt burden is moderate at $3,509 per capita or 3.2% of market value

Carrying charges are moderate at 10% of total governmental fund expenditures in 2014

Debt amortization is average with 50% of debt being retired in 10 years

TIMELINES To date the index has been published and the board, in a timely manner,

adopted the resolution stating it would not raise taxes beyond the index. District timelines then revert to the original timelines in place prior to Act 1.

MAY 1, 2015 – State required to notify districts of the amount of the allocation of property tax reduction funding. This only occurs if there are enough funds in the Property Tax Relief Fund. For the 2014-2015 fiscal year the district received $459,775 which equated to $191 per taxpayer.

At this same time, districts are to receive a certified report from the county assessor with information on the homestead and farmstead properties in the district.

MAY 31, 2015 – Deadline for district to adopt 2015-2016 proposed final budget

JUNE 10, 2015 – Deadline for district to make the proposed final budget available for public inspection ----This must be done 20 days prior to final budget adoption date, whatever that may be

JUNE 20, 2015 – Deadline for district to offer public notice of its intent to adopt the 2015-2016 final budget ---- This must be done 10 days prior to final adoption, whatever date that may be

JUNE 30, 2015 – Deadline for district to adopt the final budget and the homestead/farmstead resolution

DISCUSSION, SOLUTIONS AND

QUESTIONS