Norristown Area School District 2018-19 Proposed Preliminary …€¦ · · 2018-02-05Norristown Area School District 2018-19 Proposed Preliminary Budget ... Norristown Area School

Norristown Area School District

2018-19 Proposed Preliminary Budget

January 22, 2018

2018-19 PROPOSED PRELIMINARY BUDGET


2018-19 Budget

Act 1 of 2006 requires: Proposed 2018-19 Preliminary Budget must be on “public display” before

adoption, specifically by January 25, 2018.

We are complying with the “public display” requirement by presenting our

2018-19 Preliminary Budget tonight. We will also make sure that our budget

document is available on our website, in our buildings, and in the offices of our

local municipal partners.

2018-19 Preliminary Budget must be adopted by February 14, 2018

We will hold a brief Special Meeting on February 12, 2018 for adoption

2018-19 PROPOSED PRELIMINARY BUDGET


2018-19 Budget

As identified at our November Budget Kick-Off Meetings:

Primary Budgetary Challenge

Balancing the needs of our students with the needs of our taxpayers

2018-19 BUDGET RECOMMENDATIONS


2018-19 Budget

• As a result, at the School Board’s request, we will be using the next few months to

explore the development of a 2018-19 Budget with no tax increase

• Closer review of our traditional priorities will be needed; Maintain full-day kindergarten program; including maintaining Musselman as a kindergarten center

Providing adequate instructional materials & textbooks

Maintain strong range of music, arts, and foreign languages courses

Maintain manageable class sizes

Maintain adequate staffing to support growing ELL student population

Maintain adequate staffing to support our Special Education programming

Maintain School Resource Officers

Adequately plan for facilities management, maintenance, repairs, and facility upgrades

REVENUES


2018-19 Budget

• REVENUE OVERVIEW:

– NASD Adjusted Act 1 Index = 2.90%

• @ 2.90% = $ 135 to avg taxpayer

– Estimated Maximum Allowable Tax Increase = 3.81%

• With Special Education Exception

• Will submit to PDE for approval in March 2018

– (Recognize that we may not use the exceptions, but our intent is to apply

for them in case they would be needed)

– Proposed Preliminary Budget Tax Increase = 0.00%

• Difficult decisions will be needed in order to achieve this


2018-19 Budget

• REVENUE OVERVIEW:

• Local revenues sources:

– Limited growth in local real estate economy

• State revenue sources:

– Commonwealth facing est. $1 billion shortfall

– Election year

– Governor Wolf’s budget address scheduled for February 6, 2018

– Bare bones budget expected

• Federal revenue sources:

– Much uncertainty – program details will not be available until late Spring


2018-19 Budget

We do not expect to see any new pro-public education policies adopted

at either the state or federal level.

Level funding has been projected at this point,

but there are concerns that some of our funding may actually be cut.

SCHOOL TAX = OUR LARGEST REVENUE SOURCE


2018-19 Budget

Based on assessed value

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

2013-14 2014-15 2015-16 2016-17

RELATIVELY FLAT MARKET =

NO NEW REVENUE

2017-18

CURRENT YEAR

BUDGETED REVENUES $ 150,120,650

PROJECTED REVENUES (Jan 2018) $ 151,008,300

VARIANCE $ 887,650

0.59%


2018-19 Budget

REVENUE SNAPSHOT

2018-19

NEXT YEAR

BUDGETED REVENUES $ 151,333,300

VARIANCE (Compared to 2017-18 Projected) $ 325,000

0.21%

No Tax Increase

REVENUE SNAPSHOT


2018-19 Budget

71%

24%

5%

Local State Federal

2018-19

71%

24%

5%

Local State Federal

2017-18

EXPENSES


2018-19 Budget

• EXPENSE OVERVIEW:– Wage Increases – Negotiations On-Going (EANA Professional, EANA Support)

• Roughly 45% of our spending is being negotiated currently

– PSERS (Retirement) contribution rate increasing from 32.57% to 33.43%

• Net budget impact = + $ 500k

– Health Care

• “First Look” at 2018-19:– Medical – 14.52% rate increase

– Prescription Drug – 11.30% rate increase

• Budget Impact = + $ 1.9 million

• May be impacted by labor negotiations

– Debt Service

• 2018-19 payments drop as a result of our refinancing in 2016

• Budget Impact = ( $ 395k )

– Central Montgomery Technical High School - TBD


2018-19 Budget

Rates expected to drop

2nd look – late February

3rd - Final look – late March

• EXPENSE OVERVIEW:– Staffing

• Proposed Preliminary Budget includes the following staffing changes:


2018-19 Budget

BUILDING PROPOSED STAFFING CHANGE RATIONALE

Cole Manor Eliminate 2 kindergarten teachers • Enrollment decline

• Students in CM boundary

will attend Musselman




2018-19 Budget





Paul Fly Eliminate 1 Reg Ed & .50 Spec Ed teachers • Enrollment driven




2018-19 Budget






Marshall St Eliminate .50 Spec Ed teacher • Enrollment driven




2018-19 Budget







Gotwals Eliminate 2 Reg Ed teachers • Enrollment driven




2018-19 Budget








Eisenhower Add 1 Reg Ed teacher • Enrollment driven

Stewart Add 1 Reg Ed teacher • Enrollment driven

ENMS Eliminate 2 Reg Ed teachers & 1 Spec Ed teacher • Enrollment driven




2018-19 Budget

BUILDING` PROPOSED STAFFING CHANGE RATIONALE










Middle Schools – Net Impact:No change in total # of Regular Ed Teachers

Decrease of 1 Spec Ed Teacher

Middle School Boundaries under review –

may affect these recommendations




2018-19 Budget











NAHS Eliminate 1 Health/Phys Ed teacher • Program changes




2018-19 Budget








Eisenhower Add 1 Reg EdTeacher • Enrollment driven

Stewart Add 1 Reg Teacher • Enrollment driven


NAHS Eliminate 1 Health/Phys Ed teacher • Program changes

TBD Add 1 Community Liaison • Enrollment driven

NET IMPACT:

REDUCTION IN 8 TEACHING POSITIONS & ADDITION OF 1 COMMUNITY LIAISON

2017-18

CURRENT YEAR

BUDGETED EXPENSES $ 149,179,300

PROJECTED EXPENSES (Jan 2017) $ 151,832,000

VARIANCE $ 2,652,700

1.77%


2018-19 Budget

EXPENSE SNAPSHOT

2018-19

NEXT YEAR

BUDGETED EXPENSES (Status Quo Programming) $ 155,183,000


2.20%

2017-18

CURRENT YEAR

BUDGETED EXPENSES $ 149,179,300

PROJECTED EXPENSES (Jan 2017) $ 151,832,000


1.77%


2018-19 Budget

EXPENSE SNAPSHOT

2018-19

NEXT YEAR

BUDGETED EXPENSES (Status Quo Programming) $ 155,183,000


2.20%

CHALLENGE:

PROJECTED GROWTH

IN REVENUES

(Without Tax Increase)

= 0.21%

Wages44%

Benefits29%

Professional Svc3%

Property Svc1%

Other Purch Svc (Tuition,

Transportation, etc)16%

Supplies1% Equipment

2%

Other (Primarily Debt)4%

2018-19 EXPENSES – BY MAJOR OBJECT

Reg Ed42%

Spec Ed18%

Voc Ed3%

Other Instruction1%

Pupil Svcs4%

Instruct Support1%

Admin Support7%

Health1%

Business1%

Operations9%

Transportation6%

Central Support (IT)1%

Other Support

0%

Student /Community1% Debt

4%

2018-19 EXPENSES – BY MAJOR FUNCTION

SUMMARY / FUND BALANCE


2018-19 Budget

FUND BALANCE 7-1-17 $ 1,515,971

2017-18 PROJECTED REVENUES (Jan 2018) $ 151,008,300

2017-18 PROJECTED EXPENSES (Jan 2018) $ 151,832,000

FUND BALANCE 6-30-18 $ 692,271


2018-19 Budget

FUND BALANCE 7-1-17 $ 1,515,971



FUND BALANCE 6-30-18 $ 692,271

2018-19 PROJECTED REVENUES (No Tax Increase) $ 151,333,300

2018-19 PROJECTED EXPENSES (Status Quo Programming) $ 155,183,050

MINIMUM FUND BALANCE NEEDED 6-30-19 $1,000,000

2018-19 BUDGET SHORTFALL $ 4,157,479


2018-19 Budget

FUND BALANCE 7-1-17 $ 1,515,971



FUND BALANCE 6-30-18 $ 692,271

2018-19 PROJECTED REVENUES (No Tax Increase) $ 151,333,300

2018-19 PROJECTED EXPENSES (Status Quo Programming) $ 155,183,050

MINIMUM FUND BALANCE NEEDED 6-30-19 $1,000,000

2018-19 BUDGET SHORTFALL $ 4,157,479


2018-19 Budget

NEED TO REDUCE COSTS AND/OR RAISE NEW REVENUE

IN THE AMOUNT OF $ 4,157,479

IN ORDER TO HAVE NO TAX INCREASE IN 2018-19

Closing 2018-19 Budget Gap:

Recommend using the spring months to evaluate the viability of the following options:


2018-19 Budget

REVENUE GENERATING

Implementation of activity/athletic fee structure

Sale of Roosevelt Field

Sale of Burnside Property

Using proceeds as operating dollars rather than

targeted them for Athletic Project




2018-19 Budget

REVENUE GENERATING COST REDUCING

Implementation of activity/athletic fee structure Repurposing space at Roosevelt to operate an

on-site alternative program

Sale of Roosevelt Field Eliminate some/all non-mandated programs

(including full-day kindergarten?)




Identify/implement strategies designed to

attract charter school students back to NASD

Evaluate opportunities for outsourcing support

staff (can only be done as staff resign/retire)

Evaluate opportunities to eliminate

positions/programs (may result in staff

furloughs)




2018-19 Budget















furloughs)

THERE IS NO SINGLE

RECOMMENDATION THAT WILL CLOSE

OUR BUDGET SHORTFALL

SOLUTION WILL LIKELY NEED TO BE

SOME COMBINATION OF THESE

STRATEGIES




2018-19 Budget















furloughs)

As we evaluate these options

we will also continue to:

• Actively negotiate with EANA

• Quantify expected healthcare rate

reduction

• Monitor activity in Harrisburg &

Washington closely

THESE WILL ALL IMPACT THE BUDGET

SHORTFALL

• 2018-19 Preliminary Budget:• With no tax increase: $ 151,025,050

• Options to close shortfall to be vetted during

Spring

• Scheduled for Adoption: February 12, 2018


2018-19 Budget

Questions ?

THANK YOU

Documents

Norristown Area School District 2018-19 Proposed Preliminary …€¦ · · 2018-02-05Norristown Area School District 2018-19 Proposed Preliminary Budget ... Norristown Area School