Norristown Area School District€¦ · · 2017-03-17Norristown Area School District 2017-18 Budget ... ENMS GRADE LEVEL TEACHER ... • PSERS REFORM / CHARTER SCHOOL REFORM

Norristown Area School District

March 13, 2017

2017-18 BUDGET SNAPSHOT

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2

3

EMPLOYEE BENEFIT COSTS (TRENDS/PROJECTIONS)

Norristown Area School District 2017-18 Budget

PRELIMINARY STAFFING RECOMMENDATIONS

4 LEGISLATIVE UPDATE


(STILL UNDER REVIEW BY ADMINISTRATION)

BUILDING /

DEPT POSITION INCLUDED IN 2017-18

PRELIMINARY BUDGET? NOTES

VARIOUS

SECRETARIAL RESTRUCTURING

NO FINAL DETAILS AVAILABLE SHORTLY

EXPECTED TO REDUCE COSTS FOR FINAL BUDGET

PRELIMINARY RECOMMENDATIONS

FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING



BUILDING /



VARIOUS




HOME/SCHOOL

TEAM

TEAM RESTRUCTURING

TRUANCY ABATEMENT

SPECIALIST AND

STUDENT/FAMILY OUTREACH

COORDINATOR

YES POSITIONS/RESPONSIBILITIES BEING REEVALUATED

NEW TITLES/EXPANDED ROLES BEING DEVELOPED FOR

BOTH

POTENTIAL EXPANSION FROM 11 TO 12 MONTH





BUILDING /



VARIOUS




HOME/SCHOOL

TEAM

TEAM RESTRUCTURING

TRUANCY ABATEMENT

SPECIALIST AND


COORDINATOR



BOTH


C MANOR GRADE LEVEL TEACHER INCREASE OF ONE POSITION

YES ENROLLMENT CHANGES





BUILDING /



VARIOUS




HOME/SCHOOL

TEAM

TEAM RESTRUCTURING

TRUANCY ABATEMENT

SPECIALIST AND


COORDINATOR



BOTH




ENMS

GRADE LEVEL TEACHER DECREASE OF ONE POSITION






BUILDING /



VARIOUS




HOME/SCHOOL

TEAM

TEAM RESTRUCTURING

TRUANCY ABATEMENT

SPECIALIST AND


COORDINATOR



BOTH




ENMS



STEWART GRADE LEVEL TEACHER INCREASE OF ONE POSITION

YES THREE NEW POSITIONS FOR STEWART WERE INCLUDED

IN PRELIM BUDGET

REVISED RECOMMENDATION REDUCES COSTS FOR

FINAL BUDGET





BUILDING /



VARIOUS




HOME/SCHOOL

TEAM

TEAM RESTRUCTURING

TRUANCY ABATEMENT

SPECIALIST AND


COORDINATOR



BOTH




ENMS



STEWART GRADE LEVEL TEACHER INCREASE OF ONE POSITION

YES THREE NEW POSITIONS FOR STEWART WERE INCLUDED

IN PRELIM BUDGET

REVISED RECOMMENDATION REDUCES COSTS FOR

FINAL BUDGET

EISENHOWER GRADE LEVEL TEACHER INCREASE OF ONE POSITION






BUILDING /



NAHS

DECREASE IN TEACHIING

POSITIONS - 7.5 POSITIONS

2 SCIENCE

1 MATH

1 ENGLISH

1.5 SOCIAL STUDIES

1 SPECIAL EDUCATION

1 FAMILY-CONSUMER SCIENCE

YES COURSE SELECTION PROCESS STILL UNDERWAY

RECOMMENDATION WILL BE FINALIZED ONCE THAT

PROCESS IS COMPLETE





BUILDING /



NAHS



2 SCIENCE

1 MATH

1 ENGLISH

1.5 SOCIAL STUDIES

1 SPECIAL EDUCATION




PROCESS IS COMPLETE

ESL BILINGUAL

PARAPROFESSIONALS

THREE NEW POSITIONS

YES NEEDS CONTINUE TO BE EVALUATED





BUILDING /



NAHS



2 SCIENCE

1 MATH

1 ENGLISH

1.5 SOCIAL STUDIES

1 SPECIAL EDUCATION




PROCESS IS COMPLETE

ESL BILINGUAL

PARAPROFESSIONALS

THREE NEW POSITIONS

YES NEEDS CONTINUE TO BE EVALUATED

NEW COST SAVINGS MEASURES REDUCE 2017-18 COSTS BY @ $400K (SECRETARY RESTRUCTURING & REDUCTION IN STAFF NEEDED AT STEWART)

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EMPLOYEE BENEFIT COSTS (TRENDS/PROJECTIONS)

FICA (SOCIAL SECURITY)

EMPLOYER COST = 7.65% OF WAGES

COMMONWEALTH OF PA CURRENTLY PROVIDES

SUBSIDY FOR A PORTION OF NASD FICA EXPENSES

(ESTIM @ 43% OF EXPENSES)

PSERS (PENSION SYSTEM)

EMPLOYER COST = 32.57% OF WAGES (17-18)

COMMONWEALTH OF PA CURRENTLY

PROVIDES SUBSIDY FOR A PORTION OF

NASD PSERS EXPENSES

(ESTIM @ 50% OF EXPENSES)

MEDICAL INSURANCE

(THROUGH BUCKS-MONTCO SCHOOLS HEALTHCARE

CONSORTIUM)

PRESCRIPTION DRUG INSURANCE


CONSORTIUM)

VISION INSURANCE


CONSORTIUM)

DENTAL INSURANCE

(THROUGH PSBA / UNITED CONCORDIA)

TUITION REIMBURSEMENT LIFE INSURANCE

DISABILITY INSURANCE

WORKERS COMPENSATION

UNEMPLOYMENT COMPENSATION RETIREMENT SEVERANCE

NASD EMPLOYEE BENEFITS VARY BY

COLLECTIVE BARGAINING AGREEMENT

ALL DISTRICT STAFF CONTRIBUTE TOWARDS HEALTHCARE COSTS -

CONTRIBUTION LEVELS VARY BY COLLECTIVE BARGAINING AGREEMENT

2016-17 BENEFIT EXPENSES (Est @ $38 Million)


PSERS 53%

APPROX $20 MILLION

HEALTH- MED, DRUG, VISION (NET

OF STAFF CONTRIBUTIONS)

27% APPROX $10.2

MILLION

FICA 13%

APPROX $5 MILLION

WK COMP 2%

LIFE/DISAB 2%

DENTAL 1%

TUITION 1%

$7,702,494

$10,744,876

$13,864,776

$16,229,671

$19,950,000

$22,000,000

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2012-13 Actual 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Projected 2017-18 Preliminary

PSERS RETIREMENT EXPENSES

PSERS CRISIS CONTINUES

PSERS IS OUR LARGEST

UNFUNDED MANDATE

EMPLOYER

CONTRIB RATE

32.57% IN 17-18

$14,039,504 $13,362,258

$12,679,666

$13,319,098

$10,200,000

$13,500,000

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000


HEALTHCARE EXPENSES NET OF EMPLOYEE CONTRIBUTIONS

DECREASE RESULT

OF CONSORTIUM

SWITCH TO AETNA/CVS

& USE OF

CONSORTIUM

NASD JOINS

BUCKS-

MONTCO

CONSORTIUM

7-1-12

(MEDICAL

ONLY)

NASD MOVES

DRUG

COVERAGE TO

CONSORTIUM

7-1-13


• HEALTHCARE EXPENSES

22 Bucks/Montco School Districts in Healthcare Consortium

- Self-funded arrangement – with high cost claims pooled

* Pooling = Risk-sharing

* NASD rates are based on 65% of NASD experience / 35% of combined experience

Snapshot of average rate increases:

2017-18 rates will be finalized by March 31, 2017 – strong indication that our drug increase

will drop with our final rates

Year Medical Drug

2013-14 3.5% decrease NO CHANGE

2014-15 5.9% increase 10.8% decrease

2015-16 1.4% decrease 1.1% increase

2016-17 11.9% decrease 0.10% increase

2017-18 Preliminary (2nd look) 8.0% increase 15.7% increase $ 1.2 Million

$275,725

$379,889

$362,317

$322,639

$350,000 $350,000

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000


TUITION REIMBURSEMENT EXPENSES

SIGNIFICANT CHANGES WERE

IMPLEMENTED FOR TUITION

REIMBURSEMENT

IN LAST TEACHERS' CONTRACT

PRIOR CONTRACT SPENDING:

2008-09 TUITION EXPENSES - $ 623K

2009-10 TUITION EXPENSES - $ 670K

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2017-18 BUDGET SNAPSHOT

2017-18 BUDGET

@ 6.71% TAX INCREASE

2017-18 BUDGET

@ UNDER 5% TAX INCREASE

GAP BETWEEN REVENUE & EXPENSES $4.2 MILLION $ 6.0 MILLION

COST REDUCTIONS IDENTIFIED TO DATE:

- NATURAL GAS BID – FAVORABLE PRICING

- PRELIMINARY STAFFING RECOMMENDATIONS

(SHARED TONIGHT)

($20K)

($400K)

($20K)

($400K)

REMAINING GAP $3.7 MILLION $ 5.6 MILLION

MUCH WORK REMAINS

CONVERSATIONS/RECOMMENDATIONS MAY BECOME LESS ABOUT WHAT WE NEED;

INSTEAD FOCUSING MORE ON WHAT WE CAN AFFORD

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LEGISLATIVE UPDATE


• PENNSYLVANIA LEGISLATIVE UPDATE: • STATE BUDGET

• HEARINGS ON GOVERNORS 2017-18 BUDGET PROPOSAL UNDERWAY • PROPOSED BUDGET INCLUDES (FOR NASD):

• + $ 375K IN BASIC EDUCATION FUNDING

• + $ 130K IN SPECIAL EDUCATION FUNDING

• NO INCREASE IN READY-TO-LEARN FUNDING

• POTENTIAL LOSS IN TRANSPORTATION FUNDING – (STILL TBD)

• PROPERTY TAX REFORM BILL

• HAS NOT BEEN INTRODUCED YET

• PASBO REPORTS THAT PROPERTY TAX REFORM/ELIMINATION

DISCUSSIONS ONGOING WITH THE PROPONENTS OF THE PROPERTY

TAX ELIMINATION PLAN CONTINUING TO GENERATE MOMENTUM

• PSERS REFORM / CHARTER SCHOOL REFORM

• HAS NOT BEEN INTRODUCED – LIMITED DISCUSSION


• FEDERAL LEGISLATIVE UPDATE: • 2017-18 PRELIMINARY FEDERAL PROGRAM ALLOCATIONS

• NOT AVAILABLE YET – UNCERTAINTY ABOUT FUTURE REMAINS A

CONCERN

• HOT TOPIC – PROPOSED CUTS TO MEDICAID FUNDING

• “THE AMERICAN HEALTH CARE ACT” INTRODUCED ON MARCH 6TH

WOULD DRAMATICALLY CHANGE THE FINANCING STRUCTURE OF

MEDICAID

• UNDER THIS PLAN – FUNDING FOR STUDENT SERVICES WOULD BE

CAPPED RATHER THAN BASED ON THE COSTS OF SERVICES

PROVIDED

• MAY RESULT IN ADDITIONAL FINANCIAL BURDEN TO LOCAL

COMMUNITY


• NEXT BUDGET MEETING:

• APRIL 17TH

• 6:00PM (PRIOR TO WORKSESSION)

• TOPICS INCLUDE: • REVENUE ANALYSIS & PROJECTIONS

• FOOD SERVICE PROGRAM

• LEGISLATIVE UPDATE

• QUESTIONS?

Documents

Norristown Area School District€¦ · · 2017-03-17Norristown Area School District 2017-18 Budget ... ENMS GRADE LEVEL TEACHER ... • PSERS REFORM / CHARTER SCHOOL REFORM