2011-12

General Fund Budget

 

 

The 2011-12 General Fund budget for the school district will present a variety of challenges.  Foremost, is the status of the Basic Education subsidy which will not be known until March due to the election of a new governor.  ARRA funds are exiting the budget picture while EduJob funding and supplemental state funding will be required to fill the $1,000,000 gap.

 

With the district required to act now to approve a preliminary budget, the budget presented within this document presumes the best outcome but allows us to prepare for a significant reduction in state funding.

 

Within the budget, the district also looks to finalize its renovation plans for Renn Elementary School and honor its contract obligations while addressing a 10% increase in health insurance and the beginnings of the PSERS retirement rate climb.

 

The district is stable financially, has planned ahead to address fluctuating energy prices, remains fiscally responsible to its community ranking 355 out of the 500 school districts across the state in the amount spent per student and ranks 7^th out of 8 districts within the county in real estate tax rates. 

 

Further, the district has exceptional grounds and facilities available to the students and community. The district has produced two National Blue Ribbon Schools in the last 8 years, achieved the status of one of the top 50 school districts across the state in the last 7 years with improved student achievement, enabled significant number of students across all grade levels to reach the proficient or advanced level within the PSSA test, and offers a quality education to all students.

 

While the challenges are many, the district seeks to build upon these successes and continue to promote outstanding achievement within a framework of fiscal stability.  To achieve this for the 2011-12 fiscal year, the administration and Board Finance Committee presents the following budget which tentatively includes a .40 mill real estate tax increase.  This tax rate adjustment includes seeking an exception for a .20 mill increase to fund the Renn Elementary School renovations.

  

Calendar, Assumptions, and Highlights

 

 

Budget Calendar through March 2011

 

·         State Budget Calendar for School Districts

o   January 27, 2011

§  2011-12 Preliminary Budget available for public inspection

o   February 16, 2011

§  School Board must adopt Preliminary Budget

o   February 24, 2011

§  School Board must publish intent to file exceptions with PDE

o   March 3, 2011

§  Deadline to seek PDE approval of exceptions

o   March 8, 2011 (estimated date) Governor Corbett’s Budget Address

§  The East Lycoming SD’s budget is comprised of Basic Education Subsidy (37%) and Total State Subsidy (57%).

Revenue

 

·         ARRA Funding – Federal Dollars

o   Elimination of approx. $1,000,000 in federal revenue

o   For the Preliminary Budget, $939,000 has been shifted to the Basic Education line item (7110)

·         Basic Education Funding

o   It has been said that Basic Education funding will return to 2007-08 levels. 

§  If this is the case, the Preliminary Budget will have Basic Education over budgeted by $651,835.

·         2007-08:  $7,627,524

·         2011-12:  $8,279,359 (preliminary budget)

o   If this occurs, the district will respond as follows:

§  Capital Expenditures of $436,405 will be eliminated.

§  Additional budget cuts of $215,430 will need to occur.

·         Act 1 Index

o   1.9% for 2011-12 General Fund Budget

§  Equates to .20 of a real estate mill or $91,000

·         Act 1 Exception

o   Calculated by RBC Capital Markets

§  Equates to .20 of a real estate mill or $91,000

§  Finance/Facilities Committee recommended pursuing the construction exception

 

Expenditures and Recommendations of Reductions

 

·         Wages per established contracts and agreements; increase of $200,000

 

·         Budget is calculated on the elimination of two professional positions, further reductions are possible by not rehiring retirements/resignations

·         Three high school professional positions

·         One elementary professional position

§  The projected 2011-2012 budget assumes that of the 4 positions, 2 will not be replaced

§  Enrollment data trends provided to the Board

§  Staffing reductions will require adjustments to class sizes (minimums) and modifications to the master schedule, but without significant impact to instructional quality

o   Support Positions for further review:

§  Two full-time custodians replace with part-time staff

§  Two full-time aide positions replaced as needed with part-time staff

§  Utilize the Data/PIMS coordinator in a split technology and instructional role

§  Reduce coaching ratios to participant level

·         PSERS Employer Contribution Rate

o   8.72% as established in HB 2497

§  Represents $34,000 in additional employer contributions from 8.22% rate budgeted for 2010-11

o   8.65% has subsequently been certified as the 2011-12 contribution rate by the PSERS Board

·         Health Insurance Increase

o   Lycoming County Insurance Consortium (LCIC) has established a 10% budgeted rate increase

·         Utility decreases projected at $136,000

·         LycoCTC decrease of $55,000

·         Net Debt Service for all projects, including Renn Elementary; increase of $137,000

 

2012-13 through 2016-17 Projections

Revenue Forecast

·         A revenue forecast will be developed once the Governor makes his March budget address.  With 57% of the budget derived through state funds, the Basic Education subsidy is critical to future projections.

 

Expenditure Forecast

·         2011-12, Final Year of Professional Contract

·         Health Insurance

o   LCIC’s five-year plans presently projects a 13% increase per year.

·         PSERS Employer Contribution Rate

o   As currently established by House Bill

§  2012-13       12.22%

§  2013-14       16.71%

§  2014-15       21.20%

§  2015-16       24.24%

§  2016-17       25.13%

 

*Additional budget details and a 5-year forecast will be presented to the Board once the State budget numbers are published