2021-22_Budget_Presentation_4.27.21

East Lycoming School District 2021-22 General Fund Budget Presentation April 27, 2021 Page of 11 Index Strategic Goal Budget Timeline Proposed Budget - Revenues 5-7 Proposed Budget - Expenditures 8-9 Proposed Budget - Fund Balance 10 Proposed Budget - Debt Service Expense/Reimbursement 11 Page of 11 Strategic Goal for Proposed Budget Balance the district's responsibility Key Indices: Act Index = 3.0% ELSD's Adjusted Act Index = 4.1% to employees and taxpayers while preserving and enhancing a Quality Educational Experience for all students Page of 11 Key Budget Factors: STATE Revenue Special Education Expense Growth Buildings and Grounds Maintenance and Repair Budget Timeline Budget Timeline In accordance with Act of 2006, the district by School Resolution on December 15, 2020 confirmed the District Administration's and School Board's intent of limiting any local tax increase to at or below the state published index of 4.1% for the East Lycoming School District Based upon that direction, the following timeline is in place: ELSD and State Timelines Act Resolution Adoption by School Board December 2020 - At least 110 days prior to primary election (Jan 28, 2021) ELSD Budget Presentations February/March 2021 State - Governor Wolf's PA Budget Address - Week of February 8, 2021 ELSD Budget Updates April 2021 State - Primary Election - May 18, 2021 ELSD Proposed Final Budget Adoption April 2021 ELSD Final Budget Adoption May 2021 - June 30, 2021 State Annual Deadline Page of 11 General Fund Budget - Revenues Overall Revenue Trends from 2006-07 to 2021-22 2021-22 Proposed Final Revenue 2006-07 2.77% 0.52% $455,426 , 2% $11,298,127 , 43% Local Revenue 41.54% State Revenue Local $14,640,029 , 55% State Federal Revenue 55.17% Federal Fund Balance Major Revenue Functions: 2006-07 Proposed Budget 15 Year $ *Average % 2021-22 Change Change Local Revenue $ 7,772,474 $ 11,298,127 $ 3,525,653 3.24% State Revenue $ 10,324,054 $ 14,640,029 $ 4,315,975 2.99% Federal Revenue $ 518,990 $ 455,426 $ (63,564) -0.87% Comitted Fund Balance/Other Sources $ 97,150 $ 600,000 $ 502,850 36.97% Total $ 18,712,668 $ 26,993,582 $ 8,280,914 3.16% State funding appears to be growing in support of K-12 educational services for students This unfortunately is not an accurate perspective for our rural, higher aid ratio school district (See next slide) Page of 11 * Through this document, Average % Change is calculated as follows: (15 Year $ Change Column ÷ 2006-07 Column) ÷ 15 General Fund Budget - Revenues State Revenue Trend from 2006-07 to 2021-22 $16,000,000 $14,000,000 $12,000,000 Basic Education $10,000,000 PA Accountability Block Grant $8,000,000 Special Education $6,000,000 Transportation $4,000,000 Social Security Reimbursement $2,000,000 Retirement Reimbursement Total $0 06-07 Actual 07-08 Actual 08-09 Actual 09-10 Actual 10-11 Actual 11-12 Actual 12-13 Actual 13-14 Actual 14-15 Actual Accountability Block Grant/Ready to Learn Cyber-Charter School Reimbursement $7,459,156 $273,729 $7,808 Special Education $943,438 Transportation $703,365 Social Security Reimbursement $355,171 Retirement Reimbursement $325,904 State K-12 Educational Services Gaming Revenue Debt Service Reimbursement Pre-K Counts Other State Sources Total State Revenue 16-17 Actual 17-18 Actual Actual 18-19 Proposed 2021-22 2006-07 Basic Education 15-16 Actual 15 Year $ Change $8,390,282 2006-07 97.5% of State Revenue for K-12 Education Services $267,638 $0 $1,085,302 $846,683 $504,079 $2,256,216 $10,068,571 $13,350,200 $0 $121,631 $0 $133,852 $532,797 $422,032 $275,000 $60,000 $10,324,054 $14,640,029 Page of 11 Actual Proposed 19-20 21-22 Budget $931,126 2021-22 92.3% of State Revenue for K-12 Education Services Average % Change 0.89% ($6,091) -0.16% ($7,808) -7.14% $141,864 1.07% $143,318 1.46% $148,908 2.99% $1,930,312 42.31% $ 3,281,629 2.33% $532,797 $300,401 $275,000 ($73,852) $ 4,315,975 17.64% -3.94% 2.99% Early Estimate of Basic Education Increase $106,846 from 20-21 Budget not included General Fund Budget - Revenues Local Revenue Trend from 2006-07 to 2021-22 East Lycoming School District's 2020-21 Real Estate Tax Rate of 14.38 mills remained the lowest of the Lycoming County School Districts Specific Revenue Areas: Budget 2021-22 2006-07 15 Year $ Change Average % Change Value of Mill of RE Tax $ 427,000 $ 552,947 $ 125,947 2.11% Earned Income Tax $ 1,989,703 $ 2,650,000 $ 660,297 2.37% Page of 11 Proposed Budget - Expenditures Overall Expenditure Trends from 2006-07 to 2021-22 $30,000,000 $25,000,000 Salaries $20,000,000 Fringe Benefits Professional Services $15,000,000 Purchased Property Services Other Purchased Services $10,000,000 Supplies Equipment $5,000,000 Other Objects Total $06-07 Actual 07-08 Actual 08-09 Actual 09-10 Actual 10-11 Actual Condensed Budget Summary 11-12 Actual 12-13 Actual 13-14 Actual 14-15 Actual 15-16 Actual 16-17 Actual 17-18 Actual Actual 18-19 Actual Proposed 19-20 21-22 Budget 15 Year $ Average % Change Change/Yr Proposed 2021-22 2006-07 Salaries $ 8,931,722 $ 11,263,591 $ 2,331,869 1.86% Professional Svcs: Spec Ed Instruction +$480,000 Contracted Sub Teachers +$55,000 Fringe Benefits $ 3,203,749 $ 7,677,303 $ 4,473,554 9.97% School Resource Officer +$66,000 Professional Services (Svcs) $ 370,833 $ 1,206,673 $ 835,840 16.10% Purchased Property Services $ 264,363 $ 289,463 $ 25,100 0.68% Other Purchased Services $ 1,777,371 $ 2,700,096 $ 922,725 3.71% Supplies $ 1,086,602 $ 1,034,097 $ (52,505) -0.35% Equipment $ 236,411 $ 18,387 $ (218,024) -6.59% Other Objects (includes Debt Service) $ 1,710,692 $ 2,593,163 $ 882,471 3.68% Sub-Total $ 17,581,743 $ 26,782,773 $ 9,201,030 3.74% Committed Fund Balance $ $ 162,000 $ 162,000 Total $ $ 26,944,773 $ 9,363,030 17,581,743 Page of 11 3.80% Data Management +$35,000 Other Prof Svcs +$205,000 (Prof Dev., Service Agreements, EIT & RE Transfer Tax Collection) Other Purchased Svcs: Transportation +$372,000 Private Schools +$128,000 Charter Schools +$300,000 LycoCTC +$150,000 Proposed Budget - Expenditures Specific Expenditure Trends from 2006-07 to 2021-22 $4,500,000 $4,000,000 $3,500,000 Medical Insurance $3,000,000 Retirement $2,500,000 Educational Svcs-IUs $2,000,000 $1,500,000 Student Transportation Charter School $1,000,000 LycoCTC & PCT $500,000 $- 06-07 Actual 07-08 Actual 08-09 Actual 09-10 Actual Specific Budget Areas: 10-11 Actual 11-12 Actual 12-13 Actual 13-14 Actual 2006-07 14-15 Actual 15-16 Actual 16-17 Actual 17-18 Actual Actual 18-19 Proposed 15 Year $ Average % 2021-22 Change Change/Yr Medical Insurance $ 1,696,489 $ 2,615,486 $ 918,997 3.87% Retirement $ 562,608 $ 3,856,780 $ 3,294,172 41.82% Educational Svcs-IUs $ 180,010 $ 630,309 $ 450,299 17.87% Student Transportation $ 981,733 $ 1,354,000 $ 372,267 2.71% Cyber-Charter School $ 50,314 $ 350,000 $ 299,686 42.55% Lycoming Career and Tech Center $ 371,952 $ 520,000 $ 148,048 2.84% District-wide Supplies $ 451,282 $ 359,599 $ (91,683) -1.45% Energy and Utilities $ 432,263 $ 296,550 $ (135,713) -2.24% Debt Service Payments $ 1,614,526 $ 2,461,713 $ 847,187 3.75% Page of 11 Actual 19-20 Proposed 21-22… Medical Insurance Costs: Employee contributions, decrease in staff, retirees coming off of coverage, and two years of no premium increase have allowed for a lower overall cost increase IU Ed Svcs: Spec Ed Instruction +$480,000 Cyber-Charter Schools (CCS): Serving ≈ 37 students - State has promised reform - $350K ≈ teachers that could service 1,650+ students Debt Svc is largely offset by: Energy Savings - $130K State Reimb - $422K LycoCTC Lease - $171K Proposed Budget - Fund Balance Fund Balance History, Budget and Forecast 2006-07 through 2021-22 Proposed and 2024-25 Forecast 8,000,000 7,000,000 6,000,000 Unassigned Fund Balance Dollars 5,000,000 Pre-Paid Expense 4,000,000 Committed for Capital Projects 3,000,000 Committed for Technology Committed for PSERS/OPEB 2,000,000 Total Fund Balance 1,000,000 Beginning in 2005-06, PA restricted district's Unassigned Fund Balance to a % scale based on budget At about the same time, accrual valuations of retire health care costs and the funding of PSERS were becoming increasingly discussed and were recognized as significant future costs of most if not all PA school districts The administration and school board began to plan for these future costs and over plus budget years established committed fund balances to minimize current and future real estate tax increases The district will utilize a substantial portion of the Committed Fund Balance for PSERS/OPEB during the 2018-19 through 2022-23 fiscal years (Light Blue line above) The 2022-23 fiscal year is the final year of bond issue payments for facilities improvements that have occurred since 2003 These payments have been shifted to Committed for Capital Projects Reserve (Green line above) Page 10 of 11 Proposed Budget - Debt Service Expense/Reimbursement Debt Service Gross Expense, State Reimbursement and Net Expense $3,000,000 $2,500,000 Axis Title $2,000,000 Debt Service Gross Expense $1,500,000 State Reimbursement Debt Service Net Expense $1,000,000 $500,000 $06-07 Actual 07-08 Actual 08-09 Actual 09-10 Actual 10-11 Actual 11-12 Actual 12-13 Actual 13-14 Actual 14-15 Actual 15-16 Actual 16-17 Actual 17-18 Actual 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Actual Budget Budget Budget Forecast Forecast Forecast The administration and school board recognized the need to offset the use of fund balance as shown in the previous slide with a reduction in ongoing expenses The offset is achieved through the reduction in net debt service expense occurring in the 2022-23 school year This offset occurs at the same time that the Committed Fund Balance Reserve for PSERS/OPEB Reserve is substantial depleted The over $600,000 reduction in net debt service expense will offer the flexibility of not having to increase local taxes to offset the use of this Committed Fund Balance for PSERS/OPEB Reserve Beginning in the 2023-24 school year, approxmately $1.8M will be budgeted for Committed Fund Balance for Capital Projects recognizing the need to continue the maintenance and repair of the district's facilities and grounds Page 11 of 11