2013-2014 Preliminary Budget
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Transcript of 2013-2014 Preliminary Budget
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2013-2014 Preliminary BudgetMarch 18, 2013
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Previous Year’s Budget Reductions• Elimination of Teaching Positions
• Special Education/Two Elementary• Elimination of Administrative Position • Elimination of Technology Summer Workers• Reduction of Summer Maintenance Workers • Reduction of Capital Improvements• Energy Curtailment Programs• New Athletic/Band Fee• Reduction in Variable Debt• Elimination of Weekend Security• Reduction of Contracted Services
TOTAL REDUCTIONS $658,546
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Budget Development Assumptions• No Salary Increases
• All Employees• No Change in Benefit Plans• No Furlough/Outsourcing • No Additional Programs• Two New Teaching Positions
• Elementary Sp. Ed., High School Social Studies• No Additional Allocations
• By Building• By Department
• No Additional Debt• No New Revenue Sources• No Additional State & Federal Revenue
• Except PSERS Retirement Reimbursement
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Expenditures
Salaries41%
Benefits21%
SalariesBenefitsProf. Svcs.Property Svcs.Contracted Svcs.Supplies/EquipmentDebt Service
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Expenditures2013-14
2012-13 PROPOSED
DESCRIPTION BUDGET BUDGET $ INC(DEC)% INC(DEC)
Salaries $ 30,415,980 $ 30,500,751 $ 84,771 0.28%
Employee Benefits 13,558,938 15,438,865 $ 1,879,927 13.86%
Purchased Prof. Svcs. 5,452,876 5,719,740 $ 266,864 4.89%
Purchased Property Svcs. 1,927,772 1,905,088 $ (22,684) -1.18%
Other Contracted Svcs. 10,054,668 10,393,738 $ 339,070 3.37%
Supplies 2,083,664 2,168,410 $ 84,746 4.07%
Equipment 447,175 438,190 $ (8,985) -2.01%
Other Objects 3,183,456 3,031,792 $ (151,664) -4.76%
Other Financing Uses 5,050,000 5,255,500 205,500 4.07%
TOTAL ALL OBJECTS $ 72,174,529 $ 74,852,074 $ 2,677,545 3.71%
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PSERS History/Projections Employer Contribution Rates
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-220%
5%
10%
15%
20%
25%
30%
35%
6.04%4.61%
1.94%1.09%1.15%
3.77%4.23%4.69%
6.46%7.13%
4.76%4.78%5.64%
8.65%
12.36%
16.93%
21.31%
25.80%
28.30%29.15%
30.14%30.87%
30.76%30.93%
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Expenditure Growth - Other• Special Education• Medical/Prescription Insurance• Technology Services• Charter School Tuition• Student Transportation Services• Legal Fees• Psychological Services
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Revenues
78.3%
18.5%
1.5%1.7%
LocalStateFederalFund Balance
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Revenues – Local
DESCRIPTION 2012-13 BUDGET 2013-14 BUDGET $ INC(DEC) % INC(DEC)
CURRENT REAL ESTATE $ 50,489,372 $ 52,155,883 $ 1,666,511 3.3%
INTERIM REAL ESTATE $ 300,000 $ 250,000 $ (50,000) -16.7%
PUBLIC UTILITY TAX $ 70,000 $ 70,000 $ - 0.0%
EARNED INCOME $ 3,400,000 $ 3,400,000 $ - 0.0%
TRANSFER TAX $ 700,000 $ 700,000 $ - 0.0%
DELINQUENT TAX $ 1,250,000 $ 1,250,000 $ - 0.0%
EARNINGS ON INVESTMENTS $ 101,328 $ 50,000 $ (51,328) -50.7%
IDEA $ 478,614 $ 565,257 $ 86,643 18.1%
RENTALS/FEES $ 150,018 $ 150,000 $ (18) 0.0%
MISCELLANEOUS $ 50,000 $ 50,041 $ 41
0.0%
FUND BALANCE APPROPRIATION $ 1,094,440 $ 1,243,112 $ 148,672 13.6%
$ 58,083,772 $ 59,884,293 $ 1,800,521 3.1%
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Budget Crisis…why?
Revenues
Expenditures
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Avon Grove
Coatesville
Dow
ningtown
Great Valley
Kennett
Octorara
Ow
en J. Roberts
Oxford
Phoenixville
Tred-Easttown
Unionville
West Chester
-$900,000
-$700,000
-$500,000
-$300,000
-$100,000
$100,000
$300,000
$500,000
$700,000
$900,0002010-11 Revenue from Changes in Tax Base
2011-12 Revenue from Changes in Tax Base
2012-13 Revenue from Changes in Tax Base
2013-14 Revenue from Change in Tax Base
Chester County Assessment Changes
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CUMULATIVE IMPACT OF ASSESSMENT APPEALS SINCE 2010
KENNETT CONSOLIDATED SCHOOL DISTRICT
Annual Tax Assessment Hearing Results 2010 - 2013
Municipality Original Assessment Revised Assessment Assessment Reduction
KENNETT SQUARE BOROUGH $ 12,110,550 $ 7,655,465 $ 4,455,085
NEW GARDEN 221,065,824 169,415,179 51,650,645
EAST MARLBOROUGH 39,293,650 28,783,471 10,510,179
KENNETT 255,433,690 196,779,614 58,654,076
Total $ 527,903,714 $ 402,633,729 $ 125,269,985
Millage Rate 27.746
Lost Revenue $ 3,475,741
Net Real Estate Tax Lost - $2,350,717
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Interim Taxes, Transfer Taxes, and Interest Revenue
2007 2013-14 Preliminary Budget0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
$3,935,501
$1,000,000
$2,935,000 Revenue Lost
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SUMMARY
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Real Estate Tax Rate History
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
0
5
10
15
20
25
30
19.349 20.237 20.873 21.57 21.9523.1423.953699999999924.778125.729326.7303 27.746
Millage Rate
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Budget Shortfall $2,909,655
Tax Increase
Expenditure ReductionFund Balance
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Real Estate Tax Millage Analysis*Budget Budget % Increase/
2012-13 2013-14 Increase (Decrease)
Fund Balance Appropriations
$0 26.7303 28.3901 1.66 6.21%
$1,058,826 26.7303 27.8415 1.11 4.16%
$1,094,440 26.7303 27.8230 1.09 4.09%
$1,243,112 26.7303 27.7460 1.02 3.80%
$2,000,000 26.7303 27.3538 0.62 2.33%
$2,326,344 26.7303 27.1847 0.45 1.70%
$2,500,000 26.7303 27.0947 0.36 1.36%
Proposed Tax Increase
Max Increase with Exceptions
Increase at Act 1 Index
* Net Value of a Mill - $1,929,883
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Bottom Line• Proposed Real Estate Tax Increase
• 3.8% Increase• 27.7460 Mills
• Apply for Act 1 Exceptions• Special Education & PSERS
• Appropriation of Fund Balance• $1,243,112
• Begin Process of Budget Deliberations• Finance Committee Meetings
• First Monday of Every Month• Long Term Planning• Initiatives to Reduce Recurring Expenditures
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Prepared Statements
Please hold questions to the end of all presentations
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PROPOSED STATE EDUCATION BUDGET
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PROPOSED STATE EDUCATION BUDGET
COMPARISON OF KCSD PROPOSED 2013-14 BUDGET TO GOVERNOR'S PROPOSED BUDGET
KCSD GOVERNOR'S
2013-14 PROPOSED VARIANCE
ACCOUNT DESCRIPTION PROPOSED BUDGET INC(DEC)
BASIC ED SUBSIDY $ 4,944,283 $ 5,110,050 $ 165,767
CHARTER SCHOOLS $ - $ - $ -
SPECIAL ED SUBSIDY $ 1,641,323 $ 1,633,616 $ (7,707)
EDUCATIONAL ASSISTANCE $ - $ - $ -
TRANSPORTATION SUBSIDY $ 1,525,661 $ 1,525,661 $ -
RENTAL & SINKING FUND $ 462,000 $ 462,000 $ -
HEALTH SERVICES $ 86,000 $ 86,000 $ -
PROPERTY TAX REDUCTION ALLOCATION $ 1,390,637 $ 1,390,637 $ -
PA ACCOUNTABILITY GRANT $ 128,446 $ 128,446 $ -
SOCIAL SECURITY $ 1,160,811 $ 1,160,811 $ -
RETIREMENT $ 2,493,041 $ 2,161,651 $ (331,390)
TOTAL REVENUE FROM STATE SOURCES $ 13,832,202 $ 13,658,872 $ (173,330)
RETIREMENT EXPENSE REDUCTION $ 5,151,821 $ 4,467,143 $ 684,678
NET CHANGE TO KCSD PRELIMINARY BUDGET $ 511,348
Millage Reduction Equivalent 0.26
Reduced Millage Requirement under Governor's Proposal 2.8%
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• $1.0 Billion to School Districts over 4 years• Kennett’s Grant $1,829,390
• Year 1 – 2014-15 Grant Amount $365,878• 4 Targeted Uses
• School Safety• Ready by 3• Individualized Learning• STEM Initiatives
• Contingent on the Privatization of State Liquor Stores
Passport for Learning Block Grant
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MIDDLE SCHOOL PROPERTY SUBDIVISION PLAN
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Outsourcing DeliberationsTentative Time Line
• Custodial Staff• Presentation
• February 4, 2013• Alternative Proposals
• March 18, 2013• Committee Discussion
• April 1, 2013• Board Action
• April 6, 2013
• Instructional/Teaching Assistants
• Presentation • March 18, 2013
• Committee Discussion• May 6, 2013
• Board Action• May 13, 2013
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Comments and [email protected]
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CUSTODIAL OUTSOURCING ALTERNATIVE PROPOSAL 1
REORGANIZATION
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• Elimination of 6 night custodial positions• 2 employees by attrition• 4 employees by layoffs
• Reduce all remaining night custodial positions from 40 hours/week to 37.5 hours/week
• Reorganization of remaining day and night custodial staff to maximize performance and building coverage
• Total estimated savings - $356,104
Custodial Outsourcing Alternative Proposal 1
Reorganization
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CUSTODIAL OUTSOURCING ALTERNATIVE PROPOSAL 2
SALARY AND BENEFIT REDUCTION
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• Option 1• Reduction of custodial salaries by 6.5%• Major changes to existing healthcare plans for all custodial
and maintenance personnel (15% cost reduction)• Elimination of 2 positions through attrition
• Option 2• Reduction of custodial and maintenance salaries by 5.0%• Major changes to existing healthcare plans for all custodial
and maintenance personnel (15% cost reduction)• Elimination of 2 positions through attrition
• Total estimated savings - $330,000
Custodial Outsourcing Alternative Proposal 2
Salary and Benefit Reduction
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INSTRUCTIONAL/TEACHING ASSISTANTS OUTSOURCING
ANALYSIS
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Instructional/Teaching Assistants Outsourcing
Analysis• All staffing was based on equivalent existing employees’ hours and work schedule.
• All qualifications of contracted employees would meet or exceed the qualifications as dictated by the District and the Pennsylvania Department of Education.
• Two agencies have submitted proposals based on our solicitation.
• Lead time for transition to outsourcing arrangement is 60 days after award of contract.
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Instructional/Teaching Assistants Outsourcing
Analysis
Emplo
yees
Market
Rates
Hold Harm
less R
ates
Rate Im
prove
ment
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$1,308,826
$681,999
$172,307 $1,369,805
$1,675,298 $1,716,228
SALARY BENEFITS PSERS/SS CONTRACTED
$2,163,132
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Instructional/Teaching Assistants Outsourcing
Analysis
Market Rates Hold Harmless Rates
Rate Improvement$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000 $793,327
$487,834 $446,904
SAVINGSPatient Protection and Affordable Healthcare Act if applicable would reduce savings by an estimated $104,000
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DISTRICT WIDE SALARY REDUCTION
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All Employee Salary Reduction
$20,657,625
$2,987,516
$2,469,429
$1,942,182 $537,231 $179,7022013-2014 Budgeted Salaries
KEA KCESPA AdministrationCustodial/Maintenance Confidential Food Service
Total Salaries $28,773,685
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All Employee Salary ReductionEmployee
Classification Average Per
Pay Reduction @ $450,000 (1.56%)
Average Per Pay
Reduction @ $1,000,000
(3.48%)
Average Per Pay
Reduction @ $1,500,000
(5.21%)
KEA $39 $87 $131
KCESPA $16 $37 $55
Administration $78 $174 $261
Maintenance/ Custodial
$24 $53 $79
Confidential $46 $103 $154
Food Service $18 $40 $60