The 2020-2021 budget was developed using current guidance provided by PASA, PASBO, and PSBA along with historical data specific to our district.

Caution was taken to not project a worst case scenario but to use the guidance provided to date in conjunction with the numbers and information we know to be true at this point in time.

Property tax delinquencies will increase Assessment values will decrease as appeals will be on the rise Interim Real Estate Tax will decline as assessment growth will

be slow to recover Earned Income Tax revenue will decline due to record

unemployment numbers and hiring and wage freezes Realty Transfer Tax will decrease Interest Earnings will decrease Delinquent Occupation and Personal Tax Collections will

decrease

Due to anticipated revenue shortfalls at the state level, there will likely be no increase in Basic and Special Education Funding; reductions could actually be applied to these subsidy amounts

2019-2020 state revenues are protected by Act 13

Timeline of state budget is questionable

No increase in the current millage rate – no tax increase

Decrease in local and state revenues due to COVID-19

Additional special education expenditures of more than$150,000 due to student needs

Increase in Cyber Charter Tuition of $100,000

One-time savings of $325,000 in principal payment due to refinancing General Obligation Bonds of 2015

One-time receipt of CARES Act funds in the amount of $135,964

2020-2021 Starting Fund Balance (Projected)$4,145,007*

2020-2021 Preliminary Budgeted Revenues: $14,758,9812020-2021 Preliminary Budgeted Expenditures:

$15,104,268

(Deficiency) of Revenuesover Expenditures ($345,287)

2020-2021 Ending Fund Balance (Projected) $3,799,720*

*$725,000 of fund balance is committed for PSERS costs

2020-2021 BUDGET

OBJECT 2019-2020Budget

2020-2021Budget

Budget to Budget $ Difference

Budget to Budget %

Difference

100 -Salaries and Wages

$6,202,275 $6,245,495 $43,220 .70%

Significant factors affecting this budget category:1. The 2019-2020 budget included three new full-time aides;

1 full-time and 2 part-time aides were hired.2. Speech and Language services will be contracted in 2020-20213. A vacant custodial position will not be filled in 2020-2021.

Object 2019-2020 Budget

2020-2021 Budget

Budget to Budget $

Difference

Budget to Budget % Difference

200 -Employee Benefits

$4,467,941 $4,249,961 ($217,980) (4.88%)

Significant factors affecting this budget category:1. Contracted services2. Vacant custodial position 3. Employee opt-outs4. Reduction in health insurance premiums

Object 2019-2020 Budget

2020-2021 Budget

Budget to Budget $

Difference

Budget toBudget %

Difference300 -Purchased Technical Services

$1,018,315 $1,216,115 $197,800 19.42%

Significant factors affecting this budget category:1. Increase of $150,000 in CAIU special education services due to

student needs2. Increase of $30,000 for English Learners services from the CAIU3. Increase of $20,000 in contracted speech and language services

Object 2019-2020Budget

2020-2021 Budget

Budget to Budget $

Difference

Budget to Budget % Difference

400 -Purchased Property Services

$216,300 $214,300 ($2,000) (0.92%)

A significant factor affecting this budget category:1. Refinishing the Johnson gymnasium floor and sidewalk repairs in the

amount of $30,000 were postponed from 2019-2020 to 2020-2021

Object 2019-2020Budget

2020-2021 Budget

Budget to Budget $

Difference

Budget to Budget %

Difference500 –Other Purchased Services

$1,709,000 $1,872,350 $163,350 9.56%

Significant factors affecting this budget category:1. Increase Cyber/Charter Schools enrollment and tuition of $100,000

which brings the total to $650,0002. Increase in tuition and enrollment at Dauphin County Technical

School3. Increase in outside special education placements based on student

needs4. Increase in student transportation services due to outside special

education placements

Object 2019-2020Budget

2020-2021Budget

Budget to Budget $

Difference

Budget to Budget %Difference

600 -Supplies

$580,854 $655,527 $74,673 12.86%

Significant factors affecting this budget category:1. Curriculum materials (Social Studies and Health books, math consumables, and Applied Chemistry materials) in the amount of $53,0002. Expenditures related to the PCCD Grant of $30,000 for signage and School Gate Guardian visitor sign-in system. 3. $20,000 for personal protective equipment – masks, sanitizer,

thermometers, gloves, etc.

Object 2019-2020 Budget

2020-2021 Budget

Budget to Budget $

Difference

Budget to Budget %Difference

700 –Equipment/SiteImprovement

$192,500 $156,100 ($36,400) (18.91%)

Significant factors affecting this budget category:1. The 2019-2020 budget included a purchase of $35,000 for CAD

Computers2. Included in this category is $110,000 for computer technology

purchases3. $14,000 for the purchase of a zero-turn mower

Object 2019-2020 Budget

2020-2021 Budget

Budget to Budget $

Difference

Budget to Budget %Difference

800 –Dues, Fees, Interest & Budgetary Reserve

$326,010 $329,420 $3,410 1.05%

This budget category includes:1. $70,000 for Budgetary Reserve (same as in past years)2. $230,550 for interest on General Obligation Bonds of 2020.

Object 2019-2020 Budget

2020-2021 Budget

Budget to Budget $

Difference

Budget to Budget %Difference

900 –Loan/BondPayment

$490,000 $165,000 ($325,00) (66.33%)

Significant factors affecting this budget category:1. General Obligation Bonds of 2015 were refinanced in January 2020.

The Board chose to realize the maximum amount of savings in the 2020-2021 school year.

2. In the 2021-2022 school year, the principal payment will increase from $165,000 to $500,000.

ObjectCode

Definition 2019-2020 Budget

2020-2021 Budget

Difference %

100 Salaries 6,202,275 6,245,495 43,220 .70%200 Benefits 4,467,941 4,249,961 (217,980) (4.88%)300 Purchased Services-

Technical1,018,315 1,216,115 197,800 19.42%

400 Purchased Services –Property

216,300 214,300 (2,000) (0.92%)

500 Other Purchased Services

1,709,000 1,872,350 163,350 9.56%

600 Supplies/Books/Software/Fuel

580,854 655,527 74,673 12.86%

700 Equipment/Property 192,500 156,100 (36,400) (18.91%)

800 Dues/Fees/Interest/Budgetary Reserve

326,010 329,420 3,410 1.05%

900 Loan/Bond Principal Payments

490,000 165,000 (325,000) (66.33%)

TOTAL $15,203,195 $15,104,268 ($98,927) (.65%)

ObjectCode

Definition 2020-2021 Budget

% of Total Budget

100 Salaries $ 6,245,495 41.35%200 Benefits $ 4,249,961 28.14%300 Purchased Services-Technical $1,216,115 8.05%

400 Purchased Services – Property $ 214,300 1.42%500 Other Purchased Services $ 1,872,350 12.40%600 Supplies/Books/Software/Fuel $ 655,527 4.34%700 Equipment/Property $ 156,100 1.03%800 Dues/Fees/Interest/

Budgetary Reserve$ 329,420 2.18%

900 Loan/Bond Principal Payments $ 165,000 1.09%

TOTAL $15,104,268 100%

2020-2021 BUDGET

Function Code

Definition 2020-2021 Budget % of Total Budget

1000 Instruction $9,692,410 64.17%

2000 Support Services $4,550,617 30.13%

3000 Non-Instructional Services

$ 348,191 2.31%

4000 FacilitiesImprovements

$ 44,500 .29%

5000 Other Expenditures and Financing Uses

$ 468,550 3.10%

TOTAL $15,104,268 100%

2020-2021 BUDGET

Total taxable assessed value increased from previous year by only $81,100 (which equates to additional real estate tax of $1,705)

Current real estate tax collection rate was decreased from 93% to 92% due to COVID-19

No increase to current millage rate

Current Real Estate Tax makes up approximately 65% of local revenues and has historically been budgeted at a 93% collection rate. The collection rate in the last two years has been 94%. Prior to the pandemic, a 94% collection rate would have been applied to the budget. Due to COVID-19, the collection rate has been lowered to 92% resulting in $112,256 less than what have been budgeted.

Earned Income Tax accounts for approximately 10% of local revenues and would have been budgeted at $700,000 due to steady year over year increases; actual collections in 2018-2019 exceeded $728,000. Due to COVID-19, the budget includes $650,000 or $50,000 less than what would have been budgeted.

6000 - LOCAL RECEIPTS

2019-2020 Budget

2020-2021 Budget

Budget to Budget $

Difference

10.6111 Current Real Estate Tax 5,214,138 5,159,121 (55,017)10.6112 Interim Real Estate Tax 8,500 8,500 010.6113 Public Utility Realty Tax 6,900 6,900 010.6114 Payment in Lieu of Taxes 315 315 010.6120 Per Capita Section 679 18,500 18,500 010.6141 Act 511 Per Capita 18,500 18,500 010.6151 Earned Income Tax 675,000 650,000 (25,000)10.6152 Occupation Tax 540,000 510,000 (30,000)10.6153 Real Estate Transfer Tax 65,000 65,000 010.6411 Delinquent Real Estate Tax 320,000 315,000 (5,000)10.6420 Del Per Capita/Occup Tax 170,000 150,000 (20,000)10.6510 Interest on Investments 90,000 50,000 (40,000)

10.6700 Revenues - District Activities 53,000 40,000 (13,000)10.6910 Rentals 900 900 010.6940 Tuition 100,000 75,000 (25,000)10.6991 Misc (refund of prior yr exp) 250,000 250,000 0TOTAL LOCAL RECEIPTS 7,530,753 7,317,736 (213,017)

LOCAL RECEIPTS

As a result of the pandemic, districts have been advised to budget actual subsidy amounts received in 2019-2020

7000 - STATE RECEIPTS2019-2020

Budget2020-2021

BudgetBudget to Budget $

Difference

10.7110 Basic Instructional Subsidy 4,089,682 4,079,839 (9,843)

10.7271 Special Education 575,310 629,165 53,855

10.7310 Transportation 165,000 175,000 10,00010.7320 Bond Payment Reimbursement 191,663 110,200 (81,463)

10.7330 Medical/Dental Services 16,600 16,600 010.7340 State Property Tax Reduction Allocation 251,002 251,567 565

10.7500 PCCD Grant 0 68,880 68,880

10.7501 Ready to Learn Block Grant 127,733 127,733 0

10.7810 Social Security 255,000 260,000 5,000

10.7820 Retirement 1,075,000 1,170,000 95,000

TOTAL STATE RECEIPTS 6,746,990 6,888,984 141,994

The District will receive a one-time flow of Federal CARES Act monies which will be used to cover budgeted expenditures

The District will utilize $50,000 from Medical Access funds to pay for psychological services

8000 – FEDERAL RECEIPTS

2019-2020 Budget

2020-2021 Budget

Budget to Budget $

Difference

10.8512.000.520.00 IDEA 154,275 143,312 (10,963)

10.8514.000.411.00 Title I 168,413 170,643 2,230

10.8515.000.421.00 Title II 30,553 34,701 4,148

10.8810 Medical ACCESS 0 50,000 50,000

10.8517 Title IV 12,267 12,605 338

CARES FUNDS 0 135,964 135,964

10.8820 Medical Assistance 1,000 1,000 0

TOTAL FEDERAL RECEIPTS 366,508 548,225 181,717

2020-2021 Starting Fund Balance (Projected)$4,145,007*

2020-2021 Preliminary Budgeted Revenues: $14,758,9812020-2021 Preliminary Budgeted Expenditures:

$15,104,268

(Deficiency) of Revenuesover Expenditures ($345,287)

2020-2021 Ending Fund Balance (Projected) $3,799,720*

*$725,000 of fund balance is committed for PSERS costs

The Budget and Finance Committee supports the 2020-2021 proposed final budget with no increase to the current millage rate of 21.0190.

May 7, 2020 – Budget and Finance Committee Meeting

May 13, 2020– Board Study Session to review 2020-2021 Proposed Final Budget

May 19, 2020 – May Board Meeting – Proposed Budget Approval

May 26, June 2, June 9, 2020 – Advertise Tax Notice in Upper Dauphin Sentinel

May 26, June 2, June 9, 2020 – Advertise Proposed Budget and make available for public inspection; also post on District website

June 17, 2020 – June Board Meeting - Final Budget Approval