2013-2014 Preliminary BudgetMarch 18, 2013
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
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
Expenditures
Salaries41%
Benefits21%
SalariesBenefitsProf. Svcs.Property Svcs.Contracted Svcs.Supplies/EquipmentDebt Service
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%
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%
Expenditure Growth - Other• Special Education• Medical/Prescription Insurance• Technology Services• Charter School Tuition• Student Transportation Services• Legal Fees• Psychological Services
Revenues
78.3%
18.5%
1.5%1.7%
LocalStateFederalFund Balance
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%
Budget Crisis…why?
Revenues
Expenditures
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
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
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
SUMMARY
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
Budget Shortfall $2,909,655
Tax Increase
Expenditure ReductionFund Balance
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
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
Prepared Statements
Please hold questions to the end of all presentations
PROPOSED STATE EDUCATION BUDGET
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%
• $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
MIDDLE SCHOOL PROPERTY SUBDIVISION PLAN
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
Comments and [email protected]
CUSTODIAL OUTSOURCING ALTERNATIVE PROPOSAL 1
REORGANIZATION
• 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
CUSTODIAL OUTSOURCING ALTERNATIVE PROPOSAL 2
SALARY AND BENEFIT REDUCTION
• 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
INSTRUCTIONAL/TEACHING ASSISTANTS OUTSOURCING
ANALYSIS
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.
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
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
DISTRICT WIDE SALARY REDUCTION
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
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
Top Related