Northeastern School District
Preliminary Budget Presentation
2013-2014 School Year
The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.
Preliminary BudgetDESCRIPTION 2013-14 BUDGET
SUMMARY
TOTAL REVENUE $55,743,313
- TOTAL EXPENDITURES $57,746,004
DIFFERENCE: (DEFICIT) $(2,002,691)
Ways to Balance Budget:Increase RevenueExpenditure Cuts
$ 374,478$ 550,514
Use of Fund Balance $ 0
TAXES: to Adjusted IndexAnd Retirement Exception
$ 715,000$ 400,693
DIFFERENCE: SURPLUS $ 37,994
Budget 2013-2014 Summary
• Revenue– Total increase of <$1M from 2012-13 (w/o tax increases).– Local
• Growth through higher assessed values is non-existent.• ES3 challenging district on LERTA and assessed value at -$900k.• Relying on millage rate tax increases to fuel revenue growth
– State• Partially offsetting employer retirement payments into PSERS.• State no longer supports cyber and charter school funding costs.
• Expenditures– Total increase of $2.8M– Total Salary increased $525k.– Gross Retirement cost increased $1.2M , net cost >500k.– Health insurance (after plan redesign) increased $72k– Debt Service budget increased >$600k.– We must continue to look for ways to reduce REOCCURING expenditures while maintaining a
quality education for our children. •
Budget 2013-2014 Summary
• Savings– No use of fund balance and no transfer of money into Capital
Reserve fund.– Have less than 2 weeks of savings left.
• Taxes– The school board approved a preliminary budget AND filed
for the retirement exception capping additional tax revenue at $1.1M and the possible millage rate increase to 3.5%.
– FIRST TIME district has filed for a tax exception to balance budget!
Revenue: Local $38,129,956
Revenue: State $18,185,793
Revenue: Federal $516,886
2013 -14 Revenue Categories
Revenue: Local
Revenue: State
Revenue: Federal
Salary $25,980,103
Benefits $13,072,121
Debt Service $5,905,594
Other $12,235,497
2013 -14 Expenditure Categories
Salary Benefits
Debt Service Other
Group Life Insurance; 33000; 0.3% Social Security; 2010738.53209
285; 15.3%
Retirement; 4449908.93442247; 33.9%
Tuition Reimbursement; 500000; 3.8%Unemployment Compensation; 105000; 0.8%
Worker's Compensation; 172500; 1.3%
Health Insurance; 5859602; 44.6%
2013 -14 Benefit Budget
Group Life Insurance
Social Security
Retirement
Tuition Reimbursement
Unemployment Compensation
Worker's Compensation
Health Insurance
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 B2012-13 B2013-14 PDE
-0.05
0
0.05
0.1
0.15
0.2
8.1%
13.4%
16.1%
9.7%
2.6%
7.5%
6.3%
-2.6%
4.3%
3.3%
8.3%
10.3%
13.4%
14.3%
8.7%
6.8%
4.9%
-2.5%
3.5%3.9%
Revenue vs. Expenditure Growth % - 10 year History
% rev growth % exp growth
Fund Balance: Total $ amount
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 B2012-13 B2013-14 PDE
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
1,594,343
2,270,106
2,927,300
4,335,578
5,739,880
3,967,481
2,812,187
2,326,443
1,925,756 1,925,756 1,925,756
School Year
Fund
Bal
ance
Rem
aini
ng
TAXES: District Perspective
Real Estate Millage Increase based on assessed property value 1 mil = $1.3M in new reoccurring revenue
Adjusted Index +2.3%
Retirement ExceptionTo +3.5%
Additional Real Estate Revenue projected
Maximum new real estate revenue
$715,000 $400,693
$1,115,693
TAXES: Taxpayer Perspective
Real Estate Millage Increase based on assessed property value
$ 100k $ 150k $ 200k
Adjusted Index to 2.3%
Retirement Exception to 3.5%
Real Estate Tax bill (assuming AI + Ret Exc)
+$ 55
+$ 85
$2,511
+$ 82.50
+$127.50
$3,766.5
+$ 110
+$ 170
$5,022
Series1 $(4,500,000)
$(4,000,000)
$(3,500,000)
$(3,000,000)
$(2,500,000)
$(2,000,000)
$(1,500,000)
$(1,000,000)
$(500,000)
$-
$500,000
$31,817
$(2,497,679)
$(3,020,814)
$(4,029,630)
$(1,683,619)
$(2,193,624)
$(2,178,300)
3 YEAR BUDGET FORECASTImpact of Millage Rate Decisions on Deficit
No Tax Increase 0% TAXES INCREASE TO ADJ INDEX + RETIREMENT 3.5%
Ways to Balance Budget
REVENUE NEW REVENUE EXPLORATION IDEA
Governor's state budget proposal +1.7% BEF increase: +$208k
Local Real estate: New LERTA property New $20M business in EMT: +$70k
Aquatic Center Attract diving clubs: +$3kConsidering taking back pool from YMCA
Athletics Pay to play – proposal to committee: +$93k
Taxes (See later)
Expenditure ReductionsMAJOR EXPENDITURE COST CUTTING EXPLORATION IDEA
Salaries and Benefits Convert Full Day Kindergarten to ½ K: Board rejected this proposal to save $325k
Salary and Benefits: Administration Eliminated 1 Asst. Superintendent position: $150k
Salaries and Benefits: Professional Do not replace teacher retirements: $286k
Salaries and Benefits: Professional Program elimination of several positions: $126k
Salaries and Benefits: Classified Do not replace HS custodian resignation: $20kReplace Warehouse Coordinator’s retirement w/ ½ position in district: $18k
Benefits: Classified Increased Classified contribution to health insurance to reduce employer cost: +$20k
Technology Remove new phone request: $70k
Operations NO use of fund balance NO transfer to Capital Reserve fund: $175k
Salary , Benefits, and Operations Rolling Furlough: 1 day over 2 year: $140 each yr
Rolling Furlough• Shutdown for 1 school day in 2013-14 and 1
school day in 2014-15• Saves district $140k per year of reoccurring
savings• Amend (not open) professional contract
through an MOU to have 189 work and paid days and reduce the student days to 180.
• Amend calendar to have furlough last day of year after the clerical day
Northeastern School District: One Family
• "Although the 2013-14 budget and forecasted upcoming budgets probably will require both tax increases and significant cost cutting to balance, Northeastern School District will balance its budgets while providing a quality education for all of our students." - Brian Geller, Director of Operations
• “Northeastern School District, in partnership with the community, is committed to provide a high quality education to our students while developing a fiscally responsible long-term plan. Achievement of this goal is only made possible by all stakeholders working together.” –Dr. Shawn Minnich, Asst. Superintendent of Curriculum & Instruction
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