2021-22_Budget_Presentation_4.27.21

East Lycoming School District2021-22 General Fund Budget Presentation April 27, 2021... Budget TimelineBudget Timeline In accordance with Act 1 of 2006, the district by School Resolutio

East Lycoming School District

2021-22 General Fund Budget Presentation

April 27, 2021

Index

Strategic Goal for Proposed Budget

Balance the district's responsibility

to employees and taxpayers while preserving and enhancing a Quality Educational Experience

for all students.

Key Budget Factors:

STATE Revenue Special Education Expense Growth Buildings and Grounds Maintenance and Repair

Key Indices:

Act 1 Index = 3.0%

ELSD's Adjusted

Act 1 Index = 4.1%

Budget Timeline

Budget Timeline

In accordance with Act 1 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

- At least 110 days prior to primary election (Jan 28, 2021)

State - Governor Wolf's PA Budget Address

- Week of February 8, 2021

State - Primary Election

- May 18, 2021

- June 30, 2021 State Annual Deadline

General Fund Budget - Revenues

Overall Revenue Trends from 2006-07 to 2021-22

Proposed Budget 15 Year $ *Average % Major Revenue Functions: 2006-07 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%

41.54%

55.17%

2.77% 0.52%

2006-07

Local Revenue State Revenue Federal Revenue Fund Balance

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)

* Through this document, Average % Change is calculated as follows:

(15 Year $ Change Column ÷ 2006-07 Column) ÷ 15

$11,298,127 , 43%

$14,640,029 , 55%

$455,426 , 2%

2021-22 Proposed Final Revenue

Local State Federal

General Fund Budget - Revenues

State Revenue Trend from 2006-07 to 2021-22

Proposed 15 Year $ Average % 2006-07 2021-22 Change Change

Basic Education $7,459,156 $8,390,282 $931,126 0.89%

Accountability Block Grant/Ready to Learn $273,729 $267,638 ($6,091) -0.16%

Cyber-Charter School Reimbursement $7,808 $0 ($7,808) -7.14%

Special Education $943,438 $1,085,302 $141,864 1.07%

Transportation $703,365 $846,683 $143,318 1.46%

Social Security Reimbursement $355,171 $504,079 $148,908 2.99%

Retirement Reimbursement $325,904 $2,256,216 $1,930,312 42.31%

State K-12 Educational Services $10,068,571 $13,350,200 $ 3,281,629 2.33%

-Debt Service Reimbursement $121,631 $422,032 $300,401 17.64%

-Other State Sources $133,852 $60,000 ($73,852) -3.94%

Total State Revenue $10,324,054 $14,640,029 $ 4,315,975 2.99%

2006-07 97.5% of

State Revenue for K-12 Education Services

2021-22 92.3% of

State Revenue for K-12 Education Services

Early Estimate of Basic Education Increase

$106,846 from 20-21 Budget not included

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

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

Actual 18-19

Actual 19-20

Proposed 21-22 Budget

Basic Education

PA Accountability Block Grant Special Education

Transportation Social Security Reimbursement Retirement Reimbursement Total

General Fund Budget - Revenues

Local Revenue Trend from 2006-07 to 2021-22

Budget 15 Year $ Average % Specific Revenue Areas: 2006-07 2021-22 Change Change

Value of 1 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%

East Lycoming School District's 2020-21 Real Estate Tax Rate of 14.38 mills remained the lowest of the Lycoming County School Districts

Proposed Budget - Expenditures

Overall Expenditure Trends from 2006-07 to 2021-22

Proposed 15 Year $ Average % Condensed Budget Summary 2006-07 2021-22 Change Change/Yr

Salaries $ 8,931,722 $ 11,263,591 $ 2,331,869 1.86%

Fringe Benefits $ 3,203,749 $ 7,677,303 $ 4,473,554 9.97%

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%

Professional Svcs:

Spec Ed Instruction +$480,000 Contracted Sub Teachers +$55,000

School Resource Officer +$66,000

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

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

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

Actual 18-19

Actual 19-20

Proposed 21-22 Budget

Salaries Fringe Benefits Professional Services Purchased Property Services Other Purchased Services Supplies

Equipment Other Objects Total

Proposed Budget - Expenditures

Specific Expenditure Trends from 2006-07 to 2021-22

Proposed 15 Year $ Average % Specific Budget Areas: 2006-07 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%

Debt Svc is largely offset by:

Cyber-Charter Schools (CCS):

Serving ≈ 37 students

State has promised reform

$350K ≈4 teachers that could service

1,650+ students

IU Ed Svcs:

Spec Ed Instruction +$480,000

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

$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

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

Actual 18-19

Actual 19-20

Proposed 21-22…

Medical Insurance Retirement Educational Svcs-IUs Student

Transportation Charter School LycoCTC & PCT

Proposed Budget - Fund Balance

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 5 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

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Fund Balance History, Budget and Forecast 2006-07 through 2021-22 Proposed and 2024-25 Forecast

Unassigned Fund Balance Pre-Paid Expense Committed for Capital Projects Committed for Technology Committed for PSERS/OPEB Total Fund Balance

Proposed Budget - Debt Service Expense/Reimbursement

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.

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

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 Actual

19-20 Budget

20-21 Budget

21-22 Budget

22-23 Forecast

23-24 Forecast

24-25 Forecast

Debt Service Gross Expense, State Reimbursement and Net Expense

Debt Service Gross Expense State Reimbursement Debt Service Net Expense