norristown area school district 2019-20 budget · act 1 index there are only 4 exceptions...

December 12, 2018

NORRISTOWN AREA SCHOOL DISTRICT

2019-20 BUDGET

2019-20 BUDGET KICK-OFF

Act 1 Index

Program Priorities

Financial Priorities

Financial Snapshot

Timeline / Next Steps

Act 1 Index

• 2019-20 Base Index = 2.30%

• NASD Adjusted Index = 2.80%

• Historically, with “Act 1 Exceptions”, NASD could have levied taxes

beyond Adjusted Index

For 2019-20, we do not expect to qualify for Exceptions so our tax

increase limited at 2.80%

Act 1 Index

There are only 4 exceptions remaining; 7 were eliminated by Act 25 of

2011

• 2 are for debt; grandfathered / electoral – NASD debt does not

qualify

• 1 is for PSERS increases that exceed the Index

• PSERS Employer Rate jumping from 33.43% to 34.29%

• 2.60% increase – which is less than our index of 2.80%

• As a result, we do not qualify for an exception for 2019-20

• 1 is for Special Education increases that exceed the Index

• Eligible NASD Special Ed expenses from 2016-17 to 2017-18

increased by 0.53% – which is less than our Index of 2.80%.

• As a result, we do not qualify for an exception for 2019-20

Program Priorities• TRADITIONAL STRATEGIC PRIORITIES INCLUDE:

Maintain full-day kindergarten program; Including maintaining

Musselman Learning Center as a kindergarten center

Providing adequate instructional materials & textbooks

Maintain strong range of music, arts, and foreign languages courses

Maintain manageable class sizes

Maintain adequate staffing to support growing ELL student population

Maintain adequate staffing to support our Special Education

programming

Maintain School Resource Officers

Adequately plan for facilities management, maintenance, repairs, and

facility upgrades

Program Priorities• ADDITIONAL TARGETED PRIORITIES FOR 2019-20 INCLUDE:

Providing focused support for NASD students/staff across all

instructional areas; regular education, special education, ELD, etc.

CURRICULUM & INSTRUCTION TEAM RESTRUCTURING & HIRING

COMPLETE

TEAM WILL BE ENHANCED WITH DR. WILLIAMS ARRIVAL IN JANUARY

NEW MODEL DESIGNED TO PROVIDE HEIGHTENED LEVEL OF SUPPORT

FOR INSTRUCTIONAL PROGRAMS

CURRICULUM REVIEW ON-GOING

Program Priorities• ADDITIONAL TARGETED PRIORITIES FOR 2019-20 INCLUDE:

Providing focused support for NASD students/staff across all

instructional areas; regular education, special education, ELD, etc.

Implement 2nd phase of technology plan (Year 2 of 5)

LAUNCH NAHS 1:1 INITIATIVE (CHROMEBOOK FOR EVERY STUDENT)

ADDITIONAL STUDENT CHROMEBOOK DEPLOYMENT IN MIDDLE &

ELEMENTARY SCHOOLS

STAFF CHROMEBOOKS – GRADES 5-8

Program Priorities• ADDITIONAL TARGETED PRIORITIES FOR 2019-20 INCLUDE:

Providing focused support for NASD students/staff across all

instructional areas; regular education, special education, ELD, etc.

Implement 2nd phase of technology plan materials & textbooks

Repurpose space at Roosevelt for student programming

ADMIN TEAM RESEARCHING BEST PRACTICE MODELS

FOR ON-SITE ALTERNATIVE PROGRAMMING

Program Priorities• ADDITIONAL TARGETED PRIORITIES FOR 2019-20 INCLUDE:

Providing focused support for NASD students/staff across all

instructional areas; regular education, special education, ELD, etc.

Implement 2nd phase of technology plan materials & textbooks

Repurpose space at Roosevelt for student programming

Maintain current staffing levels; i.e. NO REDUCTIONS/CUTS

WILL REQUIRE THOROUGH REVIEW OF POSITIONS,

ASSIGNMENTS, AND DISTRICT NEEDS

EXPECT TRANSFERS WILL BE NEEDED

Financial Priorities

• Fiscally responsible agreements with EANA Support, MMAP, & AAS

MMAP & AAS

Mid-Mgmt & Administrators agreements

expire 6/30/19

Financial Priorities

• Fiscally responsible agreements with EANA Support, MMAP, & AAS

• Healthcare evaluation

Bucks-Montgomery Healthcare Consortium ?

Financial Priorities

• Fiscally responsible agreements with EANA Support, MMAP, & AAS

• Healthcare evaluation

• Balance 2019-20 budget without using Fund Balance

CRUCIAL TO FUTURE OF NASD!!!

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

Proposed

Commonwealth

Budget will be

available in

February

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY – ALLOCATIONS RELEASED LATE SPRING ?

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES –TBD $ 1,500,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES $ 1,500,000

HEALTHCARE – 1ST LOOK $ 1,300,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES $ 1,500,000

HEALTHCARE – 1ST LOOK $ 1,300,000

PSERS / FICA $ 650,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES $ 1,500,000

HEALTHCARE – 1ST LOOK $ 1,300,000

PSERS / FICA $ 650,000

DEBT SERVICE – 2016 DEBT $ 700,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES $ 1,500,000

HEALTHCARE – 1ST LOOK $ 1,300,000

PSERS / FICA $ 650,000

DEBT SERVICE – 2016 DEBT $ 700,000

VO-TECH TUITION $ 350,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES $ 1,500,000

HEALTHCARE – 1ST LOOK $ 1,300,000

PSERS / FICA $ 650,000

DEBT SERVICE – 2016 DEBT $ 700,000

VO-TECH TUITION $ 350,000

SAVINGS FROM REPURPOSING ROOSEVELT ($ 400,000)

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES $ 1,500,000

HEALTHCARE – 1ST LOOK $ 1,300,000

PSERS / FICA $ 650,000

DEBT SERVICE – 2016 DEBT $ 700,000

VO-TECH TUITION $ 350,000

SAVINGS FROM REPURPOSING ROOSEVELT ($ 400,000)

CONTRACTED INCREASES (FIRST STUDENT, ETC) $ 500,000

Financial Snapshot2019-20 BROAD OVERVIEW - NEW REVENUES & NEW EXPENSES (ESTIMATES)

REVENUES:

RE TAX GENERATED BY 2.80% TAX INCREASE $ 2,650,000

ASSESSMENT APPEAL ESCROW (SET ASIDE FOR LOSSES) ($ 100,000)

ASSESSMENT INCREASE – BENTWOOD (EN TWP) ?

EARNED INCOME TAX ?

BASIC EDUCATION FUNDING INCREASE ?

FICA / PSERS SUBSIDY $ 325,000

FEDERAL SUBSIDY ?

TOTAL NEW REVENUES $ 2,875,000

EXPENSES:

WAGE INCREASES $ 1,500,000

HEALTHCARE – 1ST LOOK $ 1,300,000

PSERS / FICA $ 650,000

DEBT SERVICE – 2016 DEBT $ 700,000

VO-TECH TUITION $ 350,000

SAVINGS FROM REPURPOSING ROOSEVELT ($ 400,000)

CONTRACTED INCREASES (FIRST STUDENT, ETC) $ 500,000

TOTAL NEW EXPENSES $ 4,600,000

2019-20 SHORTFALL (ESTIMATED) $ 1,725,000

2019-20 BUDGETRECAP OF BROAD GOALS

PROVIDING FOCUSED SUPPORT FOR STUDENTS, STAFF

& FAMILIES

MAINTAINING CURRENT STAFFING LEVELS

MAINTAINING CURRENT FUND BALANCE

MAXIMUM TAX INCREASE = 2.80%

Timeline / Next Steps• Early commitment to limit 2019-20 tax increase to Act 1 Index of 2.80%

• Provides us with 2 options for next steps:

Option 1:

• Adopt 2019-20 Preliminary Budget by February 20, 2019 (must be on public display on

January 31, 2019)

• Adopt 2019-20 Proposed Final Budget by May 31, 2019

• Adopt 2019-20 Final Budget by June 30, 2019

Option 2:

• Adopt Board Resolution indicating that we will not raise taxes beyond our Index by

January 31, 2019

• Adopt 2019-20 Proposed Final Budget by May 31, 2019

• Adopt 2019-20 Final Budget by June 30, 2019

ADMINISTRATION RECOMMENDATION = OPTION 2

PROCESS FOR BUDGET DEVELOPMENT WILL CHANGE SLIGHTLY; LESS NEED FOR

DISCUSSION / UPDATES EACH MONTH

COMPREHENSIVE PRESENTATION IN MAY 2019

Questions?