Solanco School DistrictPreliminary 2014-15 Budget

April 28, 2014

2014-15 Revenue Budget Highlights

• Property Assessments: Low but steady growth• Earned income tax recovering to pre-

recession; 1.25 % estimated growth from 13-14 to 14-15 (Est $80K)

• State Ready to Learn Grant ($431K) vs Basic Education Allocation ($0 proposed)– Total state revenues equate to Pension increase

only• Federal; Medical Assistance and Title I

2014-15 Expenditure Highlights• Pension Increase: $1,086,000, which is 2.1% of

the 3.04% total budget-to-budget increase• Salaries: An Estimated 1% increase • Special Education increase: Continued cost

pressures; student services estimated at $400,000 increase

• Vocational Education: Total estimated increase at $98,000 inclusive of tuition and final bond issuance

• Physical Plant and Transportation: Fuels / Utilities

Assessment Growth: Estimated at just over ½ of 1%

Month / Year Assessment Increase Increase % FY Period

11/1/2011 1,799,842,500 7/1/2012 1,823,609,700 23,767,200 1.3%7/1/2013 1,848,930,400 25,320,700 1.4% Full FY

11/1/2013 1,852,411,700 3,481,300 0.2%Est June 2014 1,860,000,000 7,588,300 0.4%

Full FY

1/2 FY

Assessment Growth: School District Fiscal Year (FY)

Earned Income Tax: Slow Recovery

2007-08 Audit

2008-09 Audit

2009-10 Audit

2010-11 Actual

2011-12 Audit

2012-13 Audit

2013-14 Est

2014-15 Budget

$4,000,000

$4,500,000

$5,000,000

$5,500,000

$6,000,000

$6,500,000

$7,000,000

$7,500,000

Solanco EIT: Fiscal Year Total:2014-15 return to 2008-09 level

State Budget Pension and Ready to Learn

• Solanco Property Tax increase and Local share of mandated Pension Increase offset each other (Approx. $525,000)

• Total State Estimated Revenue covers the other ½ of the mandated Pension increase

• State Gambling funds remain static• Est State Revenue Growth $835 M; Pension at

$610 M. ----Plus Est $900 M in one time funds

Ready to Learn• ABG money can be used for Ready to Learn initiatives, but

Ready to Learn money can’t be used for ABG initiatives unless you are a Tier 4 District

• $100 Million of ABG funds (unchanged from 2013-14)• $240 Million new proposed to be distributed to Districts

and Charter Schools via formula.• Approximately $221 million to Districts, $19 million to

charters• Proposing ability to deduct this grant on PDE-363• $1 million in competitive grant funds for Pennsylvania’s

high-performing public schools to analyze and publish best practices that have proven to increase student achievement (Governor’s Expanding Excellence Grant Program)

Ready to Learn Permitted Uses by District SPP Score

Special EducationAfter 6 years of flat-funding at $1.026 billion, the proposed budget recommends a $20 million increase to the line item, nearly a 2% increase.

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 $940,000

$960,000

$980,000

$1,000,000

$1,020,000

$1,040,000

$1,060,000

$980,619

$1,010,038

$1,026,815 $1,026,815 $1,026,815 $1,026,815 $1,026,815 $1,026,815

$1,046,815

Special Education Line Item

Am

ount

s in

thou

sand

s

• Authority Rentals and Sinking Fund Requirements: The PlanCon line item was again level-funded at $296 million.

PlanCon

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15$270,000,000

$280,000,000

$290,000,000

$300,000,000

$310,000,000

$320,000,000

$330,000,000

$340,000,000

$296,483,000

$308,368,000

$315,500,000

$330,000,000

$314,937,000

$296,198,000 $296,198,000 $296,198,000 $296,198,000

PlanCon State Appropriation

10%Decrease

Only One Third of Slot Machine Revenue Goes to Property Tax Relief

Act 1 Index Forecast

Source: Independent Fiscal Office Analysis of Senate Bill 76 and House Bill 76

Fiscal Year SAWW ECI Act 1 Base Index

2006-07 4.2% 3.5% 3.9%2007-08 2.8 4.0 3.42008-09 4.3 4.5 4.42009-10 4.6 3.6 4.12010-11 2.7 3.0 2.92011-12 0.9 1.9 1.42012-13 2.1 1.3 1.72013-14 2.0 1.4 1.72014-15 2.6 1.6 2.12015-16 2.3 2.5 2.42016-17 2.3 2.6 2.42017-18 2.2 2.9 2.62018-19 2.7 2.9 2.8

History and Forecast of the Act 1 Base Index (and Components)