COATESVILLE AREA SCHOOL DISTRICT

2014 – 2015 Preliminary Budget

Dr. Leonard Fitts, Acting SuperintendentRonald Kabonick, Business Administrator

Presented: January 14, 2014

•It is all right to disagree with one another as long as we respectfully disagree with one another

•Regardless of socio-economic background, children have the ability to achieve

•It's less about the amount of money and more about the value system a child grows up in.

•Money doesn’t solve all of our problems

Resource of Information

http://www.pde.state.pa.us

Budget Requirements

Follow the Act 1 regulations Adopt a budget by June 30, 2014 Follow PA Department of Education

Regulations Adopt the budget on the Required PDE Form

PDE-2028

Understanding The Act 1 Index

The base index is calculated by averaging the percent increases in the Pennsylvania statewide average weekly wage and the Federal

employment cost index for elementary/secondary schools.

Additionally, for school districts with a market value/personal income aid ratio (MV/PI AR) greater than 0.4000, the value of their index is adjusted upward by multiplying the base index by the sum

of 0.75 and their MV/PI AR.

Coatesville = 2.1% x (.75+.5081) = 2.6%

Act 1 Index HistoryFiscal Base AdjustedYear Index Index

2014-2015 2.1% 2.6%2013-2014 1.7% 2.1%2012-2013 1.7% 2.1%2011-2012 1.4% 1.7%2010-2011 2.9% 3.6%2009-2010 4.1% 5.1%2008-2009 4.4% 5.5%2007-2008 3.4% 4.2%2006-2007 3.9% 5.0%

Preliminary Budget Assumptions

• Level funding of basic education and special education state subsidies

• PSERS rate increased of 4.5%• No line item allowances for future bargaining

agreements being negotiated• Anticipated tax increase is included within the

revenues• Keystone To Opportunity Grant is not included

Funding The BudgetActual Budget Budget

2012-2013 2013-2014 2014-2015

Local Revenue $89,371,982 $92,094,799 $103,246,242State Revenue $42,414,137 $43,708,746 $41,660,949Federal Revenue $4,293,602 $4,565,713 $2,935,638Other Revenue $4,214,523 $4,065,000 $0

Total Revenue $140,294,244 $144,434,258 $147,842,829

Total Expenditures $137,547,865 $144,266,343 $147,842,829

Budget Surplus (Deficit) $0

Revenue Sources

Where Does The Money Go?

Object Budget Summary2012-2013

Actual2013-2014

Budget

2014-2015 Preliminary

Budget 100 Salaries /Wages $47,182,682 $47,247,257 $47,789,055200 Benefits $24,039,893 $28,100,327 $25,229,159300 Purchased Prof. & Technical Srvs. $11,271,165 $13,156,373 $12,538,650400 Purchsed Property Services $2,232,363 $2,547,530 $2,303,694500 Other Purchased Services $32,862,306 $32,844,712 $34,526,730600 Supplies $2,417,067 $2,561,365 $2,924,702700 Property $198,881 $705,342 $301,752800 Other Objects $9,828,508 $8,724,489 $16,181,706900 Other Use of Funds $7,515,000 $7,725,000 $6,047,382

Totals $137,547,865 $143,612,395 $147,842,829Percentage of Increase 4.4% 2.9%

Expenditures by Object

Services Provided

Function Program2012-2013

Actual2013-2014

Budget

2014-2015 Preliminary

Budget 1100 Regular Programs $53,592,674 $54,992,783 $56,409,3241200 Special Education $24,322,073 $27,219,226 $26,834,0951300 Vocational Education $3,576,299 $3,787,096 $3,676,7711400 Other Instructional Programs $1,210,911 $1,585,438 $596,4171500 NonPublic School Programs $0 $0 $12,2512100 Support Services - Students $4,937,012 $5,157,098 $4,427,2292200 Support Services - Instructional Staff $3,394,475 $4,097,559 $3,282,5212300 Support Services - Administration $7,437,959 $7,698,063 $7,632,1922400 Support Services - Pupil Health $995,582 $1,116,367 $922,0782500 Support Services - Fiscal Services $1,021,578 $1,263,264 $1,180,6682600 Operations & Maintenance of Plants Srvs. $9,611,778 $11,091,046 $10,811,3982700 Student Transportation Services $8,155,894 $7,170,199 $7,939,9692800 Support Services - Central $1,275,382 $1,500,857 $1,597,4963200 Student Activities $1,306,920 $1,262,767 $1,116,1593300 Community Service $84,582 $51,461 $29,3905100 Debt Services / Other Expenditures $16,624,746 $15,619,171 $17,706,5275900 Budgetary Reserve $0 $0 $3,668,346

Totals $137,547,865 $143,612,395 $147,842,829

Future Challenges

Cost of Special Education Services Funding of Charter Schools Unfunded Mandates Limited Resources PA School Employees Retirement System

PA School Employee Retirement System (PSERS) Rate

PSERS Projections2014 - 2015 Gross Wages $47,789,055

ProjectedYear Rate % Increase Annual Cost

2014 - 2015 21.40%

2015 - 2016 25.84% 4.44% $2,121,834

2016 - 2017 29.27% 3.43% $1,639,165

2017 - 2018 30.25% 0.98% $468,333

2018 - 2019 31.28% 1.03% $492,227

2019 - 2020 32.08% 0.80% $382,312

Revenue Value of The Act 1 IndexANTICIPATED TAX REVENUE BASED ON THE 2014-2015 ACT 1 INDEX

2013-2014 Tax Milage 31.1926Value of 1 Mil $2,876,4742014-2015 Act 1 Index 2.6%Milage Increase Based on Index 0.8110

Tax Increase Increasedin 10ths Revenue

0.10 $287,6470.20 $575,2950.30 $862,9420.40 $1,150,5900.50 $1,438,2370.60 $1,725,8840.70 $2,013,5320.80 $2,301,1790.81 $2,329,944

Understanding The Anticipated Tax IncreaseHow do I calculate the 2.6% anticipated tax increase?

Current Mills 31.1926Increase of 2.6% 0.8110Total Mills 32.0036

What does this mean to the average taxpayer?

Average Assessed Per $1,000 of

Residential Value Assessed Value

Assessed Value $106,264.79 $1,000 Mill 0.001 0.001Millage Increase 0.8110 0.8110Projected Median AV Tax Increase $86.18 $0.81

Does a 2.6% tax increase mean my tax bill will increase by 2.6%? YES

Without Tax Inc. With Tax Inc.

Assess Value $106,264.79 $106,264.79Mill 0.001 0.001Millage 31.1926 32.0036Total Face Value of Tax Bill $3,314.68  $3,400.86

Tax Increase in Dollars       $86.18

Tax Increase In Percentage ($86.18 / $3,314.68)   2.6%

Chester County School Districts

School District

Estimated

2013-14 Basic Education

Funding

2013-14 Preliminary

MV/PIAid Ratio

2012-13 MV/PI

Aid Ratio

2011-12 Equalized

MillsAvon Grove SD $14,390,048.00 0.5670 0.5742 18.3Coatesville Area SD $23,459,767.00 0.5081 0.4913 21.4Dow ningtow n Area SD $13,504,863.00 0.3340 0.3330 21.0Great Valley SD $2,277,453.00 0.1500 0.1500 12.8Kennett Consolidated SD $5,134,940.00 0.3843 0.3727 19.9Octorara Area SD $5,789,994.00 0.4878 0.4924 23.8Ow en J Roberts SD $5,323,350.00 0.2752 0.2748 20.7Oxford Area SD $11,724,732.00 0.6283 0.6244 21.1Phoenixville Area SD $4,207,249.00 0.1500 0.1500 21.4Tredyffrin-Easttow n SD $3,186,460.00 0.1500 0.1500 11.5Unionville-Chadds Ford SD $3,006,033.00 0.1500 0.1500 17.1West Chester Area SD $7,248,741.00 0.1500 0.1500 13.8

Source: PA Department of Education

Budget CalendarJanuary 14, 2014 Budget Workshop: Review Preliminary Budget

January 28, 2014 Board adopts resolution NOT to raise taxes above index OR adopts Preliminary Budget

January 30, 2014 District's deadline to make 2014-2015 Proposed Preliminary Budget onform PDE-2028 available for public inspection, or adopt out resolution.

February 4, 2014 District's deadline to submit to PDE a copy of the opt out resolution andrelated proposed real estate tax rate increase.

February 11, 2014 Board adopt the Preliminary Budget unless a opt out resolution was adopted.

February 24, 2014 District's deadline to submit to PDE the Preliminary Budget and proposed tax rate increases.

March 6, 2014 District's deadline to request approval from PDE for referendum exceptions.

March 26, 2014 PDE deadline to rule on school district's request for referendum exceptions.

May 21, 2014 Business Office Makes PDE 2028 available for Public Inspection.

May 31, 2014 Business Office Provides Public Notice of Intent to Adopt Final Budget.

June 10, 2014 Board adopts Final Budget

June 25, 2014 Business Office submits Final Budget to PDE.

Calendar was Board Approved 10/22/2013

QUESTIONS

AND

CONCERNS?