Solanco School District
2016-17 Preliminary Final Budget
May 2, 2016
Regularly scheduled Board meeting
7:30 PM - Central Office
May 2, 2016
Preliminary Final Budget
Solanco School District
General Fund 2016-17 -- Preliminary Budget
25-Apr-16
Revenue Summary: Local Tax Rates
2014-15
Actual
2015-16 Current
2016-17
Proposed
Current Real Estate (Mills)
11.8040
12.0991
12.4500
0.3509
2.90%
Current Earned Income
1.15%
1.15%
1.15%
0.0000
0.00%
Current Real Estate Transfer Tax
1/2 of 1%
1/2 of 1%
1/2 of 1%
0.0000
0.00%
Est Assessment
Proposed Increase Proposed Incr %
1,900,000,000
Note: 2.9% increase keeps Solanco SD within the District's Act 1 Cap index for 2016-17
Property Tax revenues estimated from projected Net Taxable Assessment of : $
1,900,000,000
Proposed Increase Per $100,000 Assessed Value:
$
35.09
= Increase (annually) for each $100,000 in assessed value
Average Home Owner Tax increase (Based on $152,620 Assessment) = $
53.55
May 2, 2016
Revenues: Preliminary Final Budget
Revenue sources and % share:
2012-13
Actual
2013-14
Actual
2014-15
Actual
Local
28,287,077
28,630,345
29,814,012
30,367,487
31,978,050
State
16,407,104
17,136,128
17,781,054
18,337,539
19,182,107
2,432,398
2,625,710
2,202,989
2,187,381
2,113,000
67,791
405,000
405,000
Revenues Sources $'s:
Federal
Other
3,839
3,571
2015-16 Budget
2016-17
Proposed
Total Revenue:
47,130,418
48,395,754
49,865,846
51,297,407
53,678,157
Total Expenditures:
47,096,048
47,989,897
49,499,661
52,952,670
55,751,935
(1,655,263)
(2,073,778)
Varaince: Revenues over Expenditures
Revenues Sources %:
34,370
2012-13
Actual
405,857
2013-14
Actual
366,185
2014-15
Actual
2015-16 Budget
2016-17
Proposed
Local
60.0%
59.2%
59.8%
59.2%
59.6%
State
34.8%
35.4%
35.7%
35.7%
35.7%
Federal
5.2%
5.4%
4.4%
4.3%
3.9%
Other
0.0%
0.0%
0.1%
0.8%
0.8%
100.0%
100.0%
100.0%
100.0%
100.0%
Total Revenue:
Revenue Source Shares
2015-16 Budget
4.3%
2016-17 Proposed
0.8%
3.9%
0.8%
Local
State
35.7%
59.2%
Federal
Other
Local
35.7%
State
59.6%
Federal
Other
Expenditure Functions
Instruction and Support
Solanco School District: Proposed Preliminary Budget 2014-15
25-Apr-16
Actual
2012-13
Actual
2013-14
Actual
2014-15
Budget
2015-16
Proposed
2016-17
SUMMARY OF EXPENDITURES BY FUNCTION
1100
1200
1300
1400
1700
REGULAR PROGRAMS
SPECIAL PROGRAMS
VOCATIONAL EDUCATION PROGRAMS
OTHER INSTRUCTIONAL PROGRAMS
COMMUNITY / JR COLLEGE ED
TOTAL -- 1000's INSTRUCTION
18,028,684
6,291,184
1,877,993
225,270
75,662
26,498,793
19,314,245
6,949,027
1,963,308
202,197
40,469
28,469,246
19,527,347
7,089,596
2,055,181
394,676
16,169
29,082,969
21,639,950
8,090,050
2,330,984
409,747
10,500
32,481,231
22,778,800
8,642,071
2,503,308
416,930
10,500
34,351,609
2100
2200
2300
2400
2500
2600
2700
2800
2900
PUPIL PERSONNEL
INSTRUCTIONAL STAFF SUPPORT SVCS
ADMINISTRATION
PUPIL HEALTH
BUSINESS
PLANT SERVICES
TRANSPORTATION
CENTRAL
OTHER SUPPORT SERVICES
TOTAL -- 2000's SUPPORT
1,759,615
1,288,496
2,335,474
385,222
613,316
3,031,916
2,924,406
557,081
32,459
12,927,985
1,841,583
1,353,379
2,435,949
427,708
621,006
3,237,449
3,086,560
625,087
32,485
13,661,206
1,814,255
1,587,789
2,442,431
465,277
730,046
3,585,731
3,269,432
635,622
32,054
14,562,638
2,125,102
1,682,392
2,469,172
500,275
699,134
3,540,744
3,247,231
673,926
35,000
14,972,976
2,171,052
1,890,414
2,621,865
558,724
788,100
3,792,294
3,322,122
864,072
32,055
16,040,697
Expenditure Functions
Student Activities and Finance Uses
Actual
2012-13
3200
3300
STUDENT ACTIVITIES
COMMUNITY SERVICES
TOTAL -- 3000's NONINSTRUCTIONAL
4500
4600
EQUIPMENT - ORIGINAL
EQUIPMENT - REPLACEMENT
TOTAL -- 4000's EQUIPMENT
5100
5200
5900
DEBT SERVICE
FUND TRANSFERS
BUDGETARY RESERVE
TOTAL -- 5000's OTHER FIN USES
823,368
32,928
856,296
Actual
2013-14
856,686
37,586
894,272
Actual
2014-15
875,804
49,891
925,694
Budget
2015-16
982,538
43,325
1,025,863
Proposed
2016-17
1,016,304
43,325
1,059,629
-
-
-
-
-
-
-
-
-
-
6,812,974
6,812,974
4,965,173
4,965,173
5,824
4,922,536
4,928,360
4,222,600
250,000
4,472,600
4,050,000
250,000
4,300,000
GRAND TOTALS BY FUNCTION
47,096,048
47,989,897
49,499,661
52,952,670
55,751,935
REVENUES
EXPENDITURES
47,130,418
47,096,048
48,395,754
47,989,897
49,865,846
49,499,661
51,297,407
52,952,670
53,678,157
55,751,935
34,370
405,857
366,185
(1,655,263)
(2,073,778)
Estimated
597,674
VARIANCE
Expenditures by Object
Proposed 2016-17
0.22% 7.00%
100 SALARIES
0.84%
4.80%
11.51%
1.35%
7.39%
40.79%
200 EMPLOYEE BENEFITS
300 PROFESSIONAL &
TECHNICAL SERVICES
400 PURCHASED PROPERTY
SERVICES
500 OTHER PURCHASED
SERVICES
600 SUPPLIES
700 PROPERTY
800 OTHER OBJECTS
900 OTHER USES OF FUNDS
26.10%
Benefit Object Composite (26.1%)
Solanco SD: Benefit Budget 2016 - 2017;
Percent Share Composite
Personal Day
0.1%
Hosp
35.7%
Social Sec
11.9%
Life Worker Comp
0.3%
0.9%
Tuition
1.5%
DAV
2.6%
Retirement
46.9%
Total State Revenue - Last Five Years
STATE REVENUES
Total State Solanco Funding
Less State pension (1/2 of total)
State Net to Solanco
Actual
Actual
Actual
Actual
Budget
Budget
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
16,129,851
16,407,104
917,147
15,212,703
3,052,257
Total State dollar Growth to
Solanco Net of Pension dollars
Total Inc
1,234,252
15,172,852
17,136,128 17,781,054 18,337,539 19,182,107
1,800,938
2,878,953
3,413,991
15,335,190 15,553,554 15,458,586 15,768,117
2,496,843 PSERS Incr
State net
over 5 years
or annual avg
3.7%
of
2,227,500
0.73%
5 year total net increase
Avg annual times 35.7%
of budget or .26% of total
budget
555,413
0.26%
Selective State Changes from January preliminary
State Budget Solanco Re-cap: Selected Four Major State Revenue Funding Streams
2015-16 Budget
Estimated 2015-16
2016-17 Budget
[These Line items
only]
"State" 2016-17 from
15-16
Jan 2016
BEF
9,841,000
9,841,000
10,184,000
May 2016
Variance
BEF
9,841,000
-
9,740,861
(100,139)
9,935,678
(248,322)
Jan 2016
May 2016
Variance
RTL
RTL
330,147
330,147
-
330,147
427,715
97,568
330,147
427,715
97,568
97,568
Jan 2016
May 2016
Variance
SEF
SEF
2,095,000
2,095,000
-
2,195,210
2,074,719
(120,491)
2,275,210
2,116,213
(158,997)
41,494
(123,062)
(309,751)
(432,813)
Total Net Impact
-
Total cash variance
from preliminary
budget
Pension (rev only) PSERS
2,878,953
*Increase in State Share ( state pays 50% of the total pension
cost)
* Note: Board must
pay 'its' share from
Local funds
2,872,000
194,817
$ 333,879
3,354,763
482,763
(482,763)
816,642
$ (148,884)
2016 -17 State Total as Budgeted
Projected Increase in Total State funds to Solanco....is
approximately $200K less than the mandated 16.2 %
pension increase...with credit due...they are paying their
share...
The 2016-17 budget started in that negative position and
all other funds must lift from there.
Also...State will ‘defer’ social security payments in May
and June --- until July and August --- and we will be
instructed to ‘accrue’ those funds back to fiscal year 15 16 (about $120K in cash).
Five functions: 80% of Spending;
Share 1100 Function
1100 REGULAR PROGRAMS:
Percent Share of Expenditures
42.00%
40.9%
41.00%
40.2%
40.9%
40.00%
39.00%
38.00%
R² = 0.4562
37.4%
37.00%
36.00%
35.00%
34.00%
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Budget
Proposed
Share 1200 Function
1200 SPECIAL EDUCATION PROGRAMS:
PERCENT SHARE OF EXPENDITURES
18.00%
16.00%
15.28%
14.00%
12.00%
15.50%
R² = 0.921
10.00%
8.00%
7.69%
6.00%
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Budget
Proposed
1200 SPECIAL PROGRAMS
Linear (1200 SPECIAL PROGRAMS)
Share 2600, 2700, 2300’s
Facilities, Transportation, and Adminstration:
Percent share of Expenditures
8.00%
7.3%
7.50%
7.00%
6.7%
7.1%
6.80%
6.50%
6.00%
5.8%
5.7%
6.1%
6.0%
5.50%
5.00%
4.7%
4.7%
4.50%
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Actual
Actual
Actual
Actual
Actual
2600 PLANT SERVICES
Actual
Actual
Actual
2700 TRANSPORTATION
Actual
Actual
Actual
2300 ADMINISTRATION
Budget Proposed
Athletics & Extra-curricular
3200 STUDENT ACTIVITIES
As a % share of total Expenditures
2.05%
1.95%
1.85%
1.82%
1.75%
1.72%
1.68%
1.77%
1.75%
1.70%
1.65%
1.55%
1.45%
1.35%
1.25%
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Budget
Proposed
Long-term share trend:
Salary -- 40.8%
Solanco SD: Salary as a % of Total Exp
58.0%
56.3%
56.0%
54.9%
54.0%
52.0%
50.0%
48.0%
R² = 0.791
47.6%
46.0%
45.8%
44.0%
44.2%
42.0%
40.8%
40.0%
Long-term share trend:
Benefits -- 26.1% to Total Exp
Solanco SD: Benefits as a % of Total Exp
26.1%
27.0%
24.1%
22.0%
17.8%
17.0%
15.3%
R² = 0.7732
12.0%
11.9%
7.0%
8.3%
9.3%
19.6%
17.3%
Long-term share trend:
Benefits -- 64% to Payroll
Solanco School District
BENEFITS as a % OF PAYROLL
70.0%
64.0%
60.0%
56.5%
49.9%
50.0%
40.0%
33.9%
30.0%
30.0%
R² = 0.8338
25.3%
20.0%
20.3%
15.3%
10.0%
39.1%
Long-term share trend:
Salary & Benefits to Total Exp
SOLANCO SCHOOL DISTRICT
SALARY & BENEFITS : % OF TOTAL EXPENDED
75.0%
70.0%
69.3%
66.5%
66.3%
65.8%
65.0%
63.6%
R² = 0.1128
60.0%
55.0%
55.2%
50.0%
66.7%
62.4%
61.4%
66.9%
Pension Detail
Solanco SD Pension Total Employer (Gross & Net) Payments
Fiscal Year
2006-07
Gross Pension (for Gross Annual $
Total Budget)
Inc. / Dec*
1,230,298
*NET Annual $ Inc. /
Annual % Inc. / PSERS' ECR (as a% Dec = Board Local
Dec
of PYRL)
share
6.46%
Cumulative Since
2010
2009-10
1,013,409
38,150
3.9%
4.78%
19,075
2010-11
1,232,757
219,348
21.6%
5.64%
109,674
128,749
2011-12
1,878,790
646,033
52.4%
8.65%
323,017
451,766
2012-13
2,615,717
736,927
39.2%
12.36%
368,464
820,229
2013-14
3,587,705
971,988
37.2%
16.93%
485,994
1,306,223
2014-15
4,528,511
940,806
26.2%
21.40%
470,403
1,776,626
2015-16 Budget
5,593,966
1,065,455
23.5%
25.84%
532,727
2,309,353
2016-17 Proposed
6,827,982
1,234,016
16.2%
30.03%
617,008
2,926,361
Note: In 2016-17 based on an estimated June 2016 assessed value, and millage at 12.4500 as proposed; a 1% Property tax increase
yields Approx. $220,688.
* The District must pay the entire (100%) of the pension amount due and then receives (from the state as state revenue line item)
approximately 1/2 of the payment as state revenue.
Solanco SD: Six Year NET Pension Increase Accumulation
$2,926,361 in Local Funds---[$5.85M total]
2016-17 Proposed
3,000,000
2015-16 Budget
2,500,000
2014-15
2,000,000
2013-14
1,500,000
1,000,000
500,000
2012-13
2011-12
2010-11
-
Increases were cumulative...& will ‘stay’ with us for two
decades....unless the GA can find other funding solutions
Perhaps after 7 years----?
Pension Projections Looking Ahead
FY
Yr over Yr Increase
*% of Payroll as equated to a % Rate of increase
of PYRL
2016-17
30.03
3.85
16.2%
2017-18
30.62
0.59
2.0%
2018-19
31.56
0.94
3.1%
2019-20
32.23
0.67
2.1%
2020-21
32.02
-0.21
-0.7%
* All rates subject to change by PSERS board, GA mandate, subsequent legislation and
combinations thereof.
Apr-16
Mar-16
Feb-16
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Property Tax Assessment Base
Solanco: Taxable Assessment Trend
1,900,000,000
1,890,000,000
1,880,000,000
1,870,000,000
1,860,000,000
1,850,000,000
1,840,000,000
January Tax Assessment Estimate---vs Actual YTD
Assessment Growth: School District Fiscal Year (FY)
For FY Budget
Month / Year
Increase %
FY Period of Growth
2011-12
6/1/2011
1,808,469,000
25,282,000
1.41%
2010-11
2012-13
5/31/2012
1,813,591,000
5,122,000
0.28%
2011-12
2013-14
6/1/2013
1,839,381,300
25,790,300
1.41%
2012-13
2014-15
6/3/2014
1,860,655,600
21,274,300
1.15%
2013-14
2015-16
6/4/2015
1,879,493,000
18,837,400
1.01%
2014-15
2016-17 ytd
4/1/2016
1,894,725,200
15,232,200
0.81%
2015-16
Budget #'s used in January (and current)
Assessment
Prior yr Increase
1,900,000,000
Total 2016-17
1,870,000,000
GF 2016-17
Proposed mills
5,274,800
Apr, May?
12.4500 2016-17
$
65,671
Close
Solanco Vs the County
Five Year Selected Period Assessment Growth:
Solanco SD (5.11%) and Lancaster County (3.19%)
0.80%
0.60%
0.40%
0.20%
0.00%
-0.20%
-0.40%
Solanco Assessment % Growth
County Assessment % Growth
Earned income Tax --- Positive trend
EIT: FY
Earned Income Tax: 2014 Returns recover to 2008 Returns; Positive 3 year growth trend
Audit /CAFR Yr over Yr
Audit
at approx. 2.25%
5,679,011
6,623,118 944,107
6,203,344 (419,774)
4,756,179 (1,447,165)
4,888,591 132,412
5,772,632 884,041
7,016,102 1,243,470
6,728,477 (287,625)
7,046,945 318,468
7,205,501 158,556
7,367,625 162,124
2.78%
18.08%
21.54%
-4.10%
4.73%
2.25%
2.25%
Solanco SD Earned Income Tax at 1.15%: FY
Audit
8,000,000
$7,367,625
7,500,000
FY Audit or *Estimate
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016*
2017** $
* Est
** Proposed
7,000,000
6,500,000
7,205,501
6,623,118
6,728,477
6,000,000
5,500,000
5,000,000
4,500,000
4,000,000
4,756,179
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017**
2016-17 Other items/considerations
• Total Enrollment remains stable to slight decline;
charter enrollment remains stable to slight
decline
• Staffing expectations anticipate retirement
impact, non-replacements, re-assigned resources,
internal position changes, needed new hires.
• Several significant health care strategies remain
in the forefront to slow medical trend impact
– Plan changes, HDHCP (2K/4K), Aetna Jan 1, Rx Jul 1
• General fund budget teams with food service,
health trust, and Capital Reserve to deliver all
services and leverage capital requirements
Two to Three Year Budget strategy to allow for growth into the future with ability to adjust and
react to environmental changes inclusive of opportunities...potential for 15-16 Pension draw
down to be delayed to 16-17....
Budget to Budget vs Estimated Actual to Multi-year Budget Planning
Bottom Line: Leveraging Current position and resources for current year planning; Building budget Capacity
to exploit one time opportunities and drive resources to students; Multi-year Positioning moving forward
Solanco School District Proposed 2016-17 Budget
May 2, 2016 Preliminary
Budget 2015-16
Budget to Budget Comparison
Increase $
Budget 2016-17
Increase %
Revenues
$ 51,297,407
$ 53,678,157
$ 2,380,749
4.64%
Expenditures
$ 52,952,670
$ 55,751,935
$ 2,799,265
5.29%
Variance
$ (1,655,263)
$ 300,000
$ (2,073,778)
$ (418,515)
$
$
Pension Draw Down
Net Variance
Variance as a % of
Budget
$ (1,355,263)
-2.56%
300,000
$ (1,773,778)
Exceptions?
-
$ (418,515)
-3.18% $ (1,473,778)
-2.64%
To underspend the budget by 2% is the equivalent of $1.1 million dollars; with the resources available,
deliberate and effective 'investment' in sustainable programs for students and staff requires planning and
the ability/agility to take advantage of opportunities when presented. This flexibility ensures there is no
"rush" to spend without diligent thought, nor need to increase the tax rate just to "close gaps".
Next Steps
• Approve Preliminary Final 2016-17 Budget for
advertising
• Targeted Final Budget adoption is June 6, 2016
(need 30 days)
• May and June board meetings; approvals for
various equipment purchases and project
implementations
• Await final 15-16 State budget numbers...wait
for state 16-17?