Mifflin County School District2014-2015 Budget

District’s Fiscal Health: 2009-2010

Unreserved Fund Balance $1,690,170

Reserve Fund Balance PSERS $0

Capital Reserve Fund $0

Annual Budgetary Reserve $329,567

Long Term Fiscal Goals : Goals Will Promote Strong Fiscal Health

2009-2010 Goals

Unreserved Fund Balance $1,690,170 $5 Million

Reserve Fund Balance PSERS $0 $1.5 Million

Capital Reserve Fund $0 $3 Million

Annual Budgetary Reserve $329,567 $500,000

Long Term Fiscal Goals Continued

2009-2010 Goals 2012-2013

Unreserved Fund Balance $1,690,170 5 Million $3,561,174

Reserve Fund Balance PSERS $0 1.5 Million $740,000

Capital Reserve Fund $0 3 Million $2,856,431

Annual Budgetary Reserve $329,567 $500,000 $393,772

Impact of State Funding Cuts

Funding Source MCSD Budget 2010-2011 Governor Budget 2011-2012

Difference

Basic Education Funding $17,525,411 $19,388,142 $1,862,731

ARRA Basic ED $2,424,531 $0.00 ($2,424,531)

Education Jobs $1,436,237 $0.00 ($1,436,237)

Charter School Reimbursement

$205,430 $0.00 ($205,430)

ABG Kindergarten $1,059,737 $0.00 ($ 1,059,737)

EAP Tutoring $388,983 $0.00 ($388,983)

Title I Stimulus $473,000 $0.00 ($473,000)

IDEA B Stimulus $400,000 $0.00 ($400,000)

Totals $23,913,329 $19,388,142 ($4,525,187)

Basic Education Funding

Basic Education Funding in 2008-2009 was $19,323,362

Basic Education Funding in 2014-2015 is $19,770,555

An increase of $447,193 or 2.3% over 6 years which equals an average of .386% per year.

2011-2012 Budget

• The 2011-2012 Budget process began with an estimated 6.5 Million Dollar budget deficit.

• The School Board commissioned a district wide feasibility study to evaluate use of buildings, attendance areas, and enrollment.

• The District was restructured resulting in the closing of six buildings over two years.

• Employee numbers were reduced by 13% equaling 80 eliminated positions.

• Administrative positions were cut by 11%.

2011-2012 Budget Continued

• 65 Teaching positions were eliminated.

• All employee groups received a pay freeze.

• District health insurance changed from a PPO plan to a High Deductible Health Plan.

• The district employees began the process of implementing an employee driven wellness program.

• ARRA Stimulus dollars were not used for employee expenses except when the state rolled those dollars into the basic education funding line item.

2011-2012 Budget Continued

• In the end the 6.5 million dollar budget gap was closed by a combination of increased real estate taxes and district reorganization.

• 1.7 million was attributed to real estate taxes

• 4.8 million was attributed to the restructuring of the district which included building closures and staff reductions.

History of expenses by Object2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 % Change

Salary 27,081,962 26,385,835 24,037,072 24,150,341 24,174,735 24,205,239 -10.62%

Benefits 11,682,927 12,161,137 12,174,690 12,568,139 15,411,030 17,060,257 46.03%

Prof Srvcs 497,654 782,174 1,410,559 1,262,041 797,154 939,115 88.71

Property Srvc

1,458,114 1,786,641 1,780,045 1,702,047 1,570,680 1,821,208 24.90%

Other Srvcs 5,786,031 6,012,578 6,581,903 7,014,351 7,605,680 8,290,173 43.28%

Supplies 2,281,979 2,440,120 2,437,012 2,717,107 2,003,327 2,339,782 2.53%

Equipment 19,100 95,890 33,995 392,977 670,000 670,000 3407%

Reserve/Transfers

50,626 126,999 132,109 301,432 633,312 1,078,407 2030%

Debt Service

6,025,778 7,683,966 9,117,554 9,581,524 9,569,035 9,067,869 50.48%

TotalExpense

54,884,171 57,475,340 57,704,939 59,689,959 62,434,953 65,472,050

History of Benefit expenses2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 % Change

Medical Ins 6,833,426 7,205,450 6,868,214 6,635,083 8,146,475 8,626,186 26.24%

Dental Ins 243,983 243,696 224,336 235,998 262,971 270,324 10.80%

Life Ins 45,561 46,270 42,166 41,588 34,797 35,770 -21.49%

Income Prot 10,381 9,678 8,827 8,409 8,525 9,000 -13.30%

Vision Ins 30,351 29,316 27,153 28,777 32,317 33,220 9.45%

Social Security

2,053,143 1,988,346 1,826,978 1,806,726 1,849,367 1,851,698 -9.81%

Retirement 1,362,016 1,655,329 2,236,590 3,097,254 4,331,142 5,448,377 302.96%

Tuition Reimb

425,742 383,345 241,283 160,018 252,500 252,500 -40.69%

U/C 40,305 30,508 188,781 57,081 72,348 72,440 79.73%

W/C 132,556 119,599 94,896 104,442 120,588 120,742 -8.91%

Severance 499,364 449,601 410,635 392,749 300,000 300,000 -39.92%

TotalExpense

11,676,828 12,161,138 12,169,859 12,568,125 15,411,030 17,060,257

Retirement Rate Impact on General Operating BudgetFiscal Year Retirement Rate Cost

2009-2010 4.78% 1,362,016

2010-2011 5.64% 1,655,329

2011-2012 8.65% 2,236,590

2012-2013 12.36% 3,097,254

2013-2014 16.93% 4,331,142

2014-2015 21.40% 5,488,377

2015-2016 25.84% 6,379,726 Est.

2016-2017 29.27% 7,226,571 Est.

2017-2018 30.25% 7,468,526 Est.

History of Expenses by Program

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 % Change

Regular Ed 23,618,709 23,133,918 21,630,878 21,664,493 22,216,897 23,174,407 -1.88%

Special Ed 4,876,871 5,866,778 6,522,951 7,443,522 8,197,394 8,843,841 81.34%

Other Ed 3,339,790 3,155,520 2,658,968 2,079,325 3,334,229 3,557,491 6.52%

Support Srvcs 16,086,490 17,420,658 17,599,265 18,707,353 18,570,619 18,978,339 17.98%

Activities 926,230 913,736 714,878 761,555 747,514 800,886 -13.53%

Debt/Transfer 6,036,081 6,988,003 8,577,997 9,036,711 9,371,330 10,117,086 67.61%

Totals 54,884,171 57,478,613 57,704,937 59,692,959 62,437,983 65,472,050

School Building Construction Vs. Renovation

New Construction

Year Building Cost

2002 LES 15,416,439

2008 MCHS 66,512,742

Total 81,929,181

Renovation

Year Building Cost

2000 E. Derry 6,581,438

2011 IVES, LIS, MCMS, playgrounds at IVES & LIS

2,500,000

2013 IVEC 11,248,509

2014 MCJHS 16,313,432

Total 36,643,379

History of Major Revenue Sources

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Real Estate Tax 16,167,540 17,086,850 18,793,537 20,397,418 20,290,339 22,222,451

Earned Income 4,959,554 5,157,394 5,436,711 5,546,738 5,436,000 5,546,000

Delq Real Estate 1,839,826 1,665,152 1,840,877 2,128,702 2,040,000 2,128,000

Basic Ed Subsidy 17,999,003 17,525,411 19,383,238 19,383,045 19,730,257 19,770,555

ARRA Basic Ed 2,419,211 2,424,531

Special Ed Subsidy 3,186,583 3,162,989 3,243,089 3,162,989 3,147,174 3,226,738

Transportation 2,368,311 2,401,615 2,376,089 2,786,446 2,882,500 2,956,077

History of State Funding as a percentage of total BudgetYear Total Budget Total State Revenue % of State Revenue to

Budget

2009-2010 54,884,171 31,503,425 57.40%

2010-2011 57,475,340 31,095,939 54.10%

2011-2012 57,704,939 30,462,192 52.79%

2012-2013 59,692,959 31,389,655 52.59%

2013-2014 62,434,983 33,062,437 52.95%

2014-2015 65,472,050 33,815,293 51.65%

History of Real Estate Tax Rate

Year Rate Year Rate

1993-1994 93.2 2004-2005 20

1994-1995 93.2 2005-2006 20

1995-1996 93.2 2006-2007 23

1996-1997 93.2 2007-2008 25.2

1997-1998 93.2 2008-2009 25.2

1998-1999 93.2 2009-2010 25.2

1999-2000 20 2010-2011 26.23

2000-2001 20 2011-2012 28.7636

2001-2002 20 2012-2013 30.9519

2002-2003 20 2013-2014 30.9519

2003-2004 20

• Over a 20 year period the real estate tax rate did not increase for 13 years.

• The increase in taxes over 20 years is an average of .5476 mills per year.

• Taxes remained flat until the State began reducing its contribution to public education.

Equalized Millage Comparison

• Equalized millage is a state calculation completed each year to determine a fair comparison of local real estate taxing effort made by the state’s 500 school districts.

• Market Value/Personal Income aid ratio is a state calculation used to rank the relative wealth of the state’s 500 school districts. The wealthier the district the lower the aid ratio. The lowest aid ratio is .15 and the highest is .88.

• 135 Districts have an aid ratio between 60 and 70 percent. Of these 135 districts, MCSD ranks 66th in equalized mills at 16.4 mills. The lowest is 8.3 mills and the highest is 36.9 mills.

Enrollment to Staff Comparison

• MCSD has 331 students per Administrator which ranks the district 445 out of 500 school districts. Only 55 districts have more students per Administrator (89% of PA districts have more administrators/student).

• MCSD has 21.313 teachers per Administrator which ranks the district 430 our of 500 school districts. Only 70 districts have more teachers per administrator (86% of PA districts have more administrators/teacher).

• MCSD has 15.5191 students per Teacher which ranks the district 382 out of 500 school districts. Only 118 districts have more students per teacher (Only 24% of PA districts have more students/teacher).

State Revenue Short Falls

• History of a lack of increases in school district basic education funding.

• History of a lack of increases in special education funding.

• Plan Con reimbursement not coming from the state. $389,835

• Ready to Learn Block Grant $900,212. Members of the state legislature warn districts to not count on this new money.

• Public School District’s only allowable way to raise revenue is through the real estate property tax.

2014-2015 Budget Deficit

The 2014-2015 Budget deficit is $1,787,310.

The Board must determine the most feasible way of closing the deficit.

• Rely on additional state funding from Basic Education subsidy, Plan Con reimbursement, and the proposed Ready to Learn Block Grant.

• Rely on an increase in local revenue which can only be accomplished through an increase in real estate tax.

• Rely on cuts to programs or services in the budget.

2014-2015 Budget Deficit: Cost Cutting OptionsProgram Name Savings from cutting or eliminating

School sponsored athletics $524,135

Kindergarten throughout the district $1,120,857

Art throughout the district $714,385

Music throughout the district $688,969

Three elementary teachers needed for class size reduction $174,103

Building level Administrator $135,341

School District County

2013-14

MV/PI

Aid Ratio

2011-12

Eq Mills School District County

2013-14

MV/PI

Aid Ratio

2011-12

Eq Mills

Turkeyfoot Valley Area SD Somerset 0.6253 8.3 Reynolds SD Mercer 0.6910 16.4

Southern Huntingdon Co SD Huntingdon 0.6465 9.2 Penncrest SD Crawford 0.6987 16.4

Chestnut Ridge SD Bedford 0.6583 9.8 Midd-West SD Snyder 0.6106 16.5

Tyrone Area SD Blair 0.6515 10.0 Dubois Area SD Clearfield 0.6439 16.5

Meyersdale Area SD Somerset 0.6913 10.3 Milton Area SD Northumberland 0.6460 16.5

Northern Bedford Co SD Bedford 0.6891 10.4 Berwick Area SD Columbia 0.6501 16.8

Conemaugh Twp Area SD Somerset 0.6469 10.5 Jersey Shore Area SD Lycoming 0.6585 16.8

Northern Potter SD Potter 0.6308 10.7 Greenwood SD Perry 0.6006 16.9

Berlin Brothersvalley SD Somerset 0.6501 10.7 Pine Grove Area SD Schuylkill 0.6172 16.9

Altoona Area SD Blair 0.6974 10.7 Bentworth SD Washington 0.6761 16.9

Brockway Area SD Jefferson 0.6584 10.9 Riverside Beaver Co SD Beaver 0.6536 17.0

Lakeview SD Mercer 0.6533 11.0 Conneaut SD Crawford 0.6321 17.1

Southern Fulton SD Fulton 0.6400 11.2 Wattsburg Area SD Erie 0.6253 17.2

Brookville Area SD Jefferson 0.6357 12.4 South Williamsport Area SD Lycoming 0.6646 17.2

Allegheny-Clarion Valley SD Clarion 0.6731 12.6 Towanda Area SD Bradford 0.6274 17.4

Shenango Area SD Lawrence 0.6574 12.8 Upper Dauphin Area SD Dauphin 0.6262 17.5

Freedom Area SD Beaver 0.6421 12.9 Keystone Central SD Clinton 0.6372 17.8

Juniata Valley SD Huntingdon 0.6515 13.0 Line Mountain SD Northumberland 0.6590 17.8

Laurel SD Lawrence 0.6816 13.0 Mount Pleasant Area SD Westmoreland 0.6132 18.0

Penn Cambria SD Cambria 0.6735 13.2 Warren Co SD Warren 0.6919 18.1

Commodore Perry SD Mercer 0.6456 13.3 Belle Vernon Area SD Westmoreland 0.6120 18.2

Everett Area SD Bedford 0.6559 13.4 Newport SD Perry 0.6462 18.3

Central Fulton SD Fulton 0.6014 13.5 Wyoming Area SD Luzerne 0.6183 18.4

Northwest Area SD Luzerne 0.6501 13.5 Minersville Area SD Schuylkill 0.6964 18.4

Western Beaver Co SD Beaver 0.6557 13.5 Ringgold SD Washington 0.6090 18.5

Cranberry Area SD Venango 0.6034 13.6 Kiski Area SD Westmoreland 0.6351 18.5

Valley View SD Lackawanna 0.6087 13.6 Clearfield Area SD Clearfield 0.6611 18.5

Hazleton Area SD Luzerne 0.6448 13.6 Ridgway Area SD Elk 0.6893 18.7

Jamestown Area SD Mercer 0.6433 13.7 Schuylkill Haven Area SD Schuylkill 0.6703 18.8

Moniteau SD Butler 0.6826 13.7 Pottsville Area SD Schuylkill 0.6816 18.8

Mifflinburg Area SD Union 0.6058 13.8 Upper Adams SD Adams 0.6073 18.9

Troy Area SD Bradford 0.6442 13.8 Williamsport Area SD Lycoming 0.6724 18.9

North Star SD Somerset 0.6604 13.8 Bald Eagle Area SD Centre 0.6373 19.2

Northeast Bradford SD Bradford 0.6572 13.9 Franklin Area SD Venango 0.6784 19.2

Keystone SD Clarion 0.6868 13.9 Halifax Area SD Dauphin 0.6064 19.5

Mercer Area SD Mercer 0.6347 14.0 Washington SD Washington 0.6515 19.7

Blue Ridge SD Susquehanna 0.6671 14.0 Armstrong SD Armstrong 0.6617 19.8

Mohawk Area SD Lawrence 0.6561 14.2 Philipsburg-Osceola Area SD Clearfield 0.6928 20.0

Bellwood-Antis SD Blair 0.6681 14.2 Pittston Area SD Luzerne 0.6116 20.1

Canton Area SD Bradford 0.6988 14.2 North Schuylkill SD Schuylkill 0.6948 20.2

Clarion-Limestone Area SD Clarion 0.6701 14.3 Crawford Central SD Crawford 0.6557 20.3

Elk Lake SD Susquehanna 0.6131 14.4 Hanover Area SD Luzerne 0.6661 20.6

Punxsutawney Area SD Jefferson 0.6354 14.5 Shikellamy SD Northumberland 0.6576 20.9

Frazier SD Fayette 0.6954 14.5 Wyoming Valley West SD Luzerne 0.6661 21.0

Uniontown Area SD Fayette 0.6335 14.6 Oxford Area SD Chester 0.6282 21.1

California Area SD Washington 0.6753 14.6 Bradford Area SD Mckean 0.6699 21.4

Montrose Area SD Susquehanna 0.6169 14.7 Ambridge Area SD Beaver 0.6008 21.9

East Lycoming SD Lycoming 0.6348 14.7 Pleasant Valley SD Monroe 0.6417 22.1

Burgettstown Area SD Washington 0.6391 14.8 Wilkes-Barre Area SD Luzerne 0.6533 22.1

Union Area SD Lawrence 0.6970 14.8 Steel Valley SD Allegheny 0.6497 22.5

Montgomery Area SD Lycoming 0.6259 15.0 Central Greene SD Greene 0.6128 23.1

Southmoreland SD Westmoreland 0.6483 15.1 Athens Area SD Bradford 0.6696 23.2

Oswayo Valley SD Potter 0.6978 15.1 Northern Lehigh SD Lehigh 0.6010 23.4

Saint Clair Area SD Schuylkill 0.6694 15.2 Upper Darby SD Delaware 0.6464 23.6

Coudersport Area SD Potter 0.6098 15.4 Sayre Area SD Bradford 0.6809 23.6

Laurel Highlands SD Fayette 0.6566 15.4 Leechburg Area SD Armstrong 0.6732 24.1

Cameron Co SD Cameron 0.6583 15.4 Blairsville-Saltsburg SD Indiana 0.6711 24.6

West Middlesex Area SD Mercer 0.6566 15.5 Homer-Center SD Indiana 0.6742 25.1

Forbes Road SD Fulton 0.6343 15.7 Plum Borough SD Allegheny 0.6323 27.1

Wyalusing Area SD Bradford 0.6136 16.1 West Mifflin Area SD Allegheny 0.6375 27.2

Marion Center Area SD Indiana 0.6432 16.2 Antietam SD Berks 0.6485 27.4

Yough SD Westmoreland 0.6450 16.2 Elizabeth Forward SD Allegheny 0.6589 29.9

Derry Area SD Westmoreland 0.6596 16.2 Penn Hills SD Allegheny 0.6466 30.2

Ellwood City Area SD Lawrence 0.6889 16.2 William Penn SD Delaware 0.6925 30.2

North East SD Erie 0.6583 16.3 Pottstown SD Montgomery 0.6474 30.7

Mifflin Co SD Mifflin 0.6615 16.4 South Park SD Allegheny 0.6395 31.7

Johnsonburg Area SD Elk 0.6901 16.4 Highlands SD Allegheny 0.6937 32.0

Wilkinsburg Borough SD Allegheny 0.6783 36.9

135 Districts with aid ration between 60% and 70%

Equalized Mills range from 8.3 to 36.9

Mifflin County Ranks 66th of of 135 district at 16.4 mills