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?