Norristown Area School District 2018-19 Budget Presentation –Municipal Partners

2018-19 BUDGET PROCESS 2018-19 PROPERTY TAX RELIEF LEGISLATIVE UPDATE Norristown Area School District 2018-19 Budget TOPICS 2018-19 BUDGET PROCESS 2018-19 PROPERTY TAX RELIEF LEGISLATIVE UPDATE NASD POINTS OF PRIDE

Norristown Area School District 2018-19 Budget NOV 2017 2018-19 BUDGET KICK-OFF COMMUNITY FORUMS .

Norristown Area School District 2018-19 Budget NOVEMBER 2017 As identified at our November Budget Kick-Off Meetings: Primary Budgetary Challenge: Balancing the needs of our students with the needs of our taxpayers As a result of some of the feedback and concerns, School Board charged Administration with the goal of developing the 2018-19 Budget without a tax increase

Norristown Area School District 2018-19 Budget JAN 2018 PRELIMINARY BUDGET ADOPTION NO TAX INCREASE $4.2 MILLION SHORTFALL FACILITIES-FINANCE COMMITTEE CHARGED WITH BUDGET REVIEW NOV 2017 2018-19 BUDGET KICK-OFF COMMUNITY FORUMS .

Norristown Area School District 2018-19 Budget JAN 2018 PRELIMINARY BUDGET ADOPTION NO TAX INCREASE $4.2 MILLION SHORTFALL FACILITIES-FINANCE COMMITTEE CHARGED WITH BUDGET REVIEW NOV 2017 2018-19 BUDGET KICK-OFF COMMUNITY FORUMS . MAR 2018 FACILITIES-FINANCE COMMITTEE REVIEWING STRATEGIES TO CLOSE BUDGET GAP $ 3 MILLION SHORTFALL

Norristown Area School District 2018-19 Budget JAN 2018 PRELIMINARY BUDGET ADOPTION NO TAX INCREASE $4.2 MILLION SHORTFALL FACILITIES-FINANCE COMMITTEE CHARGED WITH BUDGET REVIEW NOV 2017 2018-19 BUDGET KICK-OFF COMMUNITY FORUMS . MAR 2018 FACILITIES-FINANCE COMMITTEE REVIEWING STRATEGIES TO CLOSE BUDGET GAP $ 3 MILLION SHORTFALL APRIL 2018 FACILITIES-FINANCE COMMITTEE CONTINUES WORK ON BUDGET $ 2.5 MILLION SHORTFALL = 2.695% TAX INCREASE SIGNICIFICANT STAFF/PROGRAM REDUCTIONS WOULD BE NEEDED TO DEVELOP A BUDGET WITHOUT A TAX INCREASE

Norristown Area School District 2018-19 Budget JAN 2018 PRELIMINARY BUDGET ADOPTION NO TAX INCREASE $4.2 MILLION SHORTFALL FACILITIES-FINANCE COMMITTEE CHARGED WITH BUDGET REVIEW NOV 2017 2018-19 BUDGET KICK-OFF COMMUNITY FORUMS . MAR 2018 FACILITIES-FINANCE COMMITTEE REVIEWING STRATEGIES TO CLOSE BUDGET GAP $ 3 MILLION SHORTFALL APRIL 2018 FACILITIES-FINANCE COMMITTEE CONTINUES WORK ON BUDGET $ 2.5 MILLION SHORTFALL = 2.695% TAX INCREASE SIGNICIFICANT STAFF/PROGRAM REDUCTIONS WOULD BE NEEDED TO DEVELOP A BUDGET WITHOUT A TAX INCREASE 4/23/18 SPECIAL MEETING HELD COMMUNITY BUDGET FORUM MODERATE TAX INCREASE SUPPORTED

Norristown Area School District 2018-19 Budget JAN 2018 PRELIMINARY BUDGET ADOPTION NO TAX INCREASE $4.2 MILLION SHORTFALL FACILITIES-FINANCE COMMITTEE CHARGED WITH BUDGET REVIEW NOV 2017 2018-19 BUDGET KICK-OFF COMMUNITY FORUMS . MAR 2018 FACILITIES-FINANCE COMMITTEE REVIEWING STRATEGIES TO CLOSE BUDGET GAP $ 3 MILLION SHORTFALL APRIL 2018 FACILITIES-FINANCE COMMITTEE CONTINUES WORK ON BUDGET $ 2.5 MILLION SHORTFALL = 2.695% TAX INCREASE SIGNICIFICANT STAFF/PROGRAM REDUCTIONS WOULD BE NEEDED TO DEVELOP A BUDGET WITHOUT A TAX INCREASE MAY 2018 BOARD REQUIRED TO ADOPT PROPOSED FINAL BUDGET

Norristown Area School District 2018-19 Budget JAN 2018 PRELIMINARY BUDGET ADOPTION NO TAX INCREASE $4.2 MILLION SHORTFALL FACILITIES-FINANCE COMMITTEE CHARGED WITH BUDGET REVIEW NOV 2017 2018-19 BUDGET KICK-OFF COMMUNITY FORUMS . MAR 2018 FACILITIES-FINANCE COMMITTEE REVIEWING STRATEGIES TO CLOSE BUDGET GAP $ 3 MILLION SHORTFALL APRIL 2018 FACILITIES-FINANCE COMMITTEE CONTINUES WORK ON BUDGET $ 2.5 MILLION SHORTFALL = 2.695% TAX INCREASE SIGNICIFICANT STAFF/PROGRAM REDUCTIONS WOULD BE NEEDED TO DEVELOP A BUDGET WITHOUT A TAX INCREASE MAY 2018 BOARD REQUIRED TO ADOPT PROPOSED FINAL BUDGET JUNE 25, 2018 BOARD REQUIRED TO ADOPT 2018-19 FINAL BUDGET

2018-19 PROPOSED FINAL BUDGET Norristown Area School District 2018-19 Budget 2018-19 PROPOSED FINAL BUDGET HIGHLIGHTS: TOTAL SPENDING = $ 154,537,050 1.5% INCREASE OVER PROJECTED 2017-18 SPENDING PROPOSED TAX INCREASE = 2.9% NASD ACT 1 INDEX (TAX LIMIT)= 2.90% = $135 TO AVG NASD TAXPAYER INCLUDES USING $500K FROM BURNSIDE SALE PROPERTY CURRENTLY LISTED FOR SALE ALL REMAINING PROCEEDS TO BE EARMARKED FOR NAHS ATHLETIC PROJECT FUND BALANCE PROJECTED @ $1,500,000

Norristown Area School District 2018-19 Budget 2018-19 PROPOSED FINAL BUDGET REVENUES: NO TAX INCREASE 2.9% TAX INCREASE 2017-18 BUDGET 2017-18 PROJECTIONS (MAY 2018) 2018-19 PRELIMINARY BUDGET 2018-19 PROPOSED FINAL BUDGET LOCAL $ 108,020,150 $ 107,761,800 $ 107,724,800 $ 110,450,885 STATE $ 35,670,500 $ 36,416,500 $ 36,853,500 $ 37,645,500 FEDERAL $ 6,430,000 $ 7,300,000 $ 6,750,000 OTHER - $ 5,000 $ 505,000 TOTAL $ 150,120,650 $ 151,483,300 $ 151,333,300 $ 155,351,385 2.56% INCREASE

Norristown Area School District 2018-19 Budget REVENUE SNAPSHOT:

NORRISTOWN AREA SCHOOL DISTRICT UNDERFUNDED BY COMMONWEALTH OF PA Norristown Area School District 2018-19 Budget REVENUE SNAPSHOT: EQUITY FIRST & CITIZENS FOR FAIR SCHOOL FUNDING RECENTLY RELEASED THE 2018 LIST OF MOST UNDERFUNDED PA SCHOOL DISTRICTS: NORRISTOWN AREA SCHOOL DISTRICT #33 ON THIS LIST – UNDERFUNDED BY COMMONWEALTH OF PA BY $12.5 MILLION

Norristown Area School District 2018-19 Budget REVENUE SNAPSHOT: EQUITY FIRST & CITIZENS FOR FAIR SCHOOL FUNDING RECENTLY RELEASED THE 2018 LIST OF MOST UNDERFUNDED PA SCHOOL DISTRICTS: NORRISTOWN AREA SCHOOL DISTRICT #33 ON THIS LIST – UNDERFUNDED BY COMMONWEALTH OF PA BY $12.5 MILLION ILLUSTRATES SYSTEMATIC OVER RELIANCE ON LOCAL COMMUNITY

Norristown Area School District 2018-19 Budget REVENUE SNAPSHOT: REVENUE FOCUS: INCREASED ASSESSED / PROPERTY VALUES NEW JOB OPPORTUNIITIES / LOWER UNEMPLOYMENT RATES CONTINUED ADVOCACY FOR SCHOOL FUNDING REFORM; CURRENT FUNDING SYSTEM CREATES AN OVER-RELIANCE ON PROPERTY TAXES EQUITY FIRST & CITIZENS FOR FAIR SCHOOL FUNDING RECENTLY RELEASED THE 2018 LIST OF MOST UNDERFUNDED PA SCHOOL DISTRICTS: NORRISTOWN AREA SCHOOL DISTRICT #33 ON THIS LIST – UNDERFUNDED BY COMMONWEALTH OF PA BY $12.5 MILLION ILLUSTRATES SYSTEMATIC OVER RELIANCE ON LOCAL COMMUNITY

Norristown Area School District 2018-19 Budget 2018-19 PROPOSED FINAL BUDGET EXPENSES: NO TAX INCREASE 2.9% TAX INCREASE 2017-18 BUDGET 2017-18 PROJECTIONS (MAY 2018) 2018-19 PRELIMINARY BUDGET 2018-19 PROPOSED FINAL BUDGET 1100- REGULAR ED $ 62,014,500 $ 63,117,500 $ 60,779,500 $ 64,689,500 1200- SPECIAL ED $ 28,118,500 $ 28,896,500 $ 29,501,500 $ 29,341,500 1300- VOCATIONAL $ 4,912,000 $ 4,864,000 $ 4,929,000 $ 4,665,000 1400- OTHER INST $ 767,125 $ 1,065,000 $ 883,000 1500- NON-PUBLIC $ 30,000 $ 75,000 $ 53,000 1600- ADULT ED $ 121,350 $ 123,350 $ 129,000 2100- PUPIL SVCS $ 6,034,750 $ 6,510,000 $ 6,700,000 2200- INST SUPP $ 1,688,125 $ 1,670,000 $ 1,780,000 $ 1,750,000 2300- ADMIN SUPP $ 9,256,500 $ 9,510,000 $ 9,880,000 2400- HEALTH $ 2,091,125 $ 2,062,000 $ 2,147,000 $ 2,067,000 2500- BUSINESS $ 832,225 $ 813,500 $ 842,500 2600- OPERATIONS $ 13,392,250 $ 13,074,000 $ 13,304,000 $ 13,199,000 2700- TRANSPORT $ 9,594,250 $ 10,097,500 $ 9,922,500 $ 10,122,500 2800-TECH $ 1,961,250 $ 2,030,000 $ 2,088,000 $ 2,138,000 2900- OTHER $ 92,225 $ 92,000 $ 92,800 3000 –STUD/COMM $ 1,812,325 $ 1,845,850 $ 1,930,850 $ 1,918,850 5000- DEBT $ 6,460,800 $ 6,065,400 TOTALS $ 149,179,300 $ 152,307,000 $ 151,025,050 $ 154,537,050

Norristown Area School District 2018-19 Budget 2018-19 PROPOSED FINAL BUDGET EXPENSES: 2017-18 BUDGET 2017-18 PROJECTIONS (MAY 2018) 2018-19 PRELIMINARY BUDGET 2018-19 PROPOSED FINAL BUDGET 1100- REGULAR ED $ 62,014,500 $ 63,117,500 $ 60,779,500 $ 64,689,500 1200- SPECIAL ED $ 28,118,500 $ 28,896,500 $ 29,501,500 $ 29,341,500 1300- VOCATIONAL $ 4,912,000 $ 4,864,000 $ 4,929,000 $ 4,665,000 1400- OTHER INST $ 767,125 $ 1,065,000 $ 883,000 1500- NON-PUBLIC $ 30,000 $ 75,000 $ 53,000 1600- ADULT ED $ 121,350 $ 123,350 $ 129,000 2100- PUPIL SVCS $ 6,034,750 $ 6,510,000 $ 6,700,000 2200- INST SUPP $ 1,688,125 $ 1,670,000 $ 1,780,000 $ 1,750,000 2300- ADMIN SUPP $ 9,256,500 $ 9,510,000 $ 9,880,000 2400- HEALTH $ 2,091,125 $ 2,062,000 $ 2,147,000 $ 2,067,000 2500- BUSINESS $ 832,225 $ 813,500 $ 842,500 2600- OPERATIONS $ 13,392,250 $ 13,074,000 $ 13,304,000 $ 13,199,000 2700- TRANSPORT $ 9,594,250 $ 10,097,500 $ 9,922,500 $ 10,122,500 2800-TECH $ 1,961,250 $ 2,030,000 $ 2,088,000 $ 2,138,000 2900- OTHER $ 92,225 $ 92,000 $ 92,800 3000 –STUD/COMM $ 1,812,325 $ 1,845,850 $ 1,930,850 $ 1,918,850 5000- DEBT $ 6,460,800 $ 6,065,400 TOTALS $ 149,179,300 $ 152,307,000 $ 151,025,050 $ 154,537,050 1.5% INCREASE

Norristown Area School District 2018-19 Budget 2018-19 PROPOSED FINAL BUDGET EXPENSES: 2017-18 BUDGET 2017-18 PROJECTIONS (MAY 2018) 2018-19 PRELIMINARY BUDGET 2018-19 PROPOSED FINAL BUDGET 1100- REGULAR ED $ 62,014,500 $ 63,117,500 $ 60,779,500 $ 64,689,500 1200- SPECIAL ED $ 28,118,500 $ 28,896,500 $ 29,501,500 $ 29,341,500 1300- VOCATIONAL $ 4,912,000 $ 4,864,000 $ 4,929,000 $ 4,665,000 1400- OTHER INST $ 767,125 $ 1,065,000 $ 883,000 1500- NON-PUBLIC $ 30,000 $ 75,000 $ 53,000 1600- ADULT ED $ 121,350 $ 123,350 $ 129,000 2100- PUPIL SVCS $ 6,034,750 $ 6,510,000 $ 6,700,000 2200- INST SUPP $ 1,688,125 $ 1,670,000 $ 1,780,000 $ 1,750,000 2300- ADMIN SUPP $ 9,256,500 $ 9,510,000 $ 9,880,000 2400- HEALTH $ 2,091,125 $ 2,062,000 $ 2,147,000 $ 2,067,000 2500- BUSINESS $ 832,225 $ 813,500 $ 842,500 2600- OPERATIONS $ 13,392,250 $ 13,074,000 $ 13,304,000 $ 13,199,000 2700- TRANSPORT $ 9,594,250 $ 10,097,500 $ 9,922,500 $ 10,122,500 2800-TECH $ 1,961,250 $ 2,030,000 $ 2,088,000 $ 2,138,000 2900- OTHER $ 92,225 $ 92,000 $ 92,800 3000 –STUD/COMM $ 1,812,325 $ 1,845,850 $ 1,930,850 $ 1,918,850 5000- DEBT $ 6,460,800 $ 6,065,400 TOTALS $ 149,179,300 $ 152,307,000 $ 151,025,050 $ 154,537,050 AT THIS TIME, THERE ARE NO CHANGES TO RECOMMENDED STAFFING PLANS SHARED AT OUR APRIL MEETING AS A REMINDER, NEGOTIATIONS WITH EANA PROFESSIONAL & EANA SUPPORT ARE ON-GOING APPROX 70% OF OUR SPENDING IS DRIVEN BY STAFFING CHALLENGING TO DEVELOP FINAL BUDGET WITHOUT LABOR AGREEMENTS REDUCTION OF 10 TEACHING POSITIONS (NET) ADDITION OF 1 COMMUNITY LIAISON REDUCTION 1 STAFF NURSE DELAYED HIRING – COUNSELOR & MAINTENANCE CUSTODIAL RESTRUCTURING

Norristown Area School District 2018-19 Budget 2018-19 PROPOSED FINAL BUDGET SUMMARY: FUND BALANCE 7-1-17 $ 1,515,971 2017-18 PROJECTED REVENUES (UPDATED) $ 151,483,300 2017-18 PROJECTED EXPENSES (UPDATED) $ 152,307,000 FUND BALANCE 6-30-18 $ 692,271 2018-19 PROPOSED FINAL REVENUES $ 155,351,385 2018-19 PROPOSED FINAL EXPENSES $ 154,537,050 FUND BALANCE 6-30-19 $ 1,506,606 = .97% OF TOTAL EXPENSES

2018-19 PROPOSED FINAL BUDGET 2018-19 PROPERTY TAX RELIEF Norristown Area School District 2018-19 Budget TOPICS 2018-19 PROPOSED FINAL BUDGET 2018-19 PROPERTY TAX RELIEF

Property tax relief available via gambling: Norristown Area School District 2018-19 Budget Property tax relief available via gambling: Year Property Tax Reduction Funding Allocated to NASD Total Approved Homesteads / Farmsteads Tax Relief Per Homestead / Farmstead 2010-11 $ 2,758,621 12,315 $ 224 2011-12 $ 2,612,573 12,392 $ 211 2012-13 $ 2,714,047 12,424 $ 218 2013-14 $ 2,622,356 12,303 $ 213 2014-15 $ 2,770,350 12,223 $ 227 2015-16 $ 2,847,672 12,035 $ 237 2016-17 $ 2,852,437 11,903 $ 240 2017-18 $ 2,850,021 11,738 $ 242 2018-19 $ 2,856,955 11,580 $ 247

2018-19 PROPOSED FINAL BUDGET 2018-19 PROPERTY TAX RELIEF Norristown Area School District 2018-19 Budget TOPICS 2018-19 PROPOSED FINAL BUDGET 2018-19 PROPERTY TAX RELIEF LEGISLATIVE UPDATE

Norristown Area School District 2018-19 Budget LEGISLATIVE UPDATE – PA LEGISLATIVE ISSUES PA 2018-19 BUDGET DEADLINE AROUND THE CORNER ELECTED OFFICIALS RETURN TO HARRISBURG ON MAY 21ST – BUDGET DEBATE EXPECTED TO BEGIN QUICKLY RECENT POLL CONDUCTED BY PA BUDGET & POLICY CENTER INDICATES THAT PROVIDING FUNDING FOR PUBLIC EDUCATION IS SUPPORTED BY BOTH SIDES OF THE AISLE PROPERTY TAX REFORM SENATE BILL # 1137 INTRODUCED RECENTLY RESTARTED THE PROPERTY TAX REFORM CONVERSATIONS RECOMMENDS INCREASING PA INCOME TAX FROM 3.07% TO 5.05% VOUCHERS / EDUCATIONAL SAVINGS ACCOUNTS –ESTIM IMPACT TO NASD = $1.3 MILLION SENATE BILL #2 – FUTURE UNCERTAIN REDIRECTS FUNDING FROM PUBLIC SCHOOLS TO PRIVATE SCHOOLS, PRIVATE COMPANIES, RELIGIOUS SCHOOLS, PERSONAL TUTORS, ETC. ASSESSMENT APPEALS BILL / CHARTER SCHOOL REFORM WATCHING HARRISBURG CLOSELY

2018-19 PROPOSED FINAL BUDGET 2018-19 PROPERTY TAX RELIEF Norristown Area School District 2018-19 Budget TOPICS 2018-19 PROPOSED FINAL BUDGET 2018-19 PROPERTY TAX RELIEF LEGISLATIVE UPDATE NASD POINTS OF PRIDE

Norristown Area School District 2018-19 Budget NASD POINTS OF PRIDE Launched “Tele-Health” Pilot Program with CHOP Named one of 2018 Best Communities for Music Education by the NAMM Foundation (National Association of Music Merchants) Launching 5-Year Technology Plan which includes implementation of 1:1 initiatives which will be phased in beginning in 2018-19 Enhanced by Sprint 1Million Grant award which will provide hot spots for students Norristown Area High School recognized by US News & World Report; awarded a bronze medal for their performance on state-required tests and how well they prepare students for college

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