2016-2017 Preliminary Proposed Budget April 26, 2016

2016-17 Budget Review The annual budget of the Armstrong School District can be described as the financial footprint for the school year. The annual budget process provides the Board of Directors with the most direct opportunity to influence the every day happenings for the stakeholders of the district.

an increase of $351,005. Revenues of $92,624,970 2016-17 Budget Review General Fund Budget 2016-17 Expenditures of $93,782,235 an increase of $351,005. Revenues of $92,624,970 an increase of $1,854,169.

Expenditure Budget Comparisons 2016-17 Budget Review Expenditure Budget Comparisons 2015-2016 Budget = $93,431,230 2016-2017 Proposed Budget = $93,782,235 Proposed Increase = $351,005 This represents less than a 1% increase over the current year.

Revenue Budget Comparisons 2016-17 Budget Review Revenue Budget Comparisons 2015-2016 Budget = $90,770,801 2016-2017 Proposed Budget = $92,624,970 Proposed Increase = $1,854,169 This represents a 2% increase over the current year.

Expenditure Highlights 2016-17 Budget Review Expenditure Highlights All contracted salaries and benefits included. Health Care rate increase of 5.77%. Retirement rate (PSERS) increased from 25.84% to 30.03%. Increase in tuition costs to Lenape Vo Tech equals $25,000 Building and departmental discretionary budgets have been frozen. Reduction in HSA contributions due to change in health care produced a savings of $600,000. Savings in transportation costs due to the elimination of mid day runs.

Expenditure Highlights 2016-17 Budget Review Expenditure Highlights Debt payments increased by $575,000 to reflect the change in the debt schedule. Reduction in Administration Office Personnel (1) Increase in technology budget of $200,000 to reflect the purchase of new hardware to replace outdated hardware. Significant reduction in personnel expenditures due to retirements and a new starting wage in the AEA contract. The approximate savings are $800,000. Out of district tuition costs - $3,045,000 Lenape Vo Tech tuition costs - $5,300,000

Projected Staffing 2016-17 Budget Review The preliminary staffing figures indicate a reduction of 5.0- 5.5 teaching positions and one administrative position. This reduction was a result of retirements and reassignment/realignment of staff due to declining enrollment figures and other variables. The staffing figures also include the implementation of the full day kindergarten program.

Budget to Budget Changes (Objects) 2016-17 Budget Review Budget to Budget Changes (Objects) 2015-16 2016-17 Salaries & Wages $39,228,503 $38,898,132 Employee Benefits $21,950,840 $22,577,109 Purchased Professional & Tech. Services $1,710,638 $1,745,550 Purchased Property Services $1,663,875 $1,610,420 Tuition Travel Transportation $16,371,474 $16,054,670 Supplies $2,508,921 $2,235,221 Property $623,942 $745,425 Other & Budgetary Reserve $358,037 $325,708 Financing & Debt Payments $9,015,000 $9,590,000 TOTAL BUDGET $93,431,230 $93,782,235

Budget to Budget Changes (Functions) 2016-17 Budget Review Budget to Budget Changes (Functions) 2015-16 2016-17 1000’ s Instructional $56,480,620 $56,780,869 2000’s Support Services $26,011,374 $25,571,770 3000’s Non-Instructional Services $1,395,236 $1,438,896 4000’s Facilities Acquisition & Improvement $269,000 $139,200 5000’s Other Financing Uses $9,275,000 $9,851,500 TOTAL BUDGET $93,431,230 $93,782,235

2016-17 Budget Review

Revenue Highlights 2016-17 Budget Review Earned Income Tax increase to reflect improved collections. ($50,000) Delinquent Tax revenue increased to reflect additional collections. ($550,000) Basic Ed Subsidy budgeted at $30,205,517, this number will likely change since the 15-16 budget just passed and the new numbers are not available. Special Ed Subsidy budgeted at $4,555,881. Increase in Transportation Subsidy of $50,000.

Revenue Highlights 2016-17 Budget Review ACCESS revenue is anticipated to decrease by $200,000 to reflect changes in the program. NO PLANCON monies included for the high school project approximately $500,000, it is estimated that at the end of 16-17 the district will be owed approximately $2,800,000 from PDE. Increase in revenue from the reimbursement of retirement contributions. Revenue from Federal Sources remains the same a the current year.

2016-17 Budget Review

2016-17 Budget Review Millage History YEAR Armstrong Mills Indiana 2007-08 55 121.52 2008-09 118.32 2009-10 117.82 2010-11 111.25 2011-12 53 109.80 2012-13 54.27 150.14 2013-14 56.64 160.84 2014-15 58.24 151.43 2015-16 151.57 Collected Mill = $540,500 = $5,135

Tax Payer Relief 2016-17 Budget Review Those district tax payers who completed a homestead/farmstead application and were approved will see a reduction in their real estate taxes this year. This year the district will be able to distribute $3,588,075 in relief to approved applicants. Approximately 12,084 taxpayers will receive approximately $303.82 of relief on their tax bill for next year.

ASD- General Fund Balance History 2016-17 Budget Review ASD- General Fund Balance History Year Balance Difference 2005-06 $7,653,403 2006-07 $7,407,607 $ (245,796) 2007-08 $6,289,636 $ (1,117,971) 2008-07 $5,441,128 $ (848,508) 2009-10 $9,487,319 $ 4,046,191 2010-11 $10,598,144 $ 1,110,825 2011-12 $6,598,415 $ (3,999,729) 2012-13 $8,625,028 $ 2,026,613 2013-14 $8,596,543 $ (28,485) 2014-15 $6,787,796 $ (1,808,746) SUM DIFFERENCE = $ (865,607)

2016-17 Budget Review FUND BALANCE PROJECTIONS FUND BALANCE ON 7/1/2015 $ 6,787,798 PROJECTED REVENUE 6/30/16 $90,700,000 PROJECTED EXPENSES 6/30/16 $93,000,000 ENDING FUND BALANCE 6/30/16 $ 4,487,798 FUND BALANCE ON 7/1/16 $ 4,487,798 PROPOSED REVENUE 16-17 $92,624,970 PROPOSED EXPENSES 16-17 $93,782,235 ENDING FUND BALANCE 6/30/17 $ 3,330,533

2016-17 Budget Review BUDGET TIME LINE May 9, 2016 – Adopt Preliminary Budget May 10-June 13 – Advertise, Public Display and Continue working on the budget. June 13, 2016 – Adopt Final Budget

2016-17 Budget Review QUESTIONS?