BUDGET UPDATE May 21, 2019 For 5/21/19 Budget Work Session Submitted by Emily R. Temple, Dir. of Finance For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Colleton County School District Information 135th day March 28, 2019 Enrollment on 135th day=5,517 Average Daily Membership on 135 day for FY19=5,264 Weighted Pupil Units on 135 day for FY19=7,681 Student enrollment for FY20 expected to remain comparable to FY19 Last meeting I shared some year to date information, this meeting I would like to share some additional statistics 5264-chronic absenteeism For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Base Student Cost

State Funding of Base Student Cost BSC has not been fully funded since FY1998 FY2020 BSC should be $3,095 but is proposed to be funded at $2,487. This represents a loss of $2,909,047 for next year. FY19 BSC should be $3,095, District BSC is actually approximately $1700 per weighted Pupil Unit For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

LEGISLATIVE MANDATES Raise base teacher salary to $35,000 and fund 4% salary increase to certified staff, nurses, occupational therapists, and physical therapists $1,396,829 1% increase for employer contributions to retirement $289,002 Total $1,685,831 Based on current FY19 staffing of Teachers, guidance, librarians, $1,359,456 includes salary and FICA,$14,328 for OT/PT 4%, 23,045 for 4% to nurses 289,002 is 1% of $28,900,219 total salaries estimate For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

DISTRICT OBLIGATIONS Increase to Instructional Supply Requests $20,185 Based on per pupil allocations of $25-4k, $75-ES, $85-MS,$135-HS, $100-VOC/FY19 135 Day ADM Increase to Legal Services $20,000 Increase to District Maintenance Contracts $24,095 Increase to Maintenance/Housekeeping $55,412 Insurance Premium Increases $233,361 Insurance Reserve Fund Property Premiums, Workers Comp Premiums, Prepaid legal policy increase Maintenance Contacts-Carpet cleaning, uniforms, landscaping, camera licenses $30,000 for HVAC filters, $25,412 increase to housekeeping contract Insurance premiums- 20% increase IRF, 10% increase Workers Comp, $3,500 prepaid legal For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

CONTINUOUS IMPROVEMENT NEEDS Reduce class sizes in grades K-6th $371,984 Addition of 7 FTEs Grade Staffing Guidelines Proposed K-5 28:1 25:1 1st-3rd 20:1 4th-5th 6th To achieve proposed ratios would require the addition of 7 FTE’s We will be adding a 6th grade teacher at the middle school and 5 other FTE’s to reach the proposed ratios 2 K-5 teachers, 3 2nd grade teachers For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

CONTINUOUS IMPROVEMENT NEEDS (Continued) Continue Classified Salary Scale Revisions $186,085 Step increase and restored step to classified staff $516,920 Expand Mental Health Counseling Support $50,000 Additional School Resource Officers $130,000 Addition of 2 SRO’s, $65,000 each Increase teacher salaries by 5% included in Draft 1 Option 2 $745,622 Raises base teacher salary from $35,868 to $38,500 1/3 classified staff needs to be moved to revised scale , figures include fringe 2/3 classified staff were moved to revised scale last year, figures include fringe Per board’s request we were asked to determine the cost for additional 5% raise to teachers For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

General Fund Revenue Accounts Current Budget FY19 Proposed Budget FY20 Increase/(Decrease) Local Property Taxes/Revenue in Lieu of Taxes 15,161,681 15,502,335 340,654 Other local revenue 12,600 15,000 2,400 Indirect Costs 150,000 135,000 (15,000) Tier I, II, III Residential Exemption 5,561,505 5,771,038 209,533 Other state revenue in lieu of taxes 317,471 334,398 16,927 Bus Drivers Salaries & Fringe 1,007,457 863,548 (143,909) Fringe Benefits 7,496,728 7,211,796 (284,932) EFA 13,522,073 13,027,306 (494,767) EIA Teacher Salary & Fringe 1,373,146 1,400,501 27,355 State Aid to Classrooms for 4% teacher salary increase 1,008,057 PEBA Credit 318,507 Other federal revenue 50,000 75,000 25,000 TOTAL REVENUES $44,971,168 $44,662,486 $691,318 HAND OUT

Summary of Revenues and Expenditures Draft 1 Option 1 Total Change in Revenues for General Fund $318, 507 is reclassification of payments to PEBA, net increase is $691,318 $1,009,825 Salaries (1,752,208) Contract Services (130,000) Instructional Supply (20,185) Administrative Services (5,000) Maintenance (79,507) Fringe Benefits $318, 507 is reclassification of payments to PEBA, net increase is $276,411 (594,918) District Insurance (233,361) Total Difference (1,805,354) This is a snap shot of the effects of all that we have discussed on the FY20 budget. For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Summary of Revenues and Expenditures Draft 1 Option 2 Total Change in Revenues for General Fund $318, 507 is reclassification of payments to PEBA, net increase is $691,318 $1,009,825 Salaries (2,321,311) Contract Services (130,000) Instructional Supply (20,185) Administrative Services (5,000) Maintenance (79,507) Fringe Benefits $318, 507 is reclassification of payments to PEBA, net increase is $276,411 (761,437) District Insurance (233,361) Total Difference (2,550,976) This is a snap shot of the effects of all that we have discussed on the FY20 budget. Questions For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Options to Balance our Budget For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Analyze staffing for potential reductions Evaluate the impact of outgoing and incoming staff Reduce proposed continuous improvement expenditures Examine impact to fund balance Consider board resolution for millage increase request For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Reduce Expenditures District Obligations Continuous Improvement Needs Instructional Supply $20,185 Legal Services $20,000 District Contracts $24,095 Maintenance/Housekeeping $55,412 Insurance Premiums $233,361 Reduce class sizes $371,984 Class. Salary Revisions $186,085 Step/Restored step to Class $516,920 Staff Mental Health Support $50,000 Additional SRO’s $130,000 Option 2-Raise base to $745,622 $38,500 If we implemented the local revenue millage increase of $598,155 and did not do any of the continuous improvement expenses we would be at a balanced budget. For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Analyze staffing for potential reductions Evaluate the impact of outgoing and incoming staff Reduce proposed continuous improvement expenditures Examine impact to fund balance Consider board resolution for millage increase request For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

FUND BALANCE –FISCAL ACCOUNTABILITY Districts must maintain a minimum fund balance of 8.33% of total general fund expenditures to avoid Fiscal Watch designation Fund Balance, Beginning Increase/ (Decrease) Fund Balance, Ending General Fund Expenditures Fund Balance as a % of GF Expenditures Projected June 30, 2019 $4,247,574 $161,331 $4,408,905 $43,895,405 10.04% June 30, 2018 $3,613,186 $634,388 $43,052,494 9.87% June 30, 2017 $3,046,211 $566,975 $ 42,507,498 8.50% June 30, 2016 $2,780,406 $265,805 $40,504,654 7.52% GFOA recommends it be at approximately 20% or 2 months operating expenditures Continuing to increase the fund balance reflects positively on the governance of the board and helps our credit rating for the bond market For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

Analyze staffing for potential reductions Evaluate the impact of outgoing and incoming staff Reduce proposed continuous improvement expenditures Examine impact to fund balance Consider board resolution for millage increase request For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance

FY20 LOCAL REVENUE OUTLOOK Increase Operating Millage   PRIOR YEAR MILLAGE RATE MILLAGE CAP % MILLAGE CAP IN MILS MILLAGE INCREASE FINAL MILLAGE RATE MILLAGE NOT RECEIVED VALUE OF A MILS MIL=$135,636 Tax Year 18 110.43 1.74% 1.92 0.00 $ - Tax Year 19 2.13% 2.35 3 113.42 1.44 $ 195,316 Tax Year 20 2.62% 2.97 $ 402,839 TOTALS 4.44 $ 598,155 We requested an increase from county council and was granted 3 mils last year. We have 1.44 remaining and an additional 2.97 mils that could be levied for this tax year. Total available mils is 4.37 for $598,155. Approximately $25 on $100k property 2.44% CPI, .18% population growth FOR YOUR CONSIDERATION. For 5/21/19 Board Meeting Submitted by Emily R. Temple, Dir. of Finance