1. Solanco School District 2017-18 General Fund Budget
June 5, 2017 Final
Proposed Final Budget:
Solanco School Board
District Central office
121 South Hess Street Quarryville, PA 17566

2. 5 major items on ‘each side of the budget’
Revenues: L=Local---S=State
Expenditures
(L) Property Tax
Assessed values
Re-assessment
Delinquent process
(L) Earned Income Tax
Demographics/Economy
(S) Basic Education Funding
(S) Special Education Funding
(S) Pension/Transportation Funding
Pension Rate
Growing/slower rate
Health Care
Medical Trend
RX Trend
Salary
Position review
Special Education Compounding growth
Key Support Functions

3. 5 major items on ‘each side’--- drive the budget
Revenues:
L=Local=55.5% --- S=State = 32.2%
Expenditures = 91.3%
(L) Property Tax
42%
(L) Earned Income Tax
13.5%
(S) Basic Education
18.2%
(S) Special Education 4%
(S) Transportation/Pension
3.2% + 6.8% = 10%
Pension
13.0%
Health Care
9.0%
Salary
39.8% % top three
Special Education
16.9%
Facilities & Transportation
12.6%

4. Revenues

5. Property Tax Budget

6. Assessment growth—just over 6/10ths of 1%

7. Preparation/anticipation of re-assessment in evidence—second lowest growth in the last seven years start appeal impact

8. Earned income Tax: Audit History---Changing and volatile---2016-17; growth may be less than 1%

9. Earned Income Tax Monthly distributions---Down through 9 months

10. State Revenues – anyone’s best Guess--
Basic Education budgeted at the Governor’s budget level
$100 M or 1.70% statewide
Solanco at $10,122,596 or about 1.8%
Special Education budgeted at the Governor’s level plus Act 16 funds
$25 M or 2.28% statewide
Solanco at $2.2 million
Pension funding anticipated at state historical funding level
Solanco at $3.7 million
Biggest Threats
Basic Ed and Special Ed---continued erosion of state Revenues falling below estimates
Transportation--- Governor’s proposal includes a $50 million REDUCTION or % statewide
Solanco would NOT fare well if that proposed section of the budget passes.

11. Expenditures

12. F5 Data: Pension: Mandated Spending per Student; Increase of $1,007 -- 2009 to 2015

13. Pension---RATE of increase finally slows—still growing

14. Employer Cost Rates—Growing, but at slower pace

15. Legislative Pension ‘fix’ in the news---it will be prospective only--- it will not address funding the long-term debt A dedicated funding stream may be a partial solution; a new tax? or more (increased rate/broader base) of something existing? ...or let it ride as is Much yet to be written about this story.

16. Health Care---
Over all; claims are higher in than the last several fiscal years inclusive of several larger claims ----
Both utilization and in claim severity
Pharmacy utilization is up....the price of what we were paying (for Rx pricing) is down...
specialty drugs for several specific claims were/are significant, and increase in Rx mix share as well
Significant shift of employees in January 2017 to the High Deductible plan (Fall 2016 open enrollment)
Employer lead and lag time on utilization---impact lags one or two years
Employees see initial deposits and create future tax advantages for returns
For reference....HC budget is approximately $5.3 million

17. Health Care Re-set: multiple approaches and programs

18. Payroll: Re-set; multiple approaches and actions

19. Salary Share trend---Similar to total state picture as well

20. Benefit Share Trend---Climb over time to Plateau

21. Combined: Total Compensation--- mirrored at the State level as well

22. Summary 2017-18 Budget Solanco School District
General Fund Final Budget
5-Jun-17
Revenue Summary: Local Tax Rates
Est Assessment
1,915,000,000
Actual
Current
Proposed
Proposed Increase
Proposed Incr %
Current Real Estate (Mills)
0.3610
2.90%
Current Earned Income
1.15%
0.0000
0.00%
Current Real Estate Transfer Tax
1/2 of 1%
Note: 2.9% increase keeps Solanco SD below the District's Act 1 Cap index for
Property Tax revenues estimated from projected Net Taxable Assessment of :
$ 1,915,000,000
Proposed Increase Per $100,000 Assessed Value: $
= Increase (annual) for each $100,000 in assessed value
Average Property Tax increase (Based on $146,200 Median Assessment) = $
Revenue sources and % share:
Revenues Sources $'s:
Actual
Actual
Actual
Budget
Local
28,630,345
29,814,012
30,968,740
32,033,186
33,073,243
State
17,136,128
17,781,054
18,311,719
19,174,309
20,004,057
Federal
2,625,710
2,202,989
2,062,082
2,113,000
2,108,401
Other
3,571
67,791
7,885
405,000
605,000
Total Revenue:
48,395,754
49,865,846
51,350,426
53,725,495
55,790,700
Total Expenditures:
47,989,897
49,499,661
51,634,729
55,751,935
58,168,153
Varaince: Revenues over Expenditures
405,857
366,185
(284,303)
(2,026,440)
(2,377,452)

23. Revenue Sources 2017-18 Shares

24. 2017-18 Budget Shares by Object

25. Budget Share: Special Education Function

26. Selected Support Functions---Approx. 17.5% of the budget

27. Selected Function Share: All Athletics and Extra-curricular programs including Musical, Plays, Band, Chorale, etc. (salaries, supplies, equipment).

28. Questions