1. Preliminary Budget
February 12, 2018

2. Budget Time Line
February 2, 2018 Deadline for Board to give public notice of intent to adopt preliminary budget (10 days in advance of adoption)
February 5, 2018 Finance Committee Meeting - MDLKC, 7:00 PM
Long Range Plan for Facilities
Elementary Attendance Areas 
February 12, 2018 Review and adopt the preliminary budget and tentative tax rates
February 19, 2018 Submit proposed tax increase to PDE   
March 5, 2018 Finance Committee Meeting – MDLKC, 7:00 PM
Commonwealth Budget
State Revenues Revised
Long Range Plan for Technology

3. Mission Statement
The Mission of the Kennett Consolidated School District is to provide a quality education that increases the achievement of every student in order for all to become successful and thoughtful contributors to society.

4. Summary

5. Preliminary Budget Proposed Real Estate Tax Increase
Mills
Appropriation of Fund Balance
$714,330
Budget Deliberations
Finance Committee Meetings
First Monday of Every Month
Next Meeting – March 5, 2018
Open to the Public
Governor’s Commonwealth Budget
Presentation – February 6, 2018
Act 1 Index of 2.4%
No referendum exceptions are required

6. Proposed Tax Increase

7. Average Residential Tax Increase

8. Expenditures

9. Expenditures
Total Expenses - $86,337,497

10. Expenditures
Total Expenses - $86,337,497

11. Budget Development Foundation
Salaries
Collective Bargaining Agreement – Kennett Education Association – Expires June 30, 2021
Act 93 Agreement – Expires June 30, 2020
All Other Employees – Act 1 Index to 3% Maximum
New Positions
1 Professional Employee - Assignment TBA
No Retirements
No Furloughs/Outsourcing

12. Budget Development Foundation
Benefits
Medical/Prescription/Dental Insurance
Medical
First Look Renewal – 2.5%
Budget – 0%
Prescription
First Look Renewal – 1.26%
Pennsylvania School Employees Retirement Contribution Rate
Certified by PSERS – 33.43%
Increase of 2.6%
Vision, Life, and Disability Insurance
Trend Analysis
Worker’s Compensation
SDIC Estimate

13. What’s New Proposed Teaching Positon School Resource Officer
Budget Impact - $97,015
School Resource Officer
Budget Impact - $60,000
CCIU Mental Health Services
Budget Impact – $80,000
Middle School Football
Budget Impact - $22,211
Schoology
Budget Impact - $20,000
Distance Learning
Budget Impact - $5,000
Title 1 Summer Program Transportation

14. Budget Development Foundation
Allocations
Instructional Buildings
2.4% Increase
Department Allocations
Special Education
CCIU Projection
Student Transportation
Krapf Bus Company Agreement
Annual Consumer Price Index or Minimum 2%
Occupational Education
CCIU Tuition Formula
Paraprofessionals
CCRES Agreement
Act 1 Index
Charter School Tuition
Current Enrollment x Tuition Rates x Act 1 Index
Debt Service
No Change

15. Expenditures DESCRIPTION 2017-18 BUDGET 2018-19 PRELIMINARY
$ INC (DEC)
% INC (DEC)
Salaries
$ 30,661,324
$ 31,406,345
$ ,020
2.43%
Employee Benefits
20,393,944
21,175,708
781,764
3.83%
Purchased Prof. Svcs.
7,388,159
6,826,902
(661,257)
(7.60%)
Purchased Property Svcs.
1,126,123
1,195,192
69,069
6.13%
Other Contracted Svcs.
13,815,793
14,658,451
842,658
6.10%
Supplies
2,717,675
2,899,616
181,942
6.69%
Equipment
580,096
626,152
46,056
7.94%
Other Objects
1,738,245
1,619,131
(119,114)
(6.85%)
Other Financing Uses
5,790,000
5,930,000
140,000
2.42%
TOTAL EXPENDITURES
$ 84,211,359
$ 86,337,497
$ 2,026,138
2.52%

16. Expenditure Drivers Salaries (100) Benefits (200) Existing Salaries
Impact - $745,021
2.43% Increase
1 New Teaching Position
No Retirements
Benefits (200)
Pennsylvania School Employees Retirement System
Impact - $592,894 (Net Impact After State Subsidy - $296,447)
5.99% Increase
Medical
Impact - $107,355
2.09% Increase
Prescription Insurance
Impact - $16,323
0.88% Increase

17. Benefits DESCRIPTION 2017-18 BUDGET 2018-19 PRELIMINARY $ INC (DEC)
Life Insurance
$ ,354
$ ,801 $
1.63%
Income Protection
61,652
62,566 $
1.48%
Vision
82,752
88,906
$ ,154
7.44%
Social Security
2,284,583
2,380,286
$ ,703
4.19%
Retirement
9,906,247
10,499,141
$ ,894
5.99%
Tuition
220,000
234,000
$ ,000
6.36%
Unemployment Comp.
38,319
38,487 $
0.44%
Workers Compensation
192,072
197,371
$ ,299
2.76%
Medical
5,131,230
5,238,585
$ ,355
2.09%
Dental
509,990
452,497
$ (57,493)
(11.27%)
Prescription
1,859,745
1,876,068
$ ,323
0.88%
Other Benefits
80,000 $
0.00%
TOTAL ALL BENEFITS
$ 20,393,944
$ 21,175,708
$ ,764
3.83%

18. PSERS History/Projections Employer Contribution Rates

19. Expenditure Drivers Purchased Professional Services
CCIU Marketplace Services/Other
Special Education Services
Impact – ($589,915)
Purchased Property Services
Duplication/Printing Services
Impact - $45,000
Capital Improvements
Impact - $25,000

20. Expenditure Drivers Other Contracted Services Charter School Tuition
Impact - $200,000
Student Transportation
Krapf Contract
Impact - $120,681
Occupational Education
CCIU
Impact - $76,614
Approved Private School
Tuition
Impact - $100,000
Instructional Assistants
CCRES Para Professionals
Impact - $285,000

21. Expenditure Drivers
Equipment
Student Technology
Impact - $50,000

22. Charter School Tuition
Fast Facts
Regular Education Tuition Rate - $12,400
Special Education Tuition Rate - $28,753
Traditional and Cyber Charter Schools
Tuition Rates are Identical
Current Enrollment
Regular Education – 166
Special Education – 46
Avon Grove Charter School
Total Budgeted Expense - $3,450,000

23. Revenues

24. Revenues
Total Revenues - $86,337,497

25. Revenues
Total Revenues - $86,337,497

26. Revenues – State 2017-18 2018-19 DESCRIPTION BUDGET PRELIMINARY
$ INC (DEC)
% INC (DEC)
BASIC ED SUBSIDY
$5,675,608
$5,651,932
(23,676)
(0.42%)
SPECIAL ED SUBSIDY
1,845,792
1,845,180
(612)
(0.03%)
TRANSPORTATION SUBSIDY
1,380,075
1,400,000
19,925
1.44%
RENTAL & SINKING FUND
560,408
462,239
(98,169)
(17.52%)
HEALTH SERVICES
86,000 -
0.00%
PROPERTY TAX REDUCTION ALLOCATION
PA ACCOUNTABILITY GRANT
READY TO LEARN BLOCK GRANT
400,617
SOCIAL SECURITY
1,142,291
1,190,143
47,852
4.19%
RETIREMENT
4,900,874
5,249,570
348,696
7.11%
TOTAL REVENUE FROM STATE SOURCES
$15,991,665
$16,285,681
$294,016
1.84%

27. State Revenue Drivers Rental Fund (Debt) Payment Reimbursement
Basic Education
Adjusted to Allocation
Impact – ($23,676)
Student Transportation
Impact - $19,925
Rental Fund (Debt) Payment Reimbursement
Impact - ($98,169)
Pennsylvania School Employees Retirement System
State’s Obligation to Reimburse 50% of the Certified Contribution Rate
Impact - $348,696

28. Revenues – Local 2017-18 2018-19 DESCRIPTION BUDGET PRELIMINARY
$ INC (DEC)
% INC (DEC)
CURRENT REAL ESTATE
$58,283,781
$59,769,283
$1,485,502
2.55%
INTERIM REAL ESTATE
400,000
300,000
(100,000)
(25.00%)
PUBLIC UTILITY TAX
73,000
70,000
(3,000)
(4.11%)
EARNED INCOME
4,200,000
4,400,000
200,000
4.76%
TRANSFER TAX
800,000
900,000
100,000
12.50%
DELINQUENT TAX
1,775,000 -
0.00%
EARNINGS ON INVESTMENTS
80,000
225,000
145,000
181.25%
IDEA
565,257
535,001
(30,256)
(5.35%)
RENTALS/CONTRIBUTIONS/MISC. REVENUE
300,427
308,363
7,936
2.64%
FUND BALANCE APPROPRIATION
714,330
TOTAL REVENUE FROM LOCAL SOURCES
$67,191,795
$68,996,977
$1,805,182
2.69%

29. Local Revenue Drivers Real Estate Tax Interim Real Estate Tax
Imposition of Increased Millage Rate
Impact - $1,321,000
Growth of Assessment Base
Impact - $164,502
Interim Real Estate Tax
New Properties or Improvements to Existing Properties
Impact – ($100,000)
Earned Income Tax
Collections Through Keystone Collections Group
Impact - $200,000
Transfer Tax
Residential Sales
Impact - $100,000
Interest Earnings
Investments
Impact - $145,000

30. History and Forecast of the Act 1 Index

31. Maximum Tax Increase Calculation
Percentage
Mills
Act 1 Index
2.4%
30.596
Allowable Exceptions
Expenditure Value
Retirement Contributions
$0.00
.000
Special Education Expenditures
Maximum Tax Increase with Exceptions

32. Where to go from here? Finance Committee Meetings
1st Monday of Each Month February - June
Evaluate Commonwealth Budget Implications
Governor’s Presentation on February 6, 2018
Potential Legislative Actions
Capitalize on Retirements
Track Enrollment and Class Sizes for Staffing Recommendations

33. QUESTIONS