1. Eastern Lebanon County School District Proposed Final Budget Presentation
Monday, May 7, 2018
Michael Miller, Business Manager
Julia Vicente, Superintendent
Preparing ALL students, K-12,
to be successful for THEIR future

2. Contents
Act 1 Data & Timelines
Tax Analysis
Revenue Analysis
Expenditure Analysis
Balanced Budget Analysis
Budget Cost Drivers
Appendix Slides (if needed in discussion)

3. Act 1 2018-19 Data & Timelines 2018-19 Adjusted index set at 2.8%
Max Millage increase to index is .4179, a total rate of
2018 Assessment currently at $1,707,857,100
Max additional revenue to index = $713,713 at 100% collection
Per resolution passed on February 12, District did seek referendum exceptions and $464,680 was approved for Special Education Expenditures
Preliminary budget included mills, mills over index which was required to seek referendum exceptions (required to show need to PDE)
$365,588 deficit to bring millage to index, which has been balanced since preliminary budget approval
$117,395 deficit to bring index millage (2.8%) to 2.25%, which has been balanced in proposed final budget
Timeline per Act 1
February 12, 2018 – Preliminary budget approved and exceptions sought and approved
May 31, 2018 – Deadline to adopt proposed final budget (May 7 Meeting, 30 days before final budget adoption)
Budget made available for public inspection no later than 20 days before adoption (May 28 Deadline)
Public notice of intent to adopt final budget no later than 10 days before adoption (June 6 Deadline)
June 30, 2018 – Deadline to adopt final budget & homestead/farmstead exclusion (June 16 Meeting)

4. Tax Rate Scenarios

5. Ten Year Millage History for ELCO School District
Budget Year
Value of Mill
Millage
Change
Percent Inc.
$186,488
96.04
4.39
4.79%
$190,051
100.30
4.26
4.44%
$191,500
103.30
3.00
2.99%
$192,000
106.65
3.35
3.24%
$1,621,016
13.20
0.35
2.75%
$1,618,744
13.63
0.43
3.26%
$1,635,553
14.11
0.48
3.52%
$1,642,359
14.505
0.395
2.80%
$1,645,222
0.4206
2.90%
$1,707,857
0.3358
2.25%
COUNTY REASSESS.

6. How is the District Funded for 2018-19?
Proposed Budget:
Local Sources - $29,101,037 or 69.0%
State Sources - $12,428,505 or 29.5%
Federal Sources - $649,885 or 1.5%
Total Budget $42,179,427

8. What are the district expenditures for the 2018-19 budget?
Proposed Expenditure Budget:
100 Salaries - $17,186,714 or 40.7%
200 Benefits - $10,944,168 or 25.9%
300 Purchased Services – 2,043,268 or 4.8%
400 Property Services - $803,932 or 1.9%
500 Other Purchased Services - $4,307,780 or 10.2%
600 Supplies - $1,931,115 or 4.6%
700 Equipment - $61,260 or 0.1%
800 Dues, Fees, Interest - 296,487 or 0.7%
900 Debt & Fund Transfers - $4,604,803 or 10.9%
Total Budget $42,179,427

9. Expenditures & Surplus / Deficit

10. 2018-19 Budgeted Expenditures by Object Code
Budget increased 4.4% in and 3.7% in

11. February Preliminary Budget Change Bridge - $365K Deficit to Balanced Budget
Summarized View

12. May Proposed Final Budget Change Bridge - $117K Deficit to Balanced Budget

13. iPads for Para Professionals (K-5) $6,650
From January Presentation: New items in Budget
New K-2 Reading Series $91,000
New 6-8 Math Series $120,000
iPads for Para Professionals (K-5) $6,650
CNC Router (High School) $22,000
Non-fiction text resource program(HS) $4,000
Hypertherm plasma cutter $3,500

14. Budget Cost Drivers

16. PSERS Rate History

17. PSERS Cost History
The state reimburses the district for half of the cost.
Difference between and is $660,013 and the district is responsible for $330,006.50
budgeted amount is $5,518,995
On December 8, 2017 the PSERS Board of Trustees certified an employer contribution rate of 33.43% for fiscal year 2018/2019, which begins July 1, The 33.43% rate is composed of a 0.83% rate for health insurance premium assistance and a pension rate of 32.60%. Nearly 75% of the employer contribution rate is for the payment of unfunded liability, which is primarily for past service already earned by members.

18. Health Care Cost History
Employers expect health care costs to increase by 5.5%* in 2018, up from a 4.6% increase in 2017, according to the 22nd annual Best Practices in Health Care Employer Survey by Willis Towers Watson (NASDAQ: WLTW).
July-December 2015 everyone was still on the PPO Plan
January 1, 2016 – District Contribution into Employee HSAs ($634,000) 169 Participants 75%
PPO Plan had no rate increase based on fully insured models from CBC
QHDHP had a 10.25% decrease in cost based on fully insured models from CBC 17
Saved approximately $487,000
January 1, 2017 – District Contribution into Employee HSAs ($482,000) 172 Participants 75%

20. ELCO SD Debt – Current Structure

21. Questions?