1

Fairly early in the 2015-2016 Budget Process as

weve only ended the 1st quarter of the 14-15 Fiscal
Year

Building/Department Head Budgets have not yet

been submitted

Projections are difficult to make at this point in the

fiscal year

We will soon have Audited 13-14 Fiscal Year

Financial Statements

Expenditure figures will continue to change

throughout the 15-16 Budget Development Process

Budget Development Considerations

2

2015-2016 PRELIMINARY
EXPENDITURE BUDGET
600 Supplies
4%

500 Other
Purchased
Services
13%

700 Equipment
1%

800-900 Other
Objects &
Financing Uses
7%

Salaries & Benefits

Professional &
Technical Services
Other Purchased
Services
Other Financing
92% of Exp. Budget

400 Purchased Property

Services
3%

300 Purchased
Professional &
Technical
Services
5%

100 & 200

Salaries &
Benefits
67%

2015-2016 Expenditure Composition

3

DESCRIPTION

AMOUNT

2015-2016 PRELIMINARY GF
OPERATING BUDGET

$48,236,561

2014-2015 F.Y CURRENT GF

OPERATING BUDGET

$44,826,255

$ VALUE OF PRELIMINARY
BUDGET INCREASE

$3,410,306

% VALUE OF PRELIMINARY
BUDGET INCREASE

7.61%

2015-2016 Fiscal Year Increase

Over Previous Year Spending Plan
4

 District Salary Contracts

Professional (STEA)

Support Staff (STESPA)

Custodial (Teamsters)

Act 93 (Administrative) & Other

Mandated

Pennsylvania Schools Employee

Retirement System (PSERS) Contributions

Medical
Out

Insurance Costs

of District Tuition Students

Debt

Service Payments

2015-2016 Expenditure Budgetary

Pressure Points
5

2015-2016 PRELIMINARY SALARY INCREASE

TOTAL SALARY INCREASE:

Staff Contracts: Instructional & Non-Instructional

Stipends
Summer School
Contingency

SALARIES IMPACT
6

10 YEAR PSERS EMPLOYER

CONTRIBUTION RATES
31.28%32.08%
30.25%
29.27%
25.84%

Presumes PSERS
realizes a 7.5%
Rate of Investment
Return for
Projected Rates 15-

21.40%
16.93%

12.36%
8.65%
5.64%
0.86%

3.01%

3.71%

4.57%

4.47%

4.44%

3.43%

0.98%

1.03%

0.80%

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

PSERS EMPLOYER CONTRIBUTION RATES

7

5 YEAR REVIEW OF EMPLOYER RETIREMENT

CONTRIBUTIONS
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016

Basis
Actual
Actual
Actual
Budget
Preliminary
Budget

2015-2016
Salaries:
PSERS Rate:
Anticipated PSERS Cost:

PSERS Rate
8.65%
12.36%
16.93%
21.40%

PSERS Cost
$1,211,423
$2,413,011
$3,377,473
$4,209,433

INCREASE

25.84%

$5,238,859

$1,029,426

Amount
$20,274,223
25.84%
$5,238,859

PSERS IMPACT
8

5 YEAR REVIEW OF MEDICAL INSURANCE COST

Description

2015-2016
2011-2012 2012-2013 2013-2014 2014-2015 Preliminary
Actual
Actual
Actual
Budget
Budget

Medical Insurance Payments $3,435,028 $3,289,150 $4,151,177 $4,408,371 $4,761,041

% Increase/(Decrease)

23.50%

-4.25%

$ Value Increase/(Decrease) $653,572 ($145,878)

26.21%

6.20%

8.00%

$862,027

$257,194

$352,670

Capital Blue Cross Payments

Employee HRA Deductible Payments

MEDICAL INSURANCE IMPACT

Audit not yet finalized.

$25,000,000
$20,000,000
$15,000,000

$18,422,392

$19,250,143

$10,000,000
$5,000,000

$6,684,018

$7,687,870

$19,340,452

$10,341,380

$0
2011-2012
Actual

In 2011-2012 it cost the

2012-2013
Actual

$19,183,100

$10,676,603

$20,274,223

$12,162,870

2013-2014
Actual

2014-2015
Budget

district 36 cents per

salary dollar for
employee benefits

2015-2016

Preliminary

In 2015-2016 it cost the

Benefits

Salaries

district 60 cents per

salary dollar for
employee benefits

5 YEAR SALARIES & BENEFITS IMPACT

Audit not yet finalized.
10

AUDITED
Description

2011-2012
Object
F.Y.

AUDITED
2012-2013
F.Y.

2 Year Avg.
$863,590
$716,414
$48,019
$680,754

Purch. Professional Education Services

(CAIU)
Tuition
Tuition To Other LEAs
Tuition To PA Charter

300
560
561
562

$854,568
$789,758
$72,959
$762,835

$872,612
$643,069
$23,078
$598,673

Tuition To Area Vocational Technical

School
Tuition To Higher Education
Tuition To Approved Private Schools
Tuition To APS
Tuition Other

564
566
567
568
569

$1,073,288
$509,983
$9,527
$277,216
$258,000

$944,988
$519,790
$20,690
$434,121
$194,528

IU Payment By Withholding

595

$40,296

$40,433

TOTAL

$4,648,430

AUDITED

PRELIMINARY
BUDGET

Difference

2014-2015
F.Y.
2015-2016 F.Y.

Inc./(Dec.)

$868,961
$355,000
$200,000
$650,000

$868,961
$750,157
$50,280
$712,818

$0
$395,157
-$149,720
$62,818

$1,056,668
$539,138
$15,820
$372,420
$236,921

-$287,010
$19,348
$15,820
$182,420
$59,059

$42,108

$2,108

$4,645,291

$300,000

BUDGET

$1,009,138 $1,343,678
$514,887
$519,790
$15,109
$0
$355,669
$190,000
$226,264
$177,862
$40,365

$40,000

$4,291,982 $4,470,206 $4,345,291

Out of District Tuition & Professional Education Services Budget Footnotes

1) 2015-2016 object (500) Budget based on 4.71% increase of 2 Yr. Average. No increase has been applied to CAIU object (300) at this juncture.
2) 2013-2014 Fiscal Year data not utilized to date in budget development process. More reliance at this juncture on 11-12 and 12-13 fiscal year
data.
3) CAIU Cost above in "gray" are considered Purchased Professional Services (object 300) not Tuition (500). This primarily represents cost for
students educated by CAIU and district's share of CAIU Operating Expenditures.
4) It should be noted that included in the Vocational Technical School Cost are funds to provide for STSD's portion of Principal & Interest Payments
on Bonds.

OUT OF DISTRICT STUDENT COST IMPACT

11

5 Bond Issues Plus DCTS Issuance

No. Yrs
Remaining

FISCAL YEAR

DCTS Share
2007 Issue

G.O. Bonds
Series 2014

Total Debt
Service

2014-2015

$231,654

$574,334

$237,355

$318,101

$1,526,843

$286,678

$3,174,965

2015-2016

$231,945

$574,134

$417,318

$646,401

$1,532,943

$298,058

$3,700,799

2016-2017

$231,999

$573,334

$794,543

$276,401

$1,537,793

$298,028

$3,712,098

2017-2018

$231,712

$571,934

$1,602,593

$274,916

$719,768

$302,978

$3,703,901

2018-2019

$231,739

$574,934

$1,930,893

$277,959

$392,793

$297,863

$3,706,181

2019-2020

$232,212

$571,584

$1,930,693

$275,684

$396,893

$297,788

$3,704,854

2020-2021

$231,780

$572,934

$379,793

$1,827,884

$400,211

$297,700

$3,710,302

2021-2022

$231,716

$572,894

$149,193

$2,053,984

$392,268

$302,600

$3,702,655

2022-2023

$231,970

$576,525

$153,010

$2,059,019

$393,205

$297,200

$3,710,929

10

2023-2024

$231,905

$573,850

$1,821,630

$383,906

$398,129

$297,000

$3,706,420

11

2024-2025

$232,157

$575,000

$2,211,840

$0

$392,328

$296,800

$3,708,125

12

2025-2026

$232,009

$348,400

$0

$0

$449,628

$2,396,600

$3,426,637

13

2026-2027

$232,115

$0

$0

$0

$449,696

$2,747,400

$3,429,211

14

2027-2028

$231,827

$0

$0

$0

$448,470

$2,750,800

$3,431,097

15

2028-2029

$231,799

$0

$0

$0

$231,799

16

2029-2030

$232,000

$0

$0

$0

$232,000

17

2030-2031

$231,761

$0

$0

$0

$231,761

$3,942,300

$6,659,857

$11,628,861

$8,394,255

TOTALS

G.O. Bonds Series G.O. Bonds Series G.O. Bonds Series G.O. Bonds Series
2011
2012
A 2012
2013

$9,430,968

$11,167,493

$51,223,734

DEBT PAYMENT SERVICE DETAIL

12

2014-2015

$3,174,965

15-16 Increase of $525,834 16.56%

2015-2016

$3,700,799

2016-2017

$3,712,098

2017-2018

$3,703,901

2018-2019

$3,706,181

2019-2020

$3,704,854

2020-2021

$3,710,302

2021-2022

$3,702,655

2022-2023

$3,710,929

2023-2024

$3,706,420

2024-2025

$3,708,125

25-26 Decrease of $281,488

2025-2026

$3,426,637

2026-2027

$3,429,211

2027-2028

$3,431,097

2028-2029

$231,799

2029-2030

$232,000

2030-2031

$231,761
$0

$500,000

28-29 Decrease of $3,199,298

$1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000

ANNUAL DEBT SERVICE IMPACT

13

2014-2015
BUDGET

2015-2016
PRELIMINARY
BUDGET

$ VALUE
INCREASE/
DECREASE

% VALUE
INCREASE/
DECREASE

100 - Salaries

$19,183,100

$20,274,223

$1,091,123

5.69%

200 - Benefits
300 - Purchased Professional & Technical
Services
Current

$10,676,603

$12,162,870

$1,486,267

13.92%

$2,372,695

$2,372,695

$0

0.00%

400 - Purchased Property Services

$1,573,441

$1,573,441

$0

0.00%

$5,967,335

$6,267,335

$300,000

5.03%

$1,663,376

$1,663,376

$0

0.00%

$330,994

$330,994

$0

0.00%

800 - Other Objects

$1,633,711

$1,136,627

($497,084)

-30.43%

900 - Other Financing Uses

$1,425,000

$2,455,000

$1,030,000

72.28%

$44,826,255

$48,236,561

$3,410,306

7.61%

EXPENDITURES

Levels

500 - Other Purchased Services

600 - Supplies
700 - Property

TOTAL EXPENDITURES

Current
Levels

OVERVIEW OF PRELIMINARY 2015-2016

EXPENDITURES BY SERVICE AREA/COMMODITY
14

STATE RETIREMENT REIMBURSEMENT (PSERS)

ACTUAL
AUDITED
Revenue
Account Description
6000
LOCAL
7000
STATE
8000
FEDERAL
TOTAL DISTRICT
REVENUES

ACTUAL
AUDITED

ACTUAL
AUDITED

ACTUAL
UNAUDITED BUDGETED

PROPOSED

2010-2011
2011-2012 2012-2013 2013-2014 2014-2015
$33,264,242 $33,337,810 $34,850,790 $34,304,238 $35,778,752
$7,547,553 $7,367,070 $8,086,942 $8,534,890 $8,646,401
$1,844,645
$445,052
$677,068
$497,324
$401,100

$ Variance
-$372,810
$707,062
$18,900

% Variance
-1.04%
8.18%
4.71%

2015-2016
$35,405,942
$9,353,463
$420,000

$42,656,440 $41,149,931 $43,614,800 $43,336,452 $44,826,253

$353,152

0.79%

$45,179,405

Account
7820

2015-2016
2015-2016 - November
Revenue October Board
Board
Description
Meeting
Meeting
State Share
Ret.
$2,015,771 $2,357,487

Difference
Inc./(Dec.)
$341,716

ADJUSTMENT TO STATE REVENUE BUDGET SINCE

OCTOBER BOARD MEETING
15

BUDGETARY SHORTFALL AS OF DECEMBER 3, 2014

REVENUES

$45,179,405

SHORTFALL IS $3,057,156
EXPENDITURES

$48,236,561

BUDGETARY SHORTFALL AS OF
DECEMBER 3, 2014
16

8 YEAR FUND BALANCE ANALYSIS

$16,000,000

$14,542,436 $14,500,298

General Fund
$14,000,000

$12,829,781
$11,618,460

Capital Projects Fund

$12,000,000
$10,000,000

$8,000,000

$8,421,527

$7,935,518

$6,653,658

$6,222,470
$6,000,000

$4,868,210

$4,000,000
$2,000,000

$4,890,826
$4,325,564
$2,892,265
$2,145,382

$1,069,048

$1,446,528

$1,562,397

$0
2006-2007 Fiscal 2007-2008 Fiscal 2008-2009 Fiscal 2009-2010 Fiscal 2010-2011 Fiscal 2011-2012 Fiscal 2012-2013 Fiscal 2013-2014 Fiscal
Year
Year
Year
Year
Year
Year
Year
Year

8 YEAR FUND BALANCE REVIEW

17

AUN

School District

County

2014-15
MV/PI
Aid Ratio

2015-16
Adjusted
Index

115221402

Central Dauphin SD

Dauphin

0.3726

1.9%

115221753

Derry Township SD

Dauphin

0.2633

1.9%

115222504

Halifax Area SD

Dauphin

0.6005

2.6%

115222752

Harrisburg City SD

Dauphin

0.7122

2.8%

115224003

Lower Dauphin SD

Dauphin

0.4538

2.3%

115226003

Middletown Area SD

Dauphin

0.5244

2.4%

115226103

Millersburg Area SD

Dauphin

0.5814

2.5%

115228003

Steelton-Highspire SD

Dauphin

0.7991

2.9%

Susquehanna Township SD

Dauphin

0.3727

1.9%

Upper Dauphin Area SD

Dauphin

0.6345

2.6%

115228303
115229003

DAUPHIN COUNTY SCHOOL

DISTRICTS ACT 1 INDEXES
18

2015-2016 PRELIMINARY BUDGETARY SCENARIOS

Scenario A

Revenues/Expenditures Data
Revenues
Expenditures
(Shortfall)/Surplus Pre-Tax Increase
Additional Real Estate Tax Dollars(Millage Increase X
$ Value of Mill)
(Shortfall)/Surplus Post-Tax Increase
Estimated Fund Balance Utilization
Revenues & Expenditures (Over)/Under

Scenario B
Scenario C (TBD Dec. Meeting)
Act 1 Index Max Tax Increase Act 1 Index Max Tax Increase
No Tax Increase
(No Exceptions)
(Exceptions Granted)
$45,179,405
$45,179,405
$0
$48,236,561
$48,236,561
$0
($3,057,156)
($3,057,156)
$0

14-15 Millage Rate

15-16 Millage Rate
Millage Increase
Millage % Increase

$492,253
$0
($2,564,903)
$0
$2,564,903
$0
$0
Act 1 Index Max Tax Increase Act 1 Index Max Tax Increase
No Tax Increase
(No Exceptions)
(Exceptions Granted)
17.0200
17.0200
17.0200
17.0200
17.3433
17.0200
0.0000
0.3233
0.0000
0.00%
1.90%
0.00%

Estimated $ Value of Mill @ 93.20% Collection Rate

$1,522,588.73

Fund Balance Data

Estimated Fund Balance - July 1, 2015
Estimated G.F. Balance Use
Estimated Fund Balance - June 30, 2016

Act 1 Index Max Tax Increase Act 1 Index Max Tax Increase
No Tax Increase
(No Exceptions)
(Exceptions Granted)
$14,546,512
$14,546,512
$0
($3,057,156)
($2,564,903)
$0
$11,489,356
$11,981,609
$0

Millage Data

$0
($3,057,156)
$3,057,156
$0

$1,522,588.73

$1,522,588.73

REAL ESTATE TAX SCENARIOS FOR

19
CONSIDERATION TO BRIDGE BUDGETARY GAP

 Establish cost containment and

reduction measures for consideration
Continue development and review of
Proposed 2015-2016 Revenues

Continue development and review of

Proposed 2015-2016 Expenditures

2015-2016 BUDGET DEVELOPMENT

-NEXT STEPS-

20

Oslwen C. Anderson, Jr.

Business Manager
Susquehanna Township School District
717-657-5100

2015-2016 PRELIMINARY GENERAL FUND BUDGET

OVERVIEW
EXPENDITURE FOCUS DEC. 3, 2014

21