Hopewell Area School District

2018-2019 General Fund Budget Board Presentation
April 16, 2018

Mission Statement

The Hopewell Area School District is committed to preparing students to be productive citizens and life-long learners in an ever-changing world.

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Revenue Breakdown Preliminary General Fund Budget

• Revenues total $39,247,932-increase of $885,485 from 2017-18 (2.3%)
• Preliminary budget includes a 2.0 mil tax increase from 73.2 mils to 75.2 mils – Local Revenues
• Over $780,000 increase in property tax revenues with the millage rate indicated above. • A tax rate of 74.2 mils (1 mil) would increase local revenue by over $550,000.
• No tax increase is an increase of over $320,000.
• Current Market Value per the Beaver County Assessment Office at 1/1/18 = $241,872,234 • Gross Value of a mil (1/1000 of a dollar) = $241,872
• At 93.5% collection rate, 1 mil = $226,150

– State Revenues
• 2018-19 budget discussions underway; not optimistic there will be a budget in place prior to June 30th
• Still not part of discussion: – Pension reform
– Cyber Charter School formula revisions
• Increase of approximately $130,000 for retirement subsidy

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2018-19 Preliminary Budget Revenues

1.6%

23.2%

Real Estate Taxes 40.8%	Act 511 Taxes
Other Local Income Basic Instr Subsidy Other State Revenue Federal Revenue

24.7%

3.2% 6.6%

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2018-19 Preliminary Expenditure Budget

• Preliminary Expenditures total $41,121,958—increase of $1,047,983 (2.62%)
• 80%-83% of expenditure budget made up of salaries, benefits, and debt service
• Salaries set by Collective Bargaining Agreements
• Health care deposit premiums are estimated to increase by 3% for those contracts already in place ($45,000 increase)
• Retirement cost to increase by approximately $300,000 (District share) • Includes the following:
– The replacement of 3 retiring teachers with first step teachers
– The cost of one additional first grade teacher (may also need an additional kindergarten teacher)

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Expenditures by Object

	2016-17
		2017-18
		2018-19
	
	Actual
		Budget
		Prelim Budget

Salaries and Benefits
	$	28,632,992
		$ 29,910,784
		$ 30,761,188
	
Professional Ed Svcs
	$	2,386,852
		$	2,348,273
		$	2,397,574
	
Repairs-Leases
	$	809,500
		$	800,454
		$	814,445
	
Tuition-Insurance-Travel
	$	2,538,279
		$	2,323,617
		$	2,335,010
	
Supplies, Books, Heat
	$	1,319,967
		$	1,435,382
		$	1,391,706
	
Property and Equipment
	$	171,642
		$	16,400
		$	181,658
	
Fees/Debt Service
	$	2,869,067
		$	3,239,065
		$	3,240,376
	
TOTAL
	$	38,728,299
		$ 40,073,975
		$ 41,121,958

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Expenditures by Object

2018-19 Preliminary Budget

0.79%

3.71%	8.04% 5.32%

1.96%

5.68%

74.51%

Sals and Benefits Prof Ed Svcs Repairs/Leases Tuition/Travel Supplies/Books Prop & Equip
Fees/Debt Svc

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Budget Shortfall

• The 2018-2019 Preliminary Budget projects a deficit:

– Revenues

– Expenditures

– Deficit (2 mill tax increase)

– Deficit (1 mill tax increase) – Deficit (no tax increase)

$39,247,932 ($41,121,958)

($1,874,026)

($2,100,177) ($2,326,327)

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Next Steps

• Make adjustments based on Principal budget review meetings – completed April 12th
• Health insurance costs (April 23rd) • Continue contract negotiations
• Continue account review and scrutiny
• Review tax revenues after County certification (May 1st)
• Compute Homestead/Farmstead amounts
• Present and approve Preliminary budget on May 7th

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DISCUSSION/QUESTIONS