2015-2016 General Fund Budget Expenditures

2015-2016 Final General Fund Budget
Expenditures
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Salaries & Wages

>  Personnel costs for administration, faculty & support staff represent 64% of total annual budgeted expenditures. The District’s annual personnel costs are dictated by various collective bargaining agreements and compensation plans. At this time, the District is currently negotiating with the Pine-Richland Education Support Professionals Association (PRESPA).
 
Employer Benefit Costs
 
>  The District’s employer contribution rate for the Public School Employees’ Retirement System (PSERS) will increase to 25.84% of salary cost from 21.4% in 2014-2015. This will result in increased expenditures to the District for next year’s budget of approximately $1.5 million (or approximately $796,000 in increased costs to the District after receiving state funding for retirement contributions). This contribution rate is set by the PSERS Board of Trustees and is mandated by State legislation. Future projections of the employer contribution rate show a steady increase to approximately 32% of salary cost in the 2019-2020 fiscal year. At which point, the employer rate is expected to remain at this level.

> Premium costs through the Allegheny County Schools Health Insurance Consortium (ACSHIC) will increase by 2.75% for covered employees. Overall group health insurance expenditures for the District are budgeted to increase by $161,025 from the 2014-2015 budget for current employees. Employee contributions for healthcare are based on respective compensation plans and collective bargaining agreements currently in effect.
 
Contracted Services

> Currently, Pine-Richland School District utilizes contracted services within the general operating budget for transportation, copiers/print management and substitute staffing. These three contractual agreements combined represent approximately $5.2 million of the District’s overall expenditures.

Tuition Expenditures
 
> The District is projecting $898,593 in tuition costs for outside placements and services for special needs students through approved private schools and other institutions. Additionally, the Allegheny Intermediate Unit provides specialized services for students at a cost of approximately $1,036,600.

> Vocational tuition expenditures to A.W. Beattie Career Center for the operating budget are projected to decrease by $26,008 from the current year allocation. The District is required to fund a five-year average of enrollments in the vocational program, as well as general operating costs and a proportional share of debt for the renovations completed a few years ago to the Career Center facility.

> The District is required by law to pay tuition costs for resident students to attend cyber/charter schools. Since 2007-2008, the District’s expenditures for cyber/charter school tuition have more than tripled. Projections for 2015-2016 show an outlay of $615,290. During the 2014-2015 fiscal year, the District paid $9,326.15 for each regular education student and $20,901.66 for each special education student enrolled in cyber/charter schools.

*Budgeted figures are included in the chart above for 2014-2015 and 2015-2016. All other amounts are based on actual.


Capital Plan
> Included in the detailed supporting budget schedules is a listing of planned capital repairs and replacements to equipment, infrastructure and facilities. The total of these capital items is equal to $1,421,675 and will be drawn from assigned fund balance.
 
Debt Service
 
> Interest and principal redemption on debt service represents $9,029,334, or 11.4% of total budgeted expenditures. Based on the individual amortization schedules, the District’s costs will decrease by $309,820 from the 2014-2015 fiscal year. The District will continue to monitor each debt instrument for refunding opportunities to achieve savings and lower interest costs, if possible. At this time, the District is currently in the process of issuing refunding bonds to lower future interest costs. An estimated decrease in interest cost has been factored in to this budget and future years. Once these figures are finalized, the amortization schedules will be adjusted and long-range budget projections will be updated with the exact figures.

Budgetary Reserve
 
>The District budget includes various reserves for unforeseen operating contingencies. Direct expenditures are not permitted from this section of the budget. If the need arises for use of these reserves, a budget transfer would be presented and formally approved by the Board of Directors to the proper category of the District budget. Historically, the annual budget includes allocations for emergency purposes which are then divided into specific categories:

o Special education reserve has been included if the District population of special needs students increases beyond expectations. Additional staff or services may be warranted based on the circumstances.

o The District also estimates staffing costs for potential class size reduction or scheduling implications. All efforts are made to budget for staffing needs based on enrollment projections; however actual student enrollment for the following school year may vary.

o Contingency estimates are included for emergencies which may occur at a District facility such as water damage, smoke or fire damage or any other significant unforeseen repair or replacement.