Norristown Area School District March 13, 2017
2017-18 BUDGET SNAPSHOT
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2
3
EMPLOYEE BENEFIT COSTS (TRENDS/PROJECTIONS)
Norristown Area School District 2017-18 Budget
PRELIMINARY STAFFING RECOMMENDATIONS
4 LEGISLATIVE UPDATE
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
VARIOUS
SECRETARIAL RESTRUCTURING
NO FINAL DETAILS AVAILABLE SHORTLY
EXPECTED TO REDUCE COSTS FOR FINAL BUDGET
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
VARIOUS
SECRETARIAL RESTRUCTURING
NO FINAL DETAILS AVAILABLE SHORTLY
EXPECTED TO REDUCE COSTS FOR FINAL BUDGET
HOME/SCHOOL
TEAM
TEAM RESTRUCTURING
TRUANCY ABATEMENT
SPECIALIST AND
STUDENT/FAMILY OUTREACH
COORDINATOR
YES POSITIONS/RESPONSIBILITIES BEING REEVALUATED
NEW TITLES/EXPANDED ROLES BEING DEVELOPED FOR
BOTH
POTENTIAL EXPANSION FROM 11 TO 12 MONTH
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
VARIOUS
SECRETARIAL RESTRUCTURING
NO FINAL DETAILS AVAILABLE SHORTLY
EXPECTED TO REDUCE COSTS FOR FINAL BUDGET
HOME/SCHOOL
TEAM
TEAM RESTRUCTURING
TRUANCY ABATEMENT
SPECIALIST AND
STUDENT/FAMILY OUTREACH
COORDINATOR
YES POSITIONS/RESPONSIBILITIES BEING REEVALUATED
NEW TITLES/EXPANDED ROLES BEING DEVELOPED FOR
BOTH
POTENTIAL EXPANSION FROM 11 TO 12 MONTH
C MANOR GRADE LEVEL TEACHER INCREASE OF ONE POSITION
YES ENROLLMENT CHANGES
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
VARIOUS
SECRETARIAL RESTRUCTURING
NO FINAL DETAILS AVAILABLE SHORTLY
EXPECTED TO REDUCE COSTS FOR FINAL BUDGET
HOME/SCHOOL
TEAM
TEAM RESTRUCTURING
TRUANCY ABATEMENT
SPECIALIST AND
STUDENT/FAMILY OUTREACH
COORDINATOR
YES POSITIONS/RESPONSIBILITIES BEING REEVALUATED
NEW TITLES/EXPANDED ROLES BEING DEVELOPED FOR
BOTH
POTENTIAL EXPANSION FROM 11 TO 12 MONTH
C MANOR GRADE LEVEL TEACHER INCREASE OF ONE POSITION
YES ENROLLMENT CHANGES
ENMS
GRADE LEVEL TEACHER DECREASE OF ONE POSITION
YES ENROLLMENT CHANGES
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
VARIOUS
SECRETARIAL RESTRUCTURING
NO FINAL DETAILS AVAILABLE SHORTLY
EXPECTED TO REDUCE COSTS FOR FINAL BUDGET
HOME/SCHOOL
TEAM
TEAM RESTRUCTURING
TRUANCY ABATEMENT
SPECIALIST AND
STUDENT/FAMILY OUTREACH
COORDINATOR
YES POSITIONS/RESPONSIBILITIES BEING REEVALUATED
NEW TITLES/EXPANDED ROLES BEING DEVELOPED FOR
BOTH
POTENTIAL EXPANSION FROM 11 TO 12 MONTH
C MANOR GRADE LEVEL TEACHER INCREASE OF ONE POSITION
YES ENROLLMENT CHANGES
ENMS
GRADE LEVEL TEACHER DECREASE OF ONE POSITION
YES ENROLLMENT CHANGES
STEWART GRADE LEVEL TEACHER INCREASE OF ONE POSITION
YES THREE NEW POSITIONS FOR STEWART WERE INCLUDED
IN PRELIM BUDGET
REVISED RECOMMENDATION REDUCES COSTS FOR
FINAL BUDGET
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
VARIOUS
SECRETARIAL RESTRUCTURING
NO FINAL DETAILS AVAILABLE SHORTLY
EXPECTED TO REDUCE COSTS FOR FINAL BUDGET
HOME/SCHOOL
TEAM
TEAM RESTRUCTURING
TRUANCY ABATEMENT
SPECIALIST AND
STUDENT/FAMILY OUTREACH
COORDINATOR
YES POSITIONS/RESPONSIBILITIES BEING REEVALUATED
NEW TITLES/EXPANDED ROLES BEING DEVELOPED FOR
BOTH
POTENTIAL EXPANSION FROM 11 TO 12 MONTH
C MANOR GRADE LEVEL TEACHER INCREASE OF ONE POSITION
YES ENROLLMENT CHANGES
ENMS
GRADE LEVEL TEACHER DECREASE OF ONE POSITION
YES ENROLLMENT CHANGES
STEWART GRADE LEVEL TEACHER INCREASE OF ONE POSITION
YES THREE NEW POSITIONS FOR STEWART WERE INCLUDED
IN PRELIM BUDGET
REVISED RECOMMENDATION REDUCES COSTS FOR
FINAL BUDGET
EISENHOWER GRADE LEVEL TEACHER INCREASE OF ONE POSITION
YES ENROLLMENT CHANGES
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
NAHS
DECREASE IN TEACHIING
POSITIONS - 7.5 POSITIONS
2 SCIENCE
1 MATH
1 ENGLISH
1.5 SOCIAL STUDIES
1 SPECIAL EDUCATION
1 FAMILY-CONSUMER SCIENCE
YES COURSE SELECTION PROCESS STILL UNDERWAY
RECOMMENDATION WILL BE FINALIZED ONCE THAT
PROCESS IS COMPLETE
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
NAHS
DECREASE IN TEACHIING
POSITIONS - 7.5 POSITIONS
2 SCIENCE
1 MATH
1 ENGLISH
1.5 SOCIAL STUDIES
1 SPECIAL EDUCATION
1 FAMILY-CONSUMER SCIENCE
YES COURSE SELECTION PROCESS STILL UNDERWAY
RECOMMENDATION WILL BE FINALIZED ONCE THAT
PROCESS IS COMPLETE
ESL BILINGUAL
PARAPROFESSIONALS
THREE NEW POSITIONS
YES NEEDS CONTINUE TO BE EVALUATED
PRELIMINARY RECOMMENDATIONS
FINAL RECOMMENDATIONS TO BE SHARED AT MAY 8TH BUDGET COMMITTEE MEETING
PRELIMINARY STAFFING RECOMMENDATIONS
(STILL UNDER REVIEW BY ADMINISTRATION)
BUILDING /
DEPT POSITION INCLUDED IN 2017-18
PRELIMINARY BUDGET? NOTES
NAHS
DECREASE IN TEACHIING
POSITIONS - 7.5 POSITIONS
2 SCIENCE
1 MATH
1 ENGLISH
1.5 SOCIAL STUDIES
1 SPECIAL EDUCATION
1 FAMILY-CONSUMER SCIENCE
YES COURSE SELECTION PROCESS STILL UNDERWAY
RECOMMENDATION WILL BE FINALIZED ONCE THAT
PROCESS IS COMPLETE
ESL BILINGUAL
PARAPROFESSIONALS
THREE NEW POSITIONS
YES NEEDS CONTINUE TO BE EVALUATED
NEW COST SAVINGS MEASURES REDUCE 2017-18 COSTS BY @ $400K (SECRETARY RESTRUCTURING & REDUCTION IN STAFF NEEDED AT STEWART)
FICA (SOCIAL SECURITY)
EMPLOYER COST = 7.65% OF WAGES
COMMONWEALTH OF PA CURRENTLY PROVIDES
SUBSIDY FOR A PORTION OF NASD FICA EXPENSES
(ESTIM @ 43% OF EXPENSES)
PSERS (PENSION SYSTEM)
EMPLOYER COST = 32.57% OF WAGES (17-18)
COMMONWEALTH OF PA CURRENTLY
PROVIDES SUBSIDY FOR A PORTION OF
NASD PSERS EXPENSES
(ESTIM @ 50% OF EXPENSES)
MEDICAL INSURANCE
(THROUGH BUCKS-MONTCO SCHOOLS HEALTHCARE
CONSORTIUM)
PRESCRIPTION DRUG INSURANCE
(THROUGH BUCKS-MONTCO SCHOOLS HEALTHCARE
CONSORTIUM)
VISION INSURANCE
(THROUGH BUCKS-MONTCO SCHOOLS HEALTHCARE
CONSORTIUM)
DENTAL INSURANCE
(THROUGH PSBA / UNITED CONCORDIA)
TUITION REIMBURSEMENT LIFE INSURANCE
DISABILITY INSURANCE
WORKERS COMPENSATION
UNEMPLOYMENT COMPENSATION RETIREMENT SEVERANCE
NASD EMPLOYEE BENEFITS VARY BY
COLLECTIVE BARGAINING AGREEMENT
ALL DISTRICT STAFF CONTRIBUTE TOWARDS HEALTHCARE COSTS -
CONTRIBUTION LEVELS VARY BY COLLECTIVE BARGAINING AGREEMENT
2016-17 BENEFIT EXPENSES (Est @ $38 Million)
Norristown Area School District 2017-18 Budget
PSERS 53%
APPROX $20 MILLION
HEALTH- MED, DRUG, VISION (NET
OF STAFF CONTRIBUTIONS)
27% APPROX $10.2
MILLION
FICA 13%
APPROX $5 MILLION
WK COMP 2%
LIFE/DISAB 2%
DENTAL 1%
TUITION 1%
$7,702,494
$10,744,876
$13,864,776
$16,229,671
$19,950,000
$22,000,000
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2012-13 Actual 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Projected 2017-18 Preliminary
PSERS RETIREMENT EXPENSES
PSERS CRISIS CONTINUES
PSERS IS OUR LARGEST
UNFUNDED MANDATE
EMPLOYER
CONTRIB RATE
32.57% IN 17-18
$14,039,504 $13,362,258
$12,679,666
$13,319,098
$10,200,000
$13,500,000
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2012-13 Actual 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Projected 2017-18 Preliminary
HEALTHCARE EXPENSES NET OF EMPLOYEE CONTRIBUTIONS
DECREASE RESULT
OF CONSORTIUM
SWITCH TO AETNA/CVS
& USE OF
CONSORTIUM
NASD JOINS
BUCKS-
MONTCO
CONSORTIUM
7-1-12
(MEDICAL
ONLY)
NASD MOVES
DRUG
COVERAGE TO
CONSORTIUM
7-1-13
Norristown Area School District 2017-18 Budget
• HEALTHCARE EXPENSES
22 Bucks/Montco School Districts in Healthcare Consortium
- Self-funded arrangement – with high cost claims pooled
* Pooling = Risk-sharing
* NASD rates are based on 65% of NASD experience / 35% of combined experience
Snapshot of average rate increases:
2017-18 rates will be finalized by March 31, 2017 – strong indication that our drug increase
will drop with our final rates
Year Medical Drug
2013-14 3.5% decrease NO CHANGE
2014-15 5.9% increase 10.8% decrease
2015-16 1.4% decrease 1.1% increase
2016-17 11.9% decrease 0.10% increase
2017-18 Preliminary (2nd look) 8.0% increase 15.7% increase $ 1.2 Million
$275,725
$379,889
$362,317
$322,639
$350,000 $350,000
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
2012-13 Actual 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Projected 2017-18 Preliminary
TUITION REIMBURSEMENT EXPENSES
SIGNIFICANT CHANGES WERE
IMPLEMENTED FOR TUITION
REIMBURSEMENT
IN LAST TEACHERS' CONTRACT
PRIOR CONTRACT SPENDING:
2008-09 TUITION EXPENSES - $ 623K
2009-10 TUITION EXPENSES - $ 670K
2017-18 BUDGET
@ 6.71% TAX INCREASE
2017-18 BUDGET
@ UNDER 5% TAX INCREASE
GAP BETWEEN REVENUE & EXPENSES $4.2 MILLION $ 6.0 MILLION
COST REDUCTIONS IDENTIFIED TO DATE:
- NATURAL GAS BID – FAVORABLE PRICING
- PRELIMINARY STAFFING RECOMMENDATIONS
(SHARED TONIGHT)
($20K)
($400K)
($20K)
($400K)
REMAINING GAP $3.7 MILLION $ 5.6 MILLION
MUCH WORK REMAINS
CONVERSATIONS/RECOMMENDATIONS MAY BECOME LESS ABOUT WHAT WE NEED;
INSTEAD FOCUSING MORE ON WHAT WE CAN AFFORD
Norristown Area School District 2017-18 Budget
• PENNSYLVANIA LEGISLATIVE UPDATE: • STATE BUDGET
• HEARINGS ON GOVERNORS 2017-18 BUDGET PROPOSAL UNDERWAY • PROPOSED BUDGET INCLUDES (FOR NASD):
• + $ 375K IN BASIC EDUCATION FUNDING
• + $ 130K IN SPECIAL EDUCATION FUNDING
• NO INCREASE IN READY-TO-LEARN FUNDING
• POTENTIAL LOSS IN TRANSPORTATION FUNDING – (STILL TBD)
• PROPERTY TAX REFORM BILL
• HAS NOT BEEN INTRODUCED YET
• PASBO REPORTS THAT PROPERTY TAX REFORM/ELIMINATION
DISCUSSIONS ONGOING WITH THE PROPONENTS OF THE PROPERTY
TAX ELIMINATION PLAN CONTINUING TO GENERATE MOMENTUM
• PSERS REFORM / CHARTER SCHOOL REFORM
• HAS NOT BEEN INTRODUCED – LIMITED DISCUSSION
Norristown Area School District 2017-18 Budget
• FEDERAL LEGISLATIVE UPDATE: • 2017-18 PRELIMINARY FEDERAL PROGRAM ALLOCATIONS
• NOT AVAILABLE YET – UNCERTAINTY ABOUT FUTURE REMAINS A
CONCERN
• HOT TOPIC – PROPOSED CUTS TO MEDICAID FUNDING
• “THE AMERICAN HEALTH CARE ACT” INTRODUCED ON MARCH 6TH
WOULD DRAMATICALLY CHANGE THE FINANCING STRUCTURE OF
MEDICAID
• UNDER THIS PLAN – FUNDING FOR STUDENT SERVICES WOULD BE
CAPPED RATHER THAN BASED ON THE COSTS OF SERVICES
PROVIDED
• MAY RESULT IN ADDITIONAL FINANCIAL BURDEN TO LOCAL
COMMUNITY