IN Brentwood-Baldwin-Whitehall Fall 2016 | Page 71

SUBMITTED BY JENNIFER L. PESANKA, BUSINESS MANAGER
The Brentwood Borough School District approved the 20162017 General Fund Budget that reflects a millage rate of 29.5332.
The adjusted rate is due to a drop of approximately 2.1 million in
assessed valuation since the millage rate was set in June 2015.
This assessment decrease coupled with increasing costs, limited
increases in state subsidy makes it difficult to hold the millage rate
at the 2015 level.
Under the Act 1 index and the referendum exceptions granted by
the Pennsylvania Depart of Education, the District was permitted
to increase the millage rate to 29.5332. Even with this tax increase,
approximately $587,726 from the fund balance will be used to
offset the remaining difference between expenditures and revenue.
The delay in the passage of the 2015-2016 fiscal budget by the
Commonwealth really made administration scrutinize every aspect
of the 2016-2017 budget. The District found it necessary to delay
a wireless technology project. The 2015-2016 Commonwealth
Budget that was passed has delayed funding for social security by
two months. This means that the District only received ten months
of funding, instead of the typical twelve months. Therefore the
District received $60,400 less than the prior year. In addition the
District has yet to receive $573,665 in PlanCon funding for the
2015-2016 school year. The events described above dramatically
impacted the district’s budget.
The 2016-2017 District revenue budget totals $21,248,153.
Money at Brentwood Borough School District primarily comes
from real estate taxes and state funding. The money raised from
local taxes remain in our schools to educate the children who live
here. Local revenues total $12,082,588 or 57.3% of the budget.
State revenues total $8,789,482 or 40.8% of the total budget. The
District had to pass a budget with the uncertainty in State funding
for 2016-2017. The 2016-2017 General Fund Budget reflects no
increases to state funding in all areas except revenue for the
State’s share of social security, Medicare taxes and retirement
contributions. These areas are reflective of the State’s share in
regards to the budgeted salaries.
One positive
event that
occurred
beginning with
the 2015-2016
budget is in
regards to the
implementation
of the new
education
funding formula.
The goal of
the formula is
designed to remove politics from state school funding decisions,
direct money to schools districts based on a set of factors such as
enrollment, student needs, school district wealth and the capacity
at which schools are able to raise local revenues. With the formula’s
implementation, reports still indicate that 600 million dollars was
needed to restore all of the enacted education cuts. The 2016-2017
state budget became law at midnight on Tuesday, July 12, 2016.

The 2016-2017 state budget provides a $200 million increase
for basic education funding and a $20 million increase in special
education funding. This increase in funding for the Brentwood
Borough School District means a 2.7% increase or $129,477 more in
basic education funding and a 1.91% increase or $15,468 more in
special education funding for Brentwood Borough School District.
These increases do not offset the deficit the district has faced over
the past six years.
District
expenditures
have decreased
by 2% from the
2015-2016 budget
to $21,835,879.
Salaries and
benefits
represent 68.6%
of the District’s
expenditure
budget. The
District saw some savings by additional retirements at the end of
the 2015-2016 school year. For the past several years the District
has been holding the line on increases to supply costs and facilities
upgrades. This has been necessary in order to sustain the District’s
fund balance.
Fiscal Year 2016-2017 Budget Summary (Adopted 6/20/2016)

Brentwood-Baldwin-Whitehall | Fall 2016 | icmags.com 69

SC HOOL DI STRI C T N E WS

M E S S A G E

Brentwood Borough

B U S I N E S S M A N AG E R’S