Federal. 51 %
State 20.95 %
Revenues
2015-16 Budget
Expenditures
Benefits 24.31 %
Debt Service 10.09 %
Guaranteed Energy Savings
Act. 63 %
Local 78.54 %
Salaries 43.28 %
Other 2.43 %
Fixtures, Furniture & Equipment 4.52 %
Repairs, Maintenance, Transportation & Utilities 14.63 %
Data Collection is Critical to PV’ s Budget Planning Process
Collecting data is a critical component of Perkiomen Valley School District’ s budget process. As the administration and School Board begin building the budget, large amounts of information are compiled in an effort to guide budget discussions.
Planning the 2015-16 budget was no exception. Hit once again with a dramatic increase in the employer contribution to the Pennsylvania School Employees Retirement System( PSERS), the district started the budget process with a $ 2.2 million deficit. But over months of data collection, research and deliberation, the district was able to close the gap between revenues and expenditures without negatively affecting the instructional program.
The $ 97,903,988 spending plan included cost-savings initiatives such as:
• Reducing building budgets by 10 percent
• Reducing staffing through attrition
• Eliminating busing for secondary students in the Perkiomen Greene development
• Instituting a bus waiver program for high school students to reduce transportation costs
• Using $ 350,000 from the Debt Service fund balance to offset costs for debt service payments
• Using $ 246,000 from the Pennsylvania School Employees Retirement System( PSERS) reserved fund to offset retirement benefit costs
• Negotiating an agreement with Student Transportation of America( STA) to reduce the transportation provider’ s contractual increase from 2.2 percent to 2 percent
The adjustments above, along with some additional funding from the state for special education and strong earned income tax revenues, helped reduce the deficit down to $ 761,181. A 1.2-percent tax increase closed the gap. For homeowners with an average assessment of $ 180,000, the tax increase was approximately $ 66.
Even after the passage of the 2015-16 budget, the Business Department and School Board continued to pursue savings opportunities. Here are some of the cost-savings initiatives that occurred during the last school year and had a positive impact on the budget:
• A bond issue was refinanced in January 2016, resulting in a $ 1.9 million savings for the 2015-16 budget and a cumulative savings of
$ 6 million over the next 20 years.
• The district negotiated the sale of one of its properties, the Trappe Building. The proceeds from this sale were placed into the capital reserve, which will be used for future capital projects. In addition, this transaction allowed the Trappe Building property to be placed back onto the local tax rolls, leading to more revenue for the district.
• The district also saved $ 130,000 in operations by purchasing fuel through the Montgomery County Intermediate Unit’ s fixed pricing models.
14 • PVSD Annual Report 2015-16 Follow Us on Facebook, Twitter & YouTube