East Lycoming School District

2019-2020 Preliminary General Fund Budget

The 2019-2020 Preliminary General Fund Budget of the East Lycoming School District will be acted upon by the School Board on February 19, 2019 and totals $26,651,121. A February preliminary budget is required for the district to apply for exceptions as provided in Act 1 of 2006. The district will apply for the special education budget exception.

As outlined in the district’s five-year financial forecast, the district will be using committed fund balance (savings) in the amount of $575,000 to balance the 2019-2020 budget. Committed fund balance will be used over each of the next four years to phase in the increase in retirement contributions and minimize the need for higher local real estate taxes.

As adopted, the budget represents a total increase of $1,024,232 or 4.00% over the current year’s budget. The expenditure increases are accounted for in the following main categories:

Category Amount Notes
Salary and Wages $217,885 +2.0% from 18-19
Facility Maintenance Reserve $173,650 See paragraph below
PSERS Contribution $163,828 +4.7% from 18-19
Debt Service $125,283 Revenue increase of $177,000
Federal Program Reserve $118,323 Revenue increase of like amount
Special Education Services $78,000 +19% from 18-19
Cyber Charter/Vocational Tuition $45,000 +5.3% from 18-19

The Facility Maintenance Reserve amount of $173,650 (.34 of a real estate mill) allows the district to plan for projects occurring in the next 3-5 years, which will include high school AC chiller replacement and roof refurbishments. The district has internally financed 20 plus facility maintenance and improvement projects totaling over $3,000,000 since 2013-14. These projects include security & safety improvements to all district facilities as well as roof refurbishments, pool area conversion to turf room, bleacher reconditioning, fire alarm/phone/PA system replacements, and building envelope improvements.

For the district to meet its fiscal responsibilities, the Real Estate Tax Rate would increase to 14.89 mills for the 2019-2020 Preliminary General Fund Budget representing a .95 mill increase or 6.81%. This increase serves solely as a starting point in the budget process and will be reduced based on revised revenue and expenditure estimates until the final budget is passed in June 2019.

The preliminary local taxes for the 2019-2020 fiscal year are as follows:

Real Estate Tax 14.89 mills

Earned Income Tax 1.20%

Real Estate Transfer Tax .50%