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DCIU 2021-2022 General Operating Budget

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DCIU 2021-2022 General Operating Budget Empowering Partner hips For Education Drive Delaware County Intermediate Unit Create General Operating Inspire Budget 2021-2022 Understand Delaware County Intermediate Unit DC/US General Operating Budget Empowering Partnerships For Education 2021-2022 Board of Directors Edward J. Cardow, Chichester School District Anthony Johnson Chester Upland School District President Susan Mingey Haverford Township School District Tracy A. Karwoski, Garnet Valley School District Edward Harris Interboro School District Vice President Barbara Harvey Marple Newtown School District M. Colleen Powell Penn-Delco School District Dr. Shellie Feola, Nonmember Secretary Amy Goldman Radnor Township School District Christopher Bryan Ridley School District Thomas C. Brown, Nonmember Hillary Fletcher Rose Tree Media School District Treasurer Sheree Monroe Southeast Delco School District Dr. Maria Edelberg Margaret Rovinski Springfield School District Executive Director Rachel Mitchell Upper Darby School District Michael V. Puppio, Jr., Esq. Lawrence Kutys Wallingford-Swarthmore School District Solicitor Joana Hopkins William Penn School District A Message From the Executive Director Maria Edelberg, Ed.D. We are pleased to present the 2021-2022 DCIU General Operating Budget, as this budget supports the administration of all DCIU programs and provides for delivery of basic services to local school districts in accordance with Act 102 of 1970. This budget is always presented in February and is not subject to the provisions of Act 1 of 2006. The General Operating Budget is unique among all the DCIU budgets; it is the one budget that annually must go before all of the 15 member school districts for adoption. Through the work supported by this budget the DCIU staff strive to provide cost effective services that demonstrate a substantial return on investment to member school districts. This is accomplished largely through service and purchasing consortium. For example, in 2019-2020 consortia operated by DCIU saved school districts an estimated $12 Million, an amount greater than the entire General Operations budget. The 2021-2022 General Operating Budget will support 53 full time equivalent employees. The term full time equivalent is used because some staff expenses are budgeted in more than one budget on a prorated basis. The budget consists of 12 components: the administrative and Board budgets along with 10 service area budgets. Total expenditures represented in the 2021-2022 General Operating Budget are $9,765,889, which represents a 1.56% increase from the prior year. The districts’ contribution to the DCIU budget remains unchanged at $885,694. Although, we must caution that eventually there may be an increase. Expectations from PDE have increased for IU’s (e.g. implementation of the School Improvement Planning, professional development for district staff on SPP, PVAAS, PSSA, etc.); therefore, we are being asked to provide more services to school districts without a proportionate increase in state funding to the IU. The DCIU has used other funding sources (e.g., grants, contracts with other entities) to supplement the budget in order to provide services needed by our districts. The support received from the DCIU Board of Directors and Superintendents is crucial to the continued daily operation of DCIU as supported by the General Operating Budget and we look forward to continuing our mutually rewarding partnership with Empowering Partnerships for Education our school districts. Drive Create Inspire Understand Table of Contents Key Points .......................................................... Page 1-2 Delaware County Public Schools Healthcare Trust .................... Page 3-4 Revenue Charts ..................................................... Page 5-6 Summary of Revenue ............................................... Page 7-9 Summary of District Contributions ................................... Page 10 Summary of Expenditures. Page 11 Pupil Services ....................................................... Page 12-15 Instructional Material Services. Page 16-17 Instructional Services ............................................... Page 18-20 Board of Directors ................................................... Page 21-22 Administrative Services ............................................. Page 23-25 Business Services ................................................... Page 26-34 Production Services ................................................. Page 35-36 Operational Services ................................................ Pages 37-38 Building Services ................................................... Pages 39-41 Human Resources and Communications Services .................... Pages 42-47 Technology Services ................................................ Pages 48-50 Data Services ....................................................... Pages 51-53 Empowering Partnerships for Education Drive Create Inspire Understand Key Points for the 2021-2022 DCIU Operating Budget • The district contributions to the DCIU budget remain unchanged for twenty-three years. There were two exceptions when DCIU provided a 20% rebate to its districts for three years and the Commonwealth of Pennsylvania, through their annual budget process, increased district contributions two times. • The budget is $9,765,889. This is an increase of $149,641 or 1.56% from the 2020-2021school year. • Total school districts’ contribution to the Intermediate Unit budget is 9.07% ($885,694). Individual school district net contributions for this budget range from 0.28% to 1.12%. This represents in total 0.64% of DCIU’s 60 composite budgets, approximately $138,000,000. • Contributions coming from sources other than districts are approximately 91%. • The DCIU General Operating Budget provides the administrative services required for the operation of the DCIU Joint Purchasing and provides the financial management services for the Delaware County Public School Trust. The projected savings to DCIU and its member school districts for the 2020-2021 school year is a combined $13M from these two programs. • The Public School Employees’ Retirement System (PSERS) 2021-2022 rate as a percentage of salary increased from 34.51% to 34.94%. • Salary and benefits account for most of the budget increase. Empowering Partnerships for Education Drive Create Inspire Understand 1 2021-2022 PROPOSED INTERMEDIATE UNIT BUDGET SUPPLEMENTAL KEYPOINTS COMPONENTS OF THE 1.56% INCREASE BUDGET TO BUDGET DESCRIPTION - EXPENDITURE CURRENT ESTIMATED PROPOSED BUDGET TO BUDGET TO BUDGET EXPENDITURES BUDGET BUDGET BUDGET 2020-2021 2020-2021 2021-2022 DIFFERENCE % DIFFERENCE PERSONNEL SERVICES - SALARIES(100)* 3,901,702 3,868,755 3,982,307 80,605 2.07% PERSONNEL SERVICES - BENEFITS (200)** 3,119,195 2,697,908 3,164,036 44,841 1.44% PURCHASED PROFESSIONAL & TECHNICAL SERVICES(300) 763,246 659,725 774,496 11,250 1.47% PURCHASED PROPERTY SERVICES(400) 521,411 434,821 529,126 7,715 1.48% OTHER PURCHASED SERVICES(500) 292,265 251,376 295,595 3,330 1.14% SUPPLIES(600) 547,705 440,175 549,705 2,000 0.37% PROPERTY(700) 39,800 39,100 39,800 0 0.00% MISCELLANEOUS EXPENSES(800) 430,924 379,934 430,824 -100 -0.02% TOTAL 9,616,248 8,771,794 9,765,889 149,641 1.56% *Salaries reflect a 2.07% increase budget to budget. ** Benefits reflect the following: a net increase mostly reflecting the increase in retirement rate. Salaries and benefits represent 1.30% of the 1.56% increase The net budget increased in areas outside of salary and benefits is 0.26%. DESCRIPTION - REVENUE CURRENT ESTIMATED PROPOSED BUDGET TO BUDGET TO BUDGET REVENUE BUDGET BUDGET BUDGET 2020-2021 2020-2021 2021-2022 DIFFERENCE % DIFFERENCE EARNINGS ON INVESTMENTS 135,000 110,000 135,000 0 0.00% TUITION FROM PATRONS 0 0 0 0 #DIV/0! RECEIPTS FROM MEMBER DISTRICTS 885,694 885,694 885,694 0 0.00% SERVICES PROVIDED OTHER LEA'S 225,200 205,000 229,725 4,525 2.01% RECEIPTS FROM IU PROGRAMS 4,612,775 4,612,775 4,679,749 66,974 1.45% RENTAL OF FACILITIES 328,500 310,100 333,248 4,748 1.45% MISCELLANEOUS REVENUE 2,216,934 1,795,508 2,256,620 39,686 1.79% MISCELLANEOUS TECHNOLOGY REV 48,700 40,000 52,000 3,300 6.78% GENERAL OPERATING SUBSIDY 0 0 0 0 0.00% CAPITAL SUBSIDY 0 0 0 0 0.00% SOCIAL SECURITY - STATE SHARE 149,241 147,979 152,324 3,083 2.07% PSERS - STATE SHARE 673,239 667,553 695,909 22,670 3.37% BUDGETED FUND BALANCE 340,965 342,805 345,620 4,655 1.37% TOTAL 9,616,248 9,117,414 9,765,889 149,641 1.56% Drive Create Inspire Understand 2 Delaware County Intermediate Unit Health Insurance Savings/ Cost Avoidance Report Delaware County Public Schools Healthcare Trust The Delaware County Public Schools Healthcare Trust was formed in July 2013 to provide self-insurance and is comprised of participating school districts represented by both administration and employees. A goal of the Trust is to keep healthcare costs affordable by educating members on ways to promote better health and wellness, in order to help keep healthcare-related costs down. The Trust contracts with Arthur J. Gallagher for third-party administrative services to provide consulting and analytic services. The Trust contracts with DCIU and appointed Thomas Brown the Financial Manager to provide financial management services. The following page highlights the Trust and DCIU Savings. In its seven years of Trust operations 13 school districts, the Community College, and the DCIU savings/cost avoidance was over $160 million. The savings/cost avoidance results are from comparing self insured rates to fully insured
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