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Fayette County Merger Study Final-10 19

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Fayette County Merger Study Final-10 19 Fiscal Assessment Study for Proposed Merger of Fayette County School Districts September 2011 Prepared by The Education Management Group, LLC Table of Contents Executive Summary ...................................................................................................................... 4 Introduction ................................................................................................................................. 12 History .......................................................................................................................................... 13 Requirements for a Merger ........................................................................................................ 14 Selected Laws Affecting Mergers .............................................................................................. 15 Local Decisions Required Prior to Merger ............................................................................... 16 Fayette County ............................................................................................................................ 17 Population by Male/Female, Race, and Age ............................................................................. 17 Fayette County Public School Districts .................................................................................... 20 Commonalities among the Fayette County School Districts ................................................... 22 Financial Aspects ........................................................................................................................ 25 Revenue..................................................................................................................................... 25 Revenue Sources ................................................................................................................... 25 Comparison of Revenue Ranges ............................................................................................... 26 Revenue from Local Sources .................................................................................................... 27 Revenue from State Sources ..................................................................................................... 29 Revenue from Federal Sources ................................................................................................. 30 Expenditures ............................................................................................................................. 31 Expenditures by Function/Object ......................................................................................... 35 Cost per Pupil ........................................................................................................................ 36 Conclusions ........................................................................................................................... 37 Enrollment ................................................................................................................................... 38 Historical Enrollment Data ....................................................................................................... 38 Enrollment Projections.............................................................................................................. 41 Building and Grade Level Projections ...................................................................................... 43 Grades 5-8 Enrollment Projections ....................................................................................... 44 Grades 9-12 Enrollment Projections ..................................................................................... 45 Conclusions ............................................................................................................................... 45 Physical Plant .............................................................................................................................. 46 Configuration of Schools .......................................................................................................... 47 2 Building and Grounds Expenditures ......................................................................................... 58 Career and Technology Centers ................................................................................................ 60 Charter and Cyber Charter Schools .......................................................................................... 62 Senior High Schools ..................................................................................................................... 63 Junior High Schools .................................................................................................................. 67 K – 8 Elementary – Secondary Schools .................................................................................... 68 Grades 6 to 8 Elementary Secondary Schools .......................................................................... 69 Grades K – 6 Elementary Schools ............................................................................................ 71 K – 5 Elementary Schools......................................................................................................... 76 Curriculum and Personnel ......................................................................................................... 85 Curriculum ................................................................................................................................ 85 Personnel ................................................................................................................................... 91 Special Education ........................................................................................................................ 97 Transportation .......................................................................................................................... 108 Transportation Expenditures ................................................................................................... 109 Transportation Reimbursement ............................................................................................... 113 Factors Affecting Transportation Costs and Reimbursements ............................................... 114 Vehicle Allowance .............................................................................................................. 115 Mileage Allowance ............................................................................................................. 116 School Foodservices .................................................................................................................. 118 Foodservices Revenues and Expenses for 2010 ..................................................................... 123 The Impact of Building Consolidation on School Foodservices ............................................ 127 Current Food Delivery Systems in the Six School Districts ................................................... 128 Uniontown Area School District ............................................................................................. 128 The Kinds of Food Delivery Systems and Their Impact on Efficiency and Cost ................... 129 Appendix .................................................................................................................................... 133 3 Executive Summary Financial Aspects of a Merger Revenues The ranges in revenues for the six Fayette County school districts are provided. The data for a merged district shows approximately the same reliance on local dollars as the Connellsville Area and Frazier School Districts. The data shows slightly more reliance on local revenues than Albert Gallatin Area and Brownsville Area School Districts. The merged district would have less reliance on local dollars than Laurel Highlands and Uniontown Area School Districts. Information about revenue received from local sources is provided in the report. The most important local revenue, real estate taxes, has increased in all of the six Fayette County school districts. This report provides a five-year history of the Real Estate Tax Levy and Taxes Collected. The 2011-12 General Fund Budgets of the six school districts are examined with regard to the taxable assessed value, number of mills levied, and the total tax levy. Using a collection rate of 87%, the school districts will receive approximately $49,013,317 in real estate taxes. If overall savings of approximately $5.1 million can be generated, each district will receive a property tax reduction. These reductions will range from 0.5 mills to 4.5 mills. The greater the savings that are identified, the greater the tax reduction will be. Savings of far more than $5.l million are identified in this report. The data used to calculate the 2011-12 state aid rations are identified for the merged district. The merged district would have higher aid ratios than Frazier, Laurel Highlands, and Uniontown Area School Districts and lower aid ratios than Brownsville Area, Albert Gallatin Area and Connellsville Area School Districts. Most state subsidies would not be affected by a merger. Revenue from federal sources is also examined. The merged district would have a poverty rate of over twenty-five (25%,) thus making the merged district eligible for all four of the Title I grant awards, including basic, concentration, targeted and
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