Hopewell Area School District - Budget

Budget

In 2009, Hopewell Area School District reported employing 209 teachers and administrators with an average salary of $59,567 and a top salary of $114,187. Additionally, the teachers receive a defined benefit pension, health insurance, vision insurance, dental insurance, professional development reimbursement, paid personal days, 10 paid sick days, and other benefits. In 2011, the average teacher salary at Hopewell Area School District was $60,526 a year, while the cost of the benefits teachers receive was $17,625.02 per employee, for a total annual average teacher compensation of $70,150.56. According to a study conducted at the American Enterprise Institute, in 2011, public school teachers’ total compensation is roughly 50 percent higher than they would likely receive in the private sector. The study found that the most generous benefits that teachers receive are not accounted for in many studies of compensation including: their state mandated and run defined benefit pension, retiree health benefits and job security.

In 2007, the district employed 174 teachers. The average teacher salary in the district was $54,166 for 180 days worked. As of 2007, Pennsylvania ranked in the top 10 states in average teacher salaries. When adjusted for cost of living Pennsylvania ranked fourth in the nation for teacher compensation.

Hopewell Area School District administrative costs per pupil in 2008 was $665.13 per pupil. The District employed 13 administrators in 2010. The lowest administrative cost per pupil in Pennsylvania was $398 per pupil. The Pennsylvania School Boards Association keeps statistics on salaries of public school district employees in Pennsylvania. According to the Association's report, superintendents and administrators receive a benefit package commensurate with that offered to the local school district's teachers' union benefit plan.

In 2008, the district administration reported that its per pupil spending was $11,297 per child, which ranked 367th among Pennsylvania's 501 school districts. In 2010, the per pupil spending had increased to $15,396.20 which ranked 92nd in the Commonwealth of Pennsylvania Among the states, Pennsylvania’s total per pupil revenue (including all sources) ranked 11th at $15,023 per student, in 2008-09. In 2007, the Pennsylvania per pupil total expenditures was $12,759.

Reserves In 2008, Hopewell Area School District reported a balance of $3,500,000 in an unreserved-designated fund. The unreserved-undesignated fund balance was reported as $2,370,764. In 2010, Hopewell Area School District Administration reported an increase to $4,800,000.00 in the unreserved-designated fund and $2,613,812. in its unreserved-undesignated fund. The district's total reserves were 7,413,812. in 2010. Pennsylvania school district reserve funds are divided into two categories – designated and undesignated. The undesignated funds are not committed to any planned project. Designated funds and any other funds, such as capital reserves, are allocated to specific projects. School districts are required by state law to keep 5 percent of their annual spending in the undesignated reserve funds to preserve bond ratings. According to the Pennsylvania Department of Education, from 2003 to 2010, as a whole, Pennsylvania school districts amassed nearly $3 billion in reserved funds.

In December 2010, the Pennsylvania Auditor General conducted a performance audit of the district. The findings were reported to the school board and administration.

The Hopewell Area School Board approved a proposed $34.36 million budget for 2012-13 which included a property tax increase despite the District having substantial "rainy day" reserve funds. In accordance with Pennsylvania public school law, the proposed budget was available for public inspection at the district's business office in Hopewell Township.

The district is funded by a combination of: a local earned income tax, a property tax, a real estate transfer tax 0.5%, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from state personal income tax and local earned income tax, regardless of the level of the individual’s personal wealth.