Spring Grove Area School District - Budget

Budget

Pennsylvania public school districts budget and expend funds according to procedures mandated by the General Assembly and the Pennsylvania Department of Education (PDE). An annual operating budget is prepared by school district administrative officials. A uniform form is furnished by the PDE and submitted to the board of school directors for approval prior to the beginning of each fiscal year on July 1.

Under Pennsylvania’s Taxpayer Relief Act, Act 1 of the Special Session of 2006, all school districts of the first class A, second class, third class and fourth class must adopt a preliminary budget proposal. The proposal must include estimated revenues and expenditures and the proposed tax rates. This proposed budget must be considered by the Board no later than 90 days prior to the date of the election immediately preceding the fiscal year. The preliminary budget proposal must also be printed and made available for public inspection at least 20 days prior to its adoption. The board of school directors may hold a public hearing on the budget, but are not required to do so. The board must give at least 10 days’ public notice of its intent to adopt the final budget according to Act 1 of 2006.

In 2011, the average teacher salary in Spring Grove Area School District was $55,568 a year, while the cost of the benefits teachers received was $14,486 per employee, for a total annual average teacher compensation of $70,054.

In 2009, Spring Grove Area School District reported employing 332 teachers with a salary range of $37,460 to $117,548. The average salary in the district is $56,593.

In 2007, Spring Grove Area School District employed 252 teachers. The average teacher salary in the district was $50,259 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. Additionally, the district's teachers receive: a defined benefit pension, health insurance, life insurance, paid sick, personal and emergency leave days, college credit reimbursement, a severance package and other benefits. Teachers receive substantial additional payment for extra duties and meetings held outside of regular school hours.

Spring Grove Area School District administrative costs per pupil in 2008 was $563 per pupil which apparently ranked 472nd in Pennsylvania, in the lowest 10% of the state. This should be received as welcome news to local tax payers.

Reserves In 2008, Spring Grove Area School District reported a $8,711,410 balance in an unreserved-undesignated fund. The designated fund balance was reported as zero. In 2010, the District reported reserves of more than $10 million. In 2010, Area Administration reported an increase to $6,080,808 in the unreserved-undesignated fund balance. The District reported $4,000,000 in its unreserved-designated fund in 2010. Pennsylvania public 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. By law the state limits the total unreserved-undesignated fund balance at 8% of the annual budget for school districts that have budgets over $19 million a year. According to the Pennsylvania Department of Education, from 2003 to 2010, as a whole, Pennsylvania school districts amassed nearly $3 billion in reserved funds.

Per Pupil Spending Spring Grove Area School District administration reported that per pupil spending in 2008 was $11,984 which ranked 272nd in the state's 500 school districts. In 2010 the per pupil spending had increased to $12,501.53 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.

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

Spring Grove Area School District faced multiple financial challenges for the 2011–12 budget year. Revenue for the 2011–12 school year is projected to be approximately $55.1 million. Anticipated expenditures are over $60 million. A 4 percent salary increase in the teacher's union contract is contributing to $1 million increase in salary expenses. The district's employee health insurance rate is set to increase by 15 percent. Finally the transportation contract called for a 3 percent increase.

APA study According to an extensive study of York County school districts conducted by APA Associates in 2008, Spring Grove Area School District achieved a +6 rating based on Performance and Relative Efficiency. Eleven of 16 York County districts achieved a positive rating.

Tuition Students who live in the Spring Grove Area School District's attendance area may choose to attend one of Pennsylvania's 157 public charter schools. A student living in a neighboring public school district or a foreign exchange student may seek admission to Spring Grove Area School District. For these cases, the Pennsylvania Department of Education sets an annual tuition rate for each school district. It is the amount the public school district pays to a charter school for each resident student that attends the charter and it is the amount a nonresident student's parents must pay to attend the Spring Grove Area School District's schools. The 2012 tuition rates are Elementary Schools - $8,364.48, High School - $9,207.21.

Spring Grove Area School District is funded by a combination of: a local earned income tax 1.0% and net profit tax, a property tax, a real estate transfer tax 0.5%, per capita taxes, 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 personal wealth.