Neshaminy School District - Budget

Budget

In 2009, the district employed 741 teachers. The average teacher salary in the district was $80,142 for 180 days worked. The beginning salary was $40,950, while the highest salary was $144,572. In addition to salary the teachers receive taxpayer funded health insurance, vision insurance, dental insurance, life insurance, paid personal days, 10 paid sick days which accumulate, paid leave for death in the family and many other benefits. Retiring teachers receive a bonus. According to Rep. Glen Grell, a trustee of the Public School Employees’ Retirement System Board of Trustees, a 40-year educator can retire with a pension equal to 100 percent of their final salary. In 2011, the average teacher salary in NSD was $77,320.79 a year, while the cost of the benefits teachers receive was $25,595.03 per employee, for a total annual average teacher compensation of $102,915.00. 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: pension, retiree health benefits and job security.

In June 2012, the Neshaminy Teachers' Union announced the intent to strike for the second time in 2012. State law permits them to strike for 10 days. In January 2012, the teachers walked out for 8 days. By state law, the 180-day school year must be completed by June 30 without weekend classes. A state mandated (due to strike) nonbinding arbitration report issued in May 2012 was rejected by the school board, but approved by the union. The cost of the proposal was over $20 million and included continued retirement bonuses. The teachers have been working without a contract since July 2008. In May, the school board served notice on the teachers' union that there would be 15 teacher layoffs for the 2012-13 school year.

In 2007, the Neshaminy School District employed 620 teachers working 180 days of pupil instruction. The average teacher salary in the district was $81,816. This was second only to Council Rock School District. 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.

In 2008, per pupil spending at Neshaminy School District was $16,947 for each child. This ranked 31st among Pennsylvania's 500 school districts. In 2010 the per pupil spending had decreased to $16,092.16 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.

Neshaminy School District administrative costs per pupil in 2008 was $933.60 per pupil. This is ranked 85th among in the 500 school districts in the Commonwealth of Pennsylvania. The lowest administrative cost per pupil in Pennsylvania was $398 per pupil.

In 2008, the Neshaminy School District reported an unreserved designated fund balance of zero and an unreserved-undesignated fund balance of $4,128,618. In 2010, Neshaminy School District Administration reported an increase to $12,249,567 in the unreserved-undesignated fund balance. The 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 on the district. Several findings were reported to the school board and administration.

The district is funded by a combination of: a local tax on income, a property tax, a real estate transfer tax 0.5%, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. Grants have provided an opportunity to supplement school funding without raising local taxes. In Pennsylvania, pension income and Social Security income are exempted from state personal income tax and local earned income tax, regardless of the level of wealth.