Newport School District (Pennsylvania) - 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 Newport School District was $52,105.85 a year, while the cost of the benefits teachers receive was $16,904 per employee, for a total annual average teacher compensation of $69,010. The District employed 103 teachers with a top salary of $100,495 in 2012. 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 2009, the district reported employing 118 teachers and administrators with a median salary of $52,664 and a top salary of $90,476.

In 2007, the district employed 96 teachers who earned an average teacher salary of $47,811 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 teachers receive a defined benefit pension, health insurance, professional development reimbursement, personal days, sick days, and other benefits. According to the Pennsylvania Department of Education, 165 students received free or reduced lunches due to low family income in the 2007-2008 school year.

The district administrative costs per pupil were $784 in 2008. The lowest administrative cost per pupil in Pennsylvania was $398 per pupil. At the December 16, 2009 meeting the school board eliminated the following administration positions effective July 1, 2010: Director of Curriculum, Instruction and Assessment, Director of Building and Grounds, Middle School Principal.

Per pupil spending In 2008, the Newport School District spent $12,622 per pupil which ranked 207th out of Pennsylvania's 500 school districts. In 2010, the per pupil spending had increased to $18,037.70 which ranked 39th in Pennsylvania. Among the fifty 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. The U.S. Census Bureau reports that Pennsylvania spent $8,191 per pupil in school year year 2000-01.

Reserves

In 2010, the District reported $1,239,563.00 in an unreserved-designated fund balance. The undesignated fund balance was reported as zero. In 2009, the District reported $117,100 in its unreserved-undesignated fund balance. The designated fund balance was reported as zero. 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. According to the Pennsylvania Department of Education, from 2003 to 2010, as a whole, Pennsylvania school districts amassed nearly $3 billion in reserved funds.

Newport School District's annual budget was $16 million (2009–2010). In mid-2009, it was revealed that the district had a $1.1 million shortfall. The Board projects a $1.2 million dollar deficit by the end of the 2009-2010 school year.

For the 2010-2011 school year, the school board is projecting a substantial property tax increase to fund a $16.1 million dollar budget. This will mean a property tax increase of nearly $300 for the average property owner. The school board sought multiple Act 1 Index exceptions to permit this tax increase.

In March 2010, the board chose to eliminate 14 teaching positions. The elementary school had 50 teachers during the 2009 - 2010 school year. The cuts will save the district $552,000. They include eliminating the non mandatory preschool program, a music teacher and the elective Discovery Program. The cuts are effective for the 2010-2011 school year.

Superintendent Buyout

Dr. Kerry W. Helm, Superintendent since 2006, resigned in December 2009, under board pressure due to taxpayer anger over the financial mismanagement. He negotiated a severance package that included: cash payments of $100,000 in two installments: $80,000 to be paid in January and $20,000 to be paid by Oct. 1, 2010. The district also agreed to make $981.63 in COBRA health insurance payments through June 2010. Helm had recently signed a new three-year contract in February 2009. Per that contract, the district would have needed to spend in excess $258,000 to buy him out of the $99,302 annual superintendent position.

Audit In January 2009, the Pennsylvania Auditor General conducted a performance audit of the district. Findings were reported to the administration and school board.

Newport School District is funded by a combination of: a local earned income tax 1.6%, 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. Grants provide an opportunity to supplement school funding without raising local taxes. In the Commonwealth of Pennsylvania, pension and Social Security income are exempted from state personal income tax and local earned income tax regardless of the individual's wealth.