Port Allegany School District - Budget

Budget

Pennsylvania public school districts budget and expend funds according to procedures mandated by 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 Port Allegany School District was $55,611.63 a year, while the cost of the benefits teachers receive was $15,493.71 per employee, for a total annual average teacher compensation of $71,105.34.

In 2009, Port Allegany School District reported employing 81 teachers and administrators with a median salary of $55,584 and a top salary of $105,833. The teacher’s work day is 7.5 hours with a 30 minute duty free lunch and a daily preparation period. There are 185 days in the contract year, with 180 student days. Additionally, the teachers receive a defined benefit pension, health insurance, life insurance, income protection insurance, dental insurance, professional development reimbursement, paid personal days, 10 paid sick days, and other benefits.

In 2007, the district employed over 100 teachers. The average teacher salary in the District was $45,186 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. The District ranked second in McKean County for average teacher salary in 2007.

Per pupil spending In 2008, per pupil spending at Port Alleghany School District was $11,695. It ranked 314th in the state for per pupil spending. In 2010 the per pupil spending had increased to $13,088.53. 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. The U.S. Census Bureau reports that Pennsylvania spent $8,191 per pupil in school year year 2000-01.

Reserves In 2009, Port Allegany School District reported a balance of zero in its unreserved-designated fund. The unreserved-undesignated fund balance was reported as $3,239,395.00 In 2010, Area Administration reported $2,783,001 in the unreserved-undesignated fund balance. The District reported $800,000 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. According to the Pennsylvania Department of Education, from 2003 to 2010, as a whole, Pennsylvania school districts amassed nearly $3 billion in reserved funds.

Audit In October 2011, the Pennsylvania Auditor General conducted a performance audit of the District. The findings were reported to the Port Allegany School Board and the District’s administration.

According to Standard and Poor's, the local community is challenged by a limited local economy with elevated unemployment and rapidly decreasing enrollment. The district's residents have low property wealth, and moderately high overall net debt burden measured as a percentage of market value.

Tuition Students who live in Port Allegany 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 Port Allegany School District. For these cases, the Pennsylvania Department of Education sets an annual tuition rate for each public 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 Port Allegany School District's schools. The 2012 tuition rates are Elementary School - $8,901.64, High School - $9,968.50.

Port Allegany School District is funded by a combination of local earned income tax 0.5%, property taxes, a real estate transfer tax 0.5%, Occupational Privilege Taxes, per capita tax of $10.00 ($5.00 under Act 511 and $5.00 under the School Code, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. In Pennsylvania, both Social Security income and pension income is exempted from personal income tax and local earned income tax regardless of the individual's wealth.