Smethport Area 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 Smethport Area School District was $54,620.34 a year, while the cost of the benefits teachers receive was $15,859.07 per employee, for a total annual average teacher compensation of $70,479.41.

In 2009, Smethport Area School District reported employing 85 teachers and administrators with a median salary of $56,390 and a top salary of $108,141. The teacher’s work day is 7.5 hours including a 30 minute duty free lunch. Teachers work 184 days in the contract year (180 student days). Additionally, the teachers receive a defined benefit pension, health insurance, professional development reimbursement, paid personal days, 10 paid sick days, and other benefits.

In 2007, the average teacher salary in the district was $51,866 for 180 days worked. The Smethport Area School District ranked first in McKean County for average teacher salary in 2007.

Smethport Area School District administrative costs per pupil in 2008 was $822.39 per pupil which ranked 169th out of 500 public school districts in the Commonwealth. The lowest administrative cost per pupil in Pennsylvania was $398 per pupil.

Per pupil spending In 2008, Smethport Area School District administration reported that per pupil spending was $$13,052 which ranked 173rd among Pennsylvania's 501 school districts. In 2010 the per pupil spending had increased to $$14,720.67 ranking 154th. 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 2008, Smethport Area School District reported a balance of zero in its unreserved-designated fund. The unreserved-undesignated fund balance was reported as $2,162,885. In 2010, Smethport Area Administration reported $$1,842,972 in its unreserved-undesignated fund. The District reported also reported $746,561 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 March 2011, the Pennsylvania Auditor General conducted a performance audit of the District. The findings were reported to the Smethport Area School Board and the District’s administration. A serious issue was uncovered regarding overpayment for student transportation.

Tuition Students who live in the Smethport 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 Smethport 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 District's schools. The 2012 tuition rates are Elementary School - $9,094.59, High School - $9,657.26

Smethport Area School District is funded by a combination of: a local earned income tax, a property tax, a real estate transfer tax 0.5%, and 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 taxes. Interest earnings on accounts also provide nontax income to the district. 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.