State College Area School District - Budget

Budget

In 2009, State College Area School District reported employing 796 teachers and administrators with a salary range of $45,000 to $152,300.The median salary was $64,625. Fifteen salaries exceeded $100,000 a year. By 2011, the District employed 656 teachers and administrators, with the average teacher salary in State College Area School District at $64,211.89 a year, while the cost of the benefits the teachers receive at $15,233.03 per employee, for a total annual average teacher compensation of $79,444.92. 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 2007, the district employed 555 teachers. The average teacher salary in the district was $57,450 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 received a defined benefit pension, health insurance,life insurance, professional development reimbursement, paid personal days, 10 paid sick days, and other benefits.

In 2008, State College Area School District per pupil spending was $13,633. This ranked 128th among 500 Pennsylvania public school districts. In 2010 the per pupil spending had increased to $14,388.64. 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.

State College Area School District administrative costs in 2008 were $729.62 per pupil. The lowest administrative cost per pupil in Pennsylvania was $398, in 2008. The district provides an extensive benefit package to all administrators. Superintendent of Schools, Dr. Richard Mextorf, resigned on December 4, 2010 as a result of a DUI arrest. The acting Superintendent of Schools as Michael Hardy. In June 2011, the school board awarded a five-year contract to Dr. Robert J. O'Donnell as Superintendent with a starting salary of $169,000. He was also given $20,000 for his expenses in relocating from Lancaster, Pennsylvania. The salary was $15,000 more than the previous superintendent's contract. The Pennsylvania School Boards Association maintains statistics on salaries of public school district employees in Pennsylvania. According to the association's report, the average salary for a superintendent, for the 2007-08 school year, was $122,165. Superintendents and administrators receive a benefit package commensurate with that offered to the district's teachers' union.

Reserves In 2008, the district reported no balance in an unreserved-designated fund. The unreserved-undesignated fund balance was reported as $10,049,629. In 2010, State College Area Administration reported an increase to $8,000,000.00 in the unreserved-undesignated fund and $6,331,870.00 in its unreserved-undesignated fund. 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 November 2010, the Pennsylvania Auditor General conducted a performance audit of the district. Several findings, including the lapsing of a professional certificate which caused a subsidy forfeiture, were reported to the school board and administration.

The District is funded by a combination of: a local earned income tax - 1.7%, a property tax, a real estate transfer tax -0.5%, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. Grants can provide an opportunity to supplement school funding without raising local taxes. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from state personal income tax and local earned income tax, regardless the of income level.