2021-22 Budget Information

All Dates are tentative and subject to change 
Note: Presentation Link will be active after the Board Meeting

November 18, 2020: Debt Service, Warehouse/Transportation, and Building Budgets

Highlights:

  • The Act 1 Index for Palisades School District for the 2021-2022 budget year is 3.0%. This is the maximum increase allowable for the District without seeking exceptions. This index is set by the Pennsylvania Department of Education.

  • There is a $1,125,000 increase in the Charter School tuition budget. This increase factors in an increase in the number students attending outside charter schools and an increase in the tuition rate the District must pay for any student attending an outside charter school. (NOTE:  Any Palisades student who attends an outside charter school is paid for with Palisades’ taxpayer money. The District pays $20,305 for a Non-special Education student and $46,630 for a Special Education student in the current year with rates projected to increase to $23,000 and $51,000 respectively.  Continual efforts are being made by our administrators and cyber teachers to contact families of students choosing outside charter schools to explore other options within our schools including our own cyber charter course offerings.)

  • The Transportation budget has increased $116,183 due to an increase in bus runs needed to transport all students to and from our buildings.

December 7, 2020: Equipment, Administration, Building Maintenance, and Capital Projects
Highlights:

  • The proposed equipment budget for the district includes updated technology and replacement furniture at the building level, medical equipment for schools and musical instruments.  The total of all equipment requests is $59,513

  • The administration budget included a budgetary increase of $34,900 or 5.7%. The increase is due to the need to bond our real estate tax collectors that comes due every 4 years for $15,000, new software for safety and security needs of $7,500, and an estimated increase in liability insurance of $8,000. 

  • The Capital Projects budget includes a decrease due to the completion of the High School Science Wing completion in the 20-21 year. Additional projects in the budget include: PALMS parking lot resurfacing, student Chromebook replacement, several facility upgrades, and safety and security upgrades. All Capital Project money is paid for from fund balance (district savings account) and does not add to the taxpayers’ property tax bill.


December 16, 2020: Other Education, Educational Support, Comprehensive Plan, Salaries, Benefits, and Revenue

Highlights:

  • Technology requests in the 2021-2022 budget include replacement Chromebooks and the replacement of computers in one High School lab that are reaching the end of life.

  • A salary increase of 4.3% is budgeted for contractual increases to our teaching staff, support staff and administrators. The District is including costs for additional teaching staff in anticipation of increased online students in our elementary Palisades Cyber Academy. Also included in this line item is the cost for our day to day substitutes through ESS (formerly Source4Teachers) budgeted at $395,000.

  • The budget includes a benefit increase of $735,485 due to an increase in the state mandated PSERS rate increase of eligible salaries from 34.51% to 34.94%. We have also budgeted for an estimated 10% increase in health insurance. Final health insurance figures are anticipated to be released in time for the Final Proposed Budget in April.

  • Revenues are projected to increase by 1.13% with the majority of the increase coming from the state reimbursement of 50% of mandated retirement expenses.

Summary of the Budget Process 12/16/20:

  • The School Board passed the Resolution not to exceed the Act 1 Index of 3.0%

  • The net result of the budget items presented to the Board reflects a preliminary overall deficit of $3,862,869. This is the worst case scenario as it relates to projected school spending and revenues for the 2021-2022 school year. By passing the resolution at Wednesday’s (12/16/20) School Board Meeting, the Board has limited the tax increase for the 2021-2022 school year to 3.0%. There has been no determination what the tax increase will be by the time the Final Budget is approved in June, however, an increase for the 2021-2022 school year cannot be more than 3.0% (our district’s Act 1 index as specified by the PA Department of Education). A maximum 3.0% increase would mean a worst case increase of $118 for the average assessed household in the District. There is still a tremendous amount of work to be done on this budget by the School Board and Administration between now and when the final budget is passed in June.  We will continue to do our best to minimize our projected costs while balancing our ability to provide the best possible education for all of our students. The final budget with modifications will be presented on June 2, 2021. 


April 21, 2021 Proposed Final Budget Presentation

Proposed Budget form PDE 2028

The School Board approved the Proposed Final Budget presentation with a 3.0% tax increase as a “worst-case” scenario (millage increase of 3.45 mills for a new millage rate of 118.45 mills). This would result in a real estate tax increase of roughly $118.25 to the average property owner. The increase may still be adjusted to a lower rate, however it cannot exceed this amount at final budget.

The biggest driving force behind the expenditure budget increase is an increase in state mandated charter school tuition costs of $1,125,000 and an increase in state mandated retirement expenses of more than $358,000.

This budget shows the maximum potential tax increase allowable for the 2021-2022 year. The School Board and District Administration will continue to work toward making additional reductions to our expenditures or increases to our revenues for next year to limit any increase for taxpayers when the Final Budget is approved.

Final Budget is scheduled for a vote by the School Board on June 2.

June 2, 2021 Final Budget Presentation

Final Budget on form PDE 2028 

The Board passed the Final Budget for 2021-2022 that included a 0.87% tax increase. The millage rate will be 116.0 mills. This will equate to a $30.90 increase to the average assessed household of the District. See details below:

Budget Information

Over the last eleven years, the District has faced several unfunded or underfunded mandates. 

  • Charter school tuition (state mandate) costs have increased 323%
  • PSERS (state retirement system) costs have increased 637%

In those last eleven years, the real estate tax millage rate has increased 5.1%. Through prudent planning by our School Board and administrative team, tax increases for Palisades School District have been consistently maintained at zero or below one percent annually.


Palisades SD Millage Rates


When comparing our millage rate with all other school districts in Bucks County, Palisades is the second lowest millage rate. It is important to note the lowest District has a 1% earned income tax rate compared to 0.5% earned income tax rate for Palisades residents. 


Bucks County School Districts Millage Rates


This is the eighth year the School Board will use funds from the Retirement Spike Fund (a savings for mitigating increasing retirement expenses) to cover a significant increase in retirement contributions, topping more than 34.9% of eligible salaries; all school districts across the state have been facing this problem.  These funds are being utilized to offset this increasing cost, while not overburdening taxpayers with high spikes in the retirement rates. 

Other projects funded in this budget for the 2021-2022 school year from district savings (not requiring increased new tax dollars) include: Middle School paving of the parking lot, chromebook replacement, PHS air conditioning and several important safety and security upgrades.