2015 Budget-Building Bulletin
2015 BUDGET-BUILDING BULLETIN—SEPTEMBER 2014
The purpose of the 2015 Budget-Building Bulletin is to provide BSA local councils with the resources to help develop their 2015 fiscal year budget. Several departments within the National Council contributed to this bulletin. For budgeted items outside the BSA scope of expertise, we consulted The Kiplinger Letter.
For a complete guide to the budget-building process, consult Planned Budgeting (No. 80-236) at www.scouting.org/financeimpact. Click on the “Council Fiscal Management” tab and then on “Budget Building Materials” on the left.
SALARY AND BENEFITS
2015 Salary Budget Increase Guidelines—The 2015 salary budget increase guidelines are 3 percent based on projected labor market trends for performance increases. This guidance is for use when planning 2015 budgets. Show more...
The geographical salary ranges currently in place for commissioned and certified professionals will increase by 2 percent in 2015 to reflect improvement in the labor markets. The revised salary ranges will be posted on MyBSA in November.
2015 Benefit Budget Increase Guidelines—A summary of 2015 medical plan changes was distributed to Scout executives in July. For budget purposes, the council’s contribution increase for 2015 is 0 percent. Employee contributions will increase 3.3 percent on average depending on tier-level of coverage. The differential between employees earning the premium incentive for 2015 and those not earning the premium incentive will remain at $120 per month.
For 2015, the IRS has increased the minimum deductible requirement for qualified high-deductible plans with a health savings account. The BSA High Deductible Health Plan will increase the individual and family deductibles to $2,600 and $5,200, respectively, to continue to qualify for pretax contributions to a health savings account. The good news is there will again be a $500 employer contribution to the HSA of employees enrolled in the High Deductible Health Plan in 2015.
BSA Dental Plan—Effective Jan. 1, 2015, the employee’s cost for dental contributions will increase by $1.00 for all tiers of coverage except the employee-only tier, which will remain the same as 2014. There is no change to employer contributions in 2015.
BSA Group Accident Plan—Effective Jan. 1, 2015, AD&D coverage will be provided by MetLife. The BSA was able to negotiate with MetLife for a rate reduction of approximately 15 percent for the BSA and local councils. Employee premiums will decrease by 4 percent on average.
BSA Vision Plan—Effective Jan. 1, 2015, the employee monthly premium for the BSA Vision Plan will decrease by 10 percent across all tier levels of coverage.
Other benefits for which there are no changes for 2015 include the BSA Long Term Disability Plan, the Scout Executives’ Alliance, and the BSA Group Life Insurance.
The annual benefits enrollment period is Oct. 27 through Nov. 7, 2014. During annual enrollment, employees may log on to the BSA’s benefits website (http://ibenefitcenter2.mercerhrs.com) or call 800-444-4416 to review their benefits and make changes.
Plan to pay an additional 3 percent for property and casualty insurance. Show more...
In a newly designated floodplain or been flooded before? Rates could climb by 25 percent.
Premiums on business interruption and cybersecurity insurance won’t rise as swiftly—approximately 3 to 5 percent. Insurance for directors and officers is not yet final but will experience slight increases or remain the same as this year.
The insurance rate for council accident and sickness will increase by 2 percent to $0.79 per person/traditional and Learning for Life (LFL)/Exploring. The LFL curriculum-based program rate is $0.65 per person. Camper’s accident and sickness is $0.38 per camper per day. ACE American Insurance, administered by Health Special Risk Inc., will pay medical benefits not paid by other insurance, up to $15,000 accidental medical benefit or $7,500 for sickness benefit. The Risk Management Team is a resource that can help you with insurance needs. The policy will renew on Jan. 1, 2015. Rate change (if any) will be announced at a later date.
Heath Special Risk Insurance coverage is available for family members of Scouts and Scouters for $0.03 per person per day. If your council has interest in this coverage, contact Heath Special Risk at 972-512-5656.
General liability insurance experience rate will increase to a $2.25 to 2.75 range on Jan. 1, 2015. Your experience rate will be based on your council’s claim history for 2011, 2012, and 2013. Your 2015 premium is calculated as rate multiplied by membership (average traditional and Exploring youth and adult membership for Q4-2013 and Q1, Q2, and Q3-2014).
Risk Management sent an Experience Rate Calculation to each local council in the Aug. 30 pouch mail.
Additional information can be found in the Risk Management Notebook, under “Resources” on MyBSA.org.
The wage base for Social Security taxes will increase to $119,100 for 2015, up from the current base of $117,000. Tax rates will remain at 7.65 percent for employers and employees.
Airfares will rise about 3 percent—but non-stops and convenient connections will charge top dollar. Show more...
Hotel costs will rise by 5 percent again this year, driven by limited supply and high demand.
Meal costs will climb by only 2.5 percent.
Corporate car rental fees will jump 3 percent. There are fewer cars to go around.
Reimbursement for business use of a personal vehicle—The IRS standard mileage reimbursement has not been determined at this time. Best bet would be to stick with the 2014 rate of $0.56. The BSA recommendation provides employees with a stable monthly reimbursement to allow for personal budgeting by providing a flat rate per month, plus an amount per mile based on their average driving habits in the assignment. For example, $615 per month, plus $0.15 per mile, based on an employee driving an average of 1,500 business miles per month would reimburse at the IRS rate for 1,500 miles, or $840. Employees driving more than or fewer than the average business miles per month may be subject to an unreimbursed business expense or over-reimbursement, resulting in a personal tax liability to be added to the W-2 based on IRS rules. The council is responsible for being familiar with IRS rules, as well as calculating and applying taxable gross and appropriate taxes so the W-2 will reflect any taxable obligation that may occur.
We are aware that some councils have moved to reimbursing on the standard IRS rate based on actual business miles driven. This practice ensures that a taxable event will not occur for the employee, but can cause some cash flow challenges in months when fewer miles are driven and the employee’s car payment must still be made. In this case, councils should encourage employees to plan ahead and save cash from heavy driving months to fill in lean months.
Figure on office rents going up about 2 to 3 percent ... a bit higher for Class A space. Show more...
PCs and servers will continue to get cheaper: desktops down 9 percent, tablets down 2 percent, and smartphones down 5 percent. High-end laptops and ultraslim PCs will remain flat. Printers and copiers could be down as much as 10 percent.
Higher mailing and delivery costs will sting. Count on a 3 to 4 percent increase in overnight delivery charges from UPS, FedEx, and the like, plus a more modest hike for slower service.
The U.S. Postal Service delivery fees will go up about 2 percent on most classes of non-first class mail on top of the 4.3 percent emergency increase imposed last year. That increase will not expire in 2015 as planned.
No word on a first-class stamp, but you should budget one penny more, maybe two.
Gasoline prices are projected to drop a bit for a national average of about $3.40 per gallon for regular unleaded. Diesel, drop about 5 cents from this year’s average of $3.85. Heating oil will be in the same range as diesel. Show more...
Modestly higher natural gas will continue to rise 3 to 4 percent from last year.
Electricity will also be up about 4 percent over 2014.
Companies that rely on truck transportation can expect even higher fuel surcharges plus rate increases of about 6 to 7 percent, on average. Freight rail rates … rising about 5 percent.
BLACKBAUD ECRM SOFTWARE CONVERSION
Conversion of our current ScoutNET fundraising software to Blackbaud ECRM continues to progress and is now scheduled to continue into 2015 for full conversion and implementation. Show more...
Implementation of this new software should have no effect on council budgets. All training in the operation of the system and usage of the software is Web-based. Any computer that easily accesses the Internet will operate sufficiently.
The national information system fee will remain the same in 2015, but will be adjusted slightly for those councils that have recently gone through a merger or consolidation. Show more...
The national service fee for 2015 will remain at 3.5 percent of the 2013 professional salaries (account 7002) and clerical employee salaries (account 7003), up to the maximum of $40,000. If you exceeded the $40,000 ceiling for 2014, your 2015 fee will be increased by the percentage increase of your 2013 salaries over 2012 salaries, up to a 10 percent maximum. Example: Your 2014 fee was $48,783; your salaries increased by 6.2 percent in 2013. Therefore, your 2015 fee will be $48,783 plus 6.2 percent, for a total of $51,807. Your 2015 fee was calculated as part of your charter review in the spring of 2014.
All courses include travel unless otherwise noted. Show more...
| DOB (Exploring or LFL Certification available at no additional fee)
|| $1,500 includes travel
| First-Time Scout Executive (invitation only)
|| $995 includes travel
| Staff Leadership Development [formerly First-Time Staff Leader Orientation (invitation only)]
|| $645 includes travel
| Advanced District Administration**
| DO2 (formerly PD-L2)**
|| $795 (Philmont and Sea Base)
$995 (registration fee )
|| $1,395 includes travel
| PM-Series (Exploring or LFL Certification available at $120 additional fee)
$399 Non-Philmont (does not include housing or breakfast)
$599 Philmont (includes lodging and meals)
| Senior Leadership Essentials 1 and 2 (invitation only)
|| $645 includes travel
| AFP Fundamentals of Fundraising
|| $250 plus Travel and Lodging
| Senior Development Roundtable (invitation only; in conjunction with Top Hands)
|| Travel and lodging (no fee)
| Fiscal Management I and II
|| Travel, lodging, and meals
| Senior Fiscal Roundtable (invitation only)
|| Travel, lodging, and meals
**Register 45 days in advance, and save $200 on these courses.
SUGGESTED 2015 BUDGET-BUILDING TIMELINE
Below are suggested steps to take to ensure that your 2015 budget is developed in the appropriate timeframe. Show more...
- Scout executive distributes budget-planning reports by cost center, the Finance Impact Department 2015 Budget-Building Bulletin, and other support materials, including the planned budgeting workbook, to appropriate volunteers and staff at the budget-building conference.
- Local council staff and designated finance volunteers develop 2015 annual campaign plan.
- The 2015 fundraising goals are reviewed and approved by the district and council Key 3.
- Council committees and staff work on 2015 budget draft.
- The 2015 fundraising goals and plan are approved at October executive board meeting.
- Draft 2015 budgets are submitted to council service center for data entry no later than Oct. 31.
- Scout executive reviews draft budget with key volunteers and designated staff.
- Adjustments are made to ensure a balanced budget addresses key council goals, strategic plan, and cash flow needs.
- Council finance committee or other appropriate officers review and approve budget.
- The 2015 proposed budget is sent out at least a week prior to the council’s executive board meeting.
- The 2015 budget is approved at the executive board meeting. (December should be a backup month.)
- All 2015 council budgets must be approved by executive boards no later than Dec. 31, 2014.
PREFERRED COUNCIL SERVICE PROVIDERS
Best Play Solutions
• Interstate Batteries
• Pecatonica River
• Pine Valley Foods
• Ramsey Popcorn
• Trail’s End
• Virginia Diner
• Haines Direct
• Spectrum Marketing Companies
Capstone Advancement Partners
• Hartsook Companies
• Kelley Marketing Group Inc.
Bell Fundraising Consultants
• Blackbaud Inc.
• Over the Edge
Woltz & Associates
• Jitasa (formerly Easy Office)