1. New Information 1 Governor’s proposed 2016-17 budget Basic Education Funding $200 million increase (Includes Right to Learn funding) Special Education Funding $50 million increase Octorara Area School District total increase of $692,302 over the current proposed budget amount (2014-15 actual) PASBO (Pennsylvania Association of School Business Officials) projection Using amounts already distributed and best guess of increases for 2016-2017 Octorara Area School District total increase of $422,344 over the current proposed budget amount (2014-15 actual) Recommend that we keep 2016-17 budget increase at $0 for now

2. 2016-17 Budget Summary Total Current Revenues$49,434,879 Total Expenditures$52,405,602 Deficit($2,970,723) 3% Act 1 Tax Increase$964,727 Budgeted Contingency$350,000 Debt Service Savings$340,000 State Revenue$? Proposed Budget Reductions$420,000 Deficit($895,996) Use of General Fund Balance$895,996 ($0 increase in basic ed, special ed and other state funding) 2

3. Tax Increase 3 Chester County Mills Change in Mills from 2015-16 Lancaster County Mills Change in Mills from 2015-16 Increase in Tax Revenue 2015-16 Mills 37.5127.20 0%37.47-.0427.87.67$0 0.5%37.66.1528.01.81$160,667 1.0%37.86.3528.16.96$321,333 1.5%38.05.5428.301.10$482,000 2.0%38.25.7428.441.24$642,667 2.5%38.44.9328.591.39$803,333 Act 1 Max 3.0%38.631.1228.731.53$964,727

4. Administrative Budget Reductions 4 Replace scheduling and maintenance software with free open source software $5,000 Reduce admin travel budget $2,500 Reduce consultant budget $2,500 Slower replacement of computers $8,400 Data warehouse $5,000 Dues and Fees $1,500 Eliminate contingency budget $1,500 Reduce Internet annual cost $3,600 Total Administrative reductions $30,000