1. What Keeps Us Up at Night Presentation to HMS PTO Meeting March 8, 2012 – HMS Library Bob Shages, HTSD Board

2. What Keeps Us Up at Night 2011-2013 HTSD Board of School Directors David Gurwin – President Mary Alice Hennessey – Vice President & Facilities Chair Pam Lamagna – Secretary & Educational Affairs Chair Bob Shages – Treasurer & Policy & Legislative Affairs Gail Litwiler – Personnel Chair Larry Vasko – Finance Chair Bryant Wesley – Student Affairs Chair Greg Stein – Technology Chair Denise Balason – Transportation Chair

3. HTSD Board HTSD Central Administration Superintendent Asst. Superintendent Business Manager School Administration US Dept. of Education PA Dept. of Education 208 Teachers - HTEA 74 Sec’ty/Paraprofessionals - HESPA 40 Custodial/Maintenance Staff - CMA 12 Food Service Staff - CEA Policy Oversight Approvals Hiring Budget & Taxes Procedures to Implement Policy Day-to-Day Operations Staff & Student Performance Planning Community volunteers elected to 4 year terms Finance & Admin. Student Services Curriculum Maintenance HHS HMS Poff Central Wyland Allegheny Intermediate Unit 3100 Students 350 employees $43.7M Budget Regulation and Partial Funding

4. Facilities All building renovated and air conditioned HHS fields will be completed this Spring HHS kitchen to be revamped over 2 year period Board looks at all grounds and facilities as a community asset What will go next??? PA PLANCON – 17 steps required for construction projects PLANCON reimbursements have been suspended by PDE Prevailing Wage Bill before House to help cut costs on smaller projects

5. Transportation $2,100,000 per year 3100 HTSD students and 450 private/parochial/charter students School – athletics – band – field trip bussing All private/parochial/charter students within 10 miles of Hampton border are bussed by HTSD – share when possible with other Districts Per student cost ranges from $2,000 to >$40,000 per student Difficult balance of cost with convenience and expectations

6. HTEA Contract HTSD and HTEA have been in discussion for 6 months Process regulated by Act 88 More than salaries – benefits, work rules, common expectations Contract up in June, 2012 Stay tuned

7. Charter Schools & Cyber Charter Schools School District chartered, community initiated/run schools Funded by School Districts @ 80% of “per pupil cost” – range $6,000 to $16,000 HTSD is $9,500/ $17,500/year/student Given mandate Relief in order to concentrate on innovation and sharing 30 HTSD students in Charters (both types) HTSD started new HTSD Curriculum-based distance learning initiative AYP is sketchy especially with Cyber’s (2 of 8 in 2011 met AYP) Many are run by for-profit companies (LRN is $750M company on NYSE) No real Cyber student accountability – are they there? No real cost reduction to HTSD Cyber Funding is grossly unfair – no connection to cost Transportation adder can be more than the funding Innovation sharing is minor PA State Reimbursement eliminated in 2011-12 Budget

8. Vouchers Promoted as “school choice” “Ticket out” for poverty-level children in the lowest 5% of Districts Too many proposals and amendments over past year to count Downsized version passed in Senate (SB1); failed in House – never voted on Lots of for-profit lobbying money being passed around PA and other states Most plans will not affect HTSD – but not right for educational reform Plans that raise income limit and open vouchers to all students will affect HTSD Districts must still maintain “readiness to serve” capabilities Senate Finance Report said about 7% of eligible student will use it No private school accountability for tax dollars Big question on constitutionality of parochial school vouchers Unresponsive to real needs of most challenging students and Districts Will deplete public school funding at greater rate than any cost reductions

9. PA State Employees Retirement System Teaches retirement fund (as well as all state workers) Defined Benefit Program for all teachers and state workers Teachers pay % of salary; HTSD pays % of salary; PA pays % of salary upgraded in 2001 by PA Legislature for higher payouts Under-funded by BILLIONS – poor premise based on a never ending market run-up 2010 – 5.64% 2011 - 8.85% 2012 – 12.36% 2013 – 16.75% 2019 – 28.04% $110K actual HTSD cost increase per 1% increase in funding level (even after PA reimbursement) HTSD has a $4.4M reserve fund to be spent over 10 years to temper increases (most Districts do not) Approached Legislature for fixes but no viable solutions except extending amortization Minor changes to PSERS Plan in 2011 for new teachers but will not help for 30 years

10. 2012-13 PA State Budget “Largest amount of state funding in PA history” – Gov. Corbett Will Districts get more or less? Yes, they will! Statewide, increase is about ½ % for student oriented spending Most of Corbett budget increase is targeted for PSERS reimbursements $100M of Accountability Block Grants cut out Student Achievement Education Block Grant combines 5 funding programs for “District flexibility in spending” but most are mandates Poorer school districts are hurt more than HTSD because of higher state funding that is poverty related This will play out for months PSBA and PSEA are spending lots of energy trying to figure it all out for their organizations Half-truths and incomplete statements will be made by both sides Mandate relief would help but nothing actually proposed by Corbett Administration

11. Hampton Township School District 2012-13 State Budget Line items Per State Proposed Budget released February 7, 2012 2012-13 State Proposed Budget 2011-12 State Final Budget 2010-11 State Final Budget Revenue Source Student Achievement Education Block Grant* $ 6,300,493 Basic Education Subsidy (incl ARRA in 10-11) $ 4,608,256 $ 4,926,546 Social Security Subsidy $ 840,793 $ 839,163 Cyber I Charter Reimbursement Subsidy $ 51,622 Pupil Transportation Subsidy - $ 755,082 $ 775,565 PA Accountability Grant $ 88,849 $ 226,143 Total State Funding $ 6,300,493 $ 6,292,980 $ 6,819,039 $ Change from Previous Year $ 7,513 $ (526,059) Percent Change from Previous Year 0.12%-7.71% 2- Year $ Decrease (518,546) 2- Year Percent Decrease -7.60% Net increase to HTSD for 2012-13

12. Initial “preliminary budget is $43,707,000 – up 5.15% from 2011/12 Funded with 74% local (60% real estate, 8% wage taxes); 24% State; 2% Federal In 2011/12 lost $550,000 in PA funding; is up $96,362 for this year BUT - No Accountability Block Grant funding – Over 3 yrs, AGB decreased from $226,000 - $88,000 - $0 HTSD Budgeting is a bottoms-up, six month process that must be completed before state finishes their budget Goal is to fund all programs at high-performance levels with no tax increase – more difficult each year 2012-13 HTSD Budget

13. Assessments & Taxes Property assessments are an Allegheny County function, not local On reassessment values, HTSD has to reset the millage rate so as not to receive a financial benefit (within 2%) – “revenue neutral” HTSD is known as one of the most cost-effective Districts in SW PA 2011-12 Tax rate = 21.35 mils County Avg. is 23.66 - HTSD is 2.31 mils or 9.76% lower 12 lowest of 41 Districts in Allegheny County Act 1 limits tax increases to Index Limit - 2012-13 = 0.427 mils + exceptions - Or, we could have a referendum! 70% of Hampton taxpayers do not have school children FYI – Allegheny County taxes just increased 20+%

14. So... What Keeps Us Up at Night ? (our children, of course) Will our students reach their personal potential while at HTSD? Will our children be personally successful when they leave HTSD? Everything else is just working out the details

15. Addendum - What Else Keeps Us Up at Night ? In addition to what was discussed, we also deal with: Class size and balance between schools – monthly reports starting in January with bi-weekly reports by May Tax base – is it growing at a level that can keep pace with inflation? Meetings with Hampton Township Council on how to grow it while maintaining the community character Personnel issues – do we have the “best” people teaching our children and running our schools Curriculum – are we using the best methods and scheduling the right classes that will challenge children at all levels and better prepare them for the future