1. Radnor Township School District January 25, 2011

2. The initial run of the 2011-12 general fund proposed preliminary budget indicates:  Projected revenues$77,661,981  Projected expenditures$78,652,388 At this point, expenses exceed revenues by $990,407, assuming a 1.4% mil tax increase per the Act 1 index level. Total millage increase permitted for RTSD under Act 1 is.2857 mils.

3. At the January 15 board meeting, the board directed the administration to prepare four scenarios.  Scenario 1 – 0% tax increase  Scenario 2 – 1.4% tax increase (Act 1 index)  Scenario 2A – 2.89% tax increase (Index plus some exceptions)  Scenario 3 – 3.99% tax increase (Index plus all exceptions)

4. 2010-2011  Budget = $75,945,788  Value of a mil = $3,037,379  No. mils in place = 20.8681  Tax increase = 2.9%  Expenditure increase = 1.9%  Budget = $78,652,388  Value of a mil = $3,032,433  No. mils in place = 20.8583  Tax increase = 0%  Budget gap = $1,856,773 2011-2012 Prop. Prelim. Budget

5. RecommendationsSavingsGap Balance $866,366 additional to the $990,407$1,856,773 Budget actual PSERS cost$523,639 $1,333,134 Reduce budget legal services$200,000 $1,133,134 Reduce budget for capital fund$100,000 $1,033,134 Reduce budget for utilities$66,768 $966,366

6. Options to exploreSavingsGap Balance $966,366 Reduce Teaching Positions @ $130,000 per Cover the roster only with special classes Increase class size Reduce number of electives Decrease music lessons Reduce integrated offerings Use state-recommended formula for counseling services Increase walking zone Decrease transportation routes (may lose state subsidies)

7. Options to exploreSavingsGap Balance $966,366 Reduce afterschool activities/Institute fees Support-staff reductions Para-educators Custodial/Maintenance Clerical Administrative Reductions

8.  Budget = $75,945,788  Value of a mil = $3,037,375  No. mils in place = 20.8681  Tax increase = 2.9%  Expenditure increase = 1.9%  Budget = $78,652,388  Value of a mil = $3,032,433  No. mils in place = 21.1440  Tax increase = 1.4%  Expenditure increase = 3.56%  Budget gap = $990,407 8 2010-20112011-2012 Prop. Prelim. Budget

9. RecommendationsSavingsGap Balance $990,407 Budget actual PSERS cost$523,639466,768 Reduce budget legal services$200,000266,768 Reduce budget for capital fund$100,000166,768 Reduce budget for unemployment compensation $100,00066,768 Reduce budget for utilities$66,7680

10. Exceptions Revised  A school district adopting a preliminary budget with real-estate taxes that exceed its index may seek approval for referendum exceptions to increase tax rates by more than its adjusted index.  Section 333 of Act 1 provides for 10 exceptions: three must be approved by the Court of Common Pleas and seven require approval by the Pa. Dept. of Education.  For the 2011-2012 budget, Radnor may apply for exception in the areas of:  Cost to implement a court order ($42,485)  Retirement contributions ($122,344)  Grandfathered debt ($190,905)  Maintenance of local revenue or actual instruction expense ($1,331,323)  Estimated total: $1,687,057 10

11.  Budget = $75,945,788  Value of a mil = $3,037,375  No. mils in place = 20.8681  Tax increase = 2.9%  Expenditure increase = 1.9%  Budget = $78,652,388  Value of a mil = $3,032,433  No. mils in place = 21.4706  Tax increase = 2.89%  Expenditure increase = 3.56%  Budget gap = $0 11 2010-20112011-2012 Prop. Prelim. Budget

12.  Budget = $75,945,788  Value of a mil = $3,037,379  No. mils in place = 20.8681  Tax increase = 2.9%  Expenditure increase = 1.9%  Budget = $79,349,038  Value of a mil = $3,032,433  No. mils in place = 21.7003  Provides for an estimated $1,687, 057 in additional real-estate tax revenues if approved (thus eliminating gap and netting an additional $696,650)  Increases real-estate taxes by 3.99% 12 2010-20112011-2012 Prop. Prelim. Budget

13. Summary Tax Increase Scenario 1 0% Scenario 2 1.4% Scenario 2A 2.89% Scenario 3* 3.99% Expense Budget $78,652,388 78,652,388$79,349,038 Revenue Budget $76,795,615$77,661,98178,652,388$79,349,038 Gap$1,856,773$990,40700 13 *1.4% + Exceptions