Budget Work Session January 7, 2016

The Finance Committee is recommending the following:  The Board authorize the intent to adopt the Proposed Preliminary Budget for and the intent to apply for Act 1 Exceptions to the Pennsylvania Department of Education (PDE) and authorize administration to advertise the intent. (Formal adoption to occur at the January 26, 2016 Board Meeting) 2

 Flexibility  Early Action  Uncertainty of State Budget  Uncertainty of State Budget 3

 The initial run of the general fund draft budget indicates the following: ◦ Administrative discussions during budget justification sessions resulted in the following draft budget: “Draft” Revenues$91,557,372 “Draft” Expenditures$98,390,262 “Draft” Deficit$ 6,832,890  The draft budget includes a tax increase of.5309 mills, for a total millage rate of mills; the maximum allowed by the Act 1 index of 2.4%. 4

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Act 1 Index set by PDE at 2.4%. Translates to additional millage of.5309 mills or $1,620,040 in real estate tax revenue available to balance the budget. Local revenue was based on past history and four months of current history. (98% Real Estate Tax collection rate and increase valuation) State subsides budgeted at the level. Continuation of state’s reimbursement of 50% of the costs of employer share of social security and retirement. Federal revenues were budgeted at the level. Other revenues includes using $903,324 of the PSERS Rate Stabilization Committed Fund Balance. State revenues will be revisited once the Governor's budget becomes fully known on February 9, Overall revenues are increasing by $2,138,000 over the total budgeted for

 Salaries are projected to increase $1,012,681. Budgeted salaries include recently approved Collective Bargaining Agreements.  Benefit costs are projected to increase by $3,168,413 ◦ Health Benefits - $1,063,427 ◦ Retirement - $1,997,000  Pupil Personnel budget (excluding salary and benefits) has an increase of $481,436.  Support Services budget (excluding salary and benefits) has a decrease of $187,852.  Debt Service budget has an increase of $1,376,150.  Transfers Out budget has a decrease of $4,298,445. 8

◦ PSERS contribution is increasing by $1,997,000, net effect $998,500 after state reimbursement. ◦ District’s share for was budgeted at 29.69%, up from the rate of 25.84%. ◦ PSERS contributions are projected to grow in future years as follows: 9 YEAREMPLOYER PERCENTAGE PERCENT CHANGE %20.75% %14.90% %3.13% %3.07%

 Curriculum Initiative Fund and Technology Funds - Transfers to these funds are budgeted at $2,741,122 ◦ Curriculum - $910,800 ◦ Technology - $1,830,322  Capital Reserve (Ongoing maintenance) – Transfer to the Capital Projects fund was budgeted at $773,732.  Budgetary Reserve-Contingency for Personnel includes positions from that were not filled, or are reoccurring as well as new staffing requests for Additional time is needed to review these requests in more detail. 10

 Health Care Benefits  Utilities  Fuel  Capital Improvement Costs  Anticipated Retirements  Revised Estimates  Additional Revenue  Act 1 Exceptions  Use of Fund Balance 11

 Special Education Expenditures - $708,281 Equates to.2257 Mills or 1.02%  Retirement Contributions - $1,391,227 Equates to.4370 Mills of 1.975%  Combined $2,099,508 Equates to.6627 Mills or 2.995% above the Act 1 Index of 2.4% (5.395% Total) 12

13 Category Unaudited Fund Balance Used in or Not Available Available Use of Fund Balance Committed for Capital Projects$ 5,021,679($ 978,068)$ 4,043,611 Committed for Facility Initiatives$ 4,488,139($ 4,473,498)$ 14,641 Committed for Curriculum Initiatives$ 90,201 Committed for Technology Initiatives$ -0- Committed for Retirement Escrow$ 3,501,864($ 1,171,005)$ 2,330,859 Committed for ERIP & Comp Absences$ 557,803($ 557,803)$ -0- Unassigned$ 7,700,947($ 219,899)$ 7,481,048 Total$21,360,633($ 7,400,273)$13,960,360

THANK YOU! 14