1. Manheim Township School District Community Budget Outlook February 3, 2011 The mission of the Manheim Township School District is to provide an environment where everyone will learn, grow, and succeed. will learn, grow, and succeed.

2. Manheim Township School District will continue to strive for the highest level of student achievement in the face of the fiscal challenges of a tight budget year. The School Board and administration is focused on and committed to preserving the core educational programs for students. Reductions and eliminations in the 2011-2012 school year budget will help us to maintain the programs and services that support our mission of excellent student achievement.

3. Current 2010-2011 Budget $75,896,576 Budget per pupil - $12,903 Millage Rate - 17.02 Millage Ranking in Lancaster County – 10th lowest out of 16 districts

4. Current Budget- Revenue Local Revenue- $60,449,962 State Revenue- $13,367,489 Federal Revenue and other - $1,179,125 Fund Balance - $900,000 Total Revenue – $75,896,576

5. Current Budget- Expenditures Instructional – $40,394,548 Support- $22,456,423 Non-instructional Services - $1,492,605 Other Expenses & Financial Uses - $11,553,000 Total Expenses- $75,896,576

6. Projected Deficit for 2011-2012 Manheim Township School District is projecting a shortfall estimated at $3.5 - $4.5 million for the 2011-2012 school year. The reason for the shortfall is because of a decrease in revenue funding and an increase in the cost of doing business. The economic climate has caused a decrease in funding due to a drop in earned income tax, reduced investment earnings and tax revenue, property assessment appeals, and an anticipated drop in state and federal funding.

7. Projected Deficit for 2011-2012 Expenses are predicted to increase about 3% next year over the current $76 million budget. Some areas projected to have a cost increase are special education, pensions, healthcare, salaries, and debt service. The school board voted to stay within the Act 1 index, limiting the tax increase to no more than 1.4%. Given the current economic climate, they chose not to apply for exceptions from the state. An exception is not “found” money. It allows the district to increase taxes above the Act 1 index. A 1.4% increase in real estate revenue from taxpayers will not meet the projected rise in expenses for the coming year.

8. Community Survey In January, the school district posted a Community Cost-Savings Survey on the district website. The five question survey was implemented to seek ideas from community members to reduce costs. The district received approximately 300 responses from the community survey.

9. Community Survey Results Response % Parent 60.6% Resident 56.1% Staff Member 26.7% Student 12.7%

10. Community Survey Results According to the survey, the top five areas the respondents feel the district can do more to cut costs are: Publications/communications (49.8%) District supplies(34.5%) Transportation (tied at 30.9%) Athletics (tied at 30.9%) Purchasing (28.7%)

11. Cost-Saving Measures Already Implemented Administrators, Act 93 Specialists, and the Technology Department have agreed to a voluntary pay freeze for 2011-12 school year. The district has reduced transportation routes and custodial hours. The district is reviewing staffing needs as positions open. Building budgets, district-wide, have already been reduced by 20%, which includes building supplies and materials.

12. Cost-Saving Measures Already Implemented (cont.) For the 2011-2012 year, district publications and the district calendar will go online. We will not print the calendar or the winter and spring issue of the community newsletter. The fall issue, because it contains the district’s annual report, will remain a printed publication and will be mailed to residents. We participate with the IU13 consolidated buying programs for supplies, utilities, and insurances.

13. Other Budget Challenges State Subsidy Federal Subsidy Special Education Cyber/Charter Schools Increasing Enrollments Healthcare Costs Pension Costs

14. Level 1 Reductions/Eliminations Administrative Reorganization - $387,000 Administrative Pay Freeze - $87,000 Consultant Reorganization - $75,000 Reduce secretarial staff (retirement) - $60,000 Eliminate Consultants days, reduce stipends - $50,000 Reduce Tech Integrators stipends by 50% - $15,000 Reduce Content Specialist stipend by 50% - $30,000 Reduce Induction/mentors stipend by 50% - $23,000 Reduce team leader stipend by 50% - $10,000 Reduce custodial staff - $105,000 Eliminate elementary teacher liaisons - $3,500

15. Level 1 Reductions/Eliminations 1 Music retirement not replaced - $30,000 2 Library retirements not replaced - $175,000 1 Business Ed. retirement not replaced - $87,000 1 Family Cons. Sci. retirement not replaced - $77,000 1 Health/PE retirement not replaced - $35,000 1 Art retirement not replaced - $92,000 1 Special Education retirement not replaced - $52,000 Reduce 1 elementary position - $58,000 Eliminate elementary building aide - $19,000 Reduce additional library position - $52,000 Reduce one special education aide - $19,000

16. Level 1 Reductions/Eliminations Eliminate HS Adult Ed - $8,500 Eliminate post-season pay in athletics - $42,000 Eliminate Work Prep Program - $257,000 Eliminate under enrolled music/tech ed. electives - $127,000 Reduce curriculum development budget - $115,000 Reduce staff development budget - $40,000 Reduce summer guidance days - $20,000 Reduce coaching stipends by 50% - $233,000

17. Level 1 Reductions/Eliminations Reduce extra/co-curricular stipends by 50% -$145,000 Wait extra year, grade 5, to start instrumentals - $58,000 Reduce summer psychology time to 80 hours - $6,000 Replace 4 retirees with beginning teachers - $116,000

18. Level 1 Reductions/Eliminations Reduce Technology budget - $50,000 Reduce Plant Services budget - $125,000 Reduce Business Office budget - $15,000 Reduce Operations budget - $5,000 Reduce Board Services - $10,000 Reduce consultant budget - $7,200

19. Level 1 Reductions/Eliminations Eliminate secondary classroom aide - $23,400 Eliminate printing of district calendar - $9,000 Terminate Hockey Club stipend - $4,000 Reduce AV budget - $15,000 Reduce 3 buses - $100,000 Reduce Activity Bus to 2 days/week - $35,000 Eliminate staff flu shots - $7,000 Medical savings based on staff reductions - $25,000 Bring selected IU students back into the district - $150,000

20. Revenue Increases Increase tax certificate fee from $20 to $25 - $7,500 Naming rights revenue - $50,000

21. Level 1 Savings The district is able to cut approximately $3,300,000 with Level 1 efforts.

22. Key Points to Remember The budget crisis is affecting school districts nationally and across Pennsylvania. In order to balance the budget, extraordinary measures are being considered. There are restrictions on the programs and services that can be eliminated because of state and federal mandates. Examples are: District must provide transportation for non-public students District must provide transportation for non-public students Staff pension plans are run through the state of Pennsylvania and are not a district program. Staff pension plans are run through the state of Pennsylvania and are not a district program.

23. Key Points to Remember (cont.) The School Board and administration are focused on and committed to preserving the core educational programs for students. District financial audit reports are available online on the district’s website. http://www.mtwp.net

24. Next Community Meeting March 3, 2011 7:00pm High School