1. May 16, 2016 Diane J. Richards, CPA, M.Ed. Director of Finance 2016 – 2017 Proposed Final Budget

2. Budget Summary Total Revenue = $98,903,165 Total Expenditures = $99,903,165 Budget is fully funded--Difference of $1,000,000 is the budgetary reserve line item

3. Millage Budget reflects millage increase of.4 mills (1.6% increase) Act 1 allowed for the following millage increase: ◦ Index = 2.9% =.71 mill increase ◦ In December Board approved the resolution to not exceed the Act 1 index

4. Millage Impact to Homeowners AVERAGE 75th PERCENTILE Assessed Value of Home$138,689$162,900.4 mill annual increase$55.48$65.16.4 mill monthly increase$4.62$5.43 Source: Berks County Assessment Office Homestead Properties

5. County Millage Comparison for 2015-2016

6. Revenue Summary 2016-17 2015-16Difference Real Estate Taxes 61,588,024 59,226,226 2,361,798 Other Local Revenue 13,478,580 13,235,824 242,756 State Revenue 22,476,249 20,925,671 1,550,578 Federal Revenue 1,157,312 993,954 163,358 Other Revenue 203,000 189,000 14,000 TOTAL 98,903,165 94,570,675 4,332,4904.6%

7. Significant Changes Increase in local real estate taxes ◦ Millage of.4 = $960,000 (1 mill = $2,400,000) ◦ Assessment growth = $710,000 ◦ Higher collection rate (98.5%) = $690,000 State revenue increase is reflective of an additional $217,391 in new monies (quarter of Governor’s proposal) and state’s share of the PSERS contribution (approx. $1.2 million) $166,563 increase in Title I federal monies

8. 2016-17 Revenue

9. Real Estate Assessments

10. State Basic Ed Funding

11. Expenditure Summary (Objects) 2016-17 2015-16Difference Salaries 45,276,940 43,108,736 2,168,204 Benefits 26,333,834 23,150,376 3,183,458 Sub-Total 71,610,774 66,259,112 5,351,662 Purchased Prof Svc 1,864,116 2,218,419 (354,303) Purchased Prop Svc 3,084,966 3,538,616 (453,650) Other Purchased Svc 5,850,415 5,561,212 289,203 Supplies 3,756,627 3,881,326 (124,699) Property/Equipment 939,267 923,588 15,679 Other Objects 177,816 193,402 (15,586) Other Financing Uses 11,619,184 11,995,000 (375,816) Budgetary Reserve 1,000,000 - TOTAL 99,903,165 95,570,675 4,332,4904.5%

12. Expenditure Summary (Functions) 2016-17 2015-16 Difference Regular Education 39,778,485 37,900,498 1,877,987 Special Education 14,820,444 13,062,279 1,758,165 Vocational Education 2,558,606 2,403,771 154,835 Other Instruc. Programs 349,314 483,116 (133,802) Nonpublic Programs 33,000 - Pupil Personnel 3,245,022 3,022,512 222,510 Instructional Support Svcs 5,798,591 5,078,111 720,480 Administration 5,296,231 5,596,217 (299,986) Pupil Health 816,794 757,519 59,275 Business Office 903,752 902,980 772 Operations 7,482,327 7,283,239 199,088 Transportation 2,932,878 2,957,053 (24,175) Central Office 519,394 449,540 69,854 Other Support Svcs 206,854 216,720 (9,866) Student Activities 2,412,518 2,285,535 126,983 Community Services 129,771 143,585 (13,814) Transfers/Debt 11,619,184 11,995,000 (375,816) Budgetary Reserve 1,000,000 - TOTAL 99,903,165 95,570,675 4,332,4904.5%

13. Significant Changes Salary increase of 3.4% for all staff Medical premium increase of 8% (waiting for final number from Trust) PSERS increase from 25.84% to 30.03%

14. Public School Employees’ Retirement System (PSERS) Contribution Rate Total Expenditure Increase District ShareMillage Impact 2010-115.64% 2,215,389 2011-128.65% 3,429,835 1,214,446 607,2230.25 2012-1312.36% 4,924,986 1,495,151 747,5760.31 2013-1416.93% 6,904,910 1,979,924 989,9620.41 2014-1521.40% 8,545,051 1,640,141 820,0710.34 2015-1625.84% 10,985,795 2,440,744 1,220,3720.51 2016-17 30.03% 13,419,388 2,433,593 1,216,797 0.51 2017-18 est32.04% 14,747,689 1,328,301 664,1510.28 2018-19 est33.27% 15,773,261 1,025,572 512,7860.21 2019-20 est34.20% 16,700,598 927,337 463,6690.19

15. Significant Changes Cont’d New Staffing: ◦ Part-time Aide for English as a Second Language ($18,548) ◦ Part-time Support for Human Resources ($40,859)

16. Significant Changes Cont’d New Special Ed staffing: ◦ Autistic teacher at High School ◦ Autistic teacher at West Middle School ◦ Two autistic aides ◦ Gifted teacher at West Middle School ◦ Learning Support at Elementary level ◦ Learning Support at Middle School level ◦ Total cost = $387,428

17. Special Education Trends Note: Subsidy numbers above do not include Stimulus monies of $1,238,671 in 09-10 and 10-11

18. New Positions Requested but not Granted New Positions Requested but not Granted Elementary Assistant Principal ($110,924) Human Resources support position was requested at full-time and reduced to part-time ($23,478) Additional ESL teacher

19. Additional Reductions Needed Virtual Driver Ed Chinese I and II Middle school library aides reduced to part- time from full-time Reductions to various departments ($23,000) Technology was able to cut $220,000 due to lease renewals (one-time only) Science was able to cut $40,000 (one-time only)