1. Preliminary Budget Adoption
February 5, 2018
Solanco School District

2. Preliminary Budget
Anticipates Applying for Special Education Exceptions
Summary Sheet from Preliminary Budget Review
Approximately $510 K in Spec. Ed. exception value available- See separate work sheet approximately 2% on top of Act 1 Cap of 3%
Solanco Property tax based on $2.4 Billion in Assessment; Approx. $24.1 Million Property Tax revenue budget.
Property Tax = Approx. 40% of Total Budget.....therefore 3% X 40% = 1.2%
Board Control of Revenue is under 1.3% of the total budget
All other revenue is subject to the local economy, State political and economic policy, and Federal entitlements
Budgetary control by the board is as much weighted on the expenditure side as it is on the revenue side

3. Special Education: Summary and Exception Considerations---No carryover---

4. 2017-18 Earned income Tax: 4 of first 5 months negative year-over-year

5. Pension---Lower Increases--- 33.43% for 2019 and Beyond

6. Payroll for 2016 and 2017 at 2011 levels

7. 2018 Borrowing Second Phase Borrowing....$9.9 Million...
Bank Qualified Value?
2029 in the Resolution
Solicitations out for review through February 21.
Final Phase ( ) borrow exact amount when known to close out---
Fixed rate being sought.....combinations fixed and variable allowed but must be capped at a fixed maximum...bank proposals must be final...all rates and fees to be included
Comparative Analyses to be run on any mix of fixed and variable

8. Rate Changes since September 2017

9. Looking Ahead Governors Budget This week (after the Eagles Parade)
Education funding expected to increase modestly
Tax Reform/Relief/Shifting
School funding future --- BEF ?
Solanco Final Budget targeted for June 5, 2018
Earned Income tax --- monitor for budget adjustment/impact
Special Education Revenue & Costs --- monitor for current year and State Budget
Pension --- Employer share will increase; at a slower pace
Salaries --- monitor for competitive market; review positions for re- allocations and non-replacements