1. May 29, 2008 2008-2009 Budget Presentation School Board Meeting

2. 1 Budget Process Summary Budget Highlights –Special Education –Transportation –Library Donations Significant Cost Increases –Medical Contributions –Fuel Fund Balance Sacrifices Questions and Answers Budget Presentation 2008-2009 -- Agenda – Agenda

3. 2 Budget Process At all times during the process, the goal is to maintain the highest quality of excellence in our educational program for our students as possible. Our students’ needs come first!

4. 3 Budget Process Administration examines the set costs as determined by contractual obligations, projections for health care, projections for fuel costs, etc. Administration reviews and studies enrollment projections and, after registration time, includes actual numbers into enrollment projections for 2008-2009. Following this, staffing changes are planned. Building and cost site administrators submit budgets according to the budget calendar distributed in early fall. The building principals are given a per pupil amount for planning that covers everything but salaries and operations: Elementary $200 Middle$207 High School $233 These budgets are then reviewed continuously by the Business Manager and the Superintendent to find cuts and to make adjustments as needed.

5. 4 Budget Process Summary Budget Highlights –Special Education –Transportation –Library Donations Significant Cost Increases –Medical Contributions –Fuel Fund Balance Sacrifices Questions and Answers Rose Tree Media School District’s Budget for 2008-2009 is $76 million. -- Agenda – Agenda

6. 5 Budget FinalExpenditures2007-2008 Budget 2008-2009 Instructional 1000 $39,651,030 $40,507,603 Support Services 2000 23,048,958 24,523,599 Operation, Non- Instructional Services 3000 1,194,737 1,173,964 Facilities Services 4000 117,950 128,426 Other Financing Services 5000 8,562,227 9,758,222 Totals $ 72,574,902 $ 76,091,814 Budget Final Revenues2007-2008 Budget 2008-2009 Local 6000 $61,466,661 $63,163,369 State 7000 8,563,385 10,463,461 Federal 8000 244,856 327,873 Sub Totals $70,274,902 $73,954,703 Fund Balance 2,300,000 2,137,111 Totals $72,574,902 $76,091,814 Rose Tree Media School District’s budget for 2008-2009 is $76 million. -- Summary Budget -- Summary Budget

7. 6 Highlights –Special Education –Transportation –Library Donations Significant Cost Increases –Medical Contributions –Fuel Fund Balance Sacrifices Questions and Answers Here are the highlights of the budget. -- Agenda -- Agenda

8. 7 Highlights Special Education –$11,996,575 Transportation –$3,683,735 Library Donations –$16,000

9. 8 1 millage point (mills) is equal to approximately $2.8 million 2007-2008 Real Estate Taxes are 20.1314 mills The current 2008-2009 budget is 21.0977 mills Act 1 provides for a 4.4% increase – The PA Department of Education has approved Exceptions for Special Education and Debt Service that would allow us to take a 5.46% millage increase. The current 2008-2009 budget is a 4.8% increase or $201,320 DCCC is included in our budget; their portion is.3734 mills this year and.3985 mills next year Here are some key facts and figures of the budget. -- Key Points -- Highlights

10. 9 Key Points Taxpayer - Average assessment is $235,891; average school taxes in 2007- 2008 were $4,748.82 and 2008-2009 is $4,976.76 The average increase in taxes to homeowners is $227.94 (at 4.8% millage index) The value of a mill is $2,800,000 (using a round number) so the dollar amount over the index is $201,320. Additional information: Using the average assessment of $235,891 the average property owner will be paying an additional $19.00 due to the increase over the index. This is included in the $227.94 mentioned above.

11. 10 Summary Budget Highlights –Special Education –Transportation –Library Donations Significant Cost Increases –Medical Contributions –Fuel Fund Balance Sacrifices Questions and Answers -- Agenda -- Agenda

12. 11 There are items that increased far in excess of Act 1. -- Expense Items -- Significant Cost Increases –Medical Contributions Over 14% –Dental Contributions Over 14% –Diesel Fuel Over 34%

13. 12 Summary Budget Highlights –Special Education –Transportation –Library Donations Significant Cost Increases –Medical Contributions –Fuel Fund Balance Sacrifices Questions and Answers Fund Balance is critical to RTMSD’s borrowing rate. -- Agenda -- Agenda

14. 13 Unfortunately, even with the budget we have, there are cuts to the fund balance. -- Fund Balance Reductions -- Fund Balance 2006 –$2.8 million 2007 –$2.3 million 2008 –$2.1 million

15. 14 Summary Budget Highlights –Special Education –Transportation –Library Donations Significant Cost Increases –Medical Contributions –Fuel Fund Balance Sacrifices Questions and Answers With costs rising above the Act 1 percentage, we continue to tighten our belts. -- Agenda -- Agenda

16. 15 Even with the modest increase in taxes, certain items had to be cut from the budget. -- Cuts-- Sacrifices 2 Administrative Positions 1 Supervisor and 1 Specialist 4 Elementary classroom teaching positions Decreased enrollment 5 Special Education teaching positions Change in PA Chapter 14 regulations allows for this Requests for 2 new positions Equipment requests

17. 16 Summary Budget Highlights –Special Education –Transportation –Library Donations Significant Cost Increases –Medical Contributions –Fuel Fund Balance Sacrifices Questions and Answers We want to address any questions. -- Agenda -- Agenda

18. 17 At this point we want to take any questions from the Board and audience. -- Q & A --