1. 2011-2012 Budget Information

2. 1 OUR School District…OUR Children This helps to maintain and increase property values We achieve this through a serious and balanced approach to year-round fiscal responsibility Excellent and Award-winning Educational Programs

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 operational costs, etc.  Administration reviews and studies enrollment projections and, after registration time, includes actual numbers into enrollment projections for 2011-2012. 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 and building allocation amount for planning that covers everything but salaries and operations: Elementary $208 Middle$215 High School $242  An early retirement incentive plan resulted in salary savings. Health Care rates are at a historical low. No new additional programs were added.

5. 4  Budget Process  Revenue  Index  Assessments  Summary Budget  Expenditures  Cost Increases  Cost Reductions  Conclusion Budget Overview 2011-2012 Agenda

6. Sources of Revenue Revenue is comprised of four sources: local, state, federal and fund balance.  Local revenue sources include real estate taxes, Per Capita taxes, tuitions, earnings on investments and miscellaneous revenue.  State revenue sources include state subsidies for Basic Education Funding, Special Education, and Transportation, State Property Tax Relief, Reimbursement for Retirement payments.  Federal revenue source consists of Title I & II funds that have restricted uses.  Fund balance is the difference between net assets and liabilities and results when revenues are greater than expenditures. It’s often referred to as a savings account, but does not consist of only cash.

7. The Act 1 Index The Act 1 Index is a result of the Taxpayer Relief Act of 2006, which established limits on tax increases. The Index is calculated based on the percentage of increase in the State Wide Average Weekly Wage (SAWW) and the percentage increase in the national Education Cost Index (ECI). The SAWW is determined by the Department of Labor and Industry in the same manner as the Unemployment Compensation Law and it is calculated on the previous calendar year. The ECI is also based on the previous 12-month period beginning July 1 st through June 30 th using Elementary and Secondary school data reported by the Bureau of Labor and Statistics. Fiscal Year 11/12 10/11 09/10 08/09 07/08 06/07 SAWW $855 $847 $825 $788 $756 $735 ECI 114 112 109 105 101 97 SAWW % + 0.9% 2.7% 4.6% 4.3% 2.8% 4.2% ECI % + 1.9% 3.0% 3.6% 4.5% 4.0% 3.5% Base Index 1.4% 2.9% 4.1% 4.4% 3.4% 3.9%

8. Revenue

9. Tax History

10. Delaware County School District Proposed Mills Ranked by Mills - June 2011 9 Mills DistrictRankIncr %Incr #11/1210/1109/10 William Penn112.98%5.200045.260040.060036.9880 Wallingford-Swarthmore21.40%0.526038.152037.626036.5660 Chichester34.51%1.635137.917036.281934.6017 Ridley44.14%1.473037.031035.558033.2490 Southeast Delco52.00%0.715636.499635.784031.7840 Upper Darby66.38%1.970032.870030.900029.7200 Interboro72.25%0.710032.310031.600030.8300 Garnet Valley82.86%0.787028.257027.470026.6980 Springfield92.92%0.794028.017027.223026.2910 Haverford Twp.106.30%1.541926.016224.474323.1020 Chester Upland110.00%0.000024.2620 24.0690 Penn-Delco122.77%0.642023.825023.183022.5430 Rose Tree Media130.00%0.000022.2522 21.6251 Radnor141.32%0.275821.143920.868120.2731 Marple Newtown155.50%0.897417.219616.322215.1327 3.96%1.144530.133628.924327.5648

11. Delaware County School District Proposed Mills Ranked by Percentage - June 2011 10 Mills DistrictRankIncr %Incr #11/1210/1109/10 William Penn112.98%5.200045.260040.060036.9880 Upper Darby26.38%1.970032.870030.900029.7200 Haverford Twp.36.30%1.541926.016224.474323.1020 Marple Newtown45.50%0.897417.219616.322215.1327 Chichester54.51%1.635137.917036.281934.6017 Ridley64.14%1.473037.031035.558033.2490 Springfield72.92%0.794028.017027.223026.2910 Garnet Valley82.86%0.787028.257027.470026.6980 Penn-Delco92.77%0.642023.825023.183022.5430 Interboro102.25%0.710032.310031.600030.8300 Southeast Delco112.00%0.715636.499635.784031.7840 Wallingford-Swarthmore121.40%0.526038.152037.626036.5660 Radnor131.32%0.275821.143920.868120.2731 Chester Upland140.00%0.000024.2620 24.0690 Rose Tree Media150.00%0.000022.2522 21.6251 3.96%1.144530.133628.924327.5648

12. Assessment – Ten Year History

13. Revenue Budget Comparison 10/1111/12 Major ObjectBudget Amount $ Incr/Decr% Incr/Decr Local65,368,067 65,703,346 335,279 0.51% State11,093,727 9,923,162 -1,170,565-10.55% Federal 375,000 0 0.0% Fund Balance 4,973,887 4,636,276 -337,611-6.79% Total81,810,681 80,637,784 -1,172,897-1.43%

14. Revenue Budget Comparison

15. Revenue Summary

16. Local Revenue 11/12 % Local SourceBudget Amountof Total Real Estate Tax 60,555,34492.2% Transfer Tax 650,0001.0% Delinquent Taxes 850,0001.3% Current Per Capita 350,0000.5% Tuition 2,150,4563.3% Earnings on Investments 120,0000.2% Rentals/Other 1,027,5461.6% 65,703,346100.0%

17. Local Revenue

18. 17  Loss of $1.1 million in state revenue  Zero increase in federal revenue  1 millage point (mill) is equal to approximately $2.77 million  2010-2011 Real Estate Taxes are 22.2522 mills  2011-2012 Real Estate Taxes are 22.2522 mills for a 0% increase.  Act 1 Index is 1.4%  2010-2011 Homestead exemption $206  2011-2012 Homestead exemption $207  Average homeowner assessment is $205,173  Average homeowner tax bill is $4,566  The use of $4.6 million in fund balance Key Facts and Figures of the Revenue Budget. -- Key Points --

19. 18 Unfortunately, even with the budget we have, there are cuts to the fund balance. -- Fund Balance Reductions --  2007/2008 $2.3 million  2008/2009 $2.1 million  2009/2010 $2.5 million  2010/2011 $4.9 million  2011/2012 $4.6 million

20. 19  Budget Process  Revenue  Index  Assessments  Summary Budget  Cost Increases  Salaries  Debt Services  Special Education Expenditure Budget for 2011-2012 is $80,637,784 Agenda

21. 20  Summary Budget  Cost Reductions  Early Retirement Incentive Plan  Health Care Rates  Professional Services  Security  Substitutes  Supply and Equipment Requests  Budgetary Reserve -- Agenda -- Rose Tree Media School District’s Expenditure Budget for 2011-2012

22. 21 In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Objects  Salaries - wages for all school district employees  Benefits - health care, tuition reimbursement, retirement and social security  Contracted Professional Services – tuition to the Intermediate Unit, legal and auditing services  Purchased Property Services - utilities, repairs and rentals.  Other Purchased Services - transportation, property insurances, advertising, tuitions and travel  Supplies- books, general supplies and natural gas.  Equipment - computers, furniture and vehicles  Other objects – interest on bonds, dues and fees  Other Uses of Funds – bond principal and fund transfers Expenditure Budget for 2011-2012

23. Expenditure Comparison by Object 10/1111/12 Major Object Budget AmountBudget Amount$ Incr/Decr%Incr/Decr Salaries 38,032,016 38,696,095 664,079 1.8% Employee Benefits 15,814,741 14,618,425 -1,196,316 -7.6% Contr Prof. Svc 4,844,151 4,937,055 92,904 1.9% Purch Property Svcs 2,846,741 2,437,715 -409,026-14.4% Other Purchased Svcs6,239,673 5,929,472 -310,201-5.0% Supplies/Books 3,286,737 3,281,460 -5,277 -0.2% Property (Equipment) 630,822 698,884 68,06210.8% Other Objects 3,948,807 3,719,959 -228,848-5.8% Other Financing Uses 6,166,991 6,318,719 151,7282.5% Total81,810,679 80,637,784 -1,172,895-1.4%

24. Expenditure Comparison by Object

25. 24 In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Functions  1000 Instruction-regular, special, vocational, alternative education programs and the Delaware County Community College  2000 Support Services-guidance, administration, student health, business, operations and maintenance, student transportation, staff and technology services  3000 Operations of Non-Instructional Services-athletics, student activities, and community services  5000 Other Expenditures and Financing Uses-debt service, fund transfers, and budgetary reserve Expenditure Budget for 2011-2012 is $80,637,784

26. Expenditure Comparison by Function 10/1111/12–$–$–%–% Expense FunctionBudget Amount Incr/Decr Instructional Programs 44,332,354 44,353,330 20,9760.05% Instr Support Svcs 7,008,769 6,506,586 -502,183-7.17% Admin 3,479,849 3,295,964 -183,885-5.28% Pupil Health 595,930 609,297 13,3672.24% Business Svcs 1,108,263 1,058,158 -50,105-4.52% Opn & Maint 8,010,649 7,526,512 -484,137-6.04% Transportation 4,964,818 4,900,550 -64,268-1.29% Central Support Svcs 869,674 918,140 48,4665.57% Student Activities 1,210,565 1,308,413 97,8488.08% Debt Service 8,779,568 8,955,350 175,7822.00% Other Expenses 1,450,242 1,205,484 -244,758-16.88% Total 81,810,681 80,637,784 -1,172,897-1.43%

27. Expenditure Comparison by Function

28. 27 Rose Tree Media School District’s Expenditure Budget for 2011-2012

29. 28  1.4% Reduction in Expenditures from 2010-2011 Budget  Historic Low Health Care Rates  0% Salary Increase for Administrators  Maintain Current Programs  Reduction in Utility Costs  Early Retirement Incentive Plan Key Facts of the Expenditure Budget. -- Key Points --

30. 29 Budget FinalExpenditures 2010-2011 2011-2012 Instructional 1000 $44,183,057 $44,353,330 Support Services/ 2000 26,431,003 25,067,291 Operations Non-Instructional Services 3000 1,317,053 1,411,813 Other Financing Services 5000 9,879,568 9,805,350 Totals $81,810,681 $80,637,784 Budget Final Revenues 2010-2011 2011-2012 Local 6000 $65,368,067 $65,703,346 State 7000 11,093,727 9,923,162 Federal 8000 375,000 375,000 Sub Totals $76,836,794 $76,001,508 Fund Balance 4,973,887 4,636,276 Totals $81,810,681 $80,637,784 Summary Budget

31. 30 Challenges  Tax Appeals  Loss of State Funding  Charter School Reimbursement  Dual Enrollment Reimbursement  Basic Education Subsidy  Social Security Reimbursement  Unfunded Mandates  Charter School Tuition  Alternative Education  Special Education  Future Retirement Costs

32. 31 Highlights  Zero Percent Tax Increase  2011-2012 Homestead exemption $207  Average homeowner assessment is $205,173  Average homeowner tax bill is $4,566  Maintain Current Programs  An Award Winning District