Methacton School District Budget Presentation February 19, 2013

Goals of Budget Maintain Educational Quality with Limited Funding Support: Balance Budget with Limited Funding Support District Mission Preservation of Program and Class Size Maximization of Instructional Staff Continuation of Curriculum Development

Mandated Programs No Child Left Behind –Adequate Yearly Progress Chapter 4 Regulations Non-Public Transportation Special Education PSERS (Retirement) Contribution

Introduction   Budget Status, Goals & Challenges   Sources of Revenue   Expenditures   Fund Balance   Future Budget Concerns   Summary

Budget Status Timeline –September–January – Work towards Preliminary Budget Approval –February-May – Continue Development with Board & Public –May 21 – Proposed Budget Adopted –June 25 – Final Adoption Budget Available for Public Inspection – May 22 Presentation of State Budget - February Act 1 Impact –Real Estate Tax Limit – 1.70% –Preliminary Budget Tax Increase – 2.95% –Estimated Taxpayer Relief Act Reduction – $ –Exceptions – Increase includes 1.25% PSERS Exception

Challenges in Budget Building Uncertainty of State Funding Continued Real Estate Market Impact –Low Collections in Interim Tax Collections –Stagnant R/E Transfer Tax Collections –Property Reassessment Impact Balancing the Budget with Stagnant Revenues and Large PSERS Increase

Revenue Assumptions Budget to Budget Real Estate Assessments Flat Real Estate Collection Rate Stable – 96.25% Local Revenue Flat State Funding – Increase in Basic Subsidy and Transportation Subsidy Federal Revenue Flat

Assessment Growth

Revenue Distribution Local Taxes $73,509, % Other Local Revenue 1,652, State Revenue 18,285, Federal Revenue 1,140, Financing Proceeds 1,000, Fund Balance 1,550, Total $97,137,551

Expenditure Assumptions Salary Increases per Contractual Terms Medical/Prescription Costs up $1,121,041 due to healthcare reform PSERS Costs up a Net $1,028,052 due to rate increase Non-Salary/Benefits Costs up $285,972

Expenditure Breakdown Salaries $45,281, % Benefits 24,414, Debt Service 13,000, Instructional Costs 7,204, Non-Instructional 7,237, Total $97,137,551

Mandated PSERS Rate Projections/Contributions % 1,983, % 2,467, % 3,800, % 5,668, % 7,782,113 * % 9,930,399 *Using Projected Salaries

Fund Balance Usage

Qualified Exceptions Subject to Act 1 Limit1,013,931 Act 1 Index Limit1.70% PSERS Exception$805,345 Percentage Increase1.25% Total Allowable Increase3.01%

Millage Impact Revenues$95,236,935 Expenditures 97,137,551 Surplus (Deficit) ($1,900,616) R/E Value Per Mill$2,403,344 Current Millage26.83 Additional Millage Required.79 Proposed Millage Rate Percentage Increase Tax Increase Ave Household % $144.50

Tax Impact Average Residential Assessment $180, Tax Bill $4, Tax Bill 5, Increase Est.Homestead/Farmstead Credit $224.51

Looking Forward Proposed Budget Approval – May 21 Final Budget Approval - June 25 Evaluate Budget with State Funding Impact Investigate Revenue Enhancements Evaluate Enrollment Impact on Staffing Analyze and Plan for a Reduction in Fund Balance Usage

Budget Issues Act 1 Index - Unknown Exceptions PSERS Rate increase from 16.93% to 21.18% in MEA Contract expires Healthcare Premium Costs Future of Economy

Comments/Questions