Independent Fiscal Office Analysis of PA Budget Structural Deficit IFO 1

State and Local Investment in Education 2

How Much Did the State Invest in Education ? $10.6 billion total spent 3

State-Wide Education Revenue Breakdown 4

X School District Education Revenue Breakdown 5

History of State and Local Share 6

X School District History of State and Local Revenue 7

History of State and Local Revenue 8

X School District History of State and Local Share 9

Education Cost Drivers 10

What are the driving forces behind education spending in PA? 11

What are the driving forces behind education spending in X School District? 12

What are the driving forces behind education spending in PA? 13

What are the driving forces behind education spending in X School District? 14

What are the driving forces behind education spending in PA? 15

What are the driving forces behind education spending in X School District? 16

What are the driving forces behind education spending in PA? 17

What are the driving forces behind education spending in X School District? 18

What are the driving forces behind education spending in PA? 19

What are the driving forces behind education spending in X School District? 20

What are the driving forces behind education spending in x School District? Average School District Costs for the Year: Salaries - $21,825,553 Benefits: PSERS Contributions - $3,638,057 Social Security Contributions - $1,635,472 Other Benefits (including Health Care) - $5,427,749 Charter School Payments - $2,871,428 Other (add) 21

Growth of Specific Costs Pensions Charter School Payments Special Education 22

Pension and Charter School Cost Growth vs All Other Costs 23

Pension Cost 24

Pension Cost % 25

State-Wide Pension Contributions as a Percentage of Total Expenditures 26

X School District Pension Contributions as Percentage of Expenditures 27

Charter School Payments and Growth 28

X School District Charter School Payments and Growth 29

Pension Contributions and Growth 30

X School District Pension Contributions and Growth 31

Total Average School District Pension Cost – 2% Wage Growth Assumption Wages21,825,55322,262,06422,707,30523,161,45123,624,68024,097,174 PSERS Rate25.84%30.03%32.04%33.27%34.20%33.51% PSERS Cost5,639,7236,685,2987,275,4217,705,8158,079,6418,074,963 Change 1,045,575590,123430,394373,826-4,678 32

Total X School District Pension Cost – 2% Wage Growth Assumption Wages21,825,55322,262,06422,707,30523,161,45123,624,68024,097,174 PSERS Rate25.84%30.03%32.04%33.27%34.20%33.51% PSERS Cost5,639,7236,685,2987,275,4217,705,8158,079,6418,074,963 Change 1,045,575590,123430,394373,826-4,678 33

Costs Outpacing Revenue 34

Act 1 Index History and Forecast 35

Millage Rate History in X School District? 36

Pension and Charter School Increases vs Act 1 Index Revenue $499 $548 $690 37

Special and Gifted Education Increases vs Act 1 Index Revenue 38

Additional State Revenue vs. Pension Increases 39

Act 1 Increases and Additional State Revenue vs. Pension and Charter Payment Increases $426 $499$479 $548 $684$690 40