New Information 1 Governor’s proposed budget Basic Education Funding $200 million increase (Includes Right to Learn funding) Special Education Funding $50 million increase Octorara Area School District total increase of $692,302 over the current proposed budget amount ( actual) PASBO (Pennsylvania Association of School Business Officials) projection Using amounts already distributed and best guess of increases for Octorara Area School District total increase of $422,344 over the current proposed budget amount ( actual) Recommend that we keep budget increase at $0 for now

Budget Summary Total Current Revenues$49,434,879 Total Expenditures$52,405,602 Deficit($2,970,723) 3% Act 1 Tax Increase$964,727 Budgeted Contingency$350,000 Debt Service Savings$340,000 State Revenue$? Proposed Budget Reductions$420,000 Deficit($895,996) Use of General Fund Balance$895,996 ($0 increase in basic ed, special ed and other state funding) 2

Tax Increase 3 Chester County Mills Change in Mills from Lancaster County Mills Change in Mills from Increase in Tax Revenue Mills % $0 0.5% $160, % $321, % $482, % $642, % $803,333 Act 1 Max 3.0% $964,727

Administrative Budget Reductions 4 Replace scheduling and maintenance software with free open source software $5,000 Reduce admin travel budget $2,500 Reduce consultant budget $2,500 Slower replacement of computers $8,400 Data warehouse $5,000 Dues and Fees $1,500 Eliminate contingency budget $1,500 Reduce Internet annual cost $3,600 Total Administrative reductions $30,000