EAST STROUDSBURG AREA SCHOOL DISTRICT 2017-18 BUDGET DRAFT 1 12/19/16

REVENUES

REVENUES - LOCAL Local Revenues = 67% of Total District Revenue Real Estate Taxes Largest component of revenues = 57% of Total Revenue Real Estate Tax Revenue depends upon Assessed Value, Collection Rate, and Millage Rates Assessment decline $2,492,250 Assessment Appeals should more than offset this decline Collection rate continues to increase – 90% Millage Rate

REVENUES - LOCAL Millage Rate Tax Levy must be balanced between Monroe and Pike Counties by relative Market Values Market Values continue to fall in both counties, but slightly more in Pike than Monroe. No Tax Increase YEAR MONROE PIKE 2016-17 177.86 121.27 2017-18 120.84 % CHANGE 0.00% 0.35%

REVENUES - STATE State Revenues ~ 29% of Total District Revenue Unlikely to see increases in State funding Basic Education Funding Formula is for new money only State deficit projected to be ~$3B No tax increase Republicans have a veto proof majority in the Legislature Governor Wolf will likely be running for re-election Re-Authorization of Ready to Learn Grant? $1.2M Block grant, not part of required funding 2015-16 was zeroed out and returned at last minute Keeping it in for 2017-18 at 2016-17 level Increases only for Social Security and PSERS subsidies

REVENUE – FEDERAL/OTHER Federal Grants ~ 2% of Total Revenue Primarily Title Programs: Title I, Title II, and Title III Decreases in anticipated funding No Keystones to Opportunities grant Other Revenue Proceeds from Financing (Leases) Sale of Fixed Assets (Bus Buy-back Program) No buses in 2016-17, $2,268,960 in 2017-18

REVENUES - TOTAL 2016-17 2017-18 % CHANGE LOCAL $101,580,869 $102,464,704 0.87% STATE $ 41,655,349 $ 43,705,667 4.92% FEDERAL/OTHER $ 4,841,132 $ 7,071,676 46.07% TOTAL $148,077,350 $153,242,047 3.49%

EXPENSES Wages & Benefits represent the largest share of costs = 69% Debt Service = 12% 81% of the District’s Costs are fixed By contrast less than 20% of the District’s costs are variable Supplies, books, contract & professional services, utilities, purchased services, maintenance, and equipment Even some of those are not directly controllable by the District Special Ed and Alternative Ed services, charter school tuition, insurance, etc.

EXPENSES – WAGES & BENEFITS Wages & Benefit costs projected to increases - $7.6M 2016-17 2017-18 CHANGE % WAGES $64,225,387 $65,603,022 $ 1,377,635 2.2% BENEFITS $39,028,932 $45,232,938 $ 6,204,006 15.9% TOTAL $103,254,319 $110,835,960 $ 7,581,641 7.3%

EXPENSES – WAGES & BENEFITS Benefit Costs alone are projected to increase $6.2M Primarily PSERS and Health Insurance 2016-17 2017-18 CHANGE % PSERS $19,145,335 $21,231,669 $ 2,086,334 10.9% Rate 30.03% 32.57% HEALTH INS $15,265,240 $19,191,592 $ 3,926,352 25.7% TOTAL $34,410,575 $40,423,261 $ 6,012,686 17.5%

EXPENSES - OTHER Non Wage and Benefit expenses are projected to increase $4.8M Purchase of new Buses = $4.4M All other expense increase = $400,000

EXPENSES - TOTAL 2016-17 2017-18 CHANGE % WAGES & BENEFITS $103,254,319 $110,835,960 $ 7,581,641 7.3% ALL OTHER EXP $ 45,352,650 $ 50,111,499 $ 4,758,849 10.5% TOTAL $148,606,969 $160,947,459 $ 12,340,490 8.3%

WHERE DOES THE MONEY GO?

WHERE DOES THE MONEY GO? Direct Instruction of Students 54.4% Regular Instruction 35.6% Special Education 15.3% Vocational Education 1.9% Other Instructional Programs 1.6% Instructional Support 10.1% Pupil Services 3.2% Instructional Support 1.9% Health Services 1.4% Instructional Technology 3.6% Transportation 8.2%

WHERE DOES THE MONEY GO? For every $1 spent $.73 goes to direct or indirect support of student learning That does not include co-curricular activities such as band, chorus, athletics, clubs, and intramural activities. Only $.05 of every $1 spent goes to administrative activities Debt Service ~ $.12 of every $1 Maintenance and Operations ~ $.09 of every $1

NET BUDGET POSITION Anticipated Revenues $153,242,047 Anticipated Expenses $160,947,459 Expenses > Revenues $ 7,705,412