Blackhawk School District Goals: Quality & Value

Opportunities for success for ALL students OBJECTIVE Opportunities for success for ALL students

I. Financial Current debt will be paid in 2010 Tax rate is 48.63 mils Ranks 9th lowest out of 14 School Districts

Financial continued C. Revenue increase average is 2% per year since 2000 Our expenses increased an average of 3.99% since 2004 Our budgets have been balanced with $2.5 million from the fund balance Revenue has not kept pace with our expenses

Financial Continued D. Gaming Money Pa. authorized (14) fourteen casino licenses. Revenues from the casinos would be used to reduce property taxes. To date (6)six casinos have opened. The purpose of gaming money was to offset property tax increases for qualified Homestead/Farmsteads.

Financial continued iii. There are 4926 Homesteads in Blackhawk School District. At our current rate of 48.63, and considering the average $170 reduction from gaming money, only (30) thirty of those 4926 homes in the Blackhawk School District will pay an increase for 2008-2009.

Financial Continued E. Median Assessment in Blackhawk School District is 26,450 i. That homeowner paid $1,219.00 in 2007- 2008 school taxes. The increase of 1.73 mils for 2008-2009 increased the taxes for that median homeowner $45.00 to $1,264, less the $170.00 reduction from gaming, resulted in a net gain of $125.00. ii. 4,896 of the 4,926 Homestead/Farmsteads will NOT see an increase and most will realize a net reduction in 2008-2009

II. Our Due Diligence This process began in 2004 to assess facility needs. We have reviewed, studied and costed out every possible option given the current condition of our schools, the number of campuses, class size, curriculum, facilities, cost of operation for (5) five locations, arts and co-curricular needs and NCLB and PSSA mandates.

III. Findings Enrollment for 2008-2009 is 2,688, plus 75 in Cyber Charter Schools Enrollment will decline slightly over the next (4) years. State estimates that in 2012, enrollment will be at 2,615, a reduction of 74 students

Findings continued B. Age of Buildings Blackhawk High School Built in 1972 Patterson Built in 1969 Highland M.S. Built in 1959 Northwestern Built in 1957 B.I.S. Built in 1921 (remodeled in 1959 & 1992)

Findings continued C. Debt from Blackhawk Intermediate School will be retired in 2010 D. Older buildings are more costly to operate Highland and Northwestern have not been updated E. Taxes in Blackhawk are relatively low and affordable, compared to neighboring districts F. Current gaming revenue is $170/year. Not all casinos are opened yet. As the remaining (8) eight casinos open, gaming revenue will increase as will property tax relief.

Conclusions Our greatest issues/concerns are Highland Middle School and Blackhawk High School repairs, aligning the curriculum and lack of space for arts programs and co-curricular activities. The best way we can serve our district is with a long term plan that will meet the needs of the students and taxpayers. Our goal is to be cost effective and increase the quality of education, thus providing the best overall educational experience.

Conclusions continued Tonight this Board will have to decide on the question before us. We have (2) two choices: Do we continue to put money into our (5) five facilities? Do we construct new? What will we have in the future considering both options?

Tonight we have 2 choices: 10 million bond issue 2 million has already been spent 1.4 million for fire suppression and alarms 600,000 fees 8 million remains for the estimated 28 million needed to upgrade and repair Highland Middle School and Blackhawk High School That remaining 8 million will only cover 29% of the necessary repairs. Results are: No alignment of curriculum 8th grade still at High School No enhancements to the Arts/Co-Curricular Programs NO REIMBURSEMENT FROM THE STATE 40 million dollar bond issue We get new construction at the high school, built on our current enrollment and not adding the 10% New gymnasium for our students New, and more secure entrance to the H.S. All necessary upgrades to the High School Alignment of the curriculum More opportunities for our Middle School Students Energy Savings Enhanced Arts Programs The ability to take the projected costs and utilize “Value Engineering” to minimize overall costs of this project GET STATE REIMBURSEMENT FOR THIS PROJECT We are still left with 5 aging schools Grades 6-12 are taken care of for many years to come

Proposed Resolution A new Middle School (6th-7th-8th) and 9th grade academy and needed repairs to Blackhawk High School that meets all academic needs and enhancements for Arts and Co-Curricular activities for grades 6-12 This proposal offers to balance quality, health and safety, energy efficiency, a better learning environment, expanded and enhanced curriculum, facilities for Arts and Co-Curricular activities versus costs.

Proposed Resolution Continued With consolidation comes cost savings. We MUST provide our teachers and administration with the best possible environment and tools to perform their job. We MUST provide every student with the best opportunity to succeed. It is our job!

The Value of a Quality School District Maintains and even increases the value of our homes It enhances the quality of life in our community Provides a great sense of pride in the accomplishment of OUR students Provides opportunities for financial aid through scholarships for Arts, Academics and Co-Curricular Activities

What will attract new families and keep our current students? Strong and evolving academic programs Co-Curricular Activities Facilities

What will this cost the taxpayers “IF VOTED ON” What will this cost the taxpayers “IF VOTED ON”? Based on estimates from Bond Council for $40 million (using $220,000 as a Collectible mil), the estimated revenue needed for the project would be: % Increase Tax Year Millage Increase 3.7% 2008 1.73 mils 6% 2009 2.95 mils 5.1% 2010 2.62 mils 2.8% 2011 1.52 mils 2012-2037 1.7 mils over 25 years These figures assume no cost savings from energy updates, consolidation and staff re-alignment.

Bottom Line “Dollars and Sense” 2007-2008 2008-2009 2009-2010 2010-2012 2011-2012 Median Home 46.9 mils 48.63 mils 51.58 mils 54.2 mils 55.72 mils Yearly taxes $1,219.00 $1,264.00 $1,340.00 $1,408.00 $1,448.00 Gaming Reduction $170.00 Net Taxes with increase $1,094.00 $1,170.00 $1,238.00 $1,278.00 Decrease/Increase $125.00 decrease $49.00 decrease $19.00 increase $59.00 increase These figures assume no increase in gaming money or cost reductions.

Cumulative Results The median Blackhawk Taxpayer will realize a 4 year “positive total of $96.00” after any tax increases by offsetting the increases with the reductions from gaming revenue.

Cumulative Results Continued In 2011, the median homeowner will actually pay $1,278.00 in school taxes. Annual Increase of only $59.00 from today’s taxes It equals only $4.92/month Projected Rates will keep our district’s tax rates in the bottom third of the county, while our facilities and achievements remain at the top.

Further Assumptions Blackhawk taxpayers will realize even more returns from gaming revenue as more casinos open. Blackhawk School District will experience cost savings from consolidation and energy upgrades. Other factors in the future could generate additional increases to General Revenues, such as the sale of the Highland property.

Tonight’s Vote: Resolution to construct new One of two things will occur 1. A “NAY” vote AND THIS Board will go back to the drawing board and reassess allocation of the balance of the 10 million dollar bond issue. 2. A “YES” vote begins the process of bidding out the project, with the final vote to occur in December, ONLY AFTER this Board has the final figures.