MECHANICSBURG AREA SCHOOL DISTRICT General Fund Budget 2017-2018 March 28, 2017 School Board

2016-2017 Budget Budget Estimate Revenue $62,272,387 $63,680,222 Expenditures $64,063,815 $62,741,290 (Deficit)/Surplus ($1,791,428) $938,932

MASD 2017-2018

2017-2018 Budget Development Priorities Comprehensive Plan Curriculum and Assessment System Growth for all Learners Digital Learning Continued Infusion of Technology Enrollment/Feasibility Study Wellness/Student Services Minimal Negative Impact on Students Prudent Use of Fund Balance

2017-2018 General Fund Budget Summary Total Expenditures $ 67,129,047 Total Revenue (2.0% tax increase) $ 65,323,049 Use of Fund Balance $ 1,805,998 Budget Shortfall $0

Revenue Changes Local Revenue Real Estate Tax (1.6% growth) $539,746 Real Estate Tax Increase (2.0%) $690,041 Earned Income Tax $440,157 Realty Transfer Tax $65,544 Delinquent Real Estate Tax $80,000 Interest Income $10,000 IDEA $32,937 Facility Rentals $25,000 Tuition – Other LEA $117,147 TOTAL LOCAL REVENUE $2,000,572

Revenue Changes State Revenue Basic Instruction Subsidy $455,275 Tuition – Court Placed $10,000 Special Education Subsidy $61,752 Transportation Subsidy $80,000 Reimbursement for Construction Projects $44,180 Social Security Reimbursement ($13,781) Retirement Reimbursement $387,407 TOTAL STATE REVENUE $1,024,833

Property Tax Reduction Allocation Fiscal Year Allocation Qualifiers Tax Reduction 2008-09 $885,294 6,942 $127.89 2009-10 $991,398 7,071 $140.70 2010-11 $904,783 7,199 $126.14 2011-12 $886,169 7,339 $121.24 2012-13 $885,988 7,346 $121.11 2013-14 $881,823 7,310 $121.12 2014-15 $877,288 7,328 $120.19 2015-16 $884,906 7,272 $122.17 2016-17 $878,929 7,233 $122.00

Revenue Changes Federal Revenue Title 3 $4,638 Title 1 $42,174 Title 2 ($2,055) Medical ACCESS ($19,500) TOTAL FEDERAL REVENUE $25,257

Revenue Summary Revenue Source Increase $ Increase % Local $2,000,572 4.3% State $1,024,833 6.5% Federal $25,257 4.1% TOTAL REVENUE $3,050,662 4.9%

Expenditure Changes Personnel Costs Salary Updates ($121,204) Retirements ($129,702) Staffing Adjustments $718,679 Retirement Rate from 30.03% to 32.57% $710,245 Medical Insurance (16% increase) $1,142,412 Other Employee Insurance ($35,435) Tuition Reimbursement $40,000 Budgetary Reserve $565,562 TOTAL PERSONNEL COSTS $2,890,557

STAFFING ADJUSTMENTS 2017-2018

STAFFING ADJUSTMENTS Administrative Positions Added Assistant Principal – High School

STAFFING ADJUSTMENTS Professional Positions Added Elementary Teachers (6) Art Teacher - Middle School (0.5) School Counselor – Broad Street ELL Teacher - Elementary Special Education Teacher – Broad Street Professional Positions Eliminated Special Education Teacher (MDS) Secondary Literacy Coach

STAFFING ADJUSTMENTS Support Positions Added Administrative Assistant – Upper Allen (0.5) Administrative Assistant – KA (to year round) Instructional Assistant – Northside Instructional Assistant (PCA) – Middle School Support Positions Eliminated Administrative Assistant – DAO (0.5)

STAFFING ADJUSTMENTS Summary Staffing Summary – 2017/2018 Positions Added Positions Reduced Net Administrative 1.0 0.0 Professional 9.5 -2.0 7.5 Support 2.6 -0.5 3.1 Total 13.1 -2.5 10.6

STAFFING SUMMARY Eight Years Net Staff Reductions 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 Total -4.0 -9.6 -7.1 -0.5 4.5 5.1 2.5 10.6 1.5

Projected Pension Costs Year Budgeted Actual Reserve 2010-11 10.00% 5.64% $4,950,000 2011-12 8.65% $5,132,740 2012-13 13.00% 12.36% $5,478,029 2013-14 15.00% 16.93% 2014-15 18.00% 21.40% $4,572,947 2015-16 22.50% 25.84% 2016-17 25.50% 30.03% $3,300,348 2017-18 29.00% 32.57% $2,257,504 2018-19 31.00% 34.18% $1,291,335 2019-20 33.00% 35.53% $491,906 2020-21 35.95% 2021-22 36.40%

Expenditure Changes Contracted Services Educational Consultants $75,521 Special Education $362,202 Maintenance Contracts $50,000 Copier Rental/Maintenance $20,000 Cyber/Charter Schools $300,000 Cumberland Perry AVTS ($16,040) TOTAL CONTRACTED SERVICES $791,683

Expenditure Changes Supplies/Equipment/Other Cost Centers ($270,365) Utilities ($340,000) Property/Liability Insurance $50,000 Debt Service Fund Transfer ($56,643) TOTAL ($617,008)

Debt Service Fund Balance $3.3M

Expenditure Summary Category Increase $ Increase % Salaries/Budgetary Reserve $734,739 2.6% Benefits $2,106,545 12.2% Contracted Services $634,725 7.4% Supplies ($186,289) -6.6% Equipment ($192,620) -13.7% Other $24,775 6.3% Debt Service ($56,643) -1.0% TOTAL EXPENDITURES $3,065,232 4.78%

2017-2018 General Fund Budget Summary Total Expenditures $ 67,129,047 Total Revenue (2.0% tax increase) $ 65,323,049 Use of Fund Balance $ 1,805,998 Budget Shortfall $0

Use of Fund Balance Pension (PSERS) $1,042,944 (Committed) Technology $ 200,000 (Committed) Operations $ 499,554 (Unassigned) Budgetary Reserve $ 63,500 (Unassigned) TOTAL $1,805,998

2017-2018 General Fund Budget Tax Increase Fund Balance Required to Balance Budget Additional Fund Balance Savings 2.0% $1,805,998 2.3% $1,702,492 $103,506 2.6% $1,598,986 $207,012 2.9% $1,495,479 $310,519

MECHANICSBURG AREA SCHOOL DISTRICT RESIDENTIAL ASSESSED VALUES Municipality Median Assessed Value Mechanicsburg $160,400 Shiremanstown $163,300 Lower Allen Annex $190,100 Upper Allen Township $199,200 District Total $178,250 Average Annual Tax Bill at 12.800 mills $2,282 Average Annual Tax Bill at 13.056 mills $2,327 Average Annual Tax Increase $45 Average Monthly Tax Increase $4

Moving Forward……. Proposed Final Budget Adoption – April 11, 2017 Budget Review (if needed) – April and May Work Sessions Final Adoption – June 13, 2017

MECHANICSBURG AREA SCHOOL DISTRICT General Fund Budget 2017-2018 COMMENTS/QUESTIONS