EAST PENN SCHOOL DISTRICT BUDGET OUTLOOK 1/14/13

EAST PENN TIMELINE January 14, 2013 – Adopt resolution not to exceed the index March 25, 2013 – Budget presentation for 2013-14 proposed final budget May 13, 2013 – Proposed final budget adoption June 24, 2013 – Final budget adoption for 2013-14

History of East Penn Millage % Increases versus Act 1 Index Year East Penn Act 1 Index Approved By PDE 2008-09 4.40% 2009-10 3.24% 4.10% 2010-11 3.85% 2.90% 5.02% 2011-12 1.83% 1.40% 4.79% 2012-13 1.30% 1.70% 2.91% For 2009/10, we had estimated that we would qualify for .87 mils or 2% in exceptions, that we did not apply for.

Dollar Value of Exceptions Referendum Exceptions Approved 2011-12 2012-13 Special Education Exception Approved $1,823,410 $60,887 Retirement Contributions Approved $835,197 $872,811 Total of Approved Exceptions $2,658,607 $933,698 Exceptions Used $325,374 $0 Exceptions Approved, but Not Used $2,333,233

Capsule Look at 2013/14 Budget 1.7% Index State/Federal Funding Unknown County-wide Reassessments and Court Appeals EIT New Collector 2012 Employee Contracts Retirement Rate – 37% Rate Increase

State Sources Overall state sources are up due mainly to increased expenditures for: Retirement payments based on the state’s half of retirement contributions for our employees. State’s share of social security contributions

Biggest Factors in Positive Position Debt Service -We spent $1,379,229 less in ‘11/12 than budgeted (refinancing and low interest on variable debt) Earned Income Tax – We received $1,037,890 more in ‘11/12 than budgeted (were told to expect lag with switch in collector starting Jan. 2012, but old collectors were still sending funds through June 2012 too)

Rental & Sinking Fund Revenue from the state exceeded the budget in ‘11/12 by $994,270 due to $1,250,294 in unbudgeted funds received for Plancon J one-time final project reimbursements. Most of this was for debt service paid in prior years.

CHARTER SCHOOL TUITION COST Charter Schools Charter Schools Charter Schools Charter Schools Charter Schools Charter Schools

Other Items to Monitor for 2013/14 Budget Enrollment is starting to increase, especially Special Education students Transportation contract Few retirements are expected

Summary This is a constantly moving worksheet. It is a snapshot look at where we are at this point in time. We stayed well under the index last year even though we qualified for exceptions to exceed the index. Our ending fund balance was significantly higher than budgeted last year, which will allow us stay within the index in 2013-14 by spending it down. We are also approaching the budget differently and allowing less to be budgeted in areas that were not spent last year. We will continue to examine line items and revenues and make adjustments that will be reflected in the March 25 budget draft presentation to try to keep taxes as low as possible without cutting programs.