Solanco School District Preliminary Budget April 28, 2014

Revenue Budget Highlights Property Assessments: Low but steady growth Earned income tax recovering to pre- recession; 1.25 % estimated growth from to (Est $80K) State Ready to Learn Grant ($431K) vs Basic Education Allocation ($0 proposed) – Total state revenues equate to Pension increase only Federal; Medical Assistance and Title I

Expenditure Highlights Pension Increase: $1,086,000, which is 2.1% of the 3.04% total budget-to-budget increase Salaries: An Estimated 1% increase Special Education increase: Continued cost pressures; student services estimated at $400,000 increase Vocational Education: Total estimated increase at $98,000 inclusive of tuition and final bond issuance Physical Plant and Transportation: Fuels / Utilities

Assessment Growth: Estimated at just over ½ of 1%

Earned Income Tax: Slow Recovery

State Budget Pension and Ready to Learn Solanco Property Tax increase and Local share of mandated Pension Increase offset each other (Approx. $525,000) Total State Estimated Revenue covers the other ½ of the mandated Pension increase State Gambling funds remain static Est State Revenue Growth $835 M; Pension at $610 M. ----Plus Est $900 M in one time funds

Ready to Learn ABG money can be used for Ready to Learn initiatives, but Ready to Learn money can’t be used for ABG initiatives unless you are a Tier 4 District $100 Million of ABG funds (unchanged from ) $240 Million new proposed to be distributed to Districts and Charter Schools via formula. Approximately $221 million to Districts, $19 million to charters Proposing ability to deduct this grant on PDE-363 $1 million in competitive grant funds for Pennsylvania’s high-performing public schools to analyze and publish best practices that have proven to increase student achievement (Governor’s Expanding Excellence Grant Program)

Ready to Learn Permitted Uses by District SPP Score

Special Education After 6 years of flat-funding at $1.026 billion, the proposed budget recommends a $20 million increase to the line item, nearly a 2% increase.

Authority Rentals and Sinking Fund Requirements: The PlanCon line item was again level-funded at $296 million. PlanCon

Only One Third of Slot Machine Revenue Goes to Property Tax Relief

Act 1 Index Forecast Source: Independent Fiscal Office Analysis of Senate Bill 76 and House Bill 76 Fiscal YearSAWWECIAct 1 Base Index %3.5%3.9% History and Forecast of the Act 1 Base Index (and Components)