G ENERAL F UND B UDGET BUDGET PROCESS Resolution Pursuant to Taxpayer Relief Act by January 29, 2015 Resolution Passed January 26, 2015, won’t increase taxes more than 2.7% - from mills to PROPOSED BUDGET DEADLINE MAY 31, 2015, MADE AVAILABLE REVIEW OR DUPLICATION 2O DAYS PRIOR TO ADOPTION FINAL ACTION NOT TAKEN UNTIL AFTER 10 DAYS PUBLIC NOTICE: JUNE 30, 2015 ADOPTION DEADLINE 1

P UBLIC P ARTICIPATION 2 Proposed Final budget must be available for public inspection no later than June 10,2015. Public notice of intent to adopt the final budget must be published no later than June 20,2015.

B UDGET ELEMENTS Tax Levies State Appropriations Federal Programs REVENUES Salaries and Benefits Program budgets-books, supplies, equipment Building budgets- maintenance, utilities, debt service EXPENDITURES 3

EXPENDITURES MANDATED OR REQUIRED TO BE SPENT CONTRACTUAL SALARIES BENEFITS STATE MANDATE SPECIAL EDUCATION CHARTER AND CYBER SCHOOL ENGLISH AS SECOND LANGUAGE KEYSTONE EXAMS FEDERAL MANDATE SPECIAL EDUCATION TESTING REQUIREMENTS FOR NCLB 4

H ISTORICAL EXPENDITURES 5

SALARIES AND BENEFITS SALARIES SALARIES AND BENEFITS REPRESENT THE LARGEST PERCENTAGE OF BUDGETED EXPENDITURES CURRENTLY THERE IS ONLY ONE PLANNED TEACHER RETIREMENT THAT WILL NOT REQUIRE A REPLACEMENT TWO RETIREES ARE AT THE TOP OF THE SCHEDULE AND WILL BE REPLACED WITH BEGINNING TEACHERS THERE WILL BE ONE ENGLISH TEACHER AT THE HIGH SCHOOL TRANSFERRED TO A VACANT ENGLISH POSITION AT THE MIDDLE SCHOOL. 6

SALARY AND WAGE INCREASES Almost all staff salary increases are governed by collective bargaining or Act 93(Administrative staff agreements). Teachers 161 positions % increase Administrators 13 positions– 2.46% increase Confidential/Technical 7 positions—2.0% increase Secretaries 13 positions--1% increase Custodians/Maintenance 27 positions --1% increase 7

BENEFIT TRENDS HEALTH INSURANCE 10% INCREASE

R ETIREMENT RATE INCREASES %12.36%16.93%21.4%25.84% 9

STUDENT TUITION COSTS 10 AUDITEDBUDGETED OTHER LOCAL EDUCATING AGENCIES$280,060.00$247,095.00$240, CHARTERSCHOOL$829,294.00$768,000.00$813, PRIVATE NONPROFIT PLACEMENTS$207,749.00$264,807.00$362, VENANGO TECHNOLOGY CENTER$1,072,364.00$1,135,519.00$1,151, APPROVED PRIVATE SCHOOLS$12,663.00$72,795.00$72, PRIVATE RESIDENTIAL REHAB INSTITUTIONS$28,269.00$17, OTHER$ TOTAL$2,150,514.00$2,488,216.00$2,657,909.00

D EBT SERVICE Existing debt is for Central Elementary and the High School Stadium About 4.5% total school expenditures -- constant amount. Debt is “wrapped around”. All debt now refinanced at lower rate of interest Current debt service on the Stadium is paid for from the Capital Reserve fund(Fund 32) 11

12 C HANGE IN DEBT SERVICE

PROJECTED EXPENDITURES 13

REVENUES REVENUES CONSIST OF LOCAL, STATE AND FEDERAL REVENUE IN , THE LAST AUDITED YEAR, LOCAL REVENUE WAS 39% STATE REVENUE WAS 57% FEDERAL REVENUE WAS 4% 14

L OCAL REVENUES

STATE REVENUE-THE GOVERNORS BUDGET RESTORATION OF PAST FUNDING RESTORATION OF THE $159 MILLION CUT TO ACCOUNTABILITY BLOCK GRANT IN RESTORATION OF THE $47 MILLION CUT TO THE TUTORING GRANT IN PARTIAL CHARTER SCHOOL REIMBURSEMENT RESTORATION PARTIAL RESTORATION OF BEF CUTS AMOUNTING TO $54 MILLION FROM Source: PASBO 16

COMPARATIVE STATE BUDGETS ESTIMATEDGOVERNOR'S BUDGET FRANKLIN BUDGET ? BASIC EDUCATION$11,216,596$11,521,797 ACCOUNTABILITY BLOCK GRANT$0$258,752 EAP(TUTORING GRANT)0$82,3140 CHARTER SCHOOL REIMB0$86,732 ADDITIONAL BEF RESTORATION0$147,842 READY TO LEARN BLOCK GRANT$305,201$0 $11,521,797$12,097,437$11,780,549 17

BUDGET – REVENUES MUST EQUAL EXPENDITURES REVENUES $30,696,099EXPENDITURES $31,848,634 DIFFERENCE ($1,152,535) REDUCE STAFFUSE OF FUND BALANCE ECONOMIES OF SCALE 18

F UTURE CONSIDERATIONS : PSERS OBLIGATIONS Fiscal yr Ending June Total Employer Contrib. % Estimated Wages 2.0% Projected Total Employer Contribut. Net Contribut. (50% State Reimbuse) 14/ ,310,5932,848,4671,424,233 15/ ,451,6213,475,8991,737,949 16/ ,720,6534,073,6622,036,831 17/ ,995,0664,285,2892,142,645 18/ ,274,9684,505,1802,252,590 19/ ,560,4674,692,8392,346,419 20/ ,851,6774,755,5072,377,753 21/ ,148,7104,832,4392,416,219 22/ ,451,6844,938,3582,469,179 23/ ,760,7185,027,6692,513,835 19

FUTURE CONSIDERATIONS SHRINKING STUDENT ENROLLMENT According to October 1, enrollment numbers there has been a decrease of 313 students over the last 11 years. 20

S AVINGS IN CLOSING UTICA - STAFF 5 $66,544.06—Bachelor second step and individual benefits$332,720 2 CUSTODIANS- $ $12.59 an hour and family benefits$100,062 SECRETARY- $44,926 ADMINISTRATOR-$93,809 CAFETERIA STAFF-$26,000 TOTAL$597,517 21

SAVINGS IN OTHER AREAS Snowplowing and Lawn Care $7400 Electricity $16,000 Maintenance and Repair $12,000 22

A DDITIONAL SAVINGS Travel and Communications $7,300 Custodial Supplies $2,000Natural Gas $12,200 23

T ECHNOLOGY COSTS Computers need replaced $30,000 Wireless connectivity $6,000 VOIP $11,000 24

EXPENDITURES PER STUDENT 25

U TICA EXPENDITURES PER YEAR - AUDITED 26

CONCLUSIONS BUDGET IS TENTATIVE—WAITING FOR FIRM COSTS ON SOME ITEMS, SUCH AS RIU TUITION STATE SHARE IS OPEN TO INTERPRETATION- IF WE ASK FOR NOTHING WE WILL GET NOTHING A TAX HIKE TO THE MAX IS INCLUDED- 247,599 MORE COLLECTED SHRINKING ENROLLMENT, INCREASING SPECIAL COSTS AND INCREASING PSERS REMAIN PROBLEMS 27