FEBRUARY 14, /2012 PROPOSED BUDGET Middle Bucks Institute of Technology

New Initiatives Expand Health Occupations – Health Sciences  Hire new full time instructor  High demand programs currently fully enrolled Expand Culinary Arts  Hire half-time instructor  Use Food Court Start new Building Trades Program  Use current Construction Carpentry Instructor  Use existing lab with minimal investment

Challenges Many unknowns:  Teachers’ salaries  2 out of 4 Member SD are negotiating  Medical & Prescription benefit cost  First Look - November % Increase  Second Look – May 2011  PSERS  Projected rates - Certified rate set at 8.65%  Pension reform – Passed in December 2010

Assumptions Salaries & Wages  Teachers - updated for contract NHSD  Administrative & Support Staff - 2% increase Medical & Prescription Benefits - used 19% for rate increase PSERS – used certified rate 8.65% Dental - net reduction for expected claims Workers’ Compensation - level with current year

Overall Budget Change 2011/12 vs. 2010/11 General Fund + Lease Rental = $109,481 increase $9,651,216 vs. $9,541,735 Increase = 1.15%

General Fund & Lease Rental 2011/ /2011 $ % General Fund $8,185,717$8,074,685$111, % Lease Rental – Authority $1,465,499$1,467,050-$1, % Total $9,651,216$9,541,735$109, %

General Fund – Receipts from Members 2011/12 vs. 2010/11 Member District Increase = $115,682 $7,052,697 vs. $6,937,015 Increase = 1.67% Allocated using 3 year averaging of ADM

Proposed Member Contributions 2011/ /2011 $ % Receipts from Members – GF$7,052,697$6,937,015$115, % Lease Rental Paid Directly to Authority $1,465,499$1,467,050-$1, % Total Member Contribution$8,518,196$8,404,065$114, %

General Fund Expenditures 2011/12 vs. 2010/11 Expenditure Budget Increase = 1.38% $8,185,717 vs. $8,074,685 Increase $111,032

Components of Increase New teaching position$ 87,236 Net increase – salaries & wages$ 107,527 Net increase – health insurance $63,659 Net decrease - dental claims ($26,846) Net increase - PSERS $27,042 Supplies for new Health program $9,580 Decrease in Electricity & Natural Gas($65,000) All other($92,166) Net increase$111,032

OTHER BUDGETS Capital Reserve Fund  Funded at discretion of Executive Council using unspent current year budget contribution – proposed $75,000  Funds to be used for acquisition of program equipment & capital repairs and maintenance to facilities Traffic signal $30,000 Digital Road Sign $75,000 Matching funds $100,000

OTHER BUDGETS Adult Education $152,800 vs. $152,990  Fall & Spring Evening Programs  Industry Specific Training Production Fund $ 302,960 vs. $353,850  Live work  Student Built Modular House  Aspirations  Salon Extreme  Student fees  MBIT Summer School & Summer Enrichment Camp

OTHER BUDGETS : PROPRIETARY & FIDUCIARY Proprietary  Li’L Bucks Preschool in Learning  Programs for Toddlers & Preschool children Fiduciary  Student Activities Fund  Skills USA  HOSA

Next Step Finalize General Fund & Lease Rental Budget  March 14, 2011 Executive Council Meeting Finalize Other Budgets  March 14, 2011 Executive Council Meeting Questions