Budget Information

1 OUR School District…OUR Children This helps to maintain and increase property values We achieve this through a serious and balanced approach to year-round fiscal responsibility Excellent and Award-winning Educational Programs

2 Budget Process  At all times during the process, the goal is to maintain the highest quality of excellence in our educational program for our students as possible. Our students’ needs come first!

3 Budget Process  Administration examines the set costs as determined by contractual obligations, projections for health care, projections for operational costs, etc.  Administration reviews and studies enrollment projections and, after registration time, includes actual numbers into enrollment projections for Following this, staffing changes are planned.  Building and cost site administrators submit budgets according to the budget calendar distributed in early fall. The building principals are given a per pupil and building allocation amount for planning that covers everything but salaries and operations: Elementary $208 Middle$215 High School $242  An early retirement incentive plan resulted in salary savings. Health Care rates are at a historical low. No new additional programs were added.

4  Budget Process  Revenue  Index  Assessments  Summary Budget  Expenditures  Cost Increases  Cost Reductions  Conclusion Budget Overview Agenda

Sources of Revenue Revenue is comprised of four sources: local, state, federal and fund balance.  Local revenue sources include real estate taxes, Per Capita taxes, tuitions, earnings on investments and miscellaneous revenue.  State revenue sources include state subsidies for Basic Education Funding, Special Education, and Transportation, State Property Tax Relief, Reimbursement for Retirement payments.  Federal revenue source consists of Title I & II funds that have restricted uses.  Fund balance is the difference between net assets and liabilities and results when revenues are greater than expenditures. It’s often referred to as a savings account, but does not consist of only cash.

The Act 1 Index The Act 1 Index is a result of the Taxpayer Relief Act of 2006, which established limits on tax increases. The Index is calculated based on the percentage of increase in the State Wide Average Weekly Wage (SAWW) and the percentage increase in the national Education Cost Index (ECI). The SAWW is determined by the Department of Labor and Industry in the same manner as the Unemployment Compensation Law and it is calculated on the previous calendar year. The ECI is also based on the previous 12-month period beginning July 1 st through June 30 th using Elementary and Secondary school data reported by the Bureau of Labor and Statistics. Fiscal Year 11/12 10/11 09/10 08/09 07/08 06/07 SAWW $855 $847 $825 $788 $756 $735 ECI SAWW % + 0.9% 2.7% 4.6% 4.3% 2.8% 4.2% ECI % + 1.9% 3.0% 3.6% 4.5% 4.0% 3.5% Base Index 1.4% 2.9% 4.1% 4.4% 3.4% 3.9%

Revenue

Tax History

Delaware County School District Proposed Mills Ranked by Mills - June Mills DistrictRankIncr %Incr #11/1210/1109/10 William Penn112.98% Wallingford-Swarthmore21.40% Chichester34.51% Ridley44.14% Southeast Delco52.00% Upper Darby66.38% Interboro72.25% Garnet Valley82.86% Springfield92.92% Haverford Twp % Chester Upland110.00% Penn-Delco122.77% Rose Tree Media130.00% Radnor141.32% Marple Newtown155.50% %

Delaware County School District Proposed Mills Ranked by Percentage - June Mills DistrictRankIncr %Incr #11/1210/1109/10 William Penn112.98% Upper Darby26.38% Haverford Twp.36.30% Marple Newtown45.50% Chichester54.51% Ridley64.14% Springfield72.92% Garnet Valley82.86% Penn-Delco92.77% Interboro102.25% Southeast Delco112.00% Wallingford-Swarthmore121.40% Radnor131.32% Chester Upland140.00% Rose Tree Media150.00% %

Assessment – Ten Year History

Revenue Budget Comparison 10/1111/12 Major ObjectBudget Amount $ Incr/Decr% Incr/Decr Local65,368,067 65,703, , % State11,093,727 9,923,162 -1,170, % Federal 375, % Fund Balance 4,973,887 4,636, , % Total81,810,681 80,637,784 -1,172, %

Revenue Budget Comparison

Revenue Summary

Local Revenue 11/12 % Local SourceBudget Amountof Total Real Estate Tax 60,555, % Transfer Tax 650,0001.0% Delinquent Taxes 850,0001.3% Current Per Capita 350,0000.5% Tuition 2,150,4563.3% Earnings on Investments 120,0000.2% Rentals/Other 1,027,5461.6% 65,703, %

Local Revenue

17  Loss of $1.1 million in state revenue  Zero increase in federal revenue  1 millage point (mill) is equal to approximately $2.77 million  Real Estate Taxes are mills  Real Estate Taxes are mills for a 0% increase.  Act 1 Index is 1.4%  Homestead exemption $206  Homestead exemption $207  Average homeowner assessment is $205,173  Average homeowner tax bill is $4,566  The use of $4.6 million in fund balance Key Facts and Figures of the Revenue Budget. -- Key Points --

18 Unfortunately, even with the budget we have, there are cuts to the fund balance. -- Fund Balance Reductions --  2007/2008 $2.3 million  2008/2009 $2.1 million  2009/2010 $2.5 million  2010/2011 $4.9 million  2011/2012 $4.6 million

19  Budget Process  Revenue  Index  Assessments  Summary Budget  Cost Increases  Salaries  Debt Services  Special Education Expenditure Budget for is $80,637,784 Agenda

20  Summary Budget  Cost Reductions  Early Retirement Incentive Plan  Health Care Rates  Professional Services  Security  Substitutes  Supply and Equipment Requests  Budgetary Reserve -- Agenda -- Rose Tree Media School District’s Expenditure Budget for

21 In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Objects  Salaries - wages for all school district employees  Benefits - health care, tuition reimbursement, retirement and social security  Contracted Professional Services – tuition to the Intermediate Unit, legal and auditing services  Purchased Property Services - utilities, repairs and rentals.  Other Purchased Services - transportation, property insurances, advertising, tuitions and travel  Supplies- books, general supplies and natural gas.  Equipment - computers, furniture and vehicles  Other objects – interest on bonds, dues and fees  Other Uses of Funds – bond principal and fund transfers Expenditure Budget for

Expenditure Comparison by Object 10/1111/12 Major Object Budget AmountBudget Amount$ Incr/Decr%Incr/Decr Salaries 38,032,016 38,696, , % Employee Benefits 15,814,741 14,618,425 -1,196, % Contr Prof. Svc 4,844,151 4,937,055 92, % Purch Property Svcs 2,846,741 2,437, , % Other Purchased Svcs6,239,673 5,929, , % Supplies/Books 3,286,737 3,281,460 -5, % Property (Equipment) 630, ,884 68, % Other Objects 3,948,807 3,719, , % Other Financing Uses 6,166,991 6,318, ,7282.5% Total81,810,679 80,637,784 -1,172, %

Expenditure Comparison by Object

24 In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Functions  1000 Instruction-regular, special, vocational, alternative education programs and the Delaware County Community College  2000 Support Services-guidance, administration, student health, business, operations and maintenance, student transportation, staff and technology services  3000 Operations of Non-Instructional Services-athletics, student activities, and community services  5000 Other Expenditures and Financing Uses-debt service, fund transfers, and budgetary reserve Expenditure Budget for is $80,637,784

Expenditure Comparison by Function 10/1111/12–$–$–%–% Expense FunctionBudget Amount Incr/Decr Instructional Programs 44,332,354 44,353,330 20, % Instr Support Svcs 7,008,769 6,506, , % Admin 3,479,849 3,295, , % Pupil Health 595, ,297 13, % Business Svcs 1,108,263 1,058, , % Opn & Maint 8,010,649 7,526, , % Transportation 4,964,818 4,900, , % Central Support Svcs 869, ,140 48, % Student Activities 1,210,565 1,308,413 97, % Debt Service 8,779,568 8,955, , % Other Expenses 1,450,242 1,205, , % Total 81,810,681 80,637,784 -1,172, %

Expenditure Comparison by Function

27 Rose Tree Media School District’s Expenditure Budget for

28  1.4% Reduction in Expenditures from Budget  Historic Low Health Care Rates  0% Salary Increase for Administrators  Maintain Current Programs  Reduction in Utility Costs  Early Retirement Incentive Plan Key Facts of the Expenditure Budget. -- Key Points --

29 Budget FinalExpenditures Instructional 1000 $44,183,057 $44,353,330 Support Services/ ,431,003 25,067,291 Operations Non-Instructional Services ,317,053 1,411,813 Other Financing Services ,879,568 9,805,350 Totals $81,810,681 $80,637,784 Budget Final Revenues Local 6000 $65,368,067 $65,703,346 State ,093,727 9,923,162 Federal , ,000 Sub Totals $76,836,794 $76,001,508 Fund Balance 4,973,887 4,636,276 Totals $81,810,681 $80,637,784 Summary Budget

30 Challenges  Tax Appeals  Loss of State Funding  Charter School Reimbursement  Dual Enrollment Reimbursement  Basic Education Subsidy  Social Security Reimbursement  Unfunded Mandates  Charter School Tuition  Alternative Education  Special Education  Future Retirement Costs

31 Highlights  Zero Percent Tax Increase  Homestead exemption $207  Average homeowner assessment is $205,173  Average homeowner tax bill is $4,566  Maintain Current Programs  An Award Winning District