2014/ 2015 GENERAL FUND BUDGET MIDDLE BUCKS INSTITUTE OF TECHNOLOGY NOVEMBER 11, 2013

STATUS – GENERAL FUND & LEASE RENTAL Budget-to-budget increase $300,987– 3.03% 2014/152013/14$% General Fund$8,770,201$8,470,459$299, % Authority Lease$1,468,364$1,467,119$1, % Total Expenditures$10,238,565$9,937,578$300, %

CHALLENGES Unknowns as of November 11, 2013:  Health insurance costs  Retirement  Insurance  Utilities  State subsidies  Federal grants Goal – to be at or under the Act 1 Index - 2.1%

ASSUMPTIONS Teachers’ salaries – per contract Admin, Instructional Assistants and Support Staff Used 3% increase over 2013/14 pay rates Medical & prescription benefit cost  10% increase over 2013/14 rates – first look at end of November PSERS pension cost increase to 21.75% from 16.93% of payroll Increase in maintenance for aging HVAC, fire & smoke detection systems and equipment in programs Supplies are at 2012/2013 level Utilities – electricity and natural gas budget with slight reduction

COMPONENTS OF INCREASE Net increase salaries & wages $ 61,566 Net increase health insurance & contract benefits 16,459 Increase on account of employer’s PSERS rate 224,749 Net decrease in Purchased Professional Services ( 6,735) Net increase in Purchased Property Services 14,068 Net decrease in Other Purchased Services ( 2,935) Net decrease in program supplies (26,015) Net increase in non-instructional supplies 17,725 Increase in equipment – classroom & IT 300 Net increase – Other 560 Total $299,742

GENERAL FUND – RECEIPTS FROM MEMBER SCHOOL DISTRICTS 2014/152013/14$ Change % Change General Fund$7,369,816$7,190,719$179, % Authority Lease$1,468,364$1,467,119$ 1, % Total Expenditures$8,838,180$8,657,838$180, %

OTHER REVENUE 2014/ /2014$ Change % Change Other Local$88,300$95,300-$ 7, % State$1,035,000$898,000$137, % Federal$277,085$286,440-$ 9, % Total$1,400,385$1,279,740$120, %

STATE & FEDERAL REVENUE State Subsidies - Increase Vocational Ed and Retirement Subsidies  Total state $1,035,000 vs. $893,000 Decrease Federal funding for Carl D. Perkins Grant  Projected for 2013/2014 = $286,440  Actual received 2013/2014 = $277,085  Federal coordinator recommended same as 2013/2014 funding

NEXT STEP Gather more information and update proposed budget with first look healthcare premiums equivalents & certified employer rate for PSERS Look for savings Next presentation – February 10, 2014 Questions