East Penn School District Budget Outlook May 23, 2011

Preliminary Budget In January, we adopted a 4.79% tax increase with a spending increase of 1.1%.

Preliminary Budget Input from January  File for Exceptions  Bring in Lowest Possible Budget  Do not Cut Programs  Do not Cut Jobs  Bring up the Budgetary Reserve  No new taxes  Shared sacrifice  People move to East Penn for its excellent program

Preliminary Budget Events & Activities Since the Approval of the Preliminary Budget  Kept the Board informed of Adjustments  Kept Staff and those who signed up online informed with updates  Spoke at EPIC  Governor’s Budget  Internal Reviews of Department budgets, Programs and Operations  Review of Local Revenue Trends  Budget Freeze  Presentation on Capital Projects  Communication with Local State Legislatures  Conversations with Colleagues

Proposed Final Budget Millage% Increase Current Millage45.32 Act 1 Index % Millage% Increase Special Education$1,823, % Retirement Contributions $835, % Total Exceptions$2,658, % Increase Allowed % ’11-’12 Proposed Final Budget % Referendum Exceptions

History of East Penn Millage Increases vs. Act 1 Index YearEast PennAllowed %3.90% % % %4.10% %5.02% Proposed2.67%4.79% For , we had estimated that we would qualify for.87 mills or 2% in exceptions that we did not apply for. Without approved exceptions, the Act 1 Index for was 2.9% and 1.4% for

The Budget Process BudgetFinal BudgetChange Total Appropriations (w/out Budgetary Reserve) $119,988,660$114,605,705- $5,382,955 Budgetary Reserve$2,100,646$5,426,118$3,325,472 Total Exp. & Other Financing Uses $122,089,306$120,031,823- $2,057,483 BudgetFinal BudgetChange Local Revenue (Mostly lower real estate tax) $91,273,999$88,619,409- $2,654,590 State Property Tax Reduction Allocation $0$1,794,357 Other State Revenue$21,851,689$20,783,274- $1,068,415 Total Revenue & Other Financing Resources $113,990,463$112,061,815- $1,928,648 Millage PreliminaryProposed

Earnings on Investments APRIL YTD TOTAL FISCAL EARNINGS ON EARNINGS ON YEAR INVESMENTS INVESMENTS 2000/01 $ 1,086,150 $ 1,307, /02 $ 502,113 $ 579, /03 $ 290,939 $ 343, /04 $ 215,590 $ 259, /05 $ 373,906 $ 529, /06 $ 909,936 $ 1,177, /07 $ 1,215,419 $ 1,587, /08 $ 1,104,443 $ 1,303, /09 $ 639,182 $ 763, /10 $ 188,325 $ 247, /11 $ 117,311

Interim Real Estate Tax Collections TOTAL FISCAL APRIL YTD INTERIM TAX YEAR INTERIMS COLLECTIONS 2000/01 $ 664,421 $ 838, /02 $ 850,045 $ 1,112, /03 $ 663,691 $ 1,056, /04 $ 1,590,931 $ 1,895, /05 $ 831,807 $ 1,428, /06 $ 2,065,352 $ 2,600, /07 $ 1,855,782 $ 2,045, /08 $ 974,864 $ 1,130, /09 $ 766,307 $ 1,555, /10 $ 858,535 $ 964, /11 $ 374,233

Real Estate Transfer Tax Revenue APRIL YTD TOTAL R.E. FISCAL TRANSFER TAX TRANSFER TAX YEAR REVENUES REVENUES 2000/01 $ 688,760 $ 938, /02 $ 894,366 $ 1,172, /03 $ 978,666 $ 1,342, /04 $ 1,411,176 $ 1,854, /05 $ 1,807,532 $ 2,449, /06 $ 2,008,805 $ 2,754, /07 $ 2,062,629 $ 2,560, /08 $ 1,285,734 $ 1,658, /09 $ 861,131 $ 1,171, /10 $ 835,164 $ 1,182, /11 $ 689,082

Cuts Proposed by Administration after Preliminary Budget Adoption  Cell Phones Reduced  Duplication in Department Budgets  Decreased Alternative Education Placements  Printing & Mailing Cuts  Community Education Tuition Increase  Debt Refinancing Savings  Cut 1 Administrative Position through Attrition  Reduced New Textbooks  Salary/Benefit Differentials (Retirees Replaced at Lower Salaries)  4 More Teaching Positions Cut through Attrition (12 instead of 8)

Cuts Proposed by Administration after Preliminary Budget Adoption  Energy Savings from Capital Projects  Staff Development Cuts  JumpStart Summer Program Eliminated  Driver Training On-Road Make Self-Funding  Technology New Equipment Reduced  Freeze Administrative Salaries  Freeze Custodial Salaries  Freeze Teacher Salaries  Freeze Misc. Salaries  Reduce Medical Insurance Costs based on RFP

Cuts Proposed by Administration after Preliminary Budget Adoption  Reduced Supt. Contracted Services  Cut Elementary Math Books  Eliminated Summer Music and Summer Fitness Programs  Reduced Athletic Department Budget  Cut Field Trips from Curriculum Budget  Reduced Guyette Contract on Phones  Reduced Energy Costs due to Student Teams  Reduced Aides through Attrition

Budget to Budget Budget to Budget  Decrease in Spending by 0.6%  Spending is not the problem

Tax Impact Median Homestead Assessment = $66,450 Tax Increase at Proposed Rate Prior to Act 1 Homestead Reduction = $80.41 for the year, which equals 22 cents per day Last year, EPSD gave 389 people senior citizen tax rebates for a total of $166,900.81, which was an average rebate of $429.05

Summary Expenditures are down budget to budget Several local revenues are down due to the economy  Earned income tax, real estate transfer tax and interest income  Stimulus funds that are shown as local due to being pass- through funds were also lost as expected Possible Budget Adjustments State revenues are down over $2 million budget to budget  HB 1485 as amended could restore $557,952 in Social Security reimbursement and ABG funds  Restoration would bring down the increase by.34 mills, giving taxpayers an annual increase of $57.81 or 16 cents per day, which is 1.90%

Summary Budget is still Evolving  Retirements  Workplace Safety Committee  Staff Reallocation  Possible Additional Energy Savings Will continue to examine line items and revenues and make adjustments that will be reflected in the June 27 th final budget to try to keep taxes as low as possible without cutting programs

EPSD We have worked through this process without acrimony and we thank all of those who have been understanding, patient, and professional.