1. Mechanicsburg Area School District
Budget Projection

2. Budget Preparation Budget Projection for 2018-2019: Budget Timeline:
Revenue Assumptions
Expenditure Assumptions
Act 1 Index: 2.4% (Base Index)
Budget Timeline:
Refine Estimates
Budget Calendar

3. Local Revenue
Local revenue – Estimated using currently enacted tax rates
Revenue Growth:
Real Estate Taxes:
Assessment Growth - $297,305
1% Increase in Real Estate Taxes - $355,003
To support debt service costs connected to District Program Design Project
Earned Income Taxes: $536,945

4. Real Estate Taxes: Growth in Assessed Values

5. Earned Income Taxes
Since 2010, wages in Pennsylvania have increased annually between 2% and 4%. The average during this period of time is 3.3%.
Source: Pennsylvania Independent Fiscal Office

6. State and Federal Revenue
State Revenue Growth:
Basic Education Subsidy: $150,000
Retirement Reimbursement: $267,264
Federal Revenues – Funding Levels from

7. Basic Education Funding

8. Composition of Funding: 2018-2019

9. Expenditures Increasing / (Decreasing) Expenditures:
Health Insurance: $324,438
PSERS: $456,289
Utilities: ($248,383)
Tuition: $207,779
Charter School Tuition - $200,000
Debt Service: $351,921(District Program Design)

10. Health Insurance

11. PSERS

12. Utilities

13. Charter School Tuition
Brick and Mortar – 7%
Cyber Charter – 93%

14. District Program Design
Note: Debt service levels will return to a more normal level in This is due to the fact that much of the District’s existing debt will be paid off over the next 5-6 years.

15. Budget Projection:
Projected Revenue:
$66,726,163
1% Increase in Real Estate Taxes (DPDP): $355,003
Projected Expenditures:
$69,168,420
Projected Budget Deficit: ($2,087,254)

16. Pending Adjustments
Several key revenue and expenditure adjustments remain:
Revenue:
State and Federal Budgets
Real Estate Tax Rate
Expenditures:
Staffing
Update Cost Centers
Contracted Services
Transportation

17. Budget Timeline November - January February – March April June
Cost Center Budgets
Adopt Act 1 Resolution
November - January
Preliminary General Fund Budget
February – March
Adopt Proposed General Fund Budget
April
Adopt Final General Fund Budget
June

18. Questions and Comments