1. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation November 22, 2011 District Administration Building 6:00 p.m. 1

2. How is the budget compiled? The district budget is comprised of revenues and expenditures. The revenue budget is based on prior year history and on estimated state budget allocation. 2 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

3. How is the budget compiled? The expenditure budget is separated into two categories: 1. Salary and Benefits: Determined from existing employee contracts and benefit rate requirements. 2. Cost Centers: Cost Center Managers submit projected expenses for the upcoming year. 3 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

4. How is the budget compiled?  The Salary and Benefit and the Cost Center Budgets are then combined into a Total Expenditure Budget.  All District Revenues are combined into a revenue budget  Central Administration reviews the revenue and expense budgets and then presents them to the board with a list of expenditure and revenue adjustment recommendations in order to balance the budget. 4 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

5. Budgeted Revenue = $92,475,426 Budgeted Revenue Detail 5 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

6. Revenue Line Items: 6111 - Current Real Estate Taxes $24,948,852  Neutral millage, 87% collection rate 6 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

7. Revenue Line Items: 6113 - Public Utilities$ 41,000 6114 - Payment in lieu of tax $ 279,000 6151 - Earned income tax $1,700,000 6153 - Transfer tax $ 514,000 7 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

8. Revenue Line Items: 6411 - Delinquent Real Estate Tax $2,516,000 6451 - Delinquent Earned Income Tax $ 600,000 8 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

9. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Revenue Line Items: 6510 - Investments$25,000 6751 - 6754 Athletic Ticket Sales$34,000 9 Budget Presentation

10. Revenue Line Items: 6911 - Lincoln Elementary Rent $270,000 6943 - Adult Ed/GED$ 3,500 6944 - Incarcerated Education$ 86,000 6991 - E-Rate Reimbursement$474,000 6993 - Miscellaneous $159,000  School Fines & Record Requests 10 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

11. Revenue Line Items: 7110 - Basic Education Funding Subsidy $44,679,548  Based on 11-12 Estimated Subsidy 11 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

12. Revenue Line Items: 7140 - Charter School Subsidy $0 Districts with over 12% CS students received 41.96% reimbursement of prior year actual CS expenses. This subsidy was cut from the District starting with the 11-12 school year. Currently 30% of the Districts students are in Charter Schools, which equates to 2,243 students. Loss of approximately $6-7 million. 12 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

13. Revenue Line Items: 7250 - Migratory Children$ 1,000 7271 - Special Education Subsidy $5,260,000 7310 - Transportation Subsidy $ 325,000 7320 - Bond Reimbursements $2,100,000 7333 - Nursing Services$ 115,000 7340 - State Gaming Tax Relief$2,901,526 13 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

14. Revenue Line Items: 7810 - Social Security Reimbursement $1,967,000 7820 - Retirement Reimbursement $3,458,000  Estimated rate 12.2% times average reimbursement of 70% 14 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

15. Budgeted Expenses = $111,706,257 Budgeted Expense Detail (Salary/Benefits and Cost Centers) 15 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

16. Expense Line Items: Personnel Budget: $51,786,470  Includes all salaries and benefits for permanent positions Health Insurance rate is increased by 18% (Reduce to 14%)  Retirement rate is budgeted at 12.2% 16 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

17. Expense Line Items: Other Salary and Benefits$2,566,921  Includes substitute teacher services, hourly subs, contracted stipends and salary payouts. 17 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

18. 18 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation 2011-20122012-2013 Building 1: $8,220.60/Reg Ed$8,805.23/Reg Ed $19,314.00/Spec Ed$21,837.41.00/Spec Ed EnrollmentCostEnrollmentCost Lincoln728 $ 6,323,000668 $ 6,651,029 New Hope496 $ 5,320,000673 $ 7,737,617 Helen Thackston524 $ 4,090,000474 $ 5,372,798 YouthBuild109 $ 996,00081 $ 791,446 York Academy Regional0 $ -172 $ 2,283,451 Virtual Cyber Charter86 $ 1,265,000175 $ 1,860,757 1943 $ 17,994,0002243 $ 24,697,098 * This is an increase of $ 6,703,098 Rates increased from $45.67/day to $48.92/day for regular education, and from $107.30/day to $121.32/day for special education Expense Line Items:

19. Building 1:Bond/Debt Payments$13,555,333 YC School of Technology$ 5,499,500 Transportation(Special Ed)$ 1,800,000 Legal Services$ 326,000 Auditing Services$ 80,000 Board Services$ 38,695 Outside Tuition$ 2,822,500 19 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

20. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Expense Line Items: Building 1:Transportation (Reg. Ed)$ 100,000 Indirect Costs$ - 124,000 Department of Ed Refunds$ -70,000 City of York Tax Collection$ 64,000 Federal Communications$ 1,500 Crossing Guards$ 27,000 Total$24,120,528 20 Budget Presentation

21. Expense Line Items: Employee Tuition Reimbursement$ 375,000 Able & Ambitious$ 24,500 Assistant Superintendent$ 46,700 Assistant Superintendent for Pupil Services$ 16,000 Attendance Officer$ 14,700 AV Technician$ 2,000 Business Office$ 576,100 Computer Technology$ 674,920 21 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

22. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Expense Line Items: Curriculum and Instruction$ 92,500 Elementary Library$ 12,500 Human Resources$ 138,700 Nursing$ 127,900 Public Relations$ 20,500 Purchasing$ 579,000 Security$ 126,800 Special Education$1,718,811 22 Budget Presentation

23. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Expense Line Items: Superintendent$ 27,000 Alternative Education$ 200,000 Athletics$ 438,194 Buildings and Grounds$2,891,775 Davis$ 23,050 Devers$ 23,500 Ferguson$ 28,600 Goode$ 27,950 23 Budget Presentation

24. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Expense Line Items: Hannah Penn$ 49,450 Jackson$ 17,760 Lindbergh$ 18,600 McKinley$ 16,980 Smith$ 40,960 William Penn$ 184,790 24 Budget Presentation

25. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Summary: Revenue Budget$ 92,475,426 Expenditure Budget$ 111,706,257 Surplus/(Deficit)($ 19,230,831) 25 Budget Presentation

26. We are beginning with a structural deficit of : $ 19,230,831 (2011-12 budget process began with a structural deficit of $15,350,021) (2010-11 budget process began with a structural deficit of $7,127,360) (2009-10 budget process began with a structural deficit of $3,605,753) (2008-09 budget process began with a structural deficit of $2,217,228) 26 The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” Budget Presentation

27. The School District of the City of York, Pennsylvania “Great Expectations: Failure is Not an Option” District Administration will be working with the Board of Directors and Community to resolve the deficit. Questions & Comments 27 Budget Presentation