1. 2014-2015 PROPOSED FINAL BUDGET State College Area School District May 5, 2014

2. Budget Process Board passed an Accelerated Budget Opt Out Resolution on January 13, 2014 Certified the tax rate to be within the 2.1% Act 1 index for 2014-15 Proposed final budget presented for adoption – May 5, 2014 Budget Hearing – June 2, 2014 at 131 West Nittany Ave (7:00 p.m.) Final budget presented for adoption – June 9, 2014 Reopen budget after passage of the State Budget, if necessary

3. General Fund Budget Accounts for the expenses related to general operations of District Supports other funds Debt service Capital reserve General Fund Budget must be adopted by June 30th

4. Act 1 Limits school district tax increases to an inflationary index (Act 1 Index) Act 1 Index is 2.1% for 2014-15 Exceptions available to tax above the index for increases in certain expenses Exceptions available for PSERS (pension) cost only No exceptions were requested for 2014-15

5. Proposed Tax Increase Proposed tax increase 1.95% Second lowest tax increase since 1998-1999 Lowest proposed tax increase compared to cohort and other Centre County School Districts Maintains lowest tax rate of all districts in Centre County Millage rate would increase from 38.75 to 39.5056 Impact of tax increase for average residential homeowner - $54

6. Cohort and Centre County School Districts Real Estate Tax 2014-15 Projected Tax IncreaseExceptionsAct 1 Index 2013-14 Millage Rate 2014-15 Proposed Rate Bellefonte2.38%0.00%2.70% 47.4107 48.5392 Bald Eagle3.96%1.06%2.90% 50.5500 52.5500 Penns Valley4.20%1.60%2.60% 43.2348 45.0489 State College1.95%0.00%2.10% 38.7500 39.5056 Tredyffrin-Easttown3.20%1.10%2.10% Cumberland Valley2.10%0.00%2.10% Parkland2.10%0.00%2.10% Lower Merion4.11%2.01%2.10% North Allegheny9.56%7.46%2.10% Abington4.53%2.43%2.10%

7. Fund Balance Proposed Final Budget includes: Use of PSERS Fund Balance of $598,424 Use of Legal Liability Fund Balance of $550,000 Addition to Capital Reserve Fund of $4,656,500 Increase in Unassigned General Fund Balance of $324,123 Brings General Fund percentage of operating expense to 7.8% Within allowed limit of less than or equal to 8%

8. Revenue Local District primarily locally funded State Projected level funding with exception of PSERS reimbursement Federal Projected level with small decrease in Title funds

9. 2014-15 Revenue by Source

10. Local Revenue

11. Historical Real Estate Tax Percentage Change

12. 2014-15 Proposed Budget Expense By Category Salaries 57,930,67946% Health Insurance 12,359,17910% PSERS 12,230,84010% Other Benefits 5,961,9285% Professional Services 4,170,2023% Purchased Property Services 2,062,9162% Charter Schools 5,095,1524% Other Purchased Services 5,120,4084% Supplies/Equipment 5,739,8565% Minor Capital Projects 2,055,7172% Other Uses of Funds 13,253,93110% Total 125,980,808 Total Salaries and Benefits 88,482,62670%

13. Expense Increase Total change in expense - $4.7 million increase PSERS - $2.7 million Health Insurance - $1.3 million Salaries - $764,000 Debt Service – ($904,000) Other Net Increases- $840,000

14. PSERS Percentage of salary paid for employees’ pensions Rates have increased from 5.64% of qualifying salary expense in 2010-11 to 21.4% for 2014-15 District has established a fund balance to offset a portion of PSERS costs beginning with the 2014-15 budget year Board elected not to utilize exceptions for PSERS available for 2014-15

15. State Budget Supposed to be passed by June 30 each year District must pass budget by June 30 Possible reopening after state budget is passed

16. 2014-15 Budget For more information on the budget process including all handouts that are related to the budget go to www.scasd.org/page/23254