May 29, 2008

2008-2009 Budget Presentation

School Board Meeting

2

• Budget Process• Summary Budget • Highlights

– Special Education– Transportation– Library Donations

• Significant Cost Increases– Medical Contributions– Fuel

• Fund Balance • Sacrifices• Questions and Answers

Budget Presentation 2008-2009

-- Agenda –

Agenda

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Budget Process

• At all times during the process, the goal is to maintain the highest quality of excellence in our educational program for our students as possible. Our students’ needs come first!

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Budget Process

• Administration examines the set costs as determined by contractual obligations, projections for health care, projections for fuel costs, etc.

• Administration reviews and studies enrollment projections and, after registration time, includes actual numbers into enrollment projections for 2008-2009. Following this, staffing changes are planned.

• Building and cost site administrators submit budgets according to the budget calendar distributed in early fall. The building principals are given a per pupil amount for planning that covers everything but salaries and operations:

Elementary $200 Middle $207 High School $233

• These budgets are then reviewed continuously by the Business Manager and the Superintendent to find cuts and to make adjustments as needed.

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• Budget Process• Summary Budget • Highlights

– Special Education– Transportation– Library Donations

• Significant Cost Increases– Medical Contributions– Fuel

• Fund Balance • Sacrifices• Questions and Answers

Rose Tree Media School District’s Budget for 2008-2009 is $76 million.

-- Agenda –

Agenda

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Budget Final Expenditures 2007-2008 Budget 2008-2009Instructional 1000 $39,651,030 $40,507,603 Support Services 2000 23,048,958 24,523,599 Operation, Non-Instructional Services 3000 1,194,737 1,173,964 Facilities Services 4000 117,950 128,426

Other Financing Services 5000 8,562,227 9,758,222 Totals $ 72,574,902 $

76,091,814

Budget Final Revenues 2007-2008 Budget 2008-2009Local 6000 $61,466,661 $63,163,369

State 7000 8,563,385 10,463,461

Federal 8000 244,856 327,873Sub Totals $70,274,902 $73,954,703Fund Balance 2,300,000 2,137,111Totals $72,574,902 $76,091,814

Rose Tree Media School District’s budget for 2008-2009 is $76 million.

-- Summary Budget --

Summary Budget

7

• Summary Budget • Highlights

– Special Education– Transportation– Library Donations

• Significant Cost Increases– Medical Contributions– Fuel

• Fund Balance • Sacrifices• Questions and Answers

Here are the highlights of the budget.

-- Agenda --

Agenda

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Highlights

• Special Education– $11,996,575

• Transportation– $3,683,735

• Library Donations– $16,000

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• 1 millage point (mills) is equal to approximately $2.8 million• 2007-2008 Real Estate Taxes are 20.1314 mills• The current 2008-2009 budget is 21.0977 mills• Act 1 provides for a 4.4% increase – The PA Department of

Education has approved Exceptions for Special Education and Debt Service that would allow us to take a 5.46% millage increase.

• The current 2008-2009 budget is a 4.8% increase or $201,320

• DCCC is included in our budget; their portion is .3734 mills this year and .3985 mills next year

Here are some key facts and figures of the budget.

-- Key Points --

Highlights

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Key Points

• Taxpayer - Average assessment is $235,891; average school taxes in 2007-2008 were $4,748.82 and 2008-2009 is $4,976.76

• The average increase in taxes to homeowners is $227.94 (at 4.8% millage index)

• The value of a mill is $2,800,000 (using a round number) so the dollar amount over the index is $201,320. 

Additional information: Using the average assessment of $235,891 the average property owner will be paying an additional $19.00 due to the increase over the index. This is included in the $227.94 mentioned above. 

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• Summary Budget • Highlights

– Special Education– Transportation– Library Donations

• Significant Cost Increases– Medical Contributions– Fuel

• Fund Balance • Sacrifices• Questions and Answers

-- Agenda --

Agenda

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There are items that increased far in excess of Act 1.

-- Expense Items --

Significant Cost Increases

– Medical Contributions Over 14%

– Dental Contributions Over 14%

– Diesel Fuel Over 34%

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• Summary Budget • Highlights

– Special Education– Transportation– Library Donations

• Significant Cost Increases– Medical Contributions– Fuel

• Fund Balance • Sacrifices• Questions and Answers

Fund Balance is critical to RTMSD’s borrowing rate.

-- Agenda --

Agenda

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Unfortunately, even with the budget we have, there are cuts to the fund balance.

-- Fund Balance Reductions --

Fund Balance

• 2006– $2.8 million

• 2007– $2.3 million

• 2008– $2.1 million

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• Summary Budget • Highlights

– Special Education– Transportation– Library Donations

• Significant Cost Increases– Medical Contributions– Fuel

• Fund Balance • Sacrifices• Questions and Answers

With costs rising above the Act 1 percentage, we continue to tighten our belts.

-- Agenda --

Agenda

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Even with the modest increase in taxes, certain items had to be cut from the budget.

-- Cuts--

Sacrifices

• 2 Administrative Positions•1 Supervisor and 1 Specialist

• 4 Elementary classroom teaching positions

•Decreased enrollment• 5 Special Education teaching positions

•Change in PA Chapter 14 regulations allows for this

• Requests for 2 new positions• Equipment requests

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• Summary Budget • Highlights

– Special Education– Transportation– Library Donations

• Significant Cost Increases– Medical Contributions– Fuel

• Fund Balance • Sacrifices• Questions and Answers

We want to address any questions.

-- Agenda --

Agenda

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At this point we want to take any questions from the Board and audience.

-- Q & A --