May 29, 2008

1. 2008-2009 Budget Presentation School Board Meeting May 29, 2008

2. Agenda Budget Presentation 2008-2009 -- Agenda – • Budget Process • Summary Budget • Highlights • Special Education • Transportation • Library Donations • Significant Cost Increases • Medical Contributions • Fuel • Fund Balance • Sacrifices • Questions and Answers

3. 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!

4. 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.

5. Agenda Rose Tree Media School District’s Budget for 2008-2009 is $76 million. • Budget Process • Summary Budget • Highlights • Special Education • Transportation • Library Donations • Significant Cost Increases • Medical Contributions • Fuel • Fund Balance • Sacrifices • Questions and Answers -- Agenda –

6. Summary Budget Rose Tree Media School District’s budget for 2008-2009 is $76 million. Budget Final Expenditures 2007-2008 Budget 2008-2009 Instructional 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 2008-2009 Local 6000 $61,466,661 $63,163,369 State 7000 8,563,385 10,463,461 Federal 8000 244,856 327,873 Sub Totals $70,274,902 $73,954,703 Fund Balance 2,300,000 2,137,111 Totals $72,574,902 $76,091,814 -- Summary Budget --

7. Agenda Here are the highlights of the budget. • Summary Budget • Highlights • Special Education • Transportation • Library Donations • Significant Cost Increases • Medical Contributions • Fuel • Fund Balance • Sacrifices • Questions and Answers -- Agenda --

8. Highlights • Special Education • $11,996,575 • Transportation • $3,683,735 • Library Donations • $16,000

9. Highlights Here are some key facts and figures of the budget. • 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 -- Key Points --

10. 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. 

11. Agenda • Summary Budget • Highlights • Special Education • Transportation • Library Donations • Significant Cost Increases • Medical Contributions • Fuel • Fund Balance • Sacrifices • Questions and Answers -- Agenda --

12. Significant Cost Increases There are items that increased far in excess of Act 1. -- Expense Items -- • Medical Contributions Over 14% • Dental Contributions Over 14% • Diesel Fuel Over 34%

13. Agenda Fund Balance is critical to RTMSD’s borrowing rate. • Summary Budget • Highlights • Special Education • Transportation • Library Donations • Significant Cost Increases • Medical Contributions • Fuel • Fund Balance • Sacrifices • Questions and Answers -- Agenda --

14. Fund Balance Unfortunately, even with the budget we have, there are cuts to the fund balance. -- Fund Balance Reductions -- • 2006 • $2.8 million • 2007 • $2.3 million • 2008 • $2.1 million

15. Agenda With costs rising above the Act 1 percentage, we continue to tighten our belts. • Summary Budget • Highlights • Special Education • Transportation • Library Donations • Significant Cost Increases • Medical Contributions • Fuel • Fund Balance • Sacrifices • Questions and Answers -- Agenda --

16. Sacrifices Even with the modest increase in taxes, certain items had to be cut from the budget. -- Cuts-- • 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

17. Agenda We want to address any questions. • Summary Budget • Highlights • Special Education • Transportation • Library Donations • Significant Cost Increases • Medical Contributions • Fuel • Fund Balance • Sacrifices • Questions and Answers -- Agenda --

18. At this point we want to take any questions from the Board and audience. -- Q & A --