METHACTON SCHOOL DISTRICT

Transcription

1 METHACTON SCHOOL DISTRICT Fiscal Year General Fund Final Budget June 25, 2013

2 INTRODUCTION The district budgets and expends funds according to procedures mandated by the Pennsylvania Department of Education. An annual operating budget is prepared by the Director of Business Services, reviewed by the Superintendent, and submitted to the School Board. Budgeted expenditures are based on the anticipated enrollment for the upcoming school year. Those budgeted expenditures and anticipated resources are reviewed for a determination of tax revenues needed. Throughout this process, the School Board offers guidance for administrative consideration. The instructional expenditures are submitted on a departmental/building level to the Director of Business Services. This information, together with salary, benefits, and general operating expenditures are compiled into an overall budget within the constraints of the projected revenue sources and existing fund balances. This document contains not only the proposed budget for the next fiscal school year, but also the current year s budget and three years of historical data. The projections reflect estimates on economic trends, at the local, state, and national levels, which may affect school district policies and programs. It must be understood that budgets are estimates and may be based on projections developed as the process evolves, well before the following are definitively known: o Number of students o Salary levels o State aid o New prices for equipment supplies set by vendors o Expenditures that are difficult to control or forecast, i.e., utilities, insurance premiums, and delivery of special education programs. Salary increases have been calculated based upon existing labor contracts and agreements and on estimates of unsettled collective bargaining agreements. Changes caused by additional or reduced staffing, educational levels, staffing patterns or changes in collective bargaining agreements will affect the actual expenditures.

3 SUMMARY OF EXPENDITURES BUDGET NARRATIVE HISTORICAL DATA: CURRENT YEAR BUDGET DATA: BUDGET DATA

4 In the mid-1980's Pennsylvania public school districts adopted a nationally accepted accounting system that has been mandatory for all public school districts since that time. The accounting system provides for exceptionally sophisticated accounting codes that can be twenty digits or more in length; however, seven digits of the account codes are of particular importance in reading and understanding school budgets. The seven digits are titled "function" and "object" and an understanding of these codes will help to make maximum use of the information contained in this document. Function - describes the activity for which a service or material is required. The functions are classified into five broad areas: * INSTRUCTION * SUPPORT SERVICES * OPERATION OF NON-INSTRUCTIONAL SERVICES * FACILITIES ACQUISITION, CONSTRUCTION AND IMPROVEMENT SERVICES * OTHER EXPENDITURES AND FINANCING USES The Functional Descriptions and Budget Information section will describe each of the applicable functions in considerable detail and describe the costs associated with the area. Object - the service or commodity purchased. There are nine major object categories: * Personnel Services, Salaries & Wages * Personnel Services, Employee Benefits * Purchased Professional and Technical Services * Purchased Property Services * Other Purchased Services * Supplies * Property * Other Objects * Other Uses of Funds detail. The section entitled "Directory of Objects" will describe each of these objects in greater

5 FUNCTIONAL DESCRIPTIONS AND BUDGET INFORMATION SERIES INSTRUCTION The 1000 series represents all activities related to the direct education of students in programs operated by the district or contracted by the district (e.g. Montgomery County Intermediate Unit, other Pennsylvania School Districts, state approved private schools and North Montco Career Technical School.) The instructional program is further divided below. The total instructional costs in the budget are $53,360,166, which represents a decrease of.94% from the budget REGULAR PROGRAMS - The regular instructional program includes those activities in grades K-12 that provide approximately 5,100 students enrolled in the regular curriculum with educational opportunities through the teaching/learning processes. Salaries and fringe benefits of professional staff members, classroom teachers, substitute teacher payments, full time and part time teacher assistants, classroom supplies and materials, textbooks, and periodicals represent expenditures in this function and are yet to be determined due to unsettled bargaining agreements. This amount reflects only operating expenses; it does not reflect the $500,000 expenditure for the purchase price of technology equipment which will be purchased through a capital lease. Under the Pennsylvania Department of Education budgetary requirements, school districts record this expenditure as if the total cash outlay occurred in the year of acquisition with a corresponding offset in the revenue accounts (see revenue account 9200 Proceeds of Extended Term Financing) SPECIAL EDUCATION PROGRAMS - The Methacton School District operates gifted programs and a continuum of special education service throughout the district to students that need autistic, emotional, learning and/or life skills support. The district has eight speech and language specialists, a transition coordinator and one occupational therapist on staff. Also, the district utilizes the Montgomery County Intermediate Unit (MCIU) and consortium programs with other districts for those students whose special education needs cannot be met through district-operated classes. Those students are typically "included", to the maximum extent appropriate, into the regular education programs of the schools where their MCIU classes are held. Lastly, some students are identified with needs that require very specialized educational programs offered by state-approved private schools and out-of-state private schools.

6 The salaries and benefits of district employees (77% of the costs of function 1200), and tuition/direct payments to the intermediate unit, other school districts and private schools (19%) represent 96% of the total expenditures of this function which is up $529,195, a 4% increase from These costs are offset by the Pennsylvania special education subsidy, contingency funding from the state, Individuals with Disabilities Education Improvement Act (IDEIA) revenue, Student Based Access Program (ACCESS) subsidies, as well as revenues received from other districts which contract with us for services within the consortium VOCATIONAL EDUCATION PROGRAMS - Vocational education programs are those in-district and out-of-district Pennsylvania Department of Education - approved programs that prepare high school students for gainful employment in such fields as agriculture, business, distribution, health, home economics, and trade and industry. Business education, family and consumer science, and technology education, are offered to Methacton School District students at the school district campus, while other programs are offered through the North Montco Career Technical Center (NMCTC). A large portion of the expenditures in this function, 41%, is budgeted for tuition to NMCTC. In addition, $1,674,151 is budgeted for the salaries, benefits, supplies and equipment of the vocational programs at the middle school and high school. The total increase in this function from is $140, OTHER INSTRUCTIONAL PROGRAMS - This function includes such programs as driver education, homebound instruction and most federal program expenditures. The $493,855 expenditures in this function include salaries, benefits, contracted services and equipment COMMUNITY EDUCATION PROGRAM - This function includes expenditures to run the Community Education classes run by the district. The $91,910 of expenditures in this function includes contracted services and supplies to run the program. SERIES SUPPORT SERVICES The 2000 series represents all activities and services, which provide administrative, technical, and logistical support to facilitate and enhance the instructional program. These services assist in fulfilling the objectives of the instructional programs as defined by the school board and administration.

7 SUPPORT SERVICES, PUPIL PERSONNEL - The pupil personnel function provides activities and services designed to assess and improve the well-being of students in order to supplement the instructional program and meet requirements of the Pennsylvania Public School Code. This function includes one director of pupil services, two special education supervisors, fifteen guidance counselors, one home and school visitor, four school psychologists, and five and a half full-time secretaries and two part-time attendance clerks. Salaries and benefits amount to 93% of the proposed expenditures in this function. The total proposed increase of this function is $224, SUPPORT SERVICES, INSTRUCTIONAL STAFF - Activities of this function include services and programs that assist and direct the instructional staff in providing learning experiences for students. These services include: Assistant Superintendent s Office Curriculum development Library Services (seven librarians and two full-time library assistants) Staff development Technology Integrators (three instructional staff members) Costs for department heads, grade level coordinators, and instructional software support specialists The 2200 function is projected to increase by $131,553. Salaries and benefits amount to 94% of this budget, while library books and computer equipment amount to an additional 6% SUPPORT SERVICES, ADMINISTRATION - Administrative support services include all activities concerned with establishing and administering policies of the district including: Auditor School Board Services Tax Collection Services (earned income taxes, property and per capita taxes, delinquent taxes, and real estate transfer taxes) Legal Services (Contracted) Superintendent's Office (two administrators, two and a half secretaries) Principals (eight), Assistant Principals (five), and twelve secretaries Coordinator of School & Community Information The 2300 function reflects a proposed increase of $686,290. The primary expenditures are salaries and benefits (90% of the function total).

8 SUPPORT SERVICES, PUPIL HEALTH - This function includes all activities related to the maintenance of pupil health through services which are not direct instruction. Included are: Medical services, six registered nurses, three licensed nurse, and a school physician Dental services (contracted) The major components of the 2400 function are salaries and benefits (96% of total expenditures). This function reflects a proposed increase of $58, SUPPORT SERVICES, BUSINESS - This function includes all activities related to the fiscal services of the district, including budgeting, payroll, purchasing, accounting, employee benefits, cash management, and attendance. It includes the salaries and benefits of the following: Director of Business Services Assistant Business Manager Secretary Coordinator of Benefits Food Service/Activities Fund Accountant Payroll Clerk Accounts Payable Clerk Receptionist Also included in this category are expenses related to assessment appeals and the actuarial study to comply with GASB 45 regarding other post-employment benefits. The function is proposed to increase $81,167. The major components of this function are salaries and benefits (68% of the total proposed expenditures) OPERATION AND MAINTENANCE OF PLANT SERVICES - This function includes activities related to the operations of the district buildings and maintenance of the grounds and all equipment. For example, these activities include refuse removal, natural gas, water/sewer, electricity, maintenance contracts, property and liability insurance and service contracts. It includes the following: Supervisor of Facilities/Facilities Engineer Assistant to the Facilities Engineer Secretary Maintenance Staff Custodial Staff This function reflects an increase of $208,563.

9 Major components of this function are salaries and benefits (59%), property services including utilities, professional services, and supplies comprise the other (41%) STUDENT TRANSPORTATION SERVICES - This function includes those expenditures related to transporting students to and from public and non-public schools. It includes the following: Director of Transportation/Garage Operations Regular Drivers Casual/Part-time Drivers Bus Aides Office Staff Secretary Mechanics The district owns 79 full-size and 27 mini-buses and vans used to transport almost 5,728 district and non-public school students. Vehicle maintenance operations are performed by district employees at a facility on the high school property. The major categories of expenditures in this function are salaries and benefits (82% of this function), equipment, and operating expenses such as fuel, oil, parts, and mechanics services. The total of this function is $6,940,901, which is a decrease of ($208,995) SUPPORT SERVICES - CENTRAL - This function includes those activities, on a system-wide basis, associated with conducting and managing programs of information technology and equipment maintenance and the management of the copy center (one part-time employee). The technology staff consists of: Technology Director Technicians Network Administrator Secretary Data Specialist The major components of this function are salaries and benefits (59%), data processing hardware and software information services supplies, and paper supplies. The total of this function is $1,561,648, an increase of $117, SUPPORT SERVICES OTHER This function includes the district s pro-rated share of the Montgomery County Intermediate Unit s annual operating expenses. The total of this function is $76,824 an increase of $666.

10 SERIES OPERATION OF NON-INSTRUCTIONAL SERVICES The 3000 series includes activities for providing non-instructional services to students and/or the community. At the Methacton School District, this function includes Student Activities and Community Services STUDENT ACTIVITIES - This function includes school-sponsored activities under the guidance and supervision of the school staff, such as co-curricular activities (e.g. band and chorus), coaches, the salary of the athletic director and activities director, and beginning with the budget, athletic fund expenditures. The major components of the 3200 function are salaries and benefits (80% of the total proposed expenditures). This function is proposed to increase by $109, COMMUNITY SERVICES - The 3300 function includes those activities for providing funds for community service activities. This function is proposed to remain at $2,000. SERIES 5000 OTHER EXPENDITURES AND FINANCING USES This series represents the disbursements of district funds not classified in other functional areas. These include debt service payments (principal and interest) and fund transfers to the Athletic Fund DEBT SERVICE In recent years, debt service included lease payments for the acquisition of technology/computer equipment as well as the district s proportionate share of debt service paid to the North Montco Career Technical Center. In this function will increase $108,807. The Debt Service Fund includes payment of principal and interest on general long-term debt. The debt service expenditures are attributable to a number of building construction and renovation projects including the high school renovations, middle school renovations and additions, the renovations to Woodland Elementary, the construction of Eagleville and Worcester Elementary buildings and the recent addition of Skyview Upper Elementary School and renovations to Arcola Intermediate School.

11 FUND TRANSFERS - The 5200 function records transfers from the general operating fund to the Food Service Fund, if necessary, to cover losses in the food service operations. The Capital Improvement Expenditures Budget is not funded by the general fund but through transfers from the general fund to the Capital Reserve Fund when feasible.

12 DIRECTORY OF OBJECTS Nine major object categories are used throughout the entire budget. Each function uses some or all of the nine object categories to provide detailed information about the specific expenditures in that function. A brief description of each of the nine major object categories can be found below PERSONNEL SERVICES, SALARIES AND WAGES This object includes the gross salaries and wages of all employees of the district, including full-time and part-time personnel, temporary employees and substitutes. Salaries constitute a major portion of district expenditures accounting for 48% of total district expenditures. Professional Collective Bargaining Agreement - The Methacton Education Association s collective bargaining expires June 30, Secretarial/Instructional Support Staff - The collective bargaining agreement with the Methacton Educational Support Professional Association (MESPA) is in force through June 30, Administrative Staff - The salary and benefits agreement with the Methacton Administrative Organization (MAO) is in force through June 30, Other Support Staff - The collective bargaining agreement with the Teamsters Local 368 is in force through June 30, Confidential Staff - The salary and benefits agreement with the Methacton Confidential/Exempt Personnel is in force through June 30, PERSONNEL SERVICES, EMPLOYEE BENEFITS This object includes all amounts paid to, or on behalf of, district employees for benefits such as health insurance, life insurance, disability insurance, mandated employer/state social security contributions, mandated employer/state contributions to the Public School Employees' Retirement System, tuition reimbursement, and mandated workers' compensation insurance. Benefits make up 25.6% of the proposed budget. This object is experiencing increases in due to increases in the employer/state share of contributions to the PSERS retirement system. The retirement rate will increase from

13 12.36% in to 16.93% in Projections for the next three years reflect that retirement benefits, as a percentage of total salaries paid, may increase as follows: % % % The above rates are based on assumptions adopted by the PSERS Board in December, The above most recent estimates, calculated by PSERS, reflect continuing uncertain investment returns which have plagued the system for the last several years. See Exhibit Number VII for a chart depicting the history and projections for the PSERS rate PURCHASED PROFESSIONAL & TECHNICAL SERVICES This object includes payments to persons or firms with specialized skills and knowledge such as accountants/auditors, lawyers, tax collectors, data processing service providers, and testing agencies, etc. Also, contracted services with the Montgomery County Intermediate Unit for special education are included in this object. The budget reflects a decrease of ($300,106) PURCHASED PROPERTY SERVICES This object includes expenditures for services to operate, repair, maintain, and rent property owned or used by the district. Examples include trash disposal, utilities, repairs and maintenance service contracts and rental of equipment or vehicles. This object decreased by $768,378 in the budget OTHER PURCHASED SERVICES This object includes payments for services not provided by the district personnel for expenses other than professional & technical services (object 300) and purchased property services (object 400.) Examples include transportation services for students with special needs, property and liability insurance, cyber school tuition, communication services, postage, advertising, printing, tuition to other educational institutions and travel of staff members. The budget reflects an increase of $394,588. Special education services contracted with other Local Educational Agencies are considered tuition.

14 600 - SUPPLIES This object includes expenditures for materials of an expendable nature that are consumed, worn out, or deteriorated in use, or items that lose their identity through use. Examples of supplies include classroom supplies, office supplies, custodial/maintenance supplies, energy supplies (oil, gasoline, and diesel fuel), information technology supplies, books and periodicals. The total proposed for this object for reflects an increase of $95, PROPERTY This object includes expenditures for the acquisition of capital assets, including land, buildings and equipment of all types (instructional and non-instructional). This object shows an increase of $81,731 in This amount reflects both operating expenses and the $1,000,000 expenditure for the purchase price of technology equipment and new buses which will be purchased through a capital lease. Under the Pennsylvania Department of Education budgetary requirements, school districts record this expenditure as if the total cash outlay occurred in the year of acquisition with a corresponding offset in the revenue accounts (see revenue account 9200 Proceeds of Extended Term Financing) OTHER OBJECTS This object includes expenditures for purchases of goods and services not otherwise classified in objects 100 through 700. It also includes the interest expense on bonds. This object increased by $10,665 in OTHER USES OF FUNDS This category of codes is used to classify transactions such as transfers to the Food Service Fund, Athletic Fund and Capital Reserve Fund and the payment of principal for various bond obligations made by the district. This object is decreasing ($1,210,611) reflecting the recent debt restructing.

15 SUMMARY OF REVENUE BUDGET NARRATIVE HISTORICAL DATA: CURRENT YEAR BUDGET DATA: BUDGET DATA:

16 REVENUES Financial support of the district comes from four major sources: local, state, federal and other revenues. Since revenues have increased from $80,001,353 to an estimate of $95,248,073 for the school year. This represents an increase of $15,246,720 or 19.06% during this four-year period. The table below illustrates the proportionate share of total actual revenues received from all sources during the school years through , the current budget, and the budget for This table shows that, historically, in the distribution of revenues for local vs. state, the local sources are significantly higher. Revenue Summary Actual Actual Actual Actual Budget Proposed Local 63,197,534 66,742,920 70,282,489 71,513,280 73,348,547 75,341,846 % 79.00% 79.50% 78.85% 80.55% 79.05% 79.10% State 15,781,991 16,089,563 16,547,764 16,476,156 17,294,564 18,333,399 % 19.73% 19.16% 18.57% 18.56% 18.64% 19.25% Federal 909, ,092 1,110, ,051 1,140, ,828 % 1.14% 1.07% 1.24% 0.89% 1.23% 0.60% Other 112, ,595 1,192,868 4,952 1,000,000 1,000,000 % 0.14% 0.27% 1.34% 0.01% 1.08% 1.05% Total Rev 80,001,353 83,955,170 89,133,497 88,784,439 92,783,111 95,248,073

17 6000s: LOCAL REVENUES REAL ESTATE TAXES The chart below shows the actual assessment for to The decline in the annual increases illustrates the impact of real estate market in the last several years. The assessments in the past several years reflect reductions for a large number of commercial and residential properties beginning with the July 1, 2008 fiscal year due to assessment appeals granted by the county. VALUE OF % OF YEAR ASSESSMENT 1 MILL INCREASE/DECREASE $2,172,519,938 2,133, % $2,274,578,737 2,217, % $2,336,420,519 2,277, % $2,409,501,720 2,349, % $2,452,634,530 2,391, % $2,469,608,365 2,409, % $2,491,123,695 2,412, % $2,488,273,660 2,411, % $2,488,273,666 2,397, % $2,491,553,518 2,406, % $2,522,300,998 2,421, % Calculations reflect a collection rate of 96 % for tax collections in the budget, which is down slightly from a high of 97.5% in the years before the economic downturn in 2008.

18 Real Estate tax is collected on behalf of the district by the elected tax collectors of Lower Providence Township and Worcester Township. The tax collectors prepare real estate tax bills based on assessment information maintained by the Montgomery County Board of Assessment and issues interim real estate tax billing for assessments that were not included on the original real estate tax bills. In addition, in accordance with Act 1 Special Session of 2006, the district was required to place a referendum question on the May 15, 2007 ballot for voters to decide if the district s real estate tax rate shall be reduced, funded by increasing and converting the present Earned Income Tax to a Personal Income Tax (see account 6151). The result of this referendum question would have been revenue-neutral to the district. On May 15, 2007 the referendum question did not pass; therefore both the real estate and earned income tax procedures remained unchanged PUBLIC UTILITY REALTY TAX (PURTA) In 1970, Act 66 imposed a special tax upon realty of public utilities which is collected by the state and distributed to local taxing authorities. The amount of tax is contingent upon millage rate and assessed value. The budget reflects no increase with a revenue of $86,000 from PURTA PAYMENTS IN LIEU OF TAXES The projection is based on the annual amount received on behalf of the Evansburg State Park payment made to the district by the Pennsylvania Department of Conservation and Natural Resources. Recent legislation has changed the criteria of eligibility and the budget reflects no revenue due to this legislative change PER CAPITA TAX This tax is collected under the Act 679 taxing authorizations. The tax results from a $52 Local Services Tax that is levied in Lower Providence from which the district receives a $5 share and a $16 levy in Worcester Township that provides the district with a $10 share. Actual Actual Actual Actual Budget Budget $104,339 $134,830 $106,020 $107,764 $106,000 $106,000 The tax is collected on behalf of the district by the HA Berkheimer Associates, which is jointly funded by the district and Lower Providence Township and Worcester Township.

19 PER CAPITA TAX This tax is collected under the Act 511 taxing authorizations. The tax results from a $52 Local Services Tax that is levied in Lower Providence from which the district receives a $5 share and a $16 levy in Worcester Township that provides the district with a $5 share. Actual Actual Actual Actual Budget Budget $79,556 $106,379 $81,744 $85,442 $82,000 $82,000 The tax is collected on behalf of the district by the HA Berkheimer Associates, which is jointly funded by the district and Lower Providence Township and Worcester Township OCCUPATIONAL PRIVILEGE TAXES This occupation-based tax is collected under the Act 511 taxing authorizations. The $10 Occupational Privilege tax is imposed on all employed individuals in Lower Providence Township and Worcester Township, with certain individuals exempted for reasons of age and income, and is shared equally with both townships. Therefore, the net revenue to the district is $5 per employed individual. Actual Actual Actual Actual Budget Budget $90,067 $93,194 $86,155 $89,012 $90,000 $90,000 The tax is collected on behalf of the district by the HA Berkheimer Associates, which is jointly funded by the district and Lower Providence Township and Worcester Township EARNED INCOME TAXES Earned income taxes are authorized under Act 511 and are collected by employers on all wages at the combined school district and municipal rate of 1%. The effective rate to the district is 0.5%. Earned income may rise at a rate about equivalent to the annual inflation rate. However, economic conditions directly impact Earned Income Tax revenue, making actual revenue difficult to forecast.

20 Actual Actual Actual Actual Budget Budget $5,242,329 $5,352,409 $5,133,124 $5,931,808 $5,300,000 $5,900,000 In addition, in accordance with Act 1 Special Session of 2006, the district was required to place a referendum question on the May 15, 2007 ballot for voters to decide if the district s real estate tax rate shall be reduced, funded by increasing and converting the present Earned Income Tax to a Personal Income Tax (see account 6111). The result of this referendum question would have been revenue-neutral to the district. On May 15, 2007 the referendum question did not pass; therefore both the real estate and earned income tax procedures remained unchanged REAL ESTATE TRANSFER TAX The district levies a tax of.5% of the total value of property transferred between buyer and seller. Collections from through averaged $1,351,634 per year due to an extraordinarily robust real estate market fueled by historically low mortgage interest rates. The tax has a history of being difficult to forecast. Economic conditions, notably employment and mortgage interest rates directly impact this revenue source. Actual Actual Actual Actual Budget Budget $564,882 $740,511 $734,525 $581,901 $750,000 $700, AMUSEMENT TAX The district imposes a tax on the admission charge to all amusement organizations located in the district. The rate of tax is 10% of the admission charged. Actual Actual Actual Actual Budget Budget $59,685 $49,084 $47,708 $61,159 $48,000 $52,000 The tax is collected on behalf of the district by Lower Providence Township. The revenue reflects an increase over budgeted revenues. The revenue is affected by several factors, including economic conditions and weather, which effects some of the amusements generating the tax.

21 DELINQUENT REAL ESTATE TAXES Delinquent Real Estate taxes result from real estate taxes that were previously levied but not collected in the year due. There is a direct correlation between the collection rate, the amount of taxes turned over to the county for collection and the amount collected in delinquent real estate taxes. There is a decrease budgeted for this tax in Actual Actual Actual Actual Budget Budget $1,182,490 $1,499,968 $1,623,620 $1,383,785 $1,800,000 $1,600, OTHER DELINQUENT TAXES Other delinquent taxes result from per capita and occupation taxes that were previously levied but not collected in the year due. These taxes are collected by HA Berkheimer Associates based on the taxes they levy that are not collected. This is a small revenue source and the budget reflects no increase in this line item INTEREST ON INVESTMENTS This category includes all investments of the General Fund. Investment income has decreased as a result of much lower investment yields. Actual Actual Actual Actual Budget Budget $291,500 $61,382 $21,677 $15,042 $50,000 $35, ACTIVITIES FEE This category includes revenue collected from a fee charged to students participating in athletic and certain extra-curricular activities. The fee is $75.00 and in it is expected to bring in $80,000.

22 6832 IDEIA The Individuals with Disabilities Education Improvement Act (IDEIA) is the nation's special education law. First enacted three decades ago, IDEIA provides billions of dollars in federal funding to help states and local communities provide special education opportunities for approximately six million students with varying degrees of disability. In exchange for federal funding, IDEIA requires states to provide a free appropriate public education (FAPE) in the least restrictive environment (LRE). The statute also outlines a detailed due process procedure to ensure that all students receive FAPE. Originally enacted in 1975, the Act responded to increased awareness of the need to educate children with disabilities and to judicial decisions requiring states to provide an education for children with disabilities if education is provided to those without disabilities. Revenue from IDEIA in is reflecting a reduction due to federal sequestration cuts IDEIA STIMULUS FUNDS Federal stimulus funds were received in for the first time and the district opted to spread their share of these funds over a two year period. That revenue source is no longer available to the district FACILITIES RENTAL Rentals are initiated by outside groups and organizations and vary from year to year. As a funding source, rentals are not considered reliable. This revenue includes rental of facilities use for the Community Education Program as well as rental fees received for other groups using the facilities. No increase for is projected DONATIONS This category represents donations made by private citizens or companies directly to the district. Based on past year s collections the budget will remain at $8, TUITION (SUMMER SCHOOL) The district conducts summer school programs over the summer months and records program revenue in this function. The budget reflects $20,000 in revenue.

23 6943 TUITION ADULT EVENING SCHOOL The district provides adult continuing education classes throughout the year that generates a small profit above the cost incurred to run those classes with a variety of both in-house and contracted instructors. There is small decrease projected in the budget MISCELLANEOUS This category includes any revenue collections that can not be categorized in any other area. For example, payment for lost books, Act 34 clearances, and any other items of a miscellaneous nature are included in this category. This category also includes the use of surplus funds from the budget allocated to the budget E-RATE REIMBURSEMENT The district receives reimbursement for certain communications expenditures under the E-Rate Program that began in The program provides discounts to assist most schools and libraries in the United States to obtain affordable telecommunications and Internet access. It is one of four support programs funded through a Universal Service fee charged to companies that provide interstate and/or international telecommunications services. No increase in funding is expected for the DRIVER S EDUCATION This category includes revenue collected for the on-road instruction piece of the driver s education program conducted by high school personnel. Summer classes and after school classes are conducted to meet the demand for this program. No increase for is projected. 7000: STATE REVENUES Many of the state subsidies received by the district are determined, at least in part, by the district s Market Value/Personal Income Aid Ratio (MV/PI AR). This ratio, adjusted annually by the state, is used to allocate funding to school districts throughout the state. The district s estimated aid ratio is.2080; only a handful of the state s 501 school districts have a lower aid ratio. Consequently, the district receives substantially less state funding than most districts in the state.

24 The Governor unveiled preliminary subsidy amounts in February The state, by law, is required to approve its final budget by June 30 of each year; therefore, the preliminary subsidy amounts may differ from the amounts subsequently adopted by the state BASIC SUBSIDY The Governor s budget includes a proposed small increase in the amount of basic education subsidy that we currently receive. While this proposed increase reflects a change from the previous several years of state funding reductions, the budget s final version may or may not contain any additional funding CHARTER/CYBER SCHOOLS SUBSIDY This subsidy, instituted in , provides funds to mitigate cost of students enrolled at cyber/charter schools. The budgeted cost to the District for tuition payments for these students is over $870,000. This subsidy has been eliminated from the state budget TUITION: ORPHANS/CHILDREN The state is responsible for the tuition cost of the district providing the education when nonresident, dependent children are placed in foster homes by court order and enrolled in public schools of the receiving district. Other institutionalized children, such as those in correctional facilities, are educated at the expense of the district where their parents reside. If that is not known, the child is considered a ward of the state and the Commonwealth pays the tuition charge. Historically, the District has received minimal funding from this subsidy. No increase is projected for HOMEBOUND INSTRUCTION The amount paid to the District for instruction of children who are confined by temporary illness or injury is determined by multiplying an hourly rate for instruction of homebound students by the approved hours of instruction, adjusted by the District's aid ratio. Historically, the District has received either no or minimal funding from this subsidy. Therefore, nothing is projected for the budget.

25 ACCOUNTABILITY GRANT Funding for this grant provides revenue to support district initiatives such as math coaching has been subject to possible funding elimination. For the budget, the governor s proposal contains $95, SPECIAL EDUCATION The District will continue to operate present programs in , contract with the Montgomery County Intermediate Unit for other specialized services, and provide services for participating consortium districts students. No change has been made to this subsidy for the upcoming year TRANSPORTATION The District transportation subsidy provides reimbursement for K-12 student transportation costs incurred. For the budget, we are projecting $1,350,000 in revenues RENTAL AND SINKING FUND PAYMENTS The term Rental refers to a period when the Department of Education was considered, for bond financing purposes, the owner of the buildings. In turn, the Department of Education rented the buildings to the school districts. The title of the revenue account has remained unchanged since that time. The state subsidizes substantially all debt service payments through a formula determined at the issuance of the bonds used for the particular construction project. The formula is based on two factors: approved project costs as determined by PlanCon filings, as well as a ratio (CARF) similar in concept to the aid ratio. Through , the subsidy is based on projected debt service payments for each year applied to the fraction determined in the preceding paragraph MEDICAL, NURSING AND DENTAL SERVICES The state reimbursement for health services provided to students by the nurses offices is based on operating costs and Weighted Average Daily Membership (WADM). Revenues are projected to remain constant for the budget.

26 7340 PROPERTY TAX RELIEF The state provides funds that are generated from gambling tax receipts that help offset resident s real estate tax bills if they qualify for a Homestead/Farmstead Credit. That amount is expected to remain fairly constant for the budget OTHER STATE GRANTS The state reimburses the District for other state grants, such as the PA Safe Schools Project as well as other non-recurring grants SOCIAL SECURITY TAXES Until the current budget, the state reimburses the District for one-half of the cost of the District s 7.65% share of Social Security and Medicare payroll taxes RETIREMENT CONTRIBUTIONS The state reimburses the District for one-half of the cost of the District s payment (16.93% of payroll) to the state s retirement plan (PSERS). This rate is expected to top 20.0% in the budget. Projections are based on budgeted salaries for the fiscal year. 8000: FEDERAL SOURCES TITLE I EDUCATION OF DISADVANTAGED CHILDREN Title I is a 100% federally funded supplemental education program that provides financial assistance to local educational agencies to improve educational opportunities for educationally deprived children. Title I programs are designed to help children meet the state content and performance standards in reading, language arts and math. In the district expects to receive Title I funds totaling $169,983. Funding for this category reflects the elimination of our payments to St. Gabriel School and federal sequestration reductions.

27 TITLE II, PART A, IMPROVING TEACHER QUALITY Title II, Part A is a 100% federally funded supplemental educational program that provides financial assistance to improve the skills of teachers and the quality of instruction in core academic subjects in public and private elementary and secondary schools. In the District expects to receive Title II funds totaling $127,845. Funding reflects federal sequestration reductions DRUG FREE SCHOOLS The Safe and Drug-Free Schools and Communities Act supports the LEA efforts in prevention of violence and abuse of alcohol, tobacco and other drugs and is regulated by the Safe & Drug-Free Schools and Communities Act of 2001, Title IV of "No Child Left Behind". The program funds are used to augment the counseling department s efforts in this important area. Funding for Drug Free has been eliminated in the budget. 9000: OTHER FINANCING SOURCES PROCEEDS EXTENDED TERM FINANCING This function reflects the proceeds from long-term lease/purchases for acquisition of equipment. The expenditure accounts are then recorded in total as acquisition of equipment in either the 750 or 760 expenditure functions. In the district expects to lease/purchase equipment with a total purchase price of $1,000,000. Under the Pennsylvania Department of Education budgetary requirements, the District will budget the $1,000,000 expenditure as acquisition of equipment, and the $1,000,000 lease proceeds as Proceeds from Extended Term Financing SALE OF FIXED ASSETS The source of these funds is from the sale of unused property. No revenues are projected through

28 INTRODUCTION Our School District budget, while being a financial plan, is the quantification of our educational and administrative plans. The budget serves as a useful mechanism for measuring program performance and as a communications device. In order to present a budget that fulfills the above requirements, the Methacton School District has developed its budget in accordance with the Department of Education's Manual of Accounting. The resulting budget document is therefore divided into a series of individual program budgets. Generally, these individual budgets are separated into five main functional areas: Instruction (1000) Instructional Support (2000) Non-Instructional Support (3000) Facilities Acquisition and Improvement (4000) Other Financing Uses (5000) These areas are further divided into more specific program budgets which are shown in summary form on the following pages. Each program budget is shown in detail within this booklet, with subdivisions for appropriate cost elements: Salaries and Wages (100) Fringe Benefits (200) Purchased Professional or Technical Services (300) Purchased Property Services (400) Other Purchased Services (500) Supplies (600) Property (700) Other Expense Objects (800) Other Financing Uses (900)

29 REGULAR EDUCATION Regular Program Elementary/Secondary are activities designed to provide students in grades K through 12 with learning experiences to prepare them for activities as citizens, family members, and workers. The curriculum consists of the various elements of Communicative Arts, Social Studies, Mathematics, Science, and other general subject matter, as outlined in Chapter 5, State Board of Education Regulations. 100 Salaries for elementary and secondary teaching staff (120) are determined by the Collective Bargaining Agreement between the Board of Education and the Methacton Educators Association. Other wages including clerical aides (151) and instructional aides (191) are determined by the Methacton Educational Support Professional Association. 200 Group Insurance Benefits (211 Medical, 212 Dental, 213 Life, 215 Vision, and 216 Prescription) are provided under the Collective Bargaining Agreement with the respective bargaining unit. Social Security (220) is paid under the provisions of the Federal Insurance Contributions Act (FICA). The Commonwealth of Pennsylvania contributes one-half (1/2) of the Social Security cost, which is 7.65% of salaries. This contribution is reflected in the revenue section of the budget. Retirement Payments (230) are mandated under Act 195 of 1975 and cover each employee working a minimum of 180 days or 500 hours during the fiscal year. The Commonwealth of Pennsylvania contributes one-half (1/2) of this contribution. Each employee also contributes to the retirement system by way of payroll deduction. Tuition Reimbursement (240) is paid for under provisions of the Collective Bargaining Agreement with the respective bargaining unit. Unemployment Compensation (250) and Workers' Compensation Insurance (260) are provided by insurance carriers that the District utilizes after a competitive proposal process. 300 Purchased Services - both professional and technical--are periodically utilized from persons or firms having specialized skills and/or knowledge. These services include the company that provides our daily substitutes as well as services provided by the Montgomery County Intermediate Unit to run the county s incarcerated youth program operated within district boundaries. 400 Purchased Property Services include the repair and maintenance of classroom furniture and equipment (430) and the lease/purchase of instructional and support technological equipment. 500 Other Purchased Services include student tuitions (561) to other LEAs (Local Educational Agencies), charter schools, private residential schools and any other regular instructional tuition and travel/mileage reimbursement (580). 600 Supplies are material items of an expendable nature that are consumed, worn-out, or deteriorated through use. General supplies (610) include such items as papers, pencils, and computer software used in classroom instruction. Books and periodicals (640) refer to textbooks, workbooks, and magazines used in the classroom. 700 Property refers to furniture and equipment purchased for use in the classroom. This includes new and/or additional items (750) and replacement items (760). 800 Other Objects Dues and fees (810) are expended from this category, along with other miscellaneous expenses not classified in other objects.

30 ACTUAL ACTUAL ACTUAL BUDGET PROJ BUDGET 1000 INSTRUCTION 1100 REGULAR PROGRAMS 100 SALARIES $20,157,607 $20,811,177 $21,347,312 $22,069,069 $21,806,681 $ 21,407, BENEFITS 7,512,503 9,187,818 9,592,377 10,930,217 10,930,217 12,045, PROF. SERVICES 849, , , , , , PROPERTY SERVICES 820, , , , ,000 26, OTHER PURCH.SVCS. 749, ,303 1,050, ,849 1,165,355 1,060, SUPPLIES 1,176,948 1,018, , , , , PROPERTY 253, , , ,086 86,000 86, OTHER OBJECTS 14,236 6,522 8,663 7, ,991 TOTALS $31,534,694 $33,489,321 $34,467,618 $36,882,696 $36,153,857 $36,341,336

31 LIFE SKILLS SUPPORT Life Skills Support is a special education program for exceptional students focused primarily on the needs of the students for independent living. 300 Purchased Services reflect contracted expenditures for special education services provided for District students by the Montgomery County Intermediate Unit (322) or services (330) - both professional and technical - periodically utilized from persons or firms having specialized skills and/or knowledge. 500 Other Purchased Services (561) reflect expenses for tuitions paid for life skills support services to other LEAs. PHYSICALLY IMPAIRED SUPPORT Physically Impaired Support is a special education program for exceptional students focused primarily on the needs of students that are physically impaired. 300 Purchased Services reflect contracted expenditures for special education services provided for District students by other school districts (321), the Montgomery County Intermediate Unit (322). 500 Other Purchased Services (561) reflect expenses for tuitions paid for life skills support services to other LEAs. HEARING IMPAIRED SUPPORT Hearing Impaired Support is a special education program for exceptional students focused primarily on the needs of students that have been identified as deaf or hearing impaired. 300 Purchased Services reflect contracted expenditures for special education services provided for District students by other school districts (321), the Montgomery County Intermediate Unit (322). 500 Other Purchased Services (561) reflect expenses for tuitions paid for life skills support services to other LEAs. VISUALLY IMPAIRED SUPPORT Visually Impaired Support is a special education program for exceptional students focused primarily on the needs of students that have been identified as blind or visually impaired. 300 Purchased Services reflect contracted expenditures for special education services provided for District students by other school districts (321), the Montgomery County Intermediate Unit (322). 500 Other Purchased Services (561) reflect expenses for tuitions paid for life skills support services to other LEAs.