Community Forum on School District Budgeting and Excellence Amid Financial Challenges

1. Welcome! Superintendent’s Community Forum Developing Priorities:  School District Budgeting and Excellence in the Midst of a Financial Crisis • Contractual Obligations • State and Federal Funding/Mandates • Referendum • Academic Excellence

2. Our Community Quick Facts • 31 square miles • Over 13,000 households, est. population 35,186 • Millage rate – 26.32 mills • Collected mill generates $2,394,666 (property tax only, all other from federal, state and other local revenues) • 80.8% of revenue generated from local sources

3. About Methacton Other Facts • 66% of our faculty have advanced degrees (10% MSD Grads • 432 Professional Staff • 307 Support Staff • 29 Administration Staff • Our community’s students are transported over 1.3 million miles to Methacton, private and parochial schools • Our facilities include buildings totaling over 911,000 square feet of space on 214 acres • Food services will serve more than 400,000 meals to our students, including breakfast and lunch at all of our buildings.

4. Demographics • Median household income – 2010 U.S. Census Figures • $100,446 (Worcester) • $87,046 (Lower Providence) • $74,819 (Montgomery County) • $49,501 (Pennsylvania) • Average assessed home value – $180,767

5. A Changing Community 6.3% of Methacton’s Students Qualify for Free or Reduced Lunches % Qualifying for Free/Reduced Lunches by School 40% of Pennsylvania’s Public School Students are Considered Economically Disadvantaged

6. A Changing Community Ethnic Diversity and English Language Learners 2011-2012 School Year • 75% White (Non-Hispanic) • 15% Asian • 4% Multi-Racial • 4% Black (Non-Hispanic) • 2% Hispanic • <1% American Indian/Alaska Native • <1% Native Hawaiian/Pacific Islander 99 Total ELL Students in the 2011-2012 School Year

7. Student Success! • 86% Perform at or above Proficiency on PSSA Tests • 91% of our AP Test Takers Score a 3, 4 or 5 • Methacton offers 15 different AP Courses • 91% of 2011 Graduates Continued Education/Joined the Military • 50% or greater of our secondary students are engaged in a sport, activity or expressive arts program • 27% in Special Education (all students with an individualized education program [IEP], this represents a 246% increase over past 6 years)

8. High School Reading Growth Across Grades 9-11 – PVAAS Scatterplots On the web at: https://pvaas.sas.com/evaas/welcome.jsf

9. High School Math Growth Across Grades 9-11 – PVAAS Scatterplots On the web at: https://pvaas.sas.com/evaas/welcome.jsf

10. Maintaining Excellence Program and District Enhancements and Challenges • Response to Instruction and Intervention • Math Alignment • Reading Programs • Read 180 • System 44 • Achieve 3000 • Study Island • Common Core Standards • Keystone Exams • Dimensions of Learning Instructional Model • Carnegie Math (Gr. 7-10)

11. Building a Budget Challenges • Reduced Net State Funding • Continued Real Estate Market Impact • Low Collections in Interim Tax Collections • Stagnant R/E Transfer Tax Collections • Stagnant Earned Income Tax Collections • Retirement Contribution Per Total Salaries • 2011/2012 – 8.65% • 2012/2013 – 12.36% • 2013/2014 – 16.21% • 2014/2015 – 21.18% • Medical Insurance Costs • Act 1

12. Building a Budget Mandates • No Child Left Behind • AYP • Chapter 4 Regulations • Non-Public Transportation • Special Education • PSERS (Retirement) Contribution • Cyber/Charter Schools

13. Managing Resources People and Programs • Staffing Reductions • Program Reduction and Attrition • Service Providers • Special Education Services • Psychological Services • Therapeutic Needs • Program Reductions or Alterations and Curtailments • Transitional First Grade • Family and Consumer Sciences • Outdoor Education Funding • Foreign Language • Physical Education • Staff Travel Eliminated • Professional Development not Funded through Federal Grants Operations and Support Services • Energy Efficiency • Industry Standard Energy Audit • Consortium Purchasing • Supplies • Energy • Waste Management • Technology • Health Insurance • Subcontracting • Athletic Training • Food Services • Operations Efficiency Increased • Transportation • Printing • Mailing New Revenue Streams – Education Foundation for the Methacton Community, Pay to Participate Fee, Facilities Usage Fees Increased, Community Education

14. Revenues Assessment Growth/Decline

15. Revenues By Source

16. Building a Budget Fund Balance

17. Expenditures Expenditures by Function 71.2% - Salaries/Benefits 1.3% Building Budgets 13.3% - Debt Service 15.8% - Departments Departments: All departments other than schools; including communications, technology, pupil services, human resources, staff development, business office, etc.

18. Building a Budget 2011-2012 2012-2013 Revenues Local: $71,854,422 $73,348,547 State: $15,295,899 $17,294,564 Federal: $1,065,000 $1,140,000 Other Financing Sources: $1,038,709 $1,000,000 Fund Balance: $1,250,000 $1,250,000 Budget Reserve: $300,000 $300,000 Expenditures Salaries/Benefits $63,474,276 $67,177,628 Building Budgets $1,227,330 $1,175,373 Department Budgets $13,839,299 $13,679,883 Debt Service/Lease Purchases $11,963,125 $12,000,227 Budgetary Reserve $300,000 $300,000 TOTAL $90,804,030 $94,333,111

19. Thank you! Questions/ Discussion