East Penn School East Penn School DistrictDistrict

Who Are We?Who Are We?

8,022 students8,022 students EHSEHS 2,6072,607 EyerEyer 833 833 LMMSLMMS 1,0401,040 AlburtisAlburtis 342 342 JeffersonJefferson 268 268 LincolnLincoln 410 410 MacungieMacungie 476 476 ShoemakerShoemaker 714 714 WescosvilleWescosville 618 618 Willow LaneWillow Lane 714 714

Who Are We?Who Are We? Approximately 1,000 employeesApproximately 1,000 employees 720 Special Education students720 Special Education students 259 Speech & Language Special Education 259 Speech & Language Special Education

studentsstudents 426 Gifted students426 Gifted students Operating Budget of $120,804,396Operating Budget of $120,804,396 High performingHigh performing High expectationsHigh expectations Well-rounded (academics, arts, athletics)Well-rounded (academics, arts, athletics)

Who Are We?Who Are We?

126 students from East Penn are enrolled in cyber 126 students from East Penn are enrolled in cyber charter schoolscharter schools

164 students from East Penn are enrolled in bricks and 164 students from East Penn are enrolled in bricks and mortar charter schoolsmortar charter schools

108 children are home-schooled108 children are home-schooled There has been a 280% growth in cyber charter There has been a 280% growth in cyber charter

students in the last five yearsstudents in the last five years There has been a 713% growth in bricks and mortar There has been a 713% growth in bricks and mortar

charter school students in the last five yearscharter school students in the last five years

Curriculum InitiativesCurriculum Initiatives

Project Based LearningProject Based Learning STEMSTEM E-FOLIOE-FOLIO Digital MediaDigital Media Digital Course CreationDigital Course Creation Cyber LearningCyber Learning SAS SAS Keystone ExamsKeystone Exams

TechnologyTechnology

Mobile Computing/Personal DevicesMobile Computing/Personal Devices Smart-boards/Overhead Projection UnitsSmart-boards/Overhead Projection Units WirelessWireless Moodle/Google DocsMoodle/Google Docs Parent AccessParent Access InfrastructureInfrastructure 24/7 24/7 Online Instruction and Blended ApproachOnline Instruction and Blended Approach Reduction: Student to computer ratio from 8 to Reduction: Student to computer ratio from 8 to

4 per student4 per student

Community OutreachCommunity Outreach

Senior Citizen Advisory CommitteeSenior Citizen Advisory Committee PACPAC Chamber of Commerce/RotaryChamber of Commerce/Rotary Gold Card AccessGold Card Access District FacilitiesDistrict Facilities Community Education ProgramCommunity Education Program Students Giving BackStudents Giving Back

Cops n’ KidsCops n’ Kids Develop Products for the BoroughDevelop Products for the Borough Musical PerformancesMusical Performances Good Causes (Autism, Cancer, Food-drives)Good Causes (Autism, Cancer, Food-drives) Student Service ClubsStudent Service Clubs

Did You Know?Did You Know?

The 2010-11 operating budget is The 2010-11 operating budget is $120,804,396$120,804,396

The value of a mil is $1,650,000The value of a mil is $1,650,000 The value of the 1.4% Index The value of the 1.4% Index

allowable increase is $1,047,000allowable increase is $1,047,000

Major Budget CategoriesMajor Budget Categories

59%59% Salaries and BenefitsSalaries and Benefits 13%13% Debt ServiceDebt Service 9%9% Other Educational AgenciesOther Educational Agencies 7%7% Pupil TransportationPupil Transportation 5%5% Budgetary ReserveBudgetary Reserve 5%5% Other ExpensesOther Expenses 2%2% UtilitiesUtilities

Did You Know?Did You Know?

Transportation costs are about $6,000,000Transportation costs are about $6,000,000 Total Operations and Maintenance costs are Total Operations and Maintenance costs are

budgeted at about $11,110,000budgeted at about $11,110,000 Debt Service payments are $15,531,295Debt Service payments are $15,531,295 Cyber charter and regular cyber school tuition Cyber charter and regular cyber school tuition

payments are just over $3,000,000 (district payments are just over $3,000,000 (district does get about 22% of that back a year later)does get about 22% of that back a year later)

Staffing InformationStaffing Information

East Penn has 14.86 students per faculty member East Penn has 14.86 students per faculty member while the state average is 13.2while the state average is 13.2

East Penn has 211.1 students per manager while the East Penn has 211.1 students per manager while the state average is 163.4state average is 163.4

East Penn has higher faculty and manager per pupil East Penn has higher faculty and manager per pupil levels than the Suburban school district averages and levels than the Suburban school district averages and for districts with an Aid ratio of .4115 or lessfor districts with an Aid ratio of .4115 or less

79.4% of East Penn’s professional staff have a 79.4% of East Penn’s professional staff have a Master’s Degree or higherMaster’s Degree or higher

Source: PSBASource: PSBA

Did You Know?Did You Know?

2010-11 Budget Facts2010-11 Budget Facts 77.2% of revenues come from local sources77.2% of revenues come from local sources 22.0% of revenues come from the State22.0% of revenues come from the State 0.7% come from the Federal Government0.7% come from the Federal Government

Local Revenue SourcesLocal Revenue Sources

Real Estate Real Estate Interim Real EstateInterim Real Estate Public Utility Reality TaxPublic Utility Reality Tax Earned Income TaxEarned Income Tax Real Estate Transfer TaxReal Estate Transfer Tax Delinquent Real Estate TaxDelinquent Real Estate Tax Interest on InvestmentsInterest on Investments

Expenditures ComparisonExpenditures Comparison2008-20092008-2009

Total Expenditures Per ADM-Rank OrderTotal Expenditures Per ADM-Rank OrderSalisburySalisbury 4242 $16,425.55$16,425.55Southern Lehigh 68Southern Lehigh 68 $15,228.08$15,228.08CatasauquaCatasauqua 94 94 $14,719.45$14,719.45NorthwesternNorthwestern 146 146 $13,794.80$13,794.80Northern Lehigh 222Northern Lehigh 222 $12,848.18$12,848.18Parkland 246Parkland 246 $12,643.61$12,643.61East PennEast Penn 281 281 $12,287.79$12,287.79Whitehall-Coplay 313Whitehall-Coplay 313 $12,082.83$12,082.83Allentown City 445Allentown City 445 $10,814.69$10,814.69

Source: PDESource: PDE

2010-11 Milage 2010-11 Milage Rank OrderRank Order

Northern LehighNorthern Lehigh 64.37364.373 Northwestern LehighNorthwestern Lehigh 50.66050.660 CatasauquaCatasauqua 50.56050.560 Allentown CityAllentown City 45.59245.592 SalisburySalisbury 45.44545.445 East PennEast Penn 45.32045.320 Southern LehighSouthern Lehigh 45.30045.300 Whitehall-CoplayWhitehall-Coplay 44.72044.720 ParklandParkland 38.27038.270

Did You Know About Our Did You Know About Our Tax Parcels?Tax Parcels?

ResidentialResidential 83%83% ApartmentApartment 2% 2% AgricultureAgriculture 2% 2% VacantVacant 1% 1% CommercialCommercial 8% 8% IndustrialIndustrial 4% 4% InstitutionalInstitutional 0% 0% GovernmentalGovernmental 0% 0%

Recent Act 1 HistoryRecent Act 1 History

2008-20092008-2009 4.4% (District stayed at 4.4% (District stayed at index)index)

2009-20102009-2010 4.1% (District stayed 4.1% (District stayed under under at 3.9%)at 3.9%)

2010-2011 2010-2011 3.9% (First time District 3.9% (First time District sought exceptions... sought exceptions... Qualified up to 5.1%-Final Qualified up to 5.1%-Final budget in at 3.8%)budget in at 3.8%)

ExceptionsExceptions

Specific areas in which costs exceed the index Specific areas in which costs exceed the index (1.4%)(1.4%)

Ten (10) Areas Ten (10) Areas Districts must complete calculations and submit Districts must complete calculations and submit

on forms developed by PDEon forms developed by PDE PDE approves and sets the amount of the PDE approves and sets the amount of the

exceptionexception Exceptions are legal and part of Act 1Exceptions are legal and part of Act 1 Go to PDE and type in Act 1 Exceptions to learn Go to PDE and type in Act 1 Exceptions to learn

moremore

Budget CalendarBudget Calendar

January 24January 24thth - Board votes to stay within index or not - Board votes to stay within index or not If the vote is negative, then the Board will vote on a If the vote is negative, then the Board will vote on a

Preliminary Budget on February 14thPreliminary Budget on February 14th February 21February 21stst - Preliminary Budget is submitted to PDE - Preliminary Budget is submitted to PDE February 24February 24thth - Deadline for publishing intent to file for - Deadline for publishing intent to file for

exceptionsexceptions March 3March 3rdrd - Deadline to seek exceptions from PDE - Deadline to seek exceptions from PDE March 28March 28thth - First Draft of Proposed Final Budget is - First Draft of Proposed Final Budget is

submitted to the Boardsubmitted to the Board April 11April 11thth - Board Discussion of Proposed Budget - Board Discussion of Proposed Budget May 9May 9thth - Vote on Proposed Final Budget - Vote on Proposed Final Budget June 13June 13thth - Vote on Final Budget - Vote on Final Budget

Fiscal StrategiesFiscal Strategies

Administration downsizingAdministration downsizing Curtailment of non-instructional Curtailment of non-instructional

employee hoursemployee hours Energy consortiums/LightingEnergy consortiums/Lighting Willow Lane is a LEEDS schoolWillow Lane is a LEEDS school Boiler workBoiler work Roofing workRoofing work

Fiscal StrategiesFiscal Strategies

Refinancing DebtRefinancing Debt Leasing LMESLeasing LMES PartnershipsPartnerships Green ComputingGreen Computing TransportationTransportation Re-bid Benefits/Employee ContributionsRe-bid Benefits/Employee Contributions Sadly, arrested increases in department Sadly, arrested increases in department

budgetsbudgets Introduce and implement our own cyber school Introduce and implement our own cyber school Increase Access BillingIncrease Access Billing

Debt Service RefinancingDebt Service Refinancing

Over the past twelve (12) years, the Over the past twelve (12) years, the district has refinanced existing debt and district has refinanced existing debt and saved $7,981,000 in those transactions.saved $7,981,000 in those transactions.

The district saved $484,128.64 by The district saved $484,128.64 by refinancing bond sale on January 24refinancing bond sale on January 24thth, , 2011. 2011.

ConcernsConcerns

Potential for rapid growthPotential for rapid growth Growth in special category studentsGrowth in special category students Lagging revenuesLagging revenues Tax assessment appealsTax assessment appeals Direction of State and Federal FundingDirection of State and Federal Funding Unfunded mandatesUnfunded mandates Can’t happen in East Penn and a lack of Can’t happen in East Penn and a lack of

awareness that there are no simple solutionsawareness that there are no simple solutions MisinformationMisinformation

Christopher Borick – Survey Results

Muhlenberg College/Morning CallStatewide Policy PollEducation Finance QuestionsFebruary 2010

Frequency Report Number of Interviews: 450 Adult Pennsylvanians Margin of Error: +/- 5% at a 95% level of confidence. Fielding Dates – February 8 – February 22, 2010 Method Of Interviewing: Telephone

“Many Pennsylvania school districts are facing significant budget problems. In order to balance school district budgets please

indicate if you strongly support, somewhat support, somewhat oppose or strongly oppose the following policy options”

Survey ResultsStrongly Support

Somewhat

Support

Somewhat

Oppose

Strongly

Oppose

Not Sure

Require students to pay a fee for extracurricular activities such as sports and clubs.

13% 21% 14% 49% 3%

Increase the size of classes to reduce the number of teachers that the school district will need to employ.

4% 13% 13% 68% 2%

Reduce the range of course offerings to reduce the number of teachers that the school district will need to employ.

6% 16% 17% 56% 5%

Increase local property taxes to provide school districts with the financial resources to maintain their current curriculum and programs.

9% 20% 14% 55% 2%

School districts should be consolidated.

18% 27% 15% 27% 13%

Administrative Actions in Administrative Actions in Budget ProcessBudget Process

Review and analyze each department budgetReview and analyze each department budget Review personnel at all levels and in all labor Review personnel at all levels and in all labor

groupsgroups Calculate Retirement DifferentialsCalculate Retirement Differentials Review all revenue projectionsReview all revenue projections Meet with all governmental agencies to determine Meet with all governmental agencies to determine

potential for revenuepotential for revenue Decipher signals from State and Federal sourcesDecipher signals from State and Federal sources Calculate Kindergarten enrollmentCalculate Kindergarten enrollment Calculate Transportation needsCalculate Transportation needs

Administrative ActionsAdministrative Actions

Review all special needs programsReview all special needs programs Develop an internal list of potential cuts based Develop an internal list of potential cuts based

on the following:on the following: Vision StatementVision Statement Mission StatementMission Statement Strategic PlanStrategic Plan ““Education is our core business”Education is our core business” Defining “needs as opposed to wants”Defining “needs as opposed to wants” ““Make do with” decisions Make do with” decisions

Future Budget Future Budget CommunicationsCommunications

Budget Newsletter (Electronic)Budget Newsletter (Electronic) Blogs and Electronic UpdatesBlogs and Electronic Updates Selected Online VideosSelected Online Videos Press Releases (Emmaus Patch, East Penn Press Releases (Emmaus Patch, East Penn

Press, Morning Call Blog)Press, Morning Call Blog) Board MeetingsBoard Meetings PACPAC Online survey (ideas on new revenues and Online survey (ideas on new revenues and

cost savings)cost savings)

District WebsiteDistrict Websitewww.eastpennsd.orgwww.eastpennsd.org

School InformationSchool Information DashboardDashboard Annual ReportAnnual Report Budget Book (charts, statistics, accounts)Budget Book (charts, statistics, accounts) Senior Citizen Tax ReliefSenior Citizen Tax Relief Board Policies/Meeting MinutesBoard Policies/Meeting Minutes NewsNews

Resources for Resources for InformationInformation

AASA (AASA (www.aasa.org) NSBA (NSBA (www.nsba.org) PSBA (PSBA (www.psba.org) PDE WebsitePDE Website Phi Delta Kappa (latest Gallup Poll)Phi Delta Kappa (latest Gallup Poll) Credo Report (Stanford University)Credo Report (Stanford University) Diane RavitchDiane Ravitch Auditor General Wagner’s Report on Cyber Auditor General Wagner’s Report on Cyber

Charter Schools and RecommendationsCharter Schools and Recommendations Federal Education Plans (Blueprint for Success Federal Education Plans (Blueprint for Success

and Federal Technology Plan)and Federal Technology Plan)

Research/Reports on Issues

Center for American Progress Vouchers School Choice School Funding Teacher Evaluation Systems/Models

EPSD ContactEPSD Contact

Nicole Bloise, Community LiaisonNicole Bloise, Community Liaison Phone: 610-966-8335Phone: 610-966-8335 Located in the Administrative Offices – Located in the Administrative Offices –

800 Pine Street, Emmaus, PA 18049800 Pine Street, Emmaus, PA 18049