Perkiomen Valley School District Annual Report 2017-18 Annual Report 2017-18 1 | Page 14

REVENUES EXPENDITURES Local 77.16% Support Services 28.85% Instruction 57.48% Operations 1.57% Capital Improvements 1.72% State 21.93% Debt Service 10.38% Federal .91% District Balances Needs of Students & Taxpayers The Perkiomen Valley School District has been consistent year after year in passing budgets that maintain the district’s out- standing academic programs without raising taxes above the state-mandated index, and the 2017-18 school year was no exception. The 2017-18 spending plan was approximately $105.2 million and included a 2.36-percent tax increase, which was below the 2.9 percent cap that the School Board had agreed not to exceed. Some of the adjustments made to balance the budget included: • Reducing staffing by two positions through attrition • Negotiating a reduction to the proposed increase in contracted costs with STA (bus company) from 2.9 to 2.5 percent • Refunding a bond in March 2017 for a savings of $30,004 • Using $246,000 from the reserve fund set aside for retirement costs • Using a total of $974,770 from the unassigned fund balance to offset the budgetary shortfall • Using $692,360 from the debt service fund balance to offset the budgetary shortfall The 2017-18 budget also saw the addition of an art teacher at the middle school level through the reallocation of funds previously used for middle school online world language instruction. The district had tried piloting online world language instruction as a way to offer lan- guage choices of Latin, German or Chinese, but found that the online instructional model was not effective for students and dis- continued it. The funds once ap- plied to this program were used for an additional faculty member, meaning both middle schools now have an art teacher, instead of one instructor shared between buildings. The budget also included funding for a number of capi- tal improvements (see page 15 for details). Overall, expenditures increased 5.2 percent over the 2016-17 budget. Rising costs such as contractual sala- ry increases, debt services payments, health benefits, retirement benefits, and the STA contract contributed to the year-to-year budgetary increase. The School Board and administration have worked hard to keep taxes below the state index in recent years. The approved 2017-18 budget included a 2.36-percent tax increase, which, for the average homeowner with an assessed home value of $180,000, added up to a $134 increase over 2016-17.