Exeter Township School District

On October 26th, the district hosted the first of several public budget workshops, which aim to create a forum for community participation as the 2023-24 budget is crafted. Each workshop, which will be held at a different building in the district each month, will focus on a specific presentation of a topic related to the budget. Further, each workshop will open with a tour of the building to point out maintenance priorities and discuss capital project needs for that building. Yesterday’s meeting was held at the Junior High and included a presentation about the Act 1 Index and how it influences the shaping of the budget. 

Junior High Capital Projects:

ETSD Director of Operations Stephen Biggerstaff opened the meeting with a presentation of identified capital projects and their status, highlighting that the auditorium “needs serious work.” He indicated that repairs to the seats were no longer supported by the manufacturer, so if one breaks, it needs to be removed. In addition, he said that the flooring needs to be replaced, the stage needs work and the curtains need to be replaced. Another priority will be upgrading bathrooms as seals on toilets and the piping to them make maintenance difficult due to the design of the building. Due to humidity, which is being managed mostly through stand-alone dehumidifiers, ceiling tiles have a tendency to sag, which can lead to costly repairs. He also mentioned that the building’s stair lifts for wheelchair-bound or disabled people are aging and will need to be replaced soon, as well as general equipment upgrades for some specialty classrooms. 

Speaking to the assembled board members, Superintendent Dr. Christy Haller said, “We wanted to get you up to speed on capital projects and prioritization that is realistic and affordable. There has been a lot of deferred maintenance since the capital projects improvement plan was developed (in 2017). Now, the price tag on some of these projects is substantially higher… This building has significant needs,” she said. 

Act 1 Index Review

Business Administrator Brian Feick next presented the budget topic of the workshop: the Act 1 Index. 

What is the Act 1 Index?

• The Act 1 Index is used to determine the maximum tax increases for each tax the school district levies (without Pennsylvania Department of Education exception or voter approval). It is determined by a formula that the state calculates by averaging the percent increases in the Pennsylvania Statewide Average Weekly Wage (SAWW) and the Federal Employment Cost Index (ECI) for elementary/secondary schools. Dr. Haller said that the purpose of the Act 1 Index is to “Have control on school budgets,” explaining that the index forces districts to budget without raising taxes in an irresponsible manner. 

Has the 2023-24 index been announced?

• Mr. Feick announced that the index for 2023-24 is 4.1%. However, he said that each school district in Pennsylvania then gets an adjustment, which may leave the index at 4.1% or may increase the index amount. This percentage is based off of a state-set formula that uses market value, personal income and aid ratios. When calculated, Exeter’s adjusted index is 5.3%. This means that the school board could raise property taxes up to 5.3% for the 2023-24 budget without seeking a voter referendum during the May 2023 primary. 

Besides a voter referendum, is there any other way that Exeter can increase taxes above the index?

• Yes. If Exeter qualified for an “exception,” it could apply to the Pennsylvania Department of Education for a higher index. Exceptions include:
  • School construction
  • Exceptional special education costs
  • Retirement contributions

Mr. Feick announced during last night’s meeting that Exeter does not qualify for any exceptions and does not want to seek a voter referendum; therefore, he will begin creating a 2023-24 budget that falls within the 5.3% adjusted index. He will ask the Board to consider passing an “Accelerated Budget Opt-Out” during November’s voting meeting, which will allow him to follow a normal budget timeline (available HERE). 

On November 30th, the district hosted the second of several public budget workshops, which aim to create a forum for community participation as the 2023-24 budget is crafted. Each workshop, which will be held at a different building in the district each month, will focus on a specific presentation of a topic related to the budget. Further, each workshop will include a tour of the building to point out maintenance priorities and discuss capital project needs for that building. November 30th’s meeting was held at the Senior High and included a presentation about revenue and how it influences the shaping of the budget.

Superintendent Dr. Christy Haller along with Exeter’s Business Administrator Mr. Brian Feick led the presentation and discussion about the challenges of shaping a budget when: 

• Grant money is required to be used for very specific expenses
• Suburban districts like Exeter do not receive significant support from the federal and state government to cover basic education expenses or the mandates that they require
• The district continues to face increasing costs due to inflation; special education costs; and the safety, repair and upkeep of aging district buildings
• State legislation has not changed that requires the district to pay cyber charter schools the same amount of money to educate students as those attending brick-and-mortar schools in the district

The slide presentation from the workshop can be found HERE, and a discussion of each slide is below:

What is the goal of the district when creating a budget?

Dr. Haller opened the presentation with a simple equation: Expenditures = Revenue. “This is our goal,” she said, mentioning that previous administrations have dipped into the district’s fund balance in order to create a balanced budget, which is a practice she’d like to avoid. “The bottom line is you can’t spend more money than what you have,” she said.

What a fund balance?

Explaining that a fund balance is like a savings account, Dr. Haller explained that the district is required by the state to keep a fund balance that does not exceed more than 8% of its total expenditures. For Exeter, last year’s fund balance was 6.39% or about $5.2 million. “But this will only cover about 23 days of operating expenses,” she cautioned. When creating the budget, she said it’s challenging deciding how much money to keep in the fund balance because Pennsylvania school districts are required by law to submit a budget by June 30th, but she said that can prove to be a bit of a guessing game. “The state does not always submit their own budgets on that date, so a district is sometimes submitting its budget not exactly knowing how much money they’re going to get from the state or when those funds are going to come… There are instances where districts didn’t know how they were going to make payroll.” 

Does a fund balance affect a district’s ability to borrow?

Yes. Dr. Haller explained that a district’s history with its fund balance affects its Standard & Poor’s (commonly referred to as the S&P) rating, which determines its creditworthiness. “We are one of the few in the county that have an AA rating,” she said, mentioning that the district’s rating would allow it to receive a better interest rate should it decide to borrow or refinance debt in order to complete capital projects or improvements. Business Manager Mr. Brian Feick mentioned that banks often like to see districts with some debt (when lending) “since it shows you’re taking care of your properties.” 

Where does the district’s revenue come from?

Dr. Haller presented a chart that showed the average local, state and federal revenue sources for all PA school districts over a 10 year period, as well as Exeter’s own revenue sources. She explained that both the state and federal government offer more money for districts in economically-disadvantaged areas, but in Exeter, we must rely mostly on local revenue. She indicated that the percentages for last year’s budget were 67% from local taxes, 30% from the state and 3% from the federal government. “Recent state increases have helped,” she said, “But the impact to suburban school districts was minimal.”

What are the district’s budget challenges?

• Dr. Haller explained that while the Elementary and Secondary School Emergency Relief (ESSER) funds that were awarded to the district during COVID were welcome, they provided temporary and unsustainable relief. “For example, the previous administration used some of this money to fund personnel. But we knew that was not sustainable, so as positions have opened up, we’ve been moving people into those positions from somewhere else or not filling it if possible.”
• Dr. Haller said that the district is not immune to inflation, and the district has to pay the rising costs of salaries, benefits, fuel, paper, etc. 
• Dr. Haller said that the state has a long list of mandated training, drills, personnel, reporting, policies and plans that they require schools to provide, yet they do not fund these requirements. “While some of these mandates have a minimal impact on our budget, it does add up,” she said. “For example, it doesn’t seem like it would cost us very much to conduct a training, but we have to pay for the training, we have to pay for the trainer, we have to pull people out of class so then we have to pay for a sub. You don’t think they’re a cost, but they cost us something. It adds up.” 
• Dr. Haller also said that suburban schools like Exeter are grateful for increased state funding in recent years, but that the impact for districts like Exeter are negligible and hasn’t provided relief to taxpayers.
• Describing special education costs as “staggering,” Dr. Haller said that federal and state funding to accompany what the district is required to provide by law has been minimal. “Pennsylvania’s expectations for special education are more than what the federal government requires. We have significant costs for contracted services, alternative placements and staffing… For example, we’re required that students who need a one-on-one nurse have one that we pay for if their own insurance won’t or can’t provide one. That child has just as much of a right to come to school as a student who doesn’t need a one-on-one nurse.” 
• Finally, Dr. Haller said that one of the district’s most significant expenses is the tuition it sends to cyber charter schools for in-district students who choose to attend them. “Exeter spends $1.8 million every year–it’s a significant amount of money. Cyber charter schools charge us the same amount of money per pupil that we spend without the overhead, such as operations, buildings, personnel, transportation, materials.”

Dr. Haller said that the administration is looking closely at what it can do to help reduce expenditures, and said the most significant impact it can have is to look at every single teaching position and eliminate positions when teachers retire. 

On December 21, 2022, the district hosted the third of several public budget workshops, which aim to create a forum for community participation as the 2023-24 budget is crafted. Each workshop, which will be held at a different building in the district each month, will focus on a specific presentation of a topic related to the budget. Further, each workshop will include a tour of the building to point out maintenance priorities and discuss capital project needs for that building. The meeting on December 21st was held at Lorane Elementary and included a presentation about expenditures and how they influence the shaping of the budget. The meeting also included a “first look” of the 2023-24 budget. 

Superintendent Dr. Christy Haller along with Exeter’s Business Administrator Mr. Brian Feick led the presentation and discussion.

“First Look” of 2023-24 Budget

Mr. Feick presented a “first look” of the 2023-24 budget, which was based upon building and department requests. Both he and Dr. Haller reminded those in attendance that this budget is not final. “This budget is just what everyone requested,” said Mr. Feick. “From here, we’ll go line by line by line and knock it down to where we won’t be cutting down programs or services and we’ll provide a second look.” 

The budget he presented showed projected revenues of approximately $81 million and projected expenditures of approximately $84 million. In his calculations, the budget included assumptions regarding increased costs and $580,000 in capital spending for building projects. However, he noted that identified safety and security upgrades estimates are still being compiled and are not included in the first draft of the budget.  

“This is literally where we’re starting,” said Dr. Haller. “This is not where we’ll wind up,” pointing to a slide in the presentation that showed a budget timeline allowing the administration to continue work on the budget until May, with final board adoption at the end of June. “Until then, there will be a couple of drafts,” said Dr. Haller. 

Inflation and its Impact on the Budget

In a graph, Mr. Feick presented the 2023-24 work-in-progress budget categories compared to those in the 2022-23 final budget, showing increased expenses in almost all categories. Of note, he pointed to the steep increase in the cost of supplies, which he said are being greatly impacted by inflation. “Electric is up from 3.2 to 7 cents per kilowatt hour, gasoline went up a $1.90 a gallon, natural gas is up 10%, toilet paper is up 100%, paper towels are up 200%, floor wax doubled, a carton of paper went from $22 to $38,” he said ticking off major line items in the supply category and reminding those at the meeting that “supplies” doesn’t equate to “pencils” for students. “Even items like (water softener) salt have tripled or quadrupled. We’ve been using the cheapest we can find. We’re going through a skid a month in our bigger buildings. And if you don’t replenish it, you’ll ruin your pipes.” 

Director of Operations, Stephen Biggerstaff, who was also in attendance, noted that the projected increased costs were not because administrators were asking for additional items. Instead, he said, it’s just the “exponentially increased” cost of purchasing items to keep the buildings clean, operational and maintained. “We’re cutting back where we can,” he said, indicating that everything will be evaluated, including some of the touch-free items that were brought in during the height of COVID thanks to pandemic-era federal grants, which have now expired. “For example, if we can save money by going back to rolled paper towels in bathrooms rather than the touchless z-folded towels, we’ll do that.”

Special Education Costs

Noting that public schools have many federal and state mandates that require non-negotiable service and programming expenditures, Dr. Haller pointed out that the district, like many throughout the county, are seeing no slow-down of out-of-district student placements for students. “We’ve saved money by having our own emotional support classrooms because we try to keep students here. But if they can’t be appropriately placed here and it’s the right thing to do for the student they may need an out-of-district placement, which is at a significant cost.” She also said that the unknown of who may move into (or out of) the district can have an impact on budget projections, noting that those with considerable medical, intellectual or emotional needs can alter even the best-developed budget projections. “This past year we had several students who were out-of-district placements move unexpectedly into the district; that’s beyond our control and not something we could have anticipated.”  

“Please understand that school districts have a lot of obligations we have to meet,” she said. Mr. Feick agreed, and said that federal and state regular and special education mandates continue to roll out of Washington and Harrisburg, but without corresponding funding: “The system is broke,” he said. “We’re fighting with a system that keeps mandating additional things we need to do, but they don’t give us more money (for those mandates).”

Salaries and Benefits 

“This budget does not include the addition of any new positions,” said Dr. Haller. “But these (salaries and benefits) are pretty much a fixed cost since they’re contractually obligated. It’s always a consideration to really evaluate what those positions look like, or not filling certain positions, or not filling them through attrition. If we can do that without impacting a program, that’s what we’ll do.” 

She also cautioned that people should not interpret her statement as a hiring freeze. “There are certain positions in the school district that need to be (re)filled when someone leaves, but we will reevaluate each position, and we do not intend to add any additional or new positions for next year.”

Capital Projects and Refinancing of Debt

The presentation ended with a brief Board-led discussion about capital projects (which will be the topic presented during January’s budget workshop) and potential refinancing of debt so that unfinished capital projects that were identified more than six years ago by KCBA Architects could be prioritized for completion, perhaps without a tax increase. Indicating that each budget meeting includes a public tour of the building for the public to see first-hand some of the improvements that have been identified but delayed and now need attention, she said that she hoped more members of the community would take an active role in attending the workshops. “We want the community to have a pretty clear idea of what needs to be done in the district to have these buildings be safe and usable. We’re actually coming up to the point where the KCBA facilities study is now six years old and we haven’t gotten through the cycle of things they recommended… We can’t continue to ignore these items that need maintenance or work. We have to think about the quality of a building because kids and staff are in them every day.”

On February 16, 2023, the district hosted the fourth of several public budget workshops, which aim to create a forum for community participation as the 2023-24 budget is crafted. Each workshop, which will be held at a different building in the district each month, will focus on a specific presentation of a topic related to the budget. Further, each workshop will include a tour of the building to point out maintenance priorities and discuss capital project needs for that building. The meeting on February 16th, which had been rescheduled from January due to weather, was held at Reiffton to identify capital projects and maintenance needs throughout the district.

Superintendent Dr. Christy Haller along with Exeter’s Business Administrator Mr. Brian Feick led the presentation and discussion. Representatives from Quandel Energy Solutions were also on hand to answer questions.

Background:

Dr. Haller opened the presentation by discussing a capital project study and plan that KCBA Architects prepared for the district in 2017. Dr. Haller said that while the district has completed some of the projects that KCBA identified–including, most importantly, roof repair throughout the district–a significant portion of the projects had been deferred by previous administrations and boards due to the pandemic and costs. She also noted that in the time that the KCBA report had been released, additional maintenance and repairs had been identified. Further, she said, most of the cost estimates that KCBA identified in 2017 were now outdated due to “significant” inflation.

These factors led the district to seek a new capital project and maintenance report from Quandel Energy Solutions, who reviewed outstanding items from the KCBA report, toured and inspected each building, and provided a report with updated construction and repair estimates to the district this month. Representatives from Quandel were on hand during the presentation to answer questions, and Dr. Haller reminded those in attendance that since the report had been prepared at no cost to the district, the numbers were only estimates. “Quandel did this on their own dime. The items on here have not been bid out or engineered to our specs. They’re rough estimates.”

Below are the projects that Quandel identified in their report and the administration presented to the board for consideration. (Security and safety projects have been excluded from the presentation.) Dr. Haller introduced the report by saying, “Nothing on this list is big, fancy or flashy. The projects we’ve identified are all to keep the buildings running and safe for kids and our staff… We didn’t take any requests–these are just needs,” she said. “It is my hope to get us on a regular maintenance cycle so that we don’t need to grapple with such a large price tag (again). We deferred maintenance for so long and, as a result, all of these projects piled up.” 

Jacksonwald:
Constructed in 1937; additions/renovations in 1961 and 1989
KCBA building condition rating in 2017: Fair
Currently at 99% capacity

• The administration presented Quandel’s estimate of $742,500 in recommended capital improvements to repair masonry, seal windows and doors, upgrade toilets and meet code requirements.
• The administration presented Quandel’s estimate of $359,000 in other projects that can be wrapped into its normal budget maintenance cycle, such as replacing playground equipment, upgrading signage to code and replacing tiles. 
• At this time, the administration is not recommending that the board consider Quandel’s estimates for gym upgrades, such as replacing basketball hoops and replacing the gym audio system/scoreboard or increasing parking. 

Lorane:
Constructed in 1959; additions/renovations in 1992
KCBA building condition rating in 2017: Fair
Currently at 90% capacity

• The administration presented Quandel’s estimate of $555,500 in recommended capital improvements to repair masonry; fix flooring; and improve toilets, stage access and extinguishers to meet ADA requirements. 
• The administration presented Quandel’s estimate of $105,750 in other projects that can be wrapped into its normal budget maintenance cycle, such as sealing windows and doors, regrading fields to prevent ponding, replacing rusting fences and upgrading signage and equipment to meet code. 
• At this time, the administration is not recommending that the board consider Quandel’s estimate to add heat into the hallways at Lorane. 

Owatin Creek:
Constructed in 2011
KCBA building condition rating in 2017: Excellent
Currently at 89% capacity

• The administration presented Quandel’s estimate of $115,000 in recommended capital improvements to seal windows that are leaking and replace degrading room partitions with fixed walls. 
• The administration presented Quandel’s estimate of another $115,000 in other projects that can be wrapped into its normal budget maintenance cycle to replace the solar panel inverter and add an instrument garden playground for students with special needs who cannot access the school playground. 

Reiffton:
Constructed in 2002
KCBA building condition rating in 2017: Very Good
Currently at 101% capacity

• The administration presented Quandel’s estimate of $1,664,600 in recommended capital improvements with the largest estimated cost at Reiffton to replace water source heat pumps at a cost of $1.3 million. Other capital improvements included repairing window mechanisms so that they’ll stay open; sealing, cleaning and repointing masonry and sidewalks; and repairing an emergency access road. 
• The administration presented Quandel’s estimate of another $406,000 in other projects that can be wrapped into its normal budget maintenance cycle to fix flooring, repair or replace playground equipment, regrade fields to prevent ponding and seal windows and doors and inspect the geothermal heating/cooling system. 

Junior High:
Constructed in 1963; additions/renovations in 1969 and 1996
KCBA building condition rating in 2017: Fair/Good (rating varies by addition)
Currently at 89% capacity

• The administration presented Quandel’s estimate of $5,636,118 in recommended capital improvements for the Junior High, which is a building in need of significant upgrades to its HVAC system (approximately $2.4 million in estimated repairs) and auditorium (approximately $1.9 million in estimated repairs). Other projects include masonry repairs, replacing plumbing fixtures of leaking toilets throughout the building, and upgrading/replacing equipment to meet code or ADA requirements. 
• The administration presented Quandel’s estimate of another $271,500 in other projects that can be wrapped into its normal budget maintenance cycle, including refinishing or replacing flooring, regrading grounds to prevent pooling, upgrading equipment for ADA requirements, sealing windows and doors and reconfiguring storage in the cafeteria. 

Senior High:
Constructed in 1955; additions/renovations in 1980, 1994 and 2004
KCBA building condition rating in 2017: Fair/Good/Very Good (rating varies by addition)
Currently at 88% capacity

• The administration presented Quandel’s estimate of $5,278,490 in recommended capital improvements for the Senior High, which is a building–like the Junior High–in need of significant upgrades to its HVAC system (approximately $3.2 million in estimated repairs) and auditorium (approximately $1.2 million in estimated repairs). Other identified projects include flooring repairs and replacements; masonry and sidewalk repairs, cleaning and sealing; and underground tank removal. 
• The administration presented Quandel’s estimate of another $110,000 in other projects that can be wrapped into its normal budget maintenance cycle, which include sealing windows and doors and refinishing flooring.

Lausch Administration Building:
Constructed in 1973; upgrades in 1996, 2004-06, 2022
KCBA building condition rating in 2017: Fair/Good
Capacity: n/a

• The administration presented an estimate of $195,000 in recommended capital improvements for the district’s tennis courts at Happy Landings.
• The administration presented Quandel’s estimate of another $309,335 in other projects that can be wrapped into its normal budget maintenance cycle, which include sealing windows and doors and cleaning and sealing masonry.
• At this time, the administration is not recommending that the board consider Quandel’s estimates for new playground equipment. 

Don Thomas Stadium & Grounds:

• The administration presented Quandel’s estimate of $1,120,000 in recommended capital improvements for new turf, bleacher maintenance and masonry repairs in Don Thomas Stadium.
• The administration presented Quandel’s estimate of another $785,000 in other projects that can be wrapped into its normal budget maintenance cycle, which include the purchase of new trucks, a storage shed and security gate improvements. 
• At this time, the administration is not recommending that the board consider Quandel’s estimates for replacing the current stadium lights with LED.

Senior High Maintenance Garage:

• The administration presented Quandel’s estimate of $252,000 in recommended capital improvements for a new roof, insulation and parking lot and bay door repairs for the maintenance garage at the Senior High school. 
• At this time, the administration is not recommending that the board consider Quandel’s estimates for reinstating two bathrooms in the garage, or hooking the building up to municipal water. 

Summary:

The administration reviewed Quandel’s suggested capital projects and maintenance and presented the recommendations above. These recommendations total:

• Capital Projects: $15 million
• Contingency Soft Goods (margin of error in estimates, permits, other construction fees–estimated to be about 20%): $3.5 million
• Security and Safety Capital Projects (compiled, but not presented): $2 million
• Total Capital = $20.5 million
• Maintenance Cycle Projects: $2.5 million

Next Steps:

The board will consider the projects the administration presented and decide which projects they’d like to pursue. “This presentation is meant to get the conversation open,” said Dr. Haller. “We can go back and put together a proposal that meets your different levels of comfort. We tried to focus on prioritization, but you can remove things that you think aren’t necessary…. Once we get that, we can get a proposal that gives you a truer number.” 

Additionally, because the district does not have $20 million set aside in capital reserves, the district plans to have representative from PFM Asset Management and Stifel attend the board meeting on Tuesday, February 21st at 7PM to discuss how the board could refinance its debt and borrow to complete these capital projects–potentially without impacting tax rates. 

The slide presentation can be found below, and a spreadsheet with Quandel’s itemized costs can be found HERE. Please note: The spreadsheet separates capital projects and maintenance cycle costs. Previous KCBA identified projects are then listed below–ones currently in progress are highlighted in green and ones completed are highlighted in yellow. 

On February 22, 2023, the district hosted the fifth of several public budget workshops, which aim to create a forum for community participation as the 2023-24 budget is crafted. Each workshop, which will be held at a different building in the district each month, will focus on a specific presentation of a topic related to the budget. Further, each workshop will include a tour of the building to point out maintenance priorities and discuss capital project needs for that building. The meeting on February 22nd was held at Jacksonwald to review technology and software used in the district. (The original meeting was to review the Governor’s proposed budget; however, Gov. Shapiro was issued an extension to delay his proposed budget by a month. March’s meeting will now present and review Gov. Shapiro’s proposed budget and how it will affect the district.)

Superintendent Dr. Christy Haller along with Exeter’s Business Administrator Mr. Brian Feick led the presentation and discussion.

Dr. Haller opened the meeting by discussing the three main purposes of software in the district:

1. Administrative management (such as software needed for Human Resources, Business or operations functions)
2. Classroom instruction (such as software used to deliver instruction, provide resources for students or teachers, or create instruction or assignments by students or teachers)
3. Diagnostic and student management (assessment tools, software used to store assignments and grades)

For each of these, she provided a full list of the software used by staff, teachers and students in the district, as well as an overall cost for each function. In total, the district spends approximately $743,000 on software–a cost that Dr. Haller said the district is attempting to reduce. “During Covid, they brought in a lot of products because we were trying to learn them really quickly, and some seemed to work better with different groups. But then what happened is we started to have duplication of certain products.” she said. But now that’s school’s returned to normal she said that the administration is taking a very close look at what the district currently owns and pays for to eliminate redundancies in similar platforms. “I know that people may have their favorites, but it doesn’t make sense to have products that do the same thing.”

Dr. Haller mentioned that part of the district’s comprehensive look and evaluation of technology will be conducted with an eye on making sure that it “enhances achievement.” Citing the value of technology, she said that students can get immediate feedback on practice work they may be doing in the classroom or at home. “Kids who don’t have help at home can get immediate feedback on how to improve their problem solving so they don’t feel upset when they come into school the next day when they couldn’t figure out how to do a math worksheet or they couldn’t read this paper and write something about it. I think this is the best way that we can embrace technology.”

UPDATE: This presentation and project lists were presented at the March 7, 2023 Committee of the Whole meeting:

• Stifel & PFM Presentation
• Capital Project List - Recommended
• Capital Project List - Not Recommended

UPDATE: These presentations were presented at the March 21, 2023 Board of School Director's voting meeting:

• Budget Update
• Bond Presentation

As the Exeter Township Board of School Directors near the June 30th state deadline to approve a 2023-24 budget, the administration has given a series of public presentations during monthly board meetings, as well as separately-scheduled workshops, which detail specific aspects of building a budget as well as building tours to highlight maintenance needs and capital project improvements. On March 22nd, the district hosted the sixth of several public budget workshops, which aim to create a forum for community participation as the 2023-24 budget is crafted. Each workshop, which will be held at a different building in the district each month, will focus on a specific presentation of a topic related to the budget. Further, each workshop will include a tour of the building to point out maintenance priorities and discuss capital project needs for that building. The meeting on March 22nd was held at Owatin Creek to review the proposed budget presented by Pennsylvania Governor Shapiro and how it may affect public school funding in Exeter. 

Superintendent Dr. Christy Haller led the discussion along with Business Administrator Brian Feick. She opened the meeting by presenting highlights of Governor Shapiro’s budget, which include a proposed increase of $100 million a year over 5 years to all Pennsylvania public school districts for mental health services, and an opportunity to apply for grants for environmental repairs/upgrades. Dr. Haller warned those in attendance that the district is not sure how either of these will affect the budget if passed in whole by the state legislature. “(If we qualify), we’ll apply for the environmental grant, but the likelihood of us getting it might not be great because there are so many urban schools that have asbestos or lead pipes in them.” She believes if the full $100 million for mental health is approved for the state as a whole it will translate to nearly $142,000 in additional funding that the district will receive to help offset funding for school-based mental health services. 

The administration then presented the Governor’s proposed funding increases for basic education, which Mr. Feick said equates to a little more than $11 million–or approximately $1 million more than last year. However, Mr. Feick reminded those in attendance that the proposed budget rarely equates to what school districts actually receive once the state legislators finalize and pass the final budget, which is due this summer. Therefore, based upon his experience, he feels confident in the district receiving 45% of the proposed increase–or about an additional $450,000. 

In the state’s proposed budget, the district would also receive $3 million in special education funding, which is approximately $350,000 more than what it receives currently, which Dr. Haller said was very welcome by the district. “Our special education costs are very, very high, and something we have very limited control over,” she said in reference to the mandates that the state imposes over what services districts are required to provide for students who qualify for special education. (Please visit the mandates checklist that we linked to previously in our November workshop HERE.) Dr. Haller expressed gratitude for an increase in the funding, but cautioned that it doesn’t come close to meeting the needs and expenses the district is required to provide in its special education staffing and programming. “Special education is complicated (to budget),” she said, describing how students can require just a few hours of support a week or may require full-day, one-on-one support. She also illustrated that students can move into the district who require placement at a specialized school, which the district must pay the student’s tuition for if those are the services that the student needs. Dr. Haller also outlined the special staffing needs for special education programming, which requires that the district hires professionals and paraprofessionals in everything from nursing to teaching to assisting. “There are also requirements to not have more than a certain number of students in a classroom, which is a very small amount of students,” she said, to which Mr. Feick added, “And we have special transportation costs for those students, too.” 

The Governor also proposed funding statewide funding increases for (note: not all programs apply to Exeter):

• Pre-K Counts
• Career and Technical Education
• Early Intervention
• PlanCon Reimbursement
• Teacher Professional Development
• Career and Technical Education Equipment Grants
• Head Start Supplements

The administration also highlighted the programs that should receive the same funding as before, including school safety and security, safe school initiatives and non-public school services. Programs that are expected to receive less funding than before include the Ready-to-Learn program, which helps fund the district’s full-day kindergarten program, as well as transportation. 

The administration cautioned that the numbers presented during this workshop are proposed and are not final; the final budget is expected to be passed by June 30th (or potentially later), which is the same date that the district is required to finalize and pass its own budget. 

UPDATE: Dr. Haller presented this budget update to the Board of School Directors at the April 4, 2023 Committee of the Whole meeting:

UPDATE: Dr. Haller presented this budget update to the Board of School Directors at the April 18, 2023 voting meeting:

UPDATE: Dr. Haller presented this budget update to the Board of School Directors at the May 2nd Committee of the Whole meeting:

Dr. Haller presented this proposed budget to the Board of School Directors at the May 15th voting meeting: