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Octorara Area School District

Octorara Area School District. 2017-2018 Budget Presentation Update. January 16, 2017. Items to Consider : Act 1 Index Opt-out Resolution Apply for Exceptions and Pass Preliminary Budget State Funding – Budget no Increase in 2017-18 Use of Fund Balance/Tax Increase/Budget Reductions

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Octorara Area School District

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  1. Octorara Area School District 2017-2018 Budget Presentation Update January 16, 2017

  2. Items to Consider: • Act 1 Index • Opt-out Resolution • Apply for Exceptions and Pass Preliminary Budget • State Funding – Budget no Increase in 2017-18 • Use of Fund Balance/Tax Increase/Budget Reductions • Elimination of Property Tax Revenue Octorara Area School District

  3. Currently the budget includes no increase in State Funding for Basic Education Subsidy, Special Education Subsidy, and the Ready To Learn Block Grant. State Budget is more than $260 million behind in revenue for the current fiscal year PASBO projections range from $0 increase to no more than $100 Million in Basic Education Funding combined for all schools. ($100 Million increase = Approximately $115,000 increase for Octorara) Early Estimate of State Funding

  4. Debt Service Savings

  5. 2017-18 Final General Fund Budget Summary

  6. Last time this was voted on in the State Senate session the school property tax elimination bill lost by one vote • Two Senators who did not support the bill have been replaced • Both Chambers of the General Assembly (in particular the Senate) have indicated that school property tax elimination will be a priority issue in the new session • Current state property taxes raise approximately $14 billion annually • Possible tax increases in new legislation include raising state sales taxes from 6% to 7% also the sales tax will be applied to a wide rage of services and products now exempt • The personal income tax would increase from 3.07% to 4.95% for all state taxpayers Elimination of the State Property Tax

  7. School Districts will still send out annual tax bills for current debt service only (approximately 19% of current tax bills for Octorara Area School District) • School Districts will be PROHIBITED FROM INCURRING NEW DEBT without a referendum – little chance for short term borrowing for cash flow purposes Elimination of the State Property Tax

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