On Monday, April 21, the Octorara Area School District Board Directors unanimously approved a resolution for the 2014-2015 school year Proposed Final General Fund Budget.
The District will display the Proposed Final Budget, and advertise that the Final Budget will come to vote on June 16th.
The Proposed Final Budget is currently $48,969,009, and reflects an increase in spending of $1,476,218 or 3.11% over the 2013-2014 Budget.
The following significant changes between the Preliminary Budget and this version include:
- Addition of 4 Instructional Assistants – $67,456
- Increased Healthcare – 12.69% – $203,800
- Increased Tuition Reimbursement (PLN & I-Pad Classes) – $50,000
- Increased Workers Compensation – $13,861
- Increased Charter School Tuition – $50,000
- Special Requests – $125,000
- Increased Basic Education Revenue – $10,667
- Increased Special Education Revenue – $6,082
- Additional Revenue – Ready to Learn Grant – $305,727
Additionally, the 2014-2015 Budget makes use of $1,723,399 in Fund Balance to keep the millage rate for Chester County unchanged at 36.66, and decreasing the millage for Lancaster County to 26.43, a decrease of 1.28 mills or 4.619%. Without the use of the Fund Balance, rates would be roughly 2 mills higher.
Internal Service Fund
The Finance Committee is moving forward with plans for creating an Internal Service Fund as a way to better manage healthcare. This current year, healthcare is expected to cost the District a record $3.1 Million, and exceed the budgeted amount by $468,849. The total is also a $946,213 increase over last year.
The separate fund could be used to pay actual insurance claims, making it so the District can avoid the peaks and valleys that being a self insurer can cause, and smoothing out bad claim years by using the reserve built up to supplement the budget.