1435 Navahoe Drive Pittsburgh, PA 15228 February 6, 2010 Dr. Timothy J. Steinhauer Superintendent Mt. Lebanon School District 7 Horsman Drive Pittsburgh, PA 15228 Re: The Fraasch Report and The District Response Or. Steinhauer: For many in the Community it can be a chore weeding through some of the contentions made regarding the School District. Take for example -- (On January 14, 2010 Mr. Fraasch wrote: “A 45-50% real estate tax increase is coming over just a short period of time.” (On January 26, 2010 the District wrote: “Are taxes really going up 50% in the next few years? NO” The District response was loud and emphatic, despite that Mr. Fraasch’s observation was based on District projections in the possession of the Superintendent and every experienced Board member. These projections can be found on page 55 of the current year budget book. Now, in preparation for next year's budget, an updated forecast has become available (02-03-10). The following is a side-by-side comparison of Real Estate Revenues from each forecast. 2009-2010 Budget 2014-2015 Forecast % Change May 2009 $48,240,359 $70,443,454" 46.0% February 2010 $48,240,359 $67,302,591" 39.5% *State Gaming Funds are not forecasted in 014.2015, @ reduction of $1,700,000 is incorporated here It appears Mr. Fraasch was spot-on, based on the Board's available information. And while the new forecast reflects decreased upward pressure on real estate taxes, this improvement is. contingent to a large degree on fresh prospects for Salaries and Fringe Benefits Since May, the combined 2014-2015 Salaries and Fringe Benefits projection has been reduced by $3,823,595 (equivalent to almost 2 mills). Anticipated staff reductions and retirements may not be sufficient to support the $3.8 million improvement. This leaves slowing the year over year growth rate, The Community will be interested to hear more of your plans in this area. Respectfully, William R. Matthews Ill cc: MTLSD School Board MTL