Professional Documents
Culture Documents
Preliminary Budget
Presentation
The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.
2012-2013 Budget Remarks
• Vision – 100% of our students will
graduate and be fully prepared for a
post-secondary education.
• Our Focus – even in a tough budget
year
• District Strengths – Found in our Core
Values
– We care deeply for one another.
– We have a strong emphasis on learning.
• Professional Learning Communities
• Response to Instruction and Intervention
• Revised Curriculum
• Value continuous improvement
• Highly trained and dedicated staff
Budget 2012-2013
Big Ideas
• Revenue has leveled off, expenses continue to
increase without adding anything new (+6.25%)
• We must continue a multi-year planning
approach, including a plan to address rising
enrollments.
• We must continue to look for ways to reduce
expenditures while maintaining a quality
education for our children.
2012-13 Preliminary Budget
- Budget Overview
- Revenue
- Sources of Revenue
- 2 year Comparison
- 10 year history in dollars and %
- Expenditures
- Sources of Expenditures
- Salary & Benefit Budget
- 2 year Comparison
- 10 year history in dollars and %
- Fund Balance
- 10 year history in dollars
- 10 year history as % of Expenditures
- Millage Considerations
- History – adjusted index vs. NESD taxation
- Exceptions – Retirement and Special Ed
- 2012-13 Impact on District and Taxpayer
- Budget Forecast – next 3 years
- Revenue and Expenditures
- Future Impact of Millage Rate Decisions
BUDGET OVERVIEW
DIFFERENCE: ($3,256,540)
SURPLUS/(DEFICIT)
- TOTAL PROPOSED TBD
EXPENDITURE CUTS
DIFFERENCE: ($3,256,540)
SURPLUS/(DEFICIT)
Budget Revenue Figures
2011-12 2012-13 Inc (Dec) Inc -Dec
Budget Budget $ %
$18,340,087 , 34%
Revenue: Local
Revenue: State
Revenue: Federal
$35,493,595 , 65%
2 year Budget Revenue
2 year Revenue Comparison
$55,000,000
$54,635,839
$54,489,387
$54,500,000
$54,000,000
Year
2011-12
2012-13
Revenue Sources - Ten Year History
Revenue Sources - 10 year History
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 B2011-12 B2012-13
#REF! #REF! #REF!
Local State Federal
Revenue Growth % - 10 year History
0
0 16.1%
13.4%
0
9.7%
0 8.1%
7.5%
6.3%
0
2.6%
-
0.6% 0.27%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 B2011-12 B2012-13
% rev growth
Budget Expenditure Figures
2011-12 2012-13 Inc (Dec) Inc -Dec
Budget Budget $ %
$- , 0%
$18,705,822 , 32%
$12,285,301 , 21%
2012 -13 Salary Budget
2012-13 Salary Budget
1,150,173 , 4% 2,100,403 , 8%
1,878,884 , 7%
775,986 , 3%
20,887,808, 78%
2012 -13 Benefit Budget
2012-13 Benefit Budget36,350 , 0%
2,057,946 , 17%
Worker's Compensation
Health Insurance
650,000 , 5%
150,000 , 1% 34,742 , 0%
2 year Expenditure Comparison
2 year Expenditure Comparison
$57,892,378
$58,000,000
$57,000,000
$56,000,000
$55,000,000 $54,489,386
$54,000,000
$53,000,000
$52,000,000
Year
2011-12
2012-13
Expenditure Sources $ - 10 year History
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 B2011-12 B2012-13
13.4%
0
10.3%
14.3%
0
8.3%
6.8%
0
4.9%
16.1%
13.4% 8.7%
0 9.7%
8.1% 7.5%
6.3% 6.2%
2.6%
- 0.6%
-0.1% 0.27%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 B2011-12 B2012-13
(0)
5,000,000
4,000,000
Fund Balance Remaining
3,000,000
2,000,000
1,000,000
-
2003-04 2004-05 2005-06 2006-07 2007-08School2008-09
Year 2009-10 2010-11 B2011-12 B2012-13
Fund Balance: % of budget
14.00%
12.00%
10.00%
8.00%
% of Budget
6.00%
4.00%
2.00%
0.00%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 B2011-12 B2012-13
School Year
7.0%
5.1%
5.0%
4.6%
4.0% 4.0%
3.0% 2.99%
2.3%
2.0%
1.9%
1.0%
NESD Adj Index NESD actual millage incr Linear (NESD Adj Index)
NESD Exceptions Available
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$- School Year
2011-12 2012-13 2013-14 2014-15 2015-16
Budget Forecast
Impact of Millage Rate Decisions on Deficit
$-
$(1,000,000)
$(2,000,000)
$(2,556,540)
$(3,000,000) $(2,906,540)
$(3,256,540)
$(4,000,000)
$(4,220,397)
$(4,618,197)
$(5,000,000) $(5,015,997)
$(5,398,771)
$(6,000,000) $(5,899,204)
$(6,399,636)
$(7,000,000)
$(7,156,246)
$(7,680,483)
$(8,000,000)
$(8,204,720)
$(9,000,000)
2012-13 2013-14 2014-15 2015-16
Revenue Threats:
• The economy – dwindling revenue, rising costs
• Unfunded mandates
• PSERS contribution increase
• Tax assessment challenges (legally represented for all
commercial/industrial properties valued at $1 million dollars or more)
Major Budget Expenditures
Cost cutting exploration ideas
MAJOR EXPENDITURE COST CUTTING EXPLORATION IDEA
Cost of Cyber Charter School Creative marketing approach to getting
back cyber charter school students
Alternative Education Costs In house, Twilight Alternative Education
program for 2013-14
Special Education Transportation costs Examine alternate transportation
contractors for special education students
Rising mandated special education costs Set up procedure to gain ACCESS
reimbursement dollars
Salaries and Benefits Explore incentives to encourage attrition
Salaries and Benefits Explore incentives for employees to seek
health insurance elsewhere
Salaries and Benefits Explore healthcare savings through
increased employee contribution, and/or
increased healthcare options
Salaries and Benefits Eliminate programs resulting in furloughs
2012-13 Budget Implications
General Fund Budget Implications Board Finance/Operations Considerations
No requests for new positions or new item Designate some unused construction funds
requests for debt payments
Cut scheduled replacement of Everyday Math Use of PSERS designated funds to help
curriculum materials ($150,000) balance the budget
Priority: Technology – Restore to 2009-10
replacement levels ($368,000) Level of taxation – Board decisions
Building level allocations – recommended to
stay level (cut 10% or more for the last two
years). This is not a large expenditure. Solvency Issues
Budget 2012-2013
Big “Unknowns”
• Teacher’s contract and Act 93 agreement is being negotiated
this year. Result could either increase or decrease the current
deficit.
• Revenue streams from state, federal are not certain at this
time.
• Employee contribution to PSERS is not set in stone (currently
40% increase or $1 million dollars).
• Tax increase?
• Salary increases for all non-union employees has not been
decided by the board yet.
• Impact of charter school/tuition voucher legislation on our
future budget planning.
• LERTA legal tax challenge from ES3 – Win or lose?
• See handout: Walk-Away Decision Tree
2012-2013 Budget Remarks
• The Language of Resilience –
– Instead of “If only…” statements, we will encourage
“How can I” statements
Instead of: “If only we did not have this huge deficit to deal
with!” TO
“How can I effectively deliver a high quality education
working within our current budget constraints?”
ADMINISTRATION, BOARD AND STAFF MEMBERS MUST
CONTINUE TO WORK TOGETHER TO FIGURE OUT THE
BEST SOLUTIONS TO OUR BUDGET CHALLENGES IN
ORDER TO SUPPORT OUR STUDENTS!