2007-2008 preliminary budget proposal and summary
TRANSCRIPT
2007-2008 Preliminary Budget2007-2008 Preliminary BudgetProposal and SummaryProposal and Summary
2007-2008 Proposed Budget Overview
2007-2008 Proposed Budget Overview
John Fronk, SuperintendentKenn Medina, Business ManagerMark Seibert, Finance Committee
Chairman
John Fronk, SuperintendentKenn Medina, Business ManagerMark Seibert, Finance Committee
Chairman
DescriptionDescription
30,000-foot overview of the proposed budget
Elicit discussion regarding major areas:RevenuesExpendituresTaxation
30,000-foot overview of the proposed budget
Elicit discussion regarding major areas:RevenuesExpendituresTaxation
Where are we in the Budget Process
Where are we in the Budget Process
This is not the final budgetPreliminary: required by Act 1Completed as accurately as
possibleState information is not yet availableUses probability of specific events
This is not the final budgetPreliminary: required by Act 1Completed as accurately as
possibleState information is not yet availableUses probability of specific events
Budget Process Began Earlier
Budget Process Began Earlier
Longer from the end of a budget year means less exact estimations
Administration continues to plan the course of the DistrictLearning-Focused SchoolsSpecial EducationPopulation Growth
Longer from the end of a budget year means less exact estimations
Administration continues to plan the course of the DistrictLearning-Focused SchoolsSpecial EducationPopulation Growth
Other Information SourcesOther Information Sources
Energy IndustryConsumer Price Index trend Insurance IndustryTransportation industry
Energy IndustryConsumer Price Index trend Insurance IndustryTransportation industry
Conservative plan for Revenue & ExpensesConservative plan for Revenue & Expenses
Projections & AssumptionsProjections & Assumptions
Average Salary Increase of 4.2% MAEA contract & salary scheduleAdministratorsSecretariesCustodial staffCoaches
Average Salary Increase of 4.2% MAEA contract & salary scheduleAdministratorsSecretariesCustodial staffCoaches
Projections & AssumptionsProjections & Assumptions
Health insurance contract: cost changes from plan to plan
Consumer Price Index: increase 3.7%
Energy costs: increase 6.3%Liquid Fuels costs: increase 4.1%Current Real Estate: increase 0.6%
in assessed valueBasic Instructional Subsidy:
increase 2.2%
Health insurance contract: cost changes from plan to plan
Consumer Price Index: increase 3.7%
Energy costs: increase 6.3%Liquid Fuels costs: increase 4.1%Current Real Estate: increase 0.6%
in assessed valueBasic Instructional Subsidy:
increase 2.2%
Revenue Analysis & Overview
Revenue Analysis & Overview
Trend Analysis of top ten categories:Percentage of revenue derived from
the Basic Instructional Subsidy continues to decrease
Difference must be made up with local tax effort
Not unique to our districtPlanning for change in funding
continues to be examined
Trend Analysis of top ten categories:Percentage of revenue derived from
the Basic Instructional Subsidy continues to decrease
Difference must be made up with local tax effort
Not unique to our districtPlanning for change in funding
continues to be examined
Actual '01-'02 Actual '02-'03 Actual '03-'04 Actual '04-'05 Actual '05-'06 Budgeted '06-'07
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Dollars
Budget Year
Revenue Analysis - Top Categories by Percent of Revenue
BasicInstructionalSubsidy
Current RealEstate Taxes
State Effort vs. Local Effort2002 Actual through 2008 ProjectedState Effort vs. Local Effort
2002 Actual through 2008 Projected
Basic Instructional Subsidy from State Current Local Real Estate TaxesBasic Instructional Subsidy from State Current Local Real Estate Taxes
Revenue Analysis & Overview
Revenue Analysis & Overview
Remaining eight of top ten: flat trend line
No major changes are anticipatedProposal includes reduction in
revenue from possible assessment change for a particular commercial property
Remaining eight of top ten: flat trend line
No major changes are anticipatedProposal includes reduction in
revenue from possible assessment change for a particular commercial property
Expenditure Analysis & Overview
Expenditure Analysis & Overview
Contractual salary increases for MAEA staff.
Agreements for wage & salary increases for non-MAEA employees
10.7% increase in the Retirement Contribution Rate
Health & Dental Insurance rates are flat, but increased participation by families increases cost
Contractual salary increases for MAEA staff.
Agreements for wage & salary increases for non-MAEA employees
10.7% increase in the Retirement Contribution Rate
Health & Dental Insurance rates are flat, but increased participation by families increases cost
ExpendituresCurrent & ProposedExpenditures
Current & Proposed
'06-'07: $11,477,357'07-'08: $11,925,635
$7,859.6
$1,121.2
$978.2
$452.4$444.7$357.0$212.0
$8,117.7
$1,145.7
$1,116.6
$502.9$408.7$376.6$202.5
$-
$4,000.0
$8,000.0
$12,000.0
(in Thousands)
Salaries & Benefits Debt Service & Financing Other Ed. ServicesBuilding Maint & Operations Supplies TransportationEquipment Other
'06-'07: $11,477,357'07-'08: $11,925,635
$7,859.6
$1,121.2
$978.2
$452.4$444.7$357.0$212.0
$8,117.7
$1,145.7
$1,116.6
$502.9$408.7$376.6$202.5
$-
$4,000.0
$8,000.0
$12,000.0
(in Thousands)
Salaries & Benefits Debt Service & Financing Other Ed. ServicesBuilding Maint & Operations Supplies TransportationEquipment Other
Expenditure Analysis & Overview
Expenditure Analysis & Overview
Salaries & benefits comprise 67% of expenditures
Building maintenance costs increasing: aging facilities & equipment
No provision for Feasibility Study for construction or combined efforts
Teachers & administrators reduced controllable requisitions: net reduction over $41,000 from last budget
Salaries & benefits comprise 67% of expenditures
Building maintenance costs increasing: aging facilities & equipment
No provision for Feasibility Study for construction or combined efforts
Teachers & administrators reduced controllable requisitions: net reduction over $41,000 from last budget
Expenditure Analysis & Overview
Expenditure Analysis & Overview
Expenditures budgeted conservativelyNo hidden expenses: Most likely
scenario - Expenses will be realizedAdministration continues to curtail or
defer expenses - if doing so will not harm the educational process
Remaining fund balance directed to the Capital Projects Fund for future building or significant equipment failure
Expenditures budgeted conservativelyNo hidden expenses: Most likely
scenario - Expenses will be realizedAdministration continues to curtail or
defer expenses - if doing so will not harm the educational process
Remaining fund balance directed to the Capital Projects Fund for future building or significant equipment failure
Fund Balance AnalysisFund Balance Analysis
$(15,000)
$(10,000)
$(5,000)
$-
$5,000
$10,000
$15,000
2004 2005 2006 2007 2008
Expenses Revenues Fund Balance
Preliminary Budget SummaryPreliminary Budget SummaryPlanned Expenditures & Needed RevenuePlanned Expenditures & Needed Revenue
ExpendituresExpenditures
Proposed increase in expenditures is $449,278, or 3.9%
Includes reductions by administrators, educators, and staff
Self-imposed reductions keep costs low without harming the educational process
Proposed increase in expenditures is $449,278, or 3.9%
Includes reductions by administrators, educators, and staff
Self-imposed reductions keep costs low without harming the educational process
RevenueRevenue
Includes an increase of $137,468 in total Current Real Estate Tax revenue
The 15.95 mills needed is an increase of 4.5% - our district’s index
An increase over 4.5% would require approval via a May 2007 referendum
Includes an increase of $137,468 in total Current Real Estate Tax revenue
The 15.95 mills needed is an increase of 4.5% - our district’s index
An increase over 4.5% would require approval via a May 2007 referendum
Preliminary Budget SummaryPreliminary Budget SummaryDiscussion & VoteDiscussion & Vote