2009/10 Budget Hearing

Presented to Board of Education & CommunityJune 15, 2009

Presentation Outline

• Budget Cuts Have Been Made• Low Fund Balance … • … Going Even Lower • Reductions and Adjustments• Bleak Financial Future

Cumulative Effect of Past PPS Budget CutsReductions of $4 Million

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Bud

get R

educ

tions

'05-09'04/05'03/04'02/03

Financial Snapshots - June 30, 2008• Statewide Fund Balance Database

– 580 Districts with Higher % – 258 Districts with Lower %.– In Kalamazoo County 6 have higher % and

only 2 have lower. • Statewide MDE Financial Database

– Portage ranks in lowest 10% for administrative costs in the State.

PPS General Fund“The Bottom Line”

Revenues $77,352,824 $78,191,942

Expenses $77,767,594 $78,966,779

Bottom Line (Deficit)

$ (414,770) $ ( 774,837)

SY 08/09 SY 09/10

Nearly $1.2M of Fund Balance Used

PPS GF Budget 09/10Reductions & Adjustments

• K-12 Instruct. Staff - GE (4.88 FTE *) $317,000 Gifted & Talented (1.0 FTE) 65,000• Custodial Services Outsourcing 600,000• Increase in Specific Walk Zones 106,000 Total Budget Reductions/Adjustments $1,088,000

* Full Time Equivalency

Custodial Services Outsourcing

Actual Cost 07/08 Custodial $3,179,000Salaries – 1st Shift (619,000) Fringes – 1st Shift (386,000)Supply Cost PPS Responsibility (123,000)Add: Amortization of Equipment to be purchased by contractor

98,000

Actual Cost 07/08 2nd 3rd Shift $2,149,000Contractor Proposal (3 Year Fixed) 1,490,000Yearly Savings * 659,000

* Actual savings impacted by unemployment comp and actual costs in 09/10

Walk Zone RecommendationsAMB North of Kalarama, West of TowheeLCE South of Bacon, North of OsterhoutLCE Auburn WoodsTWL South of School, East of 12th

TWL South of School, West of 12th WOD Ashton WoodsCMS/CHS

East of Lover’s Lane to Newell’s, South of Centre Ave

NMS/NHS

Milham Meadows

WMS North & East of AMB school, Crown Pointe, Cooley Drive

House of Cards Financing?

08/09 Stimulus $3.2M

09/10 Stimulus $6.1MKal County Enhancement $3M

09/10 PPS Budget Prop Up By Over 12.5%

09/10 Structural Deficit $.8M

How Bad Does 2010-11 Look?• Governor’s Office Prepared an Executive Scenario

for 2010-11 as part of May Revenue Estimating Conference– Assumes 4% Revenue Growth– Assumes Foundation Grant at present level– Assumes continued statewide drop in enrollment– Doesn’t factor increased costs (steps, retirement, energy)

• State Aid shortfall of $439M or $276/pupil• In Portage = $2,374,000 shortfall• Development of 3 Year Budget Forecast/Cycle will

begin soon