sample 2010-11 school district budget projections
TRANSCRIPT
Sample 2010-11 School District
Budget Projections
CTBA – State Deficit Problems
State of the State• Illinois is estimated to be $13B in debt• Federal Funds via ARRA replaced $922M of
state funds per year for the last two years• ISBE presented a flat budget for FY 2011• In order to fund this flat budget Illinois needs
to generate $1B in additional revenue• Current political climate may not allow for
additional revenue generation
Governor Quinn’s Budget Proposal
• $2B across the board cut in state spending
• $1.3B from K-16 schools– 17% decrease
• GSA Foundation Level estimate $5,669– Cannot fall below 2006 level of $5,500 due
to ARRA maintenance of effort
Foundation Level History
Quinn Budget• GSA cut by $613M
– Foundation Level at $5,669– Flat Grant Cut to $0– GSA Hold Harmless -$16M (-100%)
• MCATS cut $402M– Early Childhood -$54M (-16%)– Extraordinary Sp Ed -$66M (-20%)– Reading Improvement -$36M ( -53%)– Regular Transportation -$65M (-19%)– Textbook Loans -$40M (-100%)– Billingual Education -$20M (-30%)
Illinois Payments to Districts
• Illinois failed to make two payments for Mandated Categorical Grants for FY 2009.
• These were made in summer 2009• So far this year the state has made only one
MCAT payment• It is anybody’s guess if they will make another one or
more• State is behind 120 days in paying its bills
State of the District
• Put in here what you think of your district’s budget in three bullet points or less
• Example– Overall revenue is down 17%– Recommend holding line on all spending and RIF
at least three certified and three non-certified positions
– Will deficit spend for FY 2011 and fund balances will decrease by 50%
Start slides here with your variables and predictions
Expenditures
• Salaries estimated @ 3%• Fringe Benefits @ 5%• Purchased Services and Supplies & Materials
at 1%• Capital Outlay at $0
Other Highlights
• Reduction of three teachers for FY 2011• No new buses purchased• Student fees increased by 100%• Donations increased by 100%
– Education Foundation
Enrollment
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
480
500
520
540
560
580
600 594
584
574567
535
556
533
521
533
521518 520 520
District Enrollment
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
District's Summary of Operations(Operating Funds Only)
Revenue Expenditures Ending Fund Balance
**2002**
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(0.50)
(0.40)
(0.30)
(0.20)
(0.10)
0.00
0.10
0.20
0.30
0.10 0.09
0.16 0.18
0.11 0.14
0.17 0.15
0.16 0.13
0.04
(0.06)
(0.18)
(0.30)
(0.44)
Fund Balance to Revenue Percentage
Could stop here!
Three Scenarios
• Scenario 1– GSA @ $5,669– No Cuts– Freeze salaries– Deficit spend by
$800,000– Fund Balance from
$1.0M to $200,000
• Scenario 2– GSA @ $5,669– Cut 3 teachers, 3 SSP, 1
administrator– Freeze salaries– Deficit by $500,000– Fund Balance from
$1.0M to $500,000
• Scenario 3– GSA @ $5,500– Cut 3 teachers, 3 SSP, 1
administrator– Freeze salaries– Deficit spend by $1.2M
thus need to borrow $200,000 and spend all reserves
2010 2011 2012 2013
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
Operating Funds Balance
Revenues Expenditures End Balance
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(2,000,000)
(1,000,000)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Education Fund
Revenues Expenditures Fund Balance
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
O&M Fund
Revenues Expenditures Fund Balance
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(300,000)
(200,000)
(100,000)
0
100,000
200,000
300,000
400,000
500,000
600,000
Transportation Fund
Revenues Expenditures Fund Balance
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013($400,000)
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
FOUR OPERATING FUNDS (Ed., O&M, Trans., & WC) BALANCE
More Assumptions for the 2010-2011 Budget
EAV
Actual 1999 Actual 2000 Actual 2001 Actual 2002 Actual 2003 Actual 2004
Percentage Increase from
Prior Year
Residential 274,846,412 288,748,099 304,782,660 320,941,371 341,444,137 361,149,965 5.77%
Farm 21,191,727 21,272,589 20,055,196 19,051,390 17,724,382 16,887,436 -4.72%
Commercial 31,140,835 38,007,053 42,351,529 42,591,475 47,615,737 51,529,703 8.22%
Industrial 707,025 707,025 707,025 707,996 715,829 723,345 1.05%
Mineral 222,633 215,317 215,317 213,442 213,442 213,442 0.00%
Railroad 934,022 826,060 873,667 912,247 952,923 890,972 -6.50%
Total 329,042,654 349,776,143 368,985,394 384,417,921 408,666,450 431,394,863 5.56%
New Property 13,171,391 15,273,524 11,678,146 10,889,850 15,201,420 19,336,173
EAV by Category
Estimates Used for FY 2010-11Education Fund Projections
• Local Funding– Local EAV
• Tax Caps? (CPI)– TIF or Enterprise Zones?– Local revenue in lieu of taxes
• CPPR trends?– Tuition (General, Summer School,
Vocational, Adult)– Earnings on Investments
• Is fund balance going up or down?• What is happening to interest
rates?– Food Sales– Athletic admissions, fees,
textbooks
– Levies (Local Taxes)• General• Tort
– What is impact of lawsuits?
• Leasing• Special Education• Social Security/Medicare
Detail on this slide various factors you used to make both revenue and expense projections.
State Funding
• General State Aid– Property Wealth Per Student
• Inverse relationship to State Aid– Foundation level
• THIS YEAR THIS NUMBER IS CRITICAL
– ADA enrollment– # of low income students
– Categorical Funding• Special Education (Private
Facility, Extraordinary, Personnel, Orphanage, Summer School)
• Vocational Education• State Free Lunch• Driver Education• Early Childhood Block• Reading Improvement• School Safety & Education
Block Grant
Federal Funding• Title Programs
– Title I– Title IV Safe and Drug Free– Title II Teacher Quality
• National School Lunch Program
• School Breakfast Program• Federal Special Education
• Medicaid Matching– Administrator Outreach– Fee For Service Provider
Education Fund Expenses• Expenditure variables
– Estimate of salary and fringe benefit increases
• To get an accurate accounting of salary you need to keep separate spreadsheets with detail
– Estimate of supply, purchased services and capital outlay expenses
– Any increase or decrease in staff?– How many teachers are retiring?– Any major expenditures such as
computers, smartboards, etc…
• Grants– Improvement of Instruction– Title I– Early Childhood Block– Reading Improvement– School Safety & Education Block
Grant• Other
– Superintendent salary cost cap provisions
– Payments to Other Gov’t Units• Special Education tuition• Vocational tuition
– Other tuitions– Contingency
ESTIMATING CERTIFIED STAFF SALARIES IS VERY IMPORTANTKEEP A SECOND SPREADSHEET
AND UPDATE OFTEN
O&M Fund
• Revenue– Local taxes
• EAV• Lease• Tort• CPPR• Investment income• Renting of facilities
– Are you going to deposit any GSA into O&M Fund?
• Expenses– Salaries & Fringe
Benefits– PS – utilities– Any capital projects?– Contingency
Transportation Fund Revenue
Local taxes EAV Lease Tort Investment income Renting of buses
Are you going to deposit any GSA into Transportation Fund?
Expenses Do you own vs. lease? Salaries & Fringe Benefits How many new buses? Contingency