Budget Development: Variables, Compensation Schedules and Public - - PowerPoint PPT Presentation

Budget Development:

Variables, Compensation Schedules and Public Education

Budgeting Variables

• State funding structure for public schools is not expected to have adjustment

anytime in the near future.

• Current funding structures for schools are primarily based on student enrollment.
• Locally, our enrollment trends continue to project a downward trend primarily due

to ongoing declining birth rates in the area.

• Although declining enrollment allows us to make some cuts due to fewer students.

Not at a rate that allows us to remain budget neutral.

• Focus on finding the most meaningful ways to compensate our employees with the

limited resources that we have.

Revenue/Expenditures

• Number of students x per-pupil

foundation allowance = annual revenue

• Example: 5,100 students x

$7,511 = $38,306,100

• Variable sources of funding also

contribute to annual budget

• Salary
• Health care
• MSPERS (Employee State Retirement System)
• Fuel / Transportation costs
• Cafeteria
• Utility Costs

Budget Development Process Timeline

• Presentations to board and

committees

• Budget managers process
• Updates on enrollment, legislative

changes

• Budget proposal from house,

senate, governor

• Local impact on budget
• Adjustments to process
• More direct communications with

budget partners and employees to share most current information and relevant data

Actual Wage/Salary Cost to District

$1.00 in wage/salary = $1.45 approximate actual cost to district

• .45 on every dollar paid out in wage/salary is additional cost paid by the district for

FICA / Medicare taxes, and state retirement costs.

• An increase to an employee group of $100,000 in wage/salary, the district must

budget $145,000.

General Fund Expenditures

Instruction, $31,772,653, 64% Support Services, $15,760,076 32% Community Services, $411,684, 1% Other, $719,263, 1% Athletics, $990,782, 2%

2015 $49,654,458

Instruction, $31,033,894, 64% Support Services, $15,888,915, 33% Community Services, $447,581, 1% Other, $325,682, <1% Athletics, $922,460, 2%

2016 $48,618,532

Wage/Salary Increases Embedded in Schedules

• Most common embedded increases are time work raises (STEPS)
• Educational lanes

Step BA BA18 MA MA15 MA30 $34,049 $35,802 $37,645 $39,785 $42,043 1 $35,802 5.15% $37,645 5.15% $39,785 5.68% $42,043 5.68% $44,433 5.68% 2 $37,645 5.15% $39,583 5.15% $42,043 5.68% $44,433 5.68% $46,958 5.68% 3 $39,583 5.15% $41,625 5.16% $44,433 5.68% $46,958 5.68% $49,624 5.68% 4 $41,625 5.16% $43,768 5.15% $46,958 5.68% $49,624 5.68% $52,443 5.68% 5 $43,768 5.15% $46,022 5.15% $49,624 5.68% $52,443 5.68% $55,423 5.68% 6 $46,022 5.15% $48,391 5.15% $52,443 5.68% $55,423 5.68% $58,569 5.68% 7 $48,391 5.15% $50,884 5.15% $55,423 5.68% $58,569 5.68% $61,896 5.68% 8 $50,884 5.15% $53,504 5.15% $58,569 5.68% $61,896 5.68% $65,411 5.68% 9 $53,504 5.15% $56,261 5.15% $61,896 5.68% $65,411 5.68% $69,128 5.68% 10 $56,261 5.15% $59,157 5.15% $65,411 5.68% $69,128 5.68% $73,054 5.68% 11 $56,928 1.19% $59,859 1.19% $66,189 1.19% $69,948 1.19% $73,921 1.19%

15-16 Average Annual increase for STEPS is 5.08%

Lapeer 2015-2016 Time Worked Raises or STEPS

Lapeer 2016-2017 Time Worked Raises or STEPS

Previous Step New Step BA BA18 MA MA15 MA30

$34,049 $35,802 $37,645 $39,785 $42,043 1 $34,926 2.58% $36,724 2.58% $38,715 2.84% $40,914 2.84% $43,238 2.84% 1 2 $35,802 2.51% $37,645 2.51% $39,785 2.76% $42,043 2.76% $44,433 2.76% 3 $36,724 2.58% $38,614 2.57% $40,914 2.84% $43,238 2.84% $45,696 2.84% 2 4 $37,645 2.51% $39,583 2.51% $42,043 2.76% $44,433 2.76% $46,958 2.76% 5 $38,614 2.57% $40,604 2.58% $43,238 2.84% $45,696 2.84% $48,291 2.84% 3 6 $39,583 2.51% $41,625 2.51% $44,433 2.76% $46,958 2.76% $49,624 2.76% 7 $40,604 2.58% $42,697 2.58% $45,696 2.84% $48,291 2.84% $51,034 2.84% 4 8 $41,625 2.51% $43,768 2.51% $46,958 2.76% $49,624 2.76% $52,443 2.76% 9 $42,697 2.58% $44,895 2.57% $48,291 2.84% $51,034 2.84% $53,933 2.84% 5 10 $43,768 2.51% $46,022 2.51% $49,624 2.76% $52,443 2.76% $55,423 2.76% 11 $44,895 2.57% $47,207 2.57% $51,034 2.84% $53,933 2.84% $56,996 2.84% 6 12 $46,022 2.51% $48,391 2.51% $52,443 2.76% $55,423 2.76% $58,569 2.76% 13 $47,207 2.57% $49,638 2.58% $53,933 2.84% $56,996 2.84% $60,233 2.84% 7 14 $48,391 2.51% $50,884 2.51% $55,423 2.76% $58,569 2.76% $61,896 2.76% 15 $49,638 2.58% $52,194 2.57% $56,996 2.84% $60,233 2.84% $63,654 2.84% 8 16 $50,884 2.51% $53,504 2.51% $58,569 2.76% $61,896 2.76% $65,411 2.76% 17 $52,194 2.57% $54,883 2.58% $60,233 2.84% $63,654 2.84% $67,270 2.84% 9 18 $53,504 2.51% $56,261 2.51% $61,896 2.76% $65,411 2.76% $69,128 2.76% 10 19 $56,261 5.15% $59,157 5.15% $65,411 5.68% $69,128 5.68% $73,054 5.68% 11 20 $57,640 2.45% $60,607 2.45% $67,016 2.45% $70,822 2.45% $74,845 2.45%

16-17 Average Annual increase for STEPS is 2.83%

Step BA BA18 MA MA15 MA30 $34,049 $35,802 $37,645 $39,785 $42,043 5.15% 5.15% 5.68% 5.68% 1 $35,802 $37,645 $39,785 $42,043 $44,433 5.15% 5.68% 5.68% 5.68% 2 $37,645 $39,583 $42,043 $44,433 $46,958 5.15% 6.21% 5.68% 5.68% 3 $39,583 $41,625 $44,433 $46,958 $49,624 5.16% 6.75% 5.68% 5.68% 4 $41,625 $43,768 $46,958 $49,624 $52,443 5.15% 7.29% 5.68% 5.68% 5 $43,768 $46,022 $49,624 $52,443 $55,423 5.15% 7.83% 5.68% 5.68% 6 $46,022 $48,391 $52,443 $55,423 $58,569 5.15% 8.37% 5.68% 5.68% 7 $48,391 $50,884 $55,423 $58,569 $61,896 5.15% 8.92% 5.68% 5.68% 8 $50,884 $53,504 $58,569 $61,896 $65,411 5.15% 9.47% 5.68% 5.68% 9 $53,504 $56,261 $61,896 $65,411 $69,128 5.15% 10.02% 5.68% 5.68% 10 $56,261 $59,157 $65,411 $69,128 $73,054 5.15% 10.57% 5.68% 5.68% 11 $56,928 $59,859 $66,189 $69,948 $73,921 5.15% 10.57% 5.68% 5.68%

Average increase for Educational lane advancement = 6.14%. Lapeer 2015-2016 Educational Lane Changes Vary 5.15% - 10.57%

“Freezing” STEPS is one method districts attempt to save money

Number of times STEP Frozen or Reduced last 10 years LCS 2 Davison 9 Dryden 4 Fenton 3 Grand Blanc 5 Imlay City 5 North Branch 2

Other Compensation Methods

• Additional Duty Stipends
• Coaching
• Sponsor
• Teacher Mentor
• Virtual Mentor
• Attendance Incentive
• Longevity

Exploring Ways to Deliver Dollars with Most Value –- Goal of Alternative Compensation

• Role of Alternative Compensation to examine how to best

allocate limited resources in a manner that is most meaningful to both employees and the district

• Deliver instructional programming in different ways

Next Steps

• Budget development process
• Ongoing alternative compensation
• Ongoing work to educational delivery