Jackson County ISD Initial Budget Considerations 2015-16FY Review - - PowerPoint PPT Presentation

Jackson County ISD Initial Budget Considerations 2015-16FY

Review with Local School Boards March 24, 2015

• January 16th: State Consensus Revenue Estimating Conference
• February 10th: ISD Budget Amendment #1 for 2014-15FY
• February 11th: Governor delivered Executive Budget proposal
• February – May: Michigan Legislature develops budget proposals
• March – April: Jackson County Revenue Committee meetings
• March 24th: Initial Budget presentation to Local Districts
• April 28th: ISD Board approves Preliminary 2015-16FY ISD Budget
• May 5th: Michigan Road Funding / sales tax ballot proposal
• May: Local Boards review, comment & approve ISD preliminary

budget

• May: Final figures available on county property values
• June 1st: Target date for state approval of final School Aid Fund

budget for 2015-16FY

• June 23rd: ISD Board adopts 2015-16FY Budget

2

JCISD 2015-16FY Budget Timeline

3/24/2015

The ISD starts its budget process looking at our fund balance outlook -- projected ending fund balances relative to our fund balance targets . . .

• The ISD’s fund balance outlook for the end of the 2014-15FY is as follows:

3

Fund Balance Targets

3/24/2015

• Both the General Fund and the Special Ed Fund are projected to end the

2014-15FY below the target ranges – Consequently, in 2014-15FY revenues should exceed expenses in order to increase fund balance and move closer to the target ranges

• All 3 funds are projected to be in a deficit position for the 2014-15FY

– For 2013-14FY the General Fund was breakeven, Special Ed was in deficit, and CTE in surplus

GENERAL SPECIAL ED CTE COMBINED Beginning Fund Balance 2,698 2,347 3,919 8,964 2014-15FY Surplus/(Deficit) (261) (558) (916) (1,735) Ending Fund Balance -- $ 2,437 1,789 3,003 7,229

• - %

13.4% 3.8% 24.6% 9.4% Board Approved Target Range 15-20% 4-6% 20-25%

• - - - ($000) - - - -

4

ISD Wide Budget Initiatives for 15-16

3/24/2015

• Better Balance of Expenditures to Revenues for each fund
• Get all funds back within Fund Balance target ranges
• Evaluate current services provided to local districts and

potential future areas of need

• Continue roll-out of ACA (Obamacare)
• Continued presence in community initiatives on behalf of

all school districts

• Set aside funds for major maintenance & facility needs

– We utilize a Capital Projects Fund – Do not think we can ask tax payers to approve additional mills for a bond issue or sinking fund – Since our facilities are 30-40 years old too, this means almost every year we have a couple “major” projects

5

CTE Budget Initiatives for 15-16

3/24/2015

• Continue expansion of Early/Middle College Concept
• Continued support of College and Career Access

Center (CCAC)

• Continued support of unbundled initiatives
• EMT
• Adult Education
• New roof membrane on Career Center

6

Special Ed Budget Initiatives for 15-16

3/24/2015

• Leadership Transition
• HCISD Special Education
• Capital Project Needs
• CI Classroom Curriculum
• Transition to Work Initiative
• NWEA testing
• Compliance Standard Trainings
• RTI/MTSS Collaboration

7

General Fund Budget Initiatives for 15-16

3/24/2015

• School Improvement Consortium Development
• Continue to develop and expand early childhood

programs

• Priority and Focus School Work
• Mental Health Grant
• Truancy (UW Partnership)
• Continued Improvement of Operational Service Work

(Tech, Finance, Student Data Reporting, Legal Services, Etc.)

• Connected Community Schools

Once we understand the initiatives & programs that need to be funded and what needs to be accomplished with fund balances, we evaluate what is expected to happen with our “key drivers” that historically have driven most of the variation in our budget

8

Key Drivers

3/24/2015

• The JCISD’s Key Drivers are:

– Revenue » Jackson County Property Values » State Aid » Federal Funds – Expenditures » Salaries » Benefits – particularly Health Insurance & State Retirement system costs (MPSERS) » Special Ed Reimbursement to local districts

JCISD’s 2014-15 Revenue Sources

ISD Total Revenue Sources

• 50% of the ISD’s revenue comes

from local property taxes – For Special Ed & CTE combined, property taxes represent 60% – For General Fund less than 10%

• 29% of the ISD’s revenue comes

from State Aid – This is increasing due to GSRP

• 14% of the ISD’s revenue comes

from Federal sources

• 6% of the ISD’s revenue comes from

Services provided

9 3/24/2015

$72 Million

Note: The beginning fund balance is not revenue; we do not treat it as available to appropriate nor do we consider it when balancing expenditures to revenues

49.8% 6.2% 0.5% 29.4% 14.1%

Local Property Taxes Local Service Revenue Other Local Revenue State Revenue Federal Revenue

JCISD Revenue Sources by Fund

10 3/24/2015

9.8% 26.5% 1.0% 51.9% 10.9% 77.6% 4.5% 0.9% 14.2% 2.8% 55.5% 0.3% 0.2% 26.2% 17.8% Local Property Taxes Local Service Revenue Other Local Revenue State Revenue Federal Revenue

General Fund ($15M)

• Revenue from services provided
• State and Federal funding, most

restricted for specific programs

• Minimal discretionary funds

CTE Fund ($11M)

• Local funding is clear driver to

enable offering such a large and comprehensive vocational education program

Special Ed Fund ($46M)

• Strong local funding
• Supplemented by State and

Federal funding for special needs population

9.8% 1.0% 13.9% 38.0% 10.9% 26.5% Local Property Taxes Other Local Revenue State Revenue - Section 81 State Revenue - All Other Federal Revenue Local Service Revenue

• Most State revenue and all Federal

Revenue in the General Fund is restricted for specific programs / purposes

• Local Service Revenue simply

covers a portion of the cost to provide those services

• Leaves less than 25% of total

General Fund Revenue available to meet discretionary purposes (approx. $3.6M)

• Half of this goes toward

subsidizing the Tech Consortium and is distributed as “data processing” support

• Much of the remainder goes to

subsidize Business Services, Student Data Reporting, PD’s and other Learning Services support

11

JCISD General Fund Revenue

3/24/2015

24.7% Discretionary Restricted

ISD Expenditures

• Salaries & Benefits are 65% of

total spending

• Excluding transfers to all

local districts) salaries & benefits total 82%

• Purchased Services & Supplies

include the cost of substitutes, maintenance, transportation & utilities as well as “supplies”

• We work hard to control

purchases but our real control levers are staffing (which in turn impact salaries & benefits) and transfers to local districts

12

JCISD’s 2014-15 Expenditures

3/24/2015

$73 Million

38.5% 26.3% 10.9% 20.8% 3.5%

Salaries Benefits Purchased Services & Supplies Transfers to Local Districts All Other

Revenues

• Local property tax revenue up 1.5%
• State Funds at carryover levels

– Small increase in Foundation Allowance likely for Local Districts, but not ISD’s, and will come from adjusting categoricals. Increase in state’s overall spending on schools will be used to pay down unfunded retirement liabilities

• Federal Funds at carryover levels

Expenses

• Salary increase of 1% for all employee groups plus steps and lanes for those eligible
• Health care increase of 4%

– Hard dollar caps increasing 2.3% for medical benefit plan coverage years beginning on or after January 1, 2015 – Economic increase on our self-insured portion (one medical plan plus dental and vision plans) – Increased cost of ACA compliance

• MPSERS Retirement rate essentially flat

– Net expense rate essentially flat (Basic/MIP with Premium Subsidy rate constant at 25.78%) – Additional funding to pay down unfunded liabilities will be “in & out”

• Special Ed Reimbursement to LEA’s in 2015-16

– Total pool of funds based on maintaining ISD Special Ed fund balance within its target range – Reimbursement then allocated on a pro rata basis based on each district’s eligible reimbursable Special Ed costs (based on SE-4096) adjusted for staffing additions or reductions, less State Aid received for Special Ed in 2015-16FY – Projected reimbursement to local districts for 2015-16 is flat (meaning no change) from the current year’s reimbursement

13

Key Assumptions – mid March

3/24/2015

JCISD 2015-16FY Budget Overview

14 3/24/2015 GENERAL SPECIAL ED CTE COMBINED Local Revenue 5,587 27,735 9,491 42,814 State Sources 8,010 12,828 1,598 22,436 Federal Sources 675 6,620 321 7,616 Internal Transfers In 3,550 150

• 3,700

TOTAL ALL SOURCES 17,822 47,334 11,410 76,565 Salaries 4,958 19,171 4,715 28,844 Fringe Benefits 3,391 13,182 3,364 19,937 Purchased Services 3,335 1,967 940 6,242 Supplies 347 1,124 598 2,069 Capital Outlay 632 306 310 1,248 Other 117 310 114 541 Transfers 5,545 11,572 2,016 19,133 TOTAL ALL USES 18,325 47,632 12,057 78,015 SURPLUS/(DEFICIT) (504) (298) (647) (1,449) Beginning Fund Balance 2,437 1,789 3,003 7,229 ENDING FUND BALANCE -- $ 1,933 1,491 2,356 5,780

• - %

10.6% 3.1% 19.5% 7.5% Memo: Target Range 15-20% 4-6% 20-25%

• - - - ($000) - - - -

In Summary

• This high level summary provides you an idea of

where the ISD is at in developing its 2015-16FY Budget

– We still need to verify assumptions and make appropriate adjustments before adopting a final budget – Need to move fund balances much closer to target ranges

• Many variables will change over the next 2-3 months

– We will focus on our key drivers and your suggestions – We start conservatively and update as additional information becomes available and details are finalized – The ballot proposal on May 5th has the potential to significantly alter state aid revenue

15 3/24/2015

Moving Forward

16 3/24/2015

Why do we exist?

• Instruction, Leadership, Service, Community

Purpose Statement The Jackson County Intermediate School District is committed to the success of all

• students. The ISD provides educational leadership, services, programs and

resources in partnership with local schools and the community.

• Goals:

– School Improvement Consortium – Communication – Accreditation – Collective Impact

Your “Ticket Out the Door” and Beyond…

17 3/24/2015

• As a district, discuss your “tickets” and fill them
• ut individually
• Report out on the highlights from your discussion
• Leave your “ticket” on the table
• We will compile all suggestions and share with

your Superintendents so they can in-turn share with all Board members

• Local Boards will receive ISD’s Preliminary Budget

and compiled suggestions by May 1st

• The ISD will adopt its 2015-16 Budget in late June

Ticket Questions

18 3/24/2015

• Please provide comments on our budget

assumptions and allocated dollars as presented this evening.

• What thoughts do you want to leave us with

concerning future initiatives, directions, or ideas for the ISD?