Northeastern School District Northeastern School District Budget - PowerPoint PPT Presentation

Northeastern School District Northeastern School District Budget Cut Proposals Budget Cut Proposals Presentation: March 5, 2012 2012 ‐ 2013 School Year The Bobcat Way: 100% of our students will graduate and be fully prepared for post ‐ secondary education.

2012 ‐ 2013 Budget Remarks g • Vision – 100% of our students will graduate and be fully prepared for a post ‐ secondary education. • Our Focus – even in a tough budget year year • District Strengths – Found in our Core Values – We care deeply for one another. – We have a strong emphasis on learning. • Professional Learning Communities P f i l L i C i i • Response to Instruction and Intervention • Revised Curriculum • Value continuous improvement • Highly trained and dedicated staff

Budget 2012 ‐ 2013 Big Ideas d • Revenue has leveled off, expenses continue to increase without adding anything new (+3%) • We must continue a multi ‐ year planning approach, including a plan to address rising enrollments. i l di l t dd i i ll t • We must continue to look for ways to reduce expenditures while maintaining a quality education expenditures while maintaining a quality education for our children. • The school board approved a tax resolution limiting • The school board approved a tax resolution limiting the increase in real estate taxes to 2.3%. This equates to a maximum of $700K of additional revenue.

BUDGET OVERVIEW BUDGET OVERVIEW DESCRIPTION 2012 ‐ 13 BUDGET SUMMARY TOTAL REVENUE $ 54,525,451 ‐ TOTAL EXPENDITURES $ 59,624,835 ‐ TOTAL PROPOSED $ 3,374,384 $ , , EXPENDITURE CUTS DIFFERENCE: (DEFICIT) ($ 1,725,000) Anticipated Fund Balance $ 315,000 use set aside for Retirement DIFFERENCE: (DEFICIT) ($ 1,410,000) TAX RESOLUTION: Max. $ 700,000 poss. tax increase DIFFERENCE: (DEFICIT) ($ 710,000)

Sources of Revenue Sources of Revenue 2012 ‐ 13 Revenue Categories $477,157 $18,606,499 Revenue: Local Revenue: State Revenue: Federal $35,441,795 $35,441,795

Revenue Sources Ten Year History Revenue Sources ‐ Ten Year History Revenue Sources ‐ 10 year History 40,000,000 35 000 000 35,000,000 30,000,000 25 000 000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 ‐ #REF! #REF! #REF! 2003 ‐ 04 2004 ‐ 05 2005 ‐ 06 2006 ‐ 07 2007 ‐ 08 2008 ‐ 09 2009 ‐ 10 2010 ‐ 11 B2011 ‐ 12 B2012 ‐ 13 Local State Federal

Revenue Growth % ‐ 10 year History 0 0 0 0 0 0 16.1% 0 13.4% 0 9.7% 8.1% 0 7.5% 6.3% 0 2.6% 0.6% 0 07% 0.07% ‐ ‐ 2003 ‐ 04 2004 ‐ 05 2005 ‐ 06 2006 ‐ 07 2007 ‐ 08 2008 ‐ 09 2009 ‐ 10 2010 ‐ 11 B2011 ‐ 12 B2012 ‐ 13 % rev growth

2012 ‐ 13 Expenditure Categories $18,459,318 $25,752,153 Exp: Salary Exp: Benefits Exp: Other $12,038,980

2012 13 Salary Budget 2012 ‐ 13 Salary Budget Salaries: Custodial, Salaries: Admin,, tax Salaries: Aides, Maintenance 1,150,173 collectors 2,048,403 Secretarial 1,877,486 4.5% 8.0% 7.3% 7 3% Employee Ins opt out Salaries: Status E 106,000 0.4% 367,095 1.4% Salaries: Admin,, tax collectors Employee Ins opt out Salaries: Teachers, Substitutes Salaries: Status E Salaries: Aides, Secretarial Salaries: Custodial, Maintenance Salaries: Teachers, Substitutes 20,202,995 78.5%

2012 13 Benefit Budget 2012 ‐ 13 Benefit Budget 2012 ‐ 13 Benefit Budget Group Life Insurance, 35,910 , 0 3% 0.3% Social Security, 2,032,156 , Social Security, 2,032,156 , 16.9% Group Life Insurance Health Insurance, 5,761,224 , Social Security 47.9% Retirement Retirement, 3,270,507 , 27.2% Tuition Reimbursement Unemployment Compensation W Worker's Compensation k ' C i Health Insurance Tuition Reimbursement, Worker's Compensation, Unemployment 600,000 , 5.0% 150,000 , 1.2% Compensation, 189,183 , 1.6%

Expenditure Sources $ ‐ 10 year History 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 ‐ ‐ 2003 ‐ 04 2004 ‐ 05 2005 ‐ 06 2006 ‐ 07 2007 ‐ 08 2008 ‐ 09 2009 ‐ 10 2010 ‐ 11 B2011 ‐ 12 B2012 ‐ 13 Salary Benefits Debt Service Other

Expenditure Growth % ‐ 10 year History 0 0 0 13.4% 0 10.3% 14.3% 0 8.3% 6.8% 0 4.9% 16.1% 8.7% 13.4% 0 9.7% 8.1% 7.5% 6.3% 3.2% 2.6% 0.6% ‐ 0.07% ‐ 0.1% 2003 ‐ 04 2004 ‐ 05 2005 ‐ 06 2006 ‐ 07 2007 ‐ 08 2008 ‐ 09 2009 ‐ 10 2010 ‐ 11 B2011 ‐ 12 B2012 ‐ 13 (0) % rev growth % exp growth

Fund Balance Fund Balance • New Fund Balance policy: target is 4% p y g minimum • As of June 30, 2011: $2,326,443 or 4.27% As of June 30, 2011: $2,326,443 or 4.27% • Projected for June 30, 2012: same as 2011 • Recommended use of committed fund balance R d d f itt d f d b l for retirement: $315,000 • Projected balance as of June 30, 2013: $2,011,443 or 3.55%

Fund Balance: Total $ amount Fund Balance: Total $ amount 6,000,000 5,000,000 4,000,000 nce Remaining 3,000,000 Fund Balan 2,000,000 1,000,000 ‐ School Year 2003 ‐ 04 2004 ‐ 05 2005 ‐ 06 2006 ‐ 07 2007 ‐ 08 2008 ‐ 09 2009 ‐ 10 2010 ‐ 11 B2011 ‐ 12 B2012 ‐ 13

14.00% Fund Balance: % of budget Fund Balance: % of budget 12 00% 12.00% 10.00% 8.00% % of Budget 6.00% 4.00% 2.00% 0.00% 2003 ‐ 04 2004 ‐ 05 2005 ‐ 06 2006 ‐ 07 2007 ‐ 08 2008 ‐ 09 2009 ‐ 10 2010 ‐ 11 B2011 ‐ 12 B2012 ‐ 13 School Year

Potential Millage Rate Impact: Taxpayer Perspective Real Estate Millage Increase based on $ 100k $ 150k $ 200k assessed property value Adjusted Index + $ 54 +$ 81 +$ 108

Revenue Revenue Revenue Generating Ideas: • Alternate Funding Sources Committee Alt t F di S C itt • Set up procedure to recover ACCESS reimbursement dollars • Bobcat Foundation – renewed focus, form Alumni Association Revenue Threats: • The economy • The economy – dwindling revenue, rising costs dwindling revenue rising costs • Unfunded mandates • PSERS contribution increase • Tax assessment challenges (legally represented for all commercial/industrial properties valued at $1 million dollars or more) • Little industry in our district

2012 13 Budget Implications 2012 ‐ 13 Budget Implications Staffing Implications Changes in Practice Try to fill most critical needs with the staff fill i i l d i h h ff Freeze 11 ‐ 12 budget on 12/1/11 – ordering b d / / d i we currently have. (realign resources we only essential items accompanied by a already have) justification Teacher Contract/Administrative Act 93 Teacher Contract/Administrative Act 93 Agreement Negotiation year – unknown outcome. May increase or decrease our deficit. Class size ‐ need to be flexible C Continue to generate energy savings by ti t t i b All personnel openings are scrutinized ‐ regulating the temperature to be lower in the Replace Essential Staff Only, No New heating season and higher in the cooling Positions Created season District Operations continue to find ways to Continue to cease paying professional staff operate more efficiently in the areas of Child members anything outside of our Nutrition services, Business Office, HR, contractual obligations (unless it can contractual obligations (unless it can Physical Plant and Transportation Physical Plant, and Transportation be funded by Federal Title Funds)

2012 ‐ 13 Budget Implications What have we trimmed already? h h d l d Highlights No requests for new positions or new item requests ( ‐ $923,000) Cut scheduled replacement of Everyday Math curriculum materials ( ‐ $150,000) Technology – Replacement Equipment ( ‐ $168,000) Building level allocations recommended to stay level (cut 20% in the last two Building level allocations – recommended to stay level (cut 20% in the last two years). This is not a large expenditure. Buildings have been practicing “Zero based” budgeting, ordering only essentials. Tuition to Cyber/Charter School ‐ New approach to bringing those students back y / pp g g to NESD ( ‐ $100,000) Remove budgetary reserve – ($ ‐ 100,000) Less use of substitutes for teacher training – ( ‐ $200,000)

Major Budget Expenditures Areas We Have Focused on Areas We Have Focused on for Budget Cut Proposals MAJOR EXPENDITURE PERCENTAGE OF TOTAL EXPENDITURES/PERCENTAGE INCREASE FROM 2011 ‐ 2012 Cost of Cyber Charter School 2% of total exp budget +31% from 2011 ‐ 12 31% f 2011 12 LIU Services and Alternative Education 4% /+8% from 2011 ‐ 2012 Costs Special Education Transportation costs l d 3% / more than tripled from 2011 ‐ 2012 / h l d f Salary and Benefits 66% / 5% increase from 2011 ‐ 2012

Major Budget Expenditures What have we considered? MAJOR EXPENDITURE COST CUTTING EXPLORATION IDEA Salaries and Benefits Salaries and Benefits Eliminate Full Day Kindergarten Eliminate Full Day Kindergarten – go back go back to half day kindergarten Operations/Salaries and Benefits Close the pool Athletics A hl i Pay to play P l Operations/Salaries and Benefits Cut Middle School Sports Salaries and Benefits Examine extra/co ‐ curricular positions for possible reductions/eliminations Technology Don’t replace 7 year old computers Operations Use more of the fund balance Operations Decrease cleaning services by not cleaning daily Salaries and Benefits RtII interventionists, instructional coaching Salaries/Benefits/Operations Consolidate schools, shut down an elementary school