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2010-11 Budget Hearing

Inspire Challenge Empower

Budget Hearing Agenda

 School Finance / Budgeting Overview  Overview of 2010-11 Preliminary Budget  What will this mean for the school district

tax payers?

 Questions regarding preliminary budget and

tax levy?

“Shift” Continues to Occur

Our District’s budget continues to be

impacted by a number of recent “shifts”:

 A continuation of the shift in school district

revenue sources from the state to local property taxpayers

 A significant shift from last year’s enrollment

decline

 Shifts in property values and resulting

apportionment of the school tax levy and mill (tax) rate

Revenue Limit Explanation

The revenue limit:

 is the maximum amount that a school district

may raise per student through general state aid (equalization and special adjustment) and the property tax levy

The revenue limit is determined using:

 district’s prior year revenue  student enrollment averaged over a period of

three school years

 a per-student increase set by the Legislature  there are several exceptions to the revenue limit

2010-11 Preliminary Budget Revenue Limit Overview

Student Enrollment:

 2010-11 Preliminary Budget based on no increase in

enrollment (the school district experienced a decrease of 79 resident students in the 2009-10 school year)

 Unofficial enrollment numbers (as of September 13)

reflect a 205 increase in K-12 resident student enrollment from 2009-10 (includes 21st Century eSchool)

Per Student Increase:

 Increase of $200 per student for 2009-10 (1.95%

increase) and 2010-11 (1.91% increase)

 2008-09 increase was $275 per student  The $200 per student increase is the same as allowed in

the 1995-96 school year

K-12 Student Enrollment

(District Residents - does not include

• pen enrollment students)

5000 5100 5200 5300 5400 5500 5600 5700 5800 5900 6000 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Projected (for budget development purposes) Unofficial Count (as of Sept 13, 2010) - includes 21st Century eSchool

2010-11 Preliminary Budget Revenue Limit Overview

Student Enrollment:

 2010-11 Preliminary Budget based on no increase in

enrollment (the school district experienced a decrease of 79 resident students in the 2009-10 school year)

 Unofficial enrollment numbers (as of September 13)

reflect a 205 increase in K-12 resident student enrollment from 2009-10 (includes 21st Century eSchool)

Per Student Increase:

 Increase of $200 per student for 2009-10 (1.95%

increase) and 2010-11 (1.91% increase)

 2008-09 increase was $275 per student  The $200 per student increase is the same as allowed in

the 1995-96 school year

Revenue Limit Increases

3.06% $1,810,781 1.95% $200.00 2009-10 2.68%2 $1,626,2782 1.91% $200.00 2010-11 4.57% $2,582,533 2.76% $274.68 2008-09 3.85% $2,096,127 2.73% $264.12 2007-08 4.20% $2,193,590 2.74% $256.93 2006-07 5.30% $2,630,740 2.73% $248.48 2005-06 5.77% $2,709,467 2.73% $241.01 2004-05 % Increase Revenue Limit Increase % Increase1 Per Member Increase Year

1 Increase from prior year revenue limit base per member 2 Estimated

What is State “Equalization” Aid? Equalization aid is education revenue that comes directly from the state to support the operations

• f public school districts.

The State Aid system’s design and intent:

 to “level the playing field” or equalize the

amount of school property taxes paid by residents throughout Wisconsin

 more property wealth = less state aid  less property wealth = more state aid

State Equalization Aid Explanation

How is the amount of aid for each district determined? By using the “equalization aid formula.” How much equalization aid does our district receive? Our district’s high property value per student means a lower state share of funding (MCPASD’s share of state equalization aid per student is less than one-half of the state average).

State Equalization Aid Explanation

Property Value Per Student Dane County School Districts

(2008-09 Fiscal Year Data)

Source: Wisconsin Department of Public Instruction Data Warehouse $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 Middleton-CP Madison Wisconsin Heights Monona Grove Cambridge Sun Prairie Verona Area Dane County Avg Stoughton Waunakee State Avg De Forest McFarland Mount Horeb Oregon Deerfield Belleville Marshall $563,396 $923,408

Equalization Aid Per Student Dane County School Districts

(2008-09 Fiscal Year Data)

Source: Wisconsin Department of Public Instruction Data Warehouse $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 M a r s h a l l B e l l e v i l l e D e e r f i e l d O r e g

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P $2,129 $5,333

State General Aid History 2005-06 through 2010-11

$40,000,000 $43,000,000 $46,000,000 $49,000,000 $52,000,000 $55,000,000 $58,000,000 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (Estimated) $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (Estimated)

State General Aid Property Tax Levy

Federal Education Jobs Fund: Dane County School District Allocations

$175,315 Marshall $516,977 McFarland $558,371 Mount Horeb $860,230 Oregon $204,651 Wisconsin Heights $929,352 Waunakee $1,240,850 Verona $1,753,584 Sun Prairie $904,989 Stoughton $854,183 Monona Grove $3,886 Middleton-Cross Plains $8,377,542 Madison $888,538 De Forest $172,481 Deerfield $269,301 Cambridge $219,601 Belleville

2010-11 Preliminary Budget by Fund

Community Service Funds $0.6M Trust Funds 1.3M Food Service Fund $2.6M Capital Projects Funds $2.5M Debt Service Funds $5.0M Package & Cooperative Funds $0.2M Special Projects Fund $12.6M General Fund $65.1M

(in millions)

Property Taxes 70.5% State General Aid 10.8% Other Revenue Sources 4.1% Federal Aid 3.5% Other State Aid 5.1% Other Local (Non-Property Tax) Revenue 6.0%

2010-11 Revenue Budget

(not including interfund transfers)

Property Taxes 79.4% State General Aid 13.6% Other Revenue Sources 0.4% Federal Aid 1.3% Other State Aid 1.8% Other Local (Non-Property Tax) Revenue 3.5%

2010-11 General Fund Revenue Budget

2010-11 Revenue Budget Highlights

 15.1% Estimated Reduction in State

General Aid ($1.57 million)

 Student Fee Increases ($99,000)

 Textbook Fees  Athletic / Club Fees  High School Student Parking Fees

 Open Enrollment Tuition

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (Estimated)

23.1%* 27.0%* 26.5%* 21.6%* 16.3%* 13.6%*

* State General Aid as a percentage of General Fund revenues (adjusted in FY 2005-06 and FY 2006-07 for revenue generated through sale of surplus property)

State General Aid History 2005-06 through 2010-11

2010-11 Revenue Budget Highlights

 15.1% Estimated Reduction in State

General Aid ($1.57 million)

 Student Fee Increases ($99,000)

 Textbook Fees  Athletic / Club Fees  High School Student Parking Fees

 Open Enrollment Tuition



2010-11: $1,234,000*



190 Students ($6,796)*



2009-10: $651,331



104 Students ($6,498)



2008-09: $554,375



92 Students ($6,225)



2007-08: $521,655



94 Students ($6,007)



2006-07: $318,895



57 Students ($5,845)

*Estimated (includes 21st Century eSchool)

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2006- 07 2007- 08 2008- 09 2009- 10 2010- 11*

Non-Resident Open Enrollment Tuition Revenue

Salaries 52.4% Fringe Benefits 23.7% Debt Retirement 7.1% Purchased Services 8.5% Non-Capital Objects 4.3% Capital Objects 1.5% Other Objects 2.5%

*Does not include inter-fund transfers

2010-11 Expenditure Budget

(not including interfund transfers)

Salaries 60.3% Fringe Benefits 27.3% Debt Retirement 1.1% Purchased Services 6.5% Non-Capital Objects 3.3% Capital Objects 1.2% Other Objects 0.3%

*Does not include inter-fund transfers

General & Special Projects Funds 2010-11 Expenditure Budget

(not including interfund transfers)

Teachers 65.2% Para Educators 12.6% Other Employees 8.5% Admin Support/ Clerical 4.9% Custodians/ Maintenance 6.0% Administrators 2.8%

2010-11 School Year Staffing

2010-11 Staffing Changes

2009-10

• Support Staff 256.77
• Certified Staff 544.60

Total FTE’s: 801.37

2010-11

• Support Staff 252.70
• Certified Staff 537.621

Total FTE’s:

790.321

Change

• 11.051

NOTE: Positions expressed in full-time equivalent (FTE) units.

1Does not include 3.6 FTE teacher positions added at Sauk Trail Elementary utilizing SAGE

Grant funding (approval of SAGE funding was received after approval of the preliminary budget.

 Elementary and High School Teaching Position

Reductions (resulting in modest class size increases)

 Utilities (Natural Gas & Electricity) Budget

Reduction

 Elimination of Early Learning Program (one year)  District level departmental budget (non-staff)

reductions

 School site budget (non-staff) allocation

reductions

 Speech & Language position reduction  Local Government Property Insurance Fund

premium dividend (holiday) - one year only

2010-11 Budget Reductions

 Global Academy  21st Century eSchool (also provides on-line

education opportunities for MHS students

 Middle School Teacher Positions  Increased Textbook / Instructional Materials Budget

(funded through increase in textbook fees)

2010-11 Budget Program Investment / Expenditure Increases

2010-11 Preliminary Budget Tax Levy

FUND 2009-10 2010-11 Change General Fund $ 48,773,514 $51,732,238 + 6.07% Debt Service (Fund 38) 104,500 321,7501 + 207.89% Debt Service (Fund 39) 4,423,915 4,227,3232

• 4.44%

Capital Projects 775,000 800,000 + 3.23% Community Service 339,913 340,364 + 0.13% TOTAL: $54,416,842 $57,421,675 + 5.52%

1 Increase reflects initial debt service payment for the performance (energy

conservation) project.

2 Debt Service (Fund 39) levy was reduced by $400,000. A transfer from the

General Fund will replace the levy reduction.

06-07 07-08 08-09 09-10 10-11*

TAX LEVY $43.55M $47.92M $50.88M $54.42M $57.42M EQUALIZED $4.848M $5.262M $5.705M $5.563M $5.619M VALUATION MILL (TAX) $8.98 $9.11 $8.92 $9.78 $10.22 RATE

* Estimated

% Change +6.17% +10.03% +6.17% +6.95% +5.52% % Change +9.30% +8.52% +8.43% -2.49% +1.00% % Change -2.92% +1.45% -2.09% +9.64% +4.50%

Tax Levy & Mill Rate History

Property Tax Levy Per Student Dane County School Districts

(2008-09 Fiscal Year Data)

Source: Wisconsin Department of Public Instruction Data Warehouse

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Madison Middleton-CP Monona Grove Cambridge Verona Area Wisconsin Heights Sun Prairie Dane County Avg McFarland Waunakee De Forest Oregon Deerfield Stoughton Mount Horeb State Avg Belleville Marshall

$8,668 $4,185

Property Tax (Mill) Rates Dane County School Districts

(2008-09 Fiscal Year Data)

Source: Wisconsin Department of Public Instruction Data Warehouse

$9,093

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00

Monona Grove Verona Area Cambridge Deerfield McFarland Oregon Sun Prairie Dane County Avg Wisconsin Heights De Forest Madison Marshall Waunakee Middleton-CP State (K-12) Avg Mount Horeb Belleville Stoughton

$8.92 $8.61

2010-11 Preliminary Tax Levy - Estimated Average Impact

Property Value1 2009-10 Tax2 2010-11 Tax2 Increase2 $200,000 $ 1,956 $ 2,044 $ 88 $300,000 $ 2,934 $ 3,066 $ 132 $450,000 $ 4,401 $ 4,599 $ 198

1 Assumes same assessment of 100% for both years (2009 and 2010) with no

increase in equalized valuation in 2010 (other than TIF in City of Middleton).

2 Estimated school taxes. The 2010-11 estimated school taxes were calculated

using a projected school tax (mill) rate of $10.22 per $1,000 of equalized (full market) property value. Note: Specific impact of the school tax levy will vary in each of the District’s eight municipalities depending on each municipality’s percentage of overall property value and change in value from the prior year.

 Proactively addressing health insurance costs

(i.e. restructuring plan design, wellness) - MCPASD has the lowest (school district) health insurance premiums in the state.

 Commitment to energy conservation -

controlling our District’s energy costs through

• perational & behavioral changes and facility /

mechanical system upgrades. All ten of the District’s school facilities are Energy Star rated.

Effective (Fiscal) Resource Management & Strategies

 Proactive approach to risk management (i.e.

effective safety program, accident prevention, training) - Our District’s worker’s compensation experience (modification) factor is 37% less than the state average for school districts and is the lowest in the state (of comparable districts). This saved our District approximately $147,000 in workers compensation insurance premium costs this past year.

Effective (Fiscal) Resource Management & Strategies

 Prudent investment in cost-saving technology

infrastructure (i.e. WAN, server virtualization, VoIP telephony, thin client computing, automated offsite computer file storage & back-up / disaster recovery)

 Establishment of OPEB Trust to partially fund

the District’s post-employment benefits liability

 Achieving the highest possible (Aaa) bond

rating from Moody’s - MCPASD is only 1 of 6 school districts in the state and 1 of 79 in the nation to earn the highest rating

Effective (Fiscal) Resource Management & Strategies

 Effective debt management (i.e. utilization of

refinancing, lines of credit to reduce cash-flow borrowing, no interest or reduced interest [tax credit] financing authorized through federal stimulus [ARRA] legislation)

 Implementation of programs/services such as

the 21st Century eSchool to increase future revenue potential and/or reduce costs

Effective (Fiscal) Resource Management & Strategies

 Changing student demographics & needs

 i.e. special education, at-risk, bi-lingual,

health/medical

 Achieving an appropriate balance

 providing a quality education  increasing programmatic expectations  our taxpayers ability / willingness to pay

 Providing competitive programming

 Educating students for the 21st century

 Virtual Education (21st Century eSchool)  Global Academy

 Student Readiness - 4k program

Budget Challenges

 Effectively managing budget constraints -

coping with limited revenue growth and anticipated budget shortfalls into the near future

 Collective bargaining changes approved in

the state’s 2009-11 budget:

 Elimination of the QEO  Change in arbitration criteria

 Addressing the district’s facility needs  Post-retirement benefit liabilities (OPEB)

Budget Challenges

Questions

Inspire Challenge Empower

2010-11 Annual Meeting

Inspire Challenge Empower

Agenda

 Call to Order and Introductions  Election of Chairperson  Reading of Minutes, 9/21/2009 Annual

Meeting

 Old Business  New Business - Resolutions  Other New Business  Adjournment

 RESOLUTION A - Resolution to Levy a

Tax for Adding to Capital Fund BE IT RESOLVED: That there be levied for the 2010-11 fiscal year a tax in the amount of $800,000 upon all taxable property in the Middleton-Cross Plains Area School District to be deposited into the segregated capital fund created at the 1993 Annual Meeting.

 RESOLUTION B - Adoption of Tax Levy

BE IT RESOLVED: That there be levied a tax in the amount of $57,421,675 upon all taxable property in the Middleton-Cross Plains Area School District with the purpose of paying employee salaries and meeting other necessary expenses to operate and maintain the district schools and to finance the debt service and capital outlay of the said district on the basis of the approved budget for the 2010-11 fiscal year.

 RESOLUTION C - Adoption of School

Board Salaries for 2010-11 BE IT RESOLVED: That the salaries of the school board members for the 2010-11 school year be established as follows: President . . . . . . . $ 3,000 Other Members . . $ 2,400

NOTE: These salaries remain the same as approved at the 1998 Annual Meeting.

 RESOLUTION D - Authorization for Sale

• f Surplus Property (equipment/materials)

BE IT RESOLVED: That the Board of Education be authorized to sell used and/or surplus school equipment, furniture, or supplies no longer needed for school purposes.

Middleton-Cross Plains Area School District

MCPASD Focus September, 2010

Curriculum and Instruction

Curriculum Alignment World Languages 6-12 Science 6-12 Career and Technical Ed 6-12 Math 6-12 Social Studies k-12

Curriculum and Instruction 2

Literacy Initiative-Content

Area

Closing Achievement Gap New Graduation

Requirements

Response to Intervention

Technology Integration

Curriculum Adoptions Access to Hardware Data Warehouse-Data Analysis Online Learning

 21st Century eSchool  Access to online classes at MHS

Other Initiatives

School Improvement Process Sustainability – Green Initiatives 4 K Study Task Force Global Academy Global Initiative***