WELCOME TO THE 2008-09 BUDGET HEARING AND ANNUAL MEETING OF THE SCHOOL DISTRICT OF

1. WELCOME TO THE 2008-09 BUDGET HEARING AND ANNUAL MEETING OF THE SCHOOL DISTRICT OF SOUTH MILWAUKEE

3. THE 2008-09 SCHOOL YEAR • Continue work to improve academic achievement through high standards and rigorous curriculum. • $713,277 in reductions - the gap between revenues and expenditures. • Estimated mill rate of $9.47 using an estimated equalized valuation increase of 6%. The average over the last three years has been 8%. The final valuation will be received in October and the mill rate will be finalized at that time. • If the equalized values come in above the 6% estimate, the mill rate will decrease. • If the equalized values come in below the 6% estimate, the mill rate will increase.

4. WHY $713,277 IN REDUCTIONS? • (The Gap Between Revenues & Expenditures) • Revenue limits control the total amount of taxes and general state aid a school district can collect. • State mandates and guidelines often limit the District’s ability to balance the budget.

5. FUTURE BUDGETS • As long as revenue limits are in place and expenses increase at a greater rate than revenues, the district will be facing a budget gap. • We expect to see continued reductions for the 2009-10 school year. • Continue review of long-term financial and budget planning.

6. 2008-09 REDUCTION SUMMARY • The $713,277 gap between revenue and expenditures was addressed as follows: • Staff reductions and department restructuring. • Grant funding changes. • Utility and custodial overtime transfers to Fund 80. • Retirement and resignation savings. • Budget reductions in supplies, equipment and travel for all schools and departments. • Use of 2007-08 declining enrollment exemption change.

7. 2008-09 Budget AssumptionsFebruary 27, 2008 - APPROVED

8. 2008-09 Budget Assumptions February 27, 2008 – APPROVED(continued)

9. 2008-09 Budget AssumptionsFebruary 27, 2008 – APPROVED (continued)

10. 2008-09 Budget AssumptionsSeptember 3, 2008 - RECONCILIATION

12. 2008-09 Budget Increase Summary 2007-08 Unaudited 2008-09 Proposed Inc/(Dec) TOTAL Costs + $927,591 $34,763,264 $35,690,855 (Fund 10 & 27) 2.7 % 1. Salaries $773,731 2. Benefits $423,183 3. Purchased Services $45,851 4. Supplies ($58,855) 5. Capital Objects ($302,612) 6. District Insurance $21,780 7 . Interfund Transfers $13,954 8. Debt Retirement & Other $ 10,559 TOTAL EXPENDITURE INCREASE $927,591

13. Mill Rate Comparison2007-08

14. Mill Rate History

15. Tax Levy HistoryAll Funds

16. Revenue Budget SummaryFund 10 & 27

17. Expenditure Budget SummaryFund 10 & 27

18. Staffing Summary

19. SUMMARY • Staff and expenditure reductions made primarily due to revenue limits and declining enrollments. • Projected mill rate of $9.47 – final adjustment in October after 3rd Friday enrollment count, final certification of state aid and property valuation. • Rising costs of insurance and utility costs will continue even with controls. • Future state legislation uncertain. • 2009-10 will likely see another year of reductions.

20. Questions & Answers