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2013-14 Amended Budget. East Grand Rapids Public Schools. Discussion Topics. Budget History – Where have we been, what have we done, where are we heading?. Proposed 2013-14 General Fund budget amendment - Review of June adoption, summary of changes since June. Future Years Budget Forecast
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2013-14 Amended Budget East Grand Rapids Public Schools
Discussion Topics Budget History – Where have we been, what have we done, where are we heading? Proposed 2013-14 General Fund budget amendment - Review of June adoption, summary of changes since June Future Years Budget Forecast - Forecast assumptions, potential variances Revenue & Expense Trends: What has driven our budget, what will drive our budget? 2014-15 General Fund Budget Development Process Proposed 2013-14 Sinking Fund amendment and long range plan
Amended Budget – Change in revenues • $42,435 increase from June • State Funding: $91,866 • Higher than expected Section 147 a & c offset funding • Actual student FTE count at 2,995 vs. 3,000 budget in June • County Act 18 funding: ($40,642) • Others: ($8,789)
Amended Budget – Change in expenses • $103,044 increase from June • Budget for the study of new programs: $56,000 • Expenses covered by reserved fund balance • Operational expense increase: $47,044 • Building/Department budget carryover: $60,583 • Others: ($13,539)
Where are we heading? Budget Assumptions Further retirement reform? What will the legislature do? Revenue Assumptions: Expense assumptions: • No increase in per pupil funding for all forecast years • Addt’l. SAF money absorbed by MPSERS for several years? • No Best Practices or Performance grant funding • $92/pupil in 2013-14 • 3,000 student FTE’s • 259 seniors this year, a little larger than normal • No EGR Now funds in future years forecast • No base salary scale increases • Step increases included (1.8%) • 3% health care annual increase • Retirement rate (Net) • 2013-14: 24.79% • 2014-15: 25.87% • 2015-16: 26.00% • 2016-17: 26.00% • All other operational expenses held flat
What has driven our budget? State Funding Salaries Health Insurance Retirement * State Funding includes Federal Stimulus from 2008-09 to 2011-12
What will drive budget in future? State Tax Collections: - SAF $215 million ahead of May estimate as of October - Does SAF growth continue? - Improved job market in Michigan Legislative Decisions: - How is additional SAF money allocated? - How is K-12 prioritized in budget process? - Election year for Governor - More MPSERS reform? Compensation: - Health and retirement costs under better control - Based on all other factors, what salary/wage structure can be afforded? Current StructuralDeficit per pupil: $108 2014-15 Cost Increases: - Step Increase: $375,000 - 3% Health increase: $80,000 - Retirement: $185,000 - Total: $635,000 - Per Pupil Increase: $212
2014-15 Budget Development Process - Now until mid-February: * Monitor budget assumptions - Mid-February: * Begin process after Governor’s budget proposal - Collaborative Process: * Involve administration, staff, community - Future budget decisions will require tough decisions about academic programs and significant restructuring - Recommend that collaborative process review and provide comment on potential solutions that have been already thought through and priced
Long Term Sinking Fund Plan Through 2020-21 In the event there was no additional capital funds raised through a bond issue, district has a long range plan to maintain facilities with its sinking fund 10 year sinking fund millage expires in 2016 and will need to be renewed to continue funding Major building needs over next several years are listed in ovals to right Sinking fund not yet eligible for technology or bus purchases Long term plan is sustainable and cover major items
