FPS Community Budget Forum

1. FPS Community Budget Forum Fowler High School Library January 5, 2010 7:00 p.m.

2. Budget Development Roles • Staff, Parents, and Students: Provide ideas, suggestions and considerations that help establish district priorities. • Superintendent: Creates final budget recommendations for the board with consideration of input from stakeholders. • School Board: Adopts a budget for each year and amendments based on the superintendent’s recommendations.

3. Baseline: Summer 2009 • Proposed Budget: $4,300,000 • Audited Fund Balance: $481,000 (10.15%) • Foundation: $7,425 per student. • Contracts yet to be negotiated. • No state budget in place. • 86% of budget is in compensation.

4. 2009 – 2010 • Started at $7,425 per student • $165 per student reduction in budget passed in October • $127 per student proration ordered by governor in October, rescinded today! • Total $165 reduction per student • 537 Students x $165 = $89,000 deficit from adopted budget for 2009-2010 if no late year proration • Currently at $7,260 per student

5. 2010 - 2011 • Starting at $7,260 per student. • $282 provided by stimulus $ no longer available. ($151,000 in 2009-2010) • $215 estimated continued shortfall in state revenues to support schools per S.F.A. (Similar to $165 this year) • Total $497 reduction per student. • 537 Students x $497 = $267,000 deficit from adopted budget 2009-2010 EOY.

6. 2010 – 2011 (continued) • $267,000 state shortfall. (previous page) • New Foundation $6,763 per student. • $60,000 estimated additional expenses for 2010-2011 related to steps, longevity, retirement, and inflationary increases in supplies and services. (not benefits). • $327,000 deficit in 2010-2011 budget

7. 2011 – 2012 & into the Future • $6,763 per student ?? • Assumes state revenues stabilize ?? • 2 year budget reduction of $416,000 ($89,000 + $327,000) • Slightly under fund balance of $481,000 • Operating Budget falls from $4,300,000 to $3,884,000 • Must recalibrate expenses to match revenues

8. FPS Options • Similar compensation at lower level of staffing • Same level of staffing at less total compensation. • Some combination of options 1 and 2

9. Quantifying the Adjustment State funding shortfall over 2 years of $416,000 = • Almost the total compensation for superintendent/ HS principal, Elm/MS principal, business office staff, and transportation/ maintenance supervisor. • Total compensation for nearly every support staff position. • Total compensation for approximately 5+ teaching positions.

10. Fund Equity – Buying Time • Working fund balance of 10%+ in August. • Just slightly over the 2 year anticipated shortfall of $416,000. • Potential to spend it down over 3 years: 2009-2010 8-9% final 2010-2011 3-5% final 2011-2012 1-3% final • Must be accompanied by reductions in expenditures that total $416,000.

11. Our Challenge: Educate our students, just as well or better, at less cost and likely with fewer staff.

12. Do Better than the Legislature • Must do better than just cut, cut, cut. • Must recalibrate, rethink, and redesign. • We still have $3,884,000 with which to successfully educate 537 students. • Option is not New Idea vs what we do now. • Option is New Idea vs other New Ideas.

13. 2009-2010 Budget Adjustments • Freeze teaching supplies, office supplies, equipment, textbooks, and some maintenance budgets • Athletic cost/revenue adjustment • Reduce non-Title I aide time up to 6 hours/day • Eliminate and AM bus run ?? • Total savings $30,000 - $35,000 • Expend 1% – 2% of fund equity

14. Time Line: 2010-2011 Budget Dec-May Series of staff budget meetings. Dec-May Board/committee meetings. Dec-Mar Staff, Parent, Community, and Student surveys. Apr 1 Preliminary staffing plan. Apr-May Continued meetings, surveys, etc. June 7 Supt recommendation presented at required budget hearing. June 14 Board adopts 2010-2011 budget at June meeting. ?? Negotiations

15. Key Dates for State of Michigan Jan 11 Annual winter revenue estimating conference Feb 3 Governor presents proposed budget for 2010-2011 May Annual spring revenue estimating conference June ? Budget adopted for 2010-2011 August Primaries Nov. Elections

16. Troubling Reality – Fewer Staff • Status quo is impossible. • Must change and redesign services to our students including instruction. • Can’t reduce supplies, fuel, electricity, heat, maintenance, equipment, insurance, etc. by 80-100%. (10-14% of budget) • Redesign must include reduced need for staffing and other costs.

17. Everything on the Table • Increase Revenue • Administrative staffing • Support staffing • Extra-curricular staffing • Teaching staffing • Consolidation of Districts • Consolidation of Services (internal/external) • Contracting of Services • Reducing other operating costs

18. No Silver Bullets (Local or State) • District Consolidation • Health Insurance • Athletics and Extra-Curricular Activities • Transportation • Administration • Another Stimulus Package (or RTTT) • Energy Savings • Special Education, Technology, PD, Voc Ed, and Sinking Fund expenditures

19. Solution for FPS Hinges on our Collective: • Knowledge • Creativity • Teamwork • Flexibility • Open Mindedness • Courage

20. Gathering Your Input • Revenue ideas • Non-staffing related ideas • Staffing related ideas • Redesign ideas • Elementary • Middle School • High School • Non-Instructional Operations

21. Next Steps: • Gather ideas and suggestions from this meeting. • Conduct a community survey starting next week. Watch for details in the Eagle Flyer and on our district website at www.fowlerschools.net. • Share emerging ideas and suggestions via the website and email. • Conduct future forums and surveys.

22. Contact Information: Neil Hufnagel Superintendent/HS Principal • Email: nhufnagel@fowlerschools.net • School: 989-593-2250 • Cell: 989-640-3231 • Home: 989-593-3329 • School Website: www.fowlerschools.net