1 / 39

Overview of Fiscal Year 2010-11

Overview of Fiscal Year 2010-11. Oakland Schools Proposed Budgets. Property Tax Forecast. Property Tax decreases Fiscal Year 2008-09 -0.5% - $ 0.4M Fiscal Year 2009-10 -4.5% - $ 11.7M Fiscal Year 2010-11 -13% - $ 38.4M Fiscal Year 2011-12 -12% - $ 59.8M

komala
Download Presentation

Overview of Fiscal Year 2010-11

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview of Fiscal Year 2010-11 Oakland Schools Proposed Budgets

  2. Property Tax Forecast Property Tax decreases Fiscal Year 2008-09 -0.5% - $ 0.4M Fiscal Year 2009-10 -4.5% - $ 11.7M Fiscal Year 2010-11 -13% - $ 38.4M Fiscal Year 2011-12 -12% - $ 59.8M Fiscal Year 2012-13 -5.0% - $ 67.6M Fiscal Year 2013-14 -0.0% - $ 67.6M Fiscal Year 2014-15 2.0% - $ 64.7M Annual Property Tax Collection has declined from FY 2009 to FY 2014 by 31% Accumulative loss from FY 09 to FY 15 is $310.3m FY 2008 base year tax levy is $216.9m

  3. Dollars in millions

  4. Fund Balance Target Setting Protocol The proposed protocol for the development of each fund’s year ending fund balance target will be predicated upon: • 5 percent of the operating programs contained in said fund • Known economic liabilities or designated reserves of a specific fund The fund balance target setting protocol recognizes the following economic realities: • The State of Michigan’s economic environment • The economic status of the LEAs that comprise the Intermediate School District. Oakland Schools Board of Education approved the Protocol on 6/15/2009 Practice for the Special Education Fund is to distribute the amount in excess of the target unreserved fund balance.

  5. Oakland SchoolsTotal Revenue Summary FY 2011 $323.9 Million Dollars in millions

  6. Revenue Assumptions • Property tax revenue decrease of 13% • Expected investment rate of return is 1.5% on available resources • Increased local district utilization of our Finance, Human Resource application, Benchmark & Inform system and Novanet fee-based software system. • General Education Section 81 reduced by 14.5% • All other State Aid held flat

  7. Oakland Schools Fiscal Year 2011Total Expenditure Budget by Type $351.7 Million Cash to LEAs Dollars in millions

  8. Difference between Revenue & Expenditures Total Difference: $27.8 million • Capital Projects Funds $(10.9m) • Debt Service payments $(5m) • Special Education Fund $(11.0m) • All other funds $(.9m)

  9. Oakland SchoolsFinancial Impact of Benefit Plan Changes Savings Over Five Years = $ 5,387,820 Annual Cost If No Changes Data Source: McGraw Wentworth Analysis of Actual Results $ 6,764,089 $ 6,093,774 $ 5,491,541 $1,348,655 Oakland Schools Annual Savings $ 4,948,988 $ 1,628,613 $ 4,656,274 $ 4,524,888 $ 1,240,573 $ 931,342 $ 238,637 Oakland Schools Annual Cost $ 4,250,968 $ 4,417,109 $ 4,017,646 $ 4,465,160 $ 5,415,434 $ 4,524,888 Enrolled 405 Enrolled 397 Enrolled 400 Enrolled 405 Enrolled 402 Enrolled 388 Note: 1. Enrollment is noted at the bottom of each bar with 2010 cost at 1/1/2010 level (anticipated to change in June 2010) 2. Cost with no changes based on 11% annual rate of increase (most projections range from 7% to 13%) 3. 2010 savings based on actual 2010 BCBS rate renewal (no credit / adjustment for Risk Related Fund)

  10. Budget Highlights • Continued health insurance premium share • FY 2010 & 2011 salary freeze • Five (5) unpaid furlough days for all employees (approx. 2% wage decrease) • Salary reduction in 2012 by 3% • Attrition, Voluntary Employee Sick Leave Program (VESLPP) and workforce reductions – 105.5 FTE reductions • Continued planned spend down of fund equity to 5%

  11. Budget Highlights • MPSERS retirement rate budgeted at the weighted average rate of 18.79% (19.41% effective October 1, 2010) • Non union & union healthcare cost budgeted at annual increase of 13% • Purchase Services, Supplies & Materials, Dues & Fees reduced by aggregate 10% • Utilities reflect a 6% decrease from the prior year

  12. Budget Highlights FY 2011 proposed non-union salary & wage changes A wage freeze was implemented on January 1, 2010 for non union staff. Non-union wages follow the calendar year. 5 unpaid furlough days for 12 month staff (2% decrease) Continuation of employee premium share based on pay level (up to 4.5%) The progression increment movement with in the market ranges plus the longevity stipends account for an average of 0.5% annually.

  13. Budget Highlights FY 2011 proposed union salary & wage changes The union & Board of Education approved a one year extension on the existing contract, expiring June 30, 2011. The contract includes a wage freeze implemented on July 1, 2010. 3 unpaid furlough days for 10 month staff (2% decrease) Continuation of the 6% health insurance cap. Step increases are provided by contract for an average of 1.2% annually.

  14. Allocation of costs General Allocation 50% GE, 25% SE, 25% CFE Activity Based Cost Allocation–FTE based 23% GE, 25% SE, 52% CFE Abraham & Gaffney – sq footage based 50% GE, 26% SE, 24% CFE Cost Based Allocation – Transportation 73% GE, 25% SE, 2% CFE Reference Enterprise Wide Summary Document

  15. General Education Fund Summary • Total Revenue: $17.5 Million • Property tax – $10.6 M (60% of total revenue) • Other local revenues – $3.5 M • State sources revenues – $2.9 M • Other financing source revenues – $.5 M • Total Expenditures: $17.7 Million • General administration – $1.7 M • Finance and operations – $7.2 M • Instructional services – $8.7 M • Plant and fixed charges, transfers to LEAs – $.1 M Note: Medicaid Revenue now reflected in Fund 273

  16. General Fund Overview Dollars in millions

  17. Fiscal Year 2011General Education Fund Balance END OF YEAR: Unreserved: $ 3,392,200 Reserved: Prepaid, Inventory and Deposits $ 35,000 Total Budgeted Ending Fund Balance $ 3,427,200 _______________________________________________________ 5% of GEF operating expenditures ($17.7 m): $ 0.9 m State Aid exposure (sec 81): $ 2.9 m Fund Balance Protocol Target: $ 3.8 million

  18. Pending Legislation limits General Education Fund to 15% fund balance Current Operating Expenditures (COE) - MDE defined Total Current Operating Expenditures do not include: • Capital Outlay • Community Services • Transfers outs (includes Medicaid transfers to districts)

  19. Fiscal Year 2011 District Debt Amount Average Annual Payment GEF Debt Principal: $ 5,165,000 $ 750,000 CFEF Debt Principal: $44,770,000 $ 3,100,000 QSCB Debt Principal (funds): $14,800,000$ 850,000 Total OS Bonded Debt: $64,735,000 $ 4,700,000 NOTE: Debt Service for the Administration Building Project Bond (2003) and QSCB issue is pre-funded in Debt Service Fund 310 & 313 and Debt Service for the campus renovations bond (2007) is pre-funded in Debt Service Fund 312 through FY 2014

  20. General Fund Five-Year Forecast

  21. ISD Budget Resolution Revised School Code 380.624 - Overview • Not later than May 1 of each year, the ISD shall submit proposed budget for next fiscal year to the board of each constituent district for review • Not later than June 1 of each year, the board of each constituent district shall review the proposed ISD budget, shall adopt a board resolution expressing its support for or disapproval of the proposed budget • Mail copy of resolution indicating support or disapproval (with rationale) to the Oakland Schools Board of Education

  22. General Education Fund • Questions & Comments

  23. Special Education Fund Summary • Total Revenue: $142.0 Million • Property tax – $134.9 M (95% of total revenue) • Other local revenues – $1.4 M • State sources revenues – $5.7 M • Total Expenditures: $153.0 Million • Program supervision and direction – $2.3 M • Program operations – $7.5 M • Plant and fixed charges – $5.7 M • LEA transfers and program subsidies – $137.5 M

  24. Special Education Fund Overview *FY 2004 contains “one time” operating adjustment for prior years **Dollars in millions

  25. Fiscal Year 2011 Special Education Program Support & Subsidies PA-18 Base Distribution $ 134,332,100 Start-up Contingency $ 850,000 Extraordinary Contingency $ 250,000 Section 24 subsidy $ 100,000 Group Homes $ 1,200,000 Havenwick $ 150,000 SEI Regional Day Treatment $ 450,000 Michigan Rehab Services Cash Match $ 180,000 Total $ 137,512,100 PA-18 Base Distribution $(8.8m) decline from FY 2010

  26. Oakland Schools Special Education Expenditure Budget Comparison Dollars in millions *External services with offsetting revenue not included in FY 2010 OS Operations

  27. PA-18 Base Distribution FY 2003-2015 Trend Line: Red After Property Tax Decline: Blue Dollars in millions

  28. Fiscal Year 2011Special Education Fund Balance END OF YEAR: Unreserved: $ 755,200 Reserved: Future SE Center Facility Renovations $ 286,000 Total Budgeted Ending Fund Balance $ 1,061,200 5% of SEF operating expenditures ($15.5 m): $ .775 m State Aid exposure (sec 51a, 51a.8) $ 3.9 m Fund Balance Protocol Target: $ 4.675 million

  29. Special Education Five-Year Forecast

  30. Special Education Fund • Questions & Comments

  31. Career Focused Education Fund Summary • Total Revenue: $34.1 Million • Property tax – $33.0 M (96% of total revenue) • Other local revenues – $0.6 M • State sources revenues – $.4 M • Other financing source revenues – $0.1 M • Total Expenditures: $32.9 Million • Campus and other program administration – $21.8 M • LEA transfers and direct program operations – $5.1 M • Facility and technology maintenance/renovations – $0.1 M • Plant and fixed charges – $5.9 M

  32. Career Focused EducationFund Overview Dollars in millions

  33. Fiscal Year 2011Career Focused Education Fund Balance END OF YEAR: Unreserved: $ 8,069,800 Reserved: Prepaid, Inventory and Deposits $ 67,200 Total Budgeted Ending Fund Balance $ 8,137,000 _______________________________________________________ 5% of CFEF operating expenditures ($32.9): $ 1.6 m State Aid exposure (sec 61a.1, 61a.2): $ .4 m Fund Balance Protocol Target $ 2.0 million

  34. Career Focused Education5-Year Forecast

  35. Career Focused Education Fund • Questions & Comments

  36. Proposed Grants and Funded Projects Summary • Total dollar award value of all current grants and funded projects: $113.7 Million • New Awards $94.5 Million • Carry Over $19.2 Million • Direct transfer to districts: $88 Million • ISD administered grants and projects: $25.7 Million (Includes JobLink $11.8M)

  37. Other Funds • Cooperative Activities Fund 270 – Collaborative Program Development Initiative (CPDI) • Cooperative Activities Fund 271 – Oakland Network for Education (ONE) • Cooperative Activities Fund 272 - Alternative Education High School ( Under Study) • Cooperative Activities Fund 273 – Medicaid • Debt Service Fund 310 – Administrative Building Bond 2003: 15 years, ending 2018 • Debt Service Fund 312 – CFE Campus Renovations Bond: 29 years, ending 2036 • Debt Service Fund 313 – Qualified School Construction Bond:17 years, ending 2027

  38. Other Funds • Capital Projects Fund 404 - CFE Technical Campus Renovations Phase II Project • Capital Projects Fund 406 – Admin Bldg Renovation & Maintenance • Capital Projects Fund 408 – Qualified School Construction Bond • Production Print Fund 710 – Enterprise Fund (subsidy eliminated) • Risk Related Activity Fund 810 – Internal Service Fund (unemployment pre-funded)

  39. Questions & Comments

More Related