2011 2012 budget presentation n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
2011 / 2012 BUDGET PRESENTATION PowerPoint Presentation
Download Presentation
2011 / 2012 BUDGET PRESENTATION

Loading in 2 Seconds...

play fullscreen
1 / 15

2011 / 2012 BUDGET PRESENTATION - PowerPoint PPT Presentation


  • 167 Views
  • Uploaded on

2011 / 2012 BUDGET PRESENTATION. FORMAT. Available on website in order to save paper. Same format as last year. Fairly easy to interpret – based on “Function Code”. Some changes coming next year - Breaking out grant funds separately

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '2011 / 2012 BUDGET PRESENTATION' - meris


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
format
FORMAT
  • Available on website in order to save paper.
  • Same format as last year.
  • Fairly easy to interpret – based on “Function Code”.
  • Some changes coming next year

- Breaking out grant funds separately

- Differentiating FICA & Retirement from “Fringe Benefits”.

  • The initial budget is a “Best Guesstimate”.
  • Utilizes past history and most recent discussions and information.
  • This budget is a general guideline for the year.
  • The February “Revised Budget” is Key.
2010 11 re cap
2010/11 RE-CAP
  • The initial 2009/10 projected deficit was ($765,000)
  • After audit, deficit had increased to ($2.5-Million)
  • The initial 2010/11 projected deficit was ($5.1-Million)
  • Projected $433 Reduction in Foundation Allowance

- Saved by ARRA Funding - $630,000

- Saved by Edu-Jobs Funding - $1,015,000

  • Anticipated loss of 100 Students, lost 36.
  • Lower than anticipated health insurance costs
  • Changes in other benefits (RX, Section 125, PA-106)
  • Anticipated balance as of June 30th, ($1.9-Million)
  • Better than anticipated – ($2.8-Million)
2011 12 general outlook
2011-12 GENERAL OUTLOOK
  • Starting 2011/12 with an anticipated ($1.9-Million) deficit
  • Economy “appears” to be accelerating.
  • State revenue outlook up.
  • ARRA funding ending.
  • New Governor / Republican philosophy.
    • Who’s getting the money?
    • Why not Public Education?
    • What about Proposal A?
  • Impact on School Districts

- $470 per pupil permanent State Aid reduction

  • Unlike last year, this years budget is NOT worst case scenario.
  • Working together / not new at this.
  • Threat of Emergency Financial Manager
the big hits
THE BIG HITS
  • Things that will drastically affect the Districts budget in 2011/12:
  • Foundation Allowance Changes.
    • Southgate’s foundation allowance is currently $7,535 per pupil.
    • $470 per pupil “permanent” cut = ($2,468,910).
    • $100 per pupil add back for District incentives = $528,200*
    • $107 per pupil add back for MPSERS = $565,174*
    • Ending foundation allowance for 2011/12 is $7,065 per pupil.
  • Reduction in Property Tax Base.
    • $836,663,487 in 2010/11 vs. $740,633,639 in 2010/11
    • Increase Property Tax Rate for Debt Payments to 5.15 mil
  • Anticipated reduction of 100 Students ($710,128)
  • Expiration of Federal ARRA Funds.
  • Anticipated employee step increases ($560,000)
      • * Probable one time adjustment.
the obstacle
THE OBSTACLE
  • With the carry over of the ($1.9-million) projected deficit from 2010/11, the initial 2011/12 budget deficit before any expense reductions is anticipated to be:
  • ($5,527,294)
the threat
THE THREAT
  • Emergency Financial Manager (EFM)
    • The Powers of an EFM
    • 18 “Red Flags” to qualify for an EFM.
    • Southgate School District has three.
  • Breaking the Law
    • When a District does not pass a balanced budget.
    • When a District overspends it’s revenues and fund balance
  • Deficit Elimination Plan
    • A good thing!
    • MUST follow the plan.
the plan of attack
THE PLAN OF ATTACK
  • KEY expense reduction/elimination items being discussed….
    • Restructuring of District Custodial Operations* - $520,000
    • Elimination of General Ed Transportation* - $645,000
    • Employee Layoffs and Retirement - $1,410,000
    • 5-6% employee salary/benefit concessions - $1,870,000
    • Health insurance administrative savings - $250,000
    • Closing of Anderson swimming pool - $80,000
    • Employee step concessions - $310,000
    • Cuts in discretionary spending - $350,000
    • Other miscellaneous cuts - $161,431
  • The TOTAL proposed reductions would equate to approximately:

$5,596,431

the good news
THE GOOD NEWS
  • The GREAT news is that these changes could bring the District out of deficit in June – 2012.
  • There has been MUCH collaboration with ALL of the employee bargaining groups.
  • The FIT (Financial Input Team) has been established to keep all units informed and on the same page.
  • The State is officially out of the recession.
  • There appears to be a sign that the State is seeing increased revenues, which should equate to stronger school funding.
the bad news
THE BAD NEWS
  • Stronger school funding is not in the forefront of the State government. Others are getting OUR money:

- Higher Education / Corrections / Etc. (call your legislator)

  • These budget numbers are contingent on the outcome of the 2010/11 Budget.
  • The 2011/12 Budget represents an “Optimistic” viewpoint.
  • The State “Carrots” appear to be for only a one-year period.
  • Health Insurance costs are still climbing and questionable.
  • To achieve our financial goals, SO much needs to be sacrificed

- Maintenance / Transportation / Other Jobs

  • Worst of all, if there are further cuts in 2012/13, they will end up reaching within the classroom.
we are not alone
WE ARE NOT ALONE
  • One of the State requirements to receive back per-pupil dollars is to bid “non-educational” services such as Maintenance and Transportation.
  • In 2010/11, we were one of 43 districts in deficit in a State with well over 500 school districts in it. This year the number of deficit Districts could triple.
  • Districts all around us are eliminating/outsourcing services, reducing staff, demanding concessions, cutting programs, eliminating sports, and increasing class sizes.
things to look out for
THINGS TO LOOK OUT FOR
  • Mid-Year reduction from State
  • Increase in health insurance and prescription costs.
  • Another increase in retirement in 2012/13 (to 27%)
  • Loss of additional students.
  • Higher than anticipated energy costs.
  • Low funds for equipment replacement.
  • Falling State scores and/or drop out rate.
things we can do
THINGS WE CAN DO
  • Save on Health Insurance Costs.
    • Self Funding - District pays for every health care dollar spent
    • Wellness Plans and Health Savings Programs.
  • Energy awareness and conservation.
  • Eliminate stigma regarding Special Education.
  • Increased use of bidding and use of consortium bids
  • Consolidating services with surrounding entities

- Technology / Voc-Ed / Admin Building / Other?!?

  • Continue to use technology and create new efficiencies.
  • Assess school saturation levels and plan for school closing(s).
  • New Grants.
  • Parent Involvement
  • User Groups and Communication!
bottom line is the bottom line
BOTTOM LINE IS THE BOTTOM LINE?!?
  • The 2011/12 School year will undoubtedly be the worst financial year EVER for school districts.
  • A lot has been done to keep our heads above water, we must keep treading water.
  • The FIT will work closely to help keep the budget on line.
  • Potential for two-year “flexible” contracts to help us proportionally reduce expenses and proportionally share in the District financial successes.
  • Follow new Strategic Plan to keep us focused on the REAL bottom line…

OUR STUDENTS!

what we need to do long term
WHAT WE NEED TO DO - LONG TERM
  • Work together as ONE entity…ONE family
    • School District and Community
    • Administration and Bargaining Groups
  • A successful Southgate School District means:
    • More families wanting to attend our schools.
    • Better home sales & higher property values.
    • More funding for classes and other programs.
  • Work on “positive press” including:
    • Sports programs
    • Music programs
    • Most importantly…academics