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Elida Local Schools Financial Summit VI

Elida Local Schools Financial Summit VI. Report to Stakeholders Fiscal Year 2010-11 Joel L. Parker,CPA. Introductions. Economic Outlook Financial Update Revenue Discussion. Goals. Review the financial condition of Elida Local Schools

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Elida Local Schools Financial Summit VI

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  1. Elida Local Schools Financial Summit VI Report to Stakeholders Fiscal Year 2010-11 Joel L. Parker,CPA

  2. Introductions • Economic Outlook • Financial Update • Revenue Discussion

  3. Goals • Review the financial condition of Elida Local Schools • Expand the knowledge base on school funding issues • Review data for future financial planning • Exchange ideas on “best practices” • Encourage dialogue on future economic trends

  4. Discussion - Economy • Modest signs of economic recovery • Unemployment decreasing • Housing Market – slight improvement • Rate of Inflation • Rate of health care inflation

  5. Concerns • State budget gap • Tax delinquencies • Loss in state aid • Loss of inventory tax • Loss of interest income • No inflationary growth in revenue • Unfunded mandates • Vouchers

  6. “Everybody is ignorant, only in different subjects” Will Rodgers

  7. OSBA Platform supports legislation that: • Provides a thorough, efficient education • Provides for inflationary revenue growth • Eliminates “Phantom Revenue” • Eliminates over-reliance on local property taxes • Prohibits Federal and State unfunded mandates • Requires all sectors of economy to pay a fair share of the cost of public education

  8. OHIO TAX “SHIFT” • Remove Inventory Tax • Reduce Corporate Franchise Tax • Reduce Personal Income Tax • Good for business • Good for individuals • Result: Schools lose $3 billion

  9. ADMINISTRATIVE EXPENSES Administration: Salaries for administrators, office staff, and office supplies

  10. State Aid-Line 1.035

  11. Tangible Personal Property Tax-Line 1.02

  12. Real Estate Tax-Line 1.01

  13. Interest Income

  14. Tax Delinquencies • 2004 $440,608 • 2005 $393,473 • 2006 $320,795 • 2007 $294,267 • 2008 $468,576 • 2009 $530,373 • 2010 $444,274 • 2011 $455,707 • 2012 $467,324 • Total $3,815,397

  15. Next 50 Years • Where will lost revenue come from? • We cannot just increase fees like hospitals, colleges or private sector • Donner Budgeting Process • Dual credit example

  16. Total Expense Growth-Line 4.5

  17. Cash Flow Storm

  18. WHAT HAVE WE DONE TO STAY LEAN?Looking back: 2003-04: • Administrative cuts $239,155 • Administrative Wages - 0% increase 2 yrs • Streamlined food service – no general fund $ • Moved staff to PPO insurance plan • Moved to partial pay to participate • Reduced bus fuel consumption • Cost sharing on health premiums

  19. Continued 2004-05-06: • Withdrawal from ESC Alternative Program - $7,000 • Attrition of one mechanic’s position - $58,472 • Hire Own Psychologist - $9,923 • 2004-05 one less teacher at EE • 2005-06 one less teacher at EE and HS • Partner with WCLA on software $14,000 • Review SF6 billing - $24,000

  20. Constant Review of Staffing Meal Policy American Express Bus Idle Share Ins Increases Bulk Paper Bid Property/Liability Diesel Grant Safe Route Grant Dir dep/email PO Turn down thermostats Change drug company No health ins R/R New health plans Auto lights switches Bid projects MAC Grants Early bus buy The Bottom Line:

  21. Cost Reductions: 2009-10 • Review set points $74,000 • Eliminate Teacher Academy $65,000 • Re-route buses(4) $84,444 • Reduce special ed teacher $76,102 • Reduce MS Industrial Technolgy • Reduce MS Home Economics

  22. And more 2010-11: • Consolidate choir position • Reduce MS teacher-(technology class) • Move Central Office secretary to HS • Reduce building budgets • Lean on grant $ for technology • Work on reductions in health care • Reduce bus routes • Review staffing • Pay off HB 264 Note early • Reduce guidance position (HS)

  23. Cost Reduction-Spring 2011/Update • Phase I- Cut 5 teachers, 1 Aide, 1 Guidance = $332,700 • Phase II – Close Gomer • Phase III – EMS re-configure

  24. Wage Freeze -2011 • Administrators – Another 2 yr freeze • Adm-same pay FY 11-12,12-13,13-14 • All Others – 0 on base 2 years, steps year 1, no steps year 2 • Savings $823,000

  25. Cuts, Cuts and More Cuts-FY 12-13 • Librarian – position to 3 days a week • Close Gomer Building • Reduce Central Office Director • Reduce Gomer Principal/teacher • EHS-reduce Success Program • EHS-reduce 1 teacher • EMS – reduce 1 teacher • EE- reduce 1 teacher • Reduce 1 aide • Reduce 1 secretary • Reduce 1.5 custodians • Total Savings $590,000

  26. Alternative Funding: • Fieldhouse Renovation $350,000 • Concession Building $150,000 • Locker/weight room $100,000 • Piano Fund • Safe Route Grant • BWC Grant – Buses $22,000

  27. June 30 Carry-Over: A New Cycle • 2000 $1,048,819 23 days • 2001 $ 758,675 17 days • 2002 $ 821,146 18 days • 2003 $ 360,933 8 days • 2004 $ 967,429 21 days • 2005 $1,865,900 39 days • 2006 $2,645,703 53 days • 2007 $3,496,376 68 days • 2008 $4,071,288 76 days • 2009 $4,127,565 74 days • 2010 $3,454,672 60 days • 2011 $2,845,756 48 days • 2012 $2,153,235 38 days

  28. Health Insurance • 1/1/09 Medical Rate Increase 15% • 1/1/09 Dental Rate Increase 20% • 1/1/09 New Plan MDHP Developed • 1/1/10 New High Deductible Plan • 1/1/10 Medical Rate Increase 20% • 1/1/10 Dental Rate Increase 20% • 2010 - introduce HDHP plan • 2011 - Spousal coordination of benefits • Change in TPA and Consultant • 2012 – 2 plans (mid and high deductible)

  29. General Fund Expenditures

  30. FY Ended June 30, 2011 Total Revenue: $20,821,610 Instruction: $13,664,960 Instr.Staff Support: $ 496,088 Pupil Support: $ 605,048 TOTAL $14,766,096

  31. Special Education – General Fund

  32. Open Enrollment • FY 07 In $535,000 Out $1.3 million • FY 08 In $597,000 Out $1.4 million • FY 09 In $912,000 Out $1.5 million • FY 10 In $1.24 million Out $1.48 million • FY 11 In $1.38 million Out $ 1.6 million • FY 12 In $1.54 million Out $1.52 million

  33. Tax Base TANGIBLE PERSONAL $5,116,935 -0- -0- -0- -0- RESIDENTIAL$100,017,980 $101,438,990 $108,803,850 $105,507,940$108,714,380 2008 2009 2010 20112012

  34. DISCUSSION How do we address declining revenue, remain lean operationally, and still provide excellence in education?

  35. Levy Options • Emergency Property Tax Levy - up to 10yrs set amount • Traditional Income Tax - any yr,C -.25 increments • Earned Income Tax -any year,C- .25 increments • Combined Ballot Questions (property tax levy + earned income tax) - property tax-up to 10 or C, fixed amount plus .25 increment of earned income tax will float with economy

  36. Levy Timeline-Future Dates • May 2010 Renewed Emergency Levy • Fall 2012 New money levy • 2013 PI Levy Continuing • 2013 or14 Bond Issue EE-OSFC • 2014 Renew Emergency Levy • 2016 Renew 2012 Levy • 2019 Renew Emergency Levy • 2021 Renew 2012 Levy • 2024 Renew Emergency Levy • 2026 Renew 2012 Levy • 2029 Renew Emergency Levy

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