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School Finance 101 BUILDING THE 10 YEAR PLAN MADISON PLAINS - OCTOBER 2013.

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Presentation on theme: "School Finance 101 BUILDING THE 10 YEAR PLAN MADISON PLAINS - OCTOBER 2013."— Presentation transcript:

1 School Finance 101 BUILDING THE 10 YEAR PLAN MADISON PLAINS - OCTOBER 2013

2 Tonights Agenda Review of Budget Tools Review of Budget Tools Recap of FY13 Recap of FY13 Review of FY14 Planned Budget Review of FY14 Planned Budget The Five Year Forecast The Five Year Forecast The 10 Year Plan The 10 Year Plan Scenarios Scenarios

3 Review of Budget Tools Appropriations Appropriations The appropriations are the Boards authorization for the Superintendent acting as the purchasing agent to spend district funds. The appropriations are the Boards authorization for the Superintendent acting as the purchasing agent to spend district funds. The appropriations also act as the control over spending. The Treasurer/CFO cannot approve a purchase request if it will exceed the approved appropriation. The appropriations also act as the control over spending. The Treasurer/CFO cannot approve a purchase request if it will exceed the approved appropriation. The Board may approve the Permanent Appropriation Resolution anytime prior to September 30 of each fiscal year. The Board may approve the Permanent Appropriation Resolution anytime prior to September 30 of each fiscal year.

4 Review of Budget Tools Spending plan Spending plan The Spending plan is not a required budget tool per ORC The Spending plan is not a required budget tool per ORC The Spending plan is a monitoring tool provided to the Board of Ed. to allow for easy review of the monthly status of General fund activity versus the budget. The Spending plan is a monitoring tool provided to the Board of Ed. to allow for easy review of the monthly status of General fund activity versus the budget.

5 Review of Budget Tools Spending plan Spending plan

6 Review of Budget Tools Five Year Forecast Five Year Forecast The Five Year Forecast is required to be prepared and submitted to the Ohio Department of Education by October 31 st of each fiscal year. A revised forecast may be submitted anytime but is required to be submitted at least once by May 31 st of each fiscal year. The Five Year Forecast is required to be prepared and submitted to the Ohio Department of Education by October 31 st of each fiscal year. A revised forecast may be submitted anytime but is required to be submitted at least once by May 31 st of each fiscal year. The forecast only reflects the forecasted activity of the district General fund, Poverty Based Assistance fund and any debt service funds. The forecast only reflects the forecasted activity of the district General fund, Poverty Based Assistance fund and any debt service funds. Our forecast includes the General fund, PBA and the Budget Reserve. Our forecast includes the General fund, PBA and the Budget Reserve.

7 Review of Budget Tools Five Year Forecast Five Year Forecast The Forecast has 2 parts: 1) the 5 years of financial activity depicted in a spreadsheet, 2) the assumptions that drive the projections. The Forecast has 2 parts: 1) the 5 years of financial activity depicted in a spreadsheet, 2) the assumptions that drive the projections. The forecast is used by the ODE, MP Board of Ed., Administration, unions and public to analyze and decipher the revenues and planned expenditures of the district. It is arguably the most important financial document we prepare. (political and public relations) The forecast is used by the ODE, MP Board of Ed., Administration, unions and public to analyze and decipher the revenues and planned expenditures of the district. It is arguably the most important financial document we prepare. (political and public relations)

8 Review of Budget Tools 10 Year Financial Plan 10 Year Financial Plan The 10 Year Financial Plan is not a required document. The 10 Year Financial Plan is not a required document. The 10 Year Financial Plan is unique to MP. The 10 Year Financial Plan is unique to MP. The Plan allows for long range planning. The Plan allows for long range planning. The Plan extends the new five year forecast another 5 years. The Plan extends the new five year forecast another 5 years. The Plan goals are as follows: The Plan goals are as follows: Transparent financial planning Transparent financial planning Academics are the Focus of the district, not $s Academics are the Focus of the district, not $s To provide a stable financial foundation. To provide a stable financial foundation.

9 Recap of FY13

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14 Review of FY14

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16 The Five Year Forecast

17 KEY ASSUMPTIONS KEY ASSUMPTIONS Revenues Revenues Tax advance in June 2014 will be $700,000 less than advance in June 2103 Tax advance in June 2014 will be $700,000 less than advance in June 2103 Renewal of Operating levy will occur in calendar 2014 Renewal of Operating levy will occur in calendar 2014 Unrestricted Aid (State Foundation) will remain the same for 5 years Unrestricted Aid (State Foundation) will remain the same for 5 years Enrollment will remain steady after 2014 Enrollment will remain steady after 2014 State Funding Guarantee will remain throughout forecast State Funding Guarantee will remain throughout forecast

18 The Five Year Forecast KEY ASSUMPTIONS KEY ASSUMPTIONS Expenditures – Personal Services (Salaries & Wages) Expenditures – Personal Services (Salaries & Wages) Employee Base Pay is expected to increase: % % % % %

19 The Five Year Forecast KEY ASSUMPTIONS KEY ASSUMPTIONS Expenditures – Personal Services (Salaries & Wages) Expenditures – Personal Services (Salaries & Wages) Step increases are expected to be 1.85% per year Step increases are expected to be 1.85% per year Degree attainment increases are expected to be.40% per year Degree attainment increases are expected to be.40% per year

20 The Five Year Forecast KEY ASSUMPTIONS KEY ASSUMPTIONS Expenditures – Benefits Expenditures – Benefits Medical/Drug Premium will increase as follows: Medical/Drug Premium will increase as follows: Fiscal year% Increase % = $191, % 20168% 20178% 20188%

21 The Five Year Forecast KEY ASSUMPTIONS KEY ASSUMPTIONS Expenditures – Benefits Expenditures – Benefits Retirement Contribution Increase due to increase in salary: 2014 = $45,000 Retirement Contribution Increase due to increase in salary: 2014 = $45,000 Expenditures – Supplies and Materials Expenditures – Supplies and Materials Increase in Curriculum Supplies: 2014 = $57,000 Increase in Curriculum Supplies: 2014 = $57,000

22 The Five Year Forecast KEY ASSUMPTIONS KEY ASSUMPTIONS Expenditures – Principal / HB264 Loan Expenditures – Principal / HB264 Loan HB264 Loan paid off in 2017 HB264 Loan paid off in 2017

23 The 10 Year Financial Plan DETAILS Duration = 10 years Duration = 10 years Reduce Budget $8.4 million Reduce Budget $8.4 million Pass PI Replacement Levy Pass PI Replacement Levy Pass Em. Op Levy in Place of Expiring Op Levy Pass Em. Op Levy in Place of Expiring Op Levy Consider Em. Op Levy in 2016 Consider Em. Op Levy in 2016

24 10 Year Financial Plan –Timeline Before the Plan 2012 Union Negotiations 2013 PI Levy Expires December General Fund goes in the RED 2021 General Fund Balance = $-19,800, Operating levy Expires December 31

25 10 Year Financial Plan – Proposed Timeline May April - Implement 10 Year Financial Plan August - Settle Negotiations November – Replace PI Levy 2013 November – Pass 8 Mill Emergency Operating levy December - Remove Current Op Levy 2016 January – Revisit Financial Plan as Needed May – Pass 2.5 Mill Emergency Operating Levy 2017 General Fund Balance in the BLACK 2021 General Fund Balance = $2,694,800 25

26 Current (May 2013) 10 Year Financial plan Timeline 2013 Pass PI Levy PI Levy Expires December 2013 Pass Em. Op. Levy Remove Current Op. Levy 2014 Operating levy Expires December Union Negotiations 2016 Consider Need for additional Operating Revenues 2018 General Fund Balance in Black with no New Revenues 2022 General Fund Target Goal $2 million

27 The 10 Year Financial Plan-Comparison

28 Levy Timelines

29 Revised Levy timelines 29

30 Scenarios Is the Board satisfied with the Current 5 Year Forecast Is the Board satisfied with the Current 5 Year Forecast Is the Board satisfied with the Current 10 Year Projection? Is the Board satisfied with the Current 10 Year Projection? Is the Board satisfied with the Current 10 Year Plan? Is the Board satisfied with the Current 10 Year Plan? If the answer to any of the above is NO then we need to go into executive session. If the answer to any of the above is NO then we need to go into executive session.


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