Presentation on theme: "1 Cleveland Municipal School District Five Year Financial Forecast October 2010 The primary goal of the Cleveland Municipal School District is to become."— Presentation transcript:
1 Cleveland Municipal School District Five Year Financial Forecast October 2010 The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of America. TRANSFORMATION
2 Cleveland Municipal School District Where the Money Comes From 2010-2011
3 Cleveland Municipal School District Local Taxes – Property Tax Revenue
4 Cleveland Municipal School District Property Taxes – Current Collection Rate
5 Cleveland Municipal School District Property Tax Allocation – State Hold Harmless Reimbursements
6 Cleveland Municipal School District State Foundation Revenue/Education Jobs Fund
7 Cleveland Municipal School District Other Revenue
8 Cleveland Municipal School District Where the Money Goes 2010-2011
10 Cleveland Municipal School District Salaries Continued
11 Cleveland Municipal School District Fringe Benefits
12 Cleveland Municipal School District Supplies, Textbooks, Equipment, and Other Expenditures
13 Cleveland Municipal School District Purchased Services
14 Cleveland Municipal School District October 2010 Five Year Forecast (in millions of dollars) FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Beginning Cash Balance $90.6 $82.0 $50.4 $13.0 $25.6 $(51.4) $(151.4) $(268.6) Total Revenues 672.5 668.2 662.7 676.1 625.4 616.4 612.0 607.4 Total Expenses 681.1 699.8 700.1 663.5 702.4 716.4 729.2 742.5 Revenue over Expenses (8.6) (31.6) (37.4) 12.6 (77.0) (100.0) (117.2) (135.1) Ending Cash Balance 82.0 50.4 13.0 25.6 (51.4) (151.4) (268.6) (403.7) Encumbrances/Reserves 10.7 7.0 6.5 7.0 Unencumbered Balance $71.3 $43.4 $6.5 $18.6 $(58.4) $(158.4) $(275.6) $(410.7)
15 Cleveland Municipal School District October 2010 Five Year Forecast Summary State Foundation Revenue 1.Actual for 2009-2010 and projections for 2010-2011 are based on the new Evidence Based Funding Model (HB 1). 2.State Foundation estimates include Education Stabilization Funding allocated under the American Recovery Reinvestment Act of $30.3 million. 3.Foundation estimates provided by the Ohio Department of Education project CMSD funding levels at the HB 1 funding cap (.75% gain cap) Education Jobs (Ed Jobs) 1.A new federal program to save or create education jobs for the 2010- 2011 and/or 2011-2012 school years. It is estimated that the district will receive $17.6 million. Property Taxes 1.Fiscal Year 2011 property taxes are currently estimated by the Cuyahoga County Auditor’s Office based on a collection rate of 84.04%. The forecast through 2015 assumes a collection rate of 84.04%.
16 Cleveland Municipal School District October 2010 Five Year Forecast Summary Continued Salaries and Benefits Compensation estimates reflect the reduction of 322 positions consistent with the District’s academic transformation plan. ARRA allocations will be utilized to fund $20 million of District programs during the 2010-2011 school year. (compensation, salaries and benefits of classroom teachers) Charter School Tuition Charter School students will continue to be counted in the District of residence. Costs over the forecast period are based on historical trends. Financial Summary An $18.6 million unencumbered balance is forecasted at the end of the 2010 – 2011 school year. A significant deficit of $58.4 million is projected for school year 2011- 2012 due to the loss of ARRA and SFSF funding on 6/30/2011.
17 Cleveland Municipal School District - Definitions ARRA – Education Stabilization Fund – SFSF: Ohio has been allocated $845 million from the ARRA in State Fiscal Stabilization Fund (SFSF) to help stabilize state and local budgets in order to minimize and avoid reductions in education and other essential services. Education SFSF will be distributed to school districts as part of the foundation settlement payments each month – total foundation support will include both state and federal SFSF funds. The District received $27.3 million in FY 10 and expect to receive $30.3 million in FY 11. CAT Tax – Commercial Activity Tax: The commercial activity tax (CAT) is an annual tax imposed on the privilege of doing business in Ohio, measured by gross receipts from business activities in Ohio. Businesses with Ohio taxable gross receipts of $150,000 or more per calendar year must register for the CAT, file all applicable returns, and make all corresponding payments. ED Jobs - The Education Jobs Fund was included as part of federal legislation passed on Aug. 10, 2010. The program provides $10 billion for states to save or create education jobs. Ohio is estimated to receive $361 million from the program. The district is estimated to receive $17,550,193. Funds can be used in FY 11 or FY 12. State Hold Harmless Reimbursements: Provision under which the State of Ohio agreed to reimburse the Cleveland Municipal School District for any loss associated with a change in law.
18 Cleveland Municipal School District Five Year Financial Forecast Questions and Review October 2010 The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of America.