Presentation on theme: "Northeastern School District Preliminary Budget Presentation 2013-2014 School Year The Bobcat Way: 100% of our students will graduate and be fully prepared."— Presentation transcript:
Northeastern School District Preliminary Budget Presentation 2013-2014 School Year The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.
Preliminary Budget DESCRIPTION2013-14 BUDGET SUMMARY TOTAL REVENUE$55,743,313 - TOTAL EXPENDITURES$57,746,004 DIFFERENCE: (DEFICIT)$(2,002,691) Ways to Balance Budget: Increase Revenue Expenditure Cuts $ 374,478 $ 550,514 Use of Fund Balance$ 0 TAXES: to Adjusted Index And Retirement Exception $ 715,000 $ 400,693 DIFFERENCE: SURPLUS$ 37,994
Budget 2013-2014 Summary Revenue – Total increase of <$1M from 2012-13 (w/o tax increases). – Local Growth through higher assessed values is non-existent. ES3 challenging district on LERTA and assessed value at -$900k. Relying on millage rate tax increases to fuel revenue growth – State Partially offsetting employer retirement payments into PSERS. State no longer supports cyber and charter school funding costs. Expenditures – Total increase of $2.8M – Total Salary increased $525k. – Gross Retirement cost increased $1.2M, net cost >500k. – Health insurance (after plan redesign) increased $72k – Debt Service budget increased >$600k. – We must continue to look for ways to reduce REOCCURING expenditures while maintaining a quality education for our children.
Budget 2013-2014 Summary Savings – No use of fund balance and no transfer of money into Capital Reserve fund. – Have less than 2 weeks of savings left. Taxes – The school board approved a preliminary budget AND filed for the retirement exception capping additional tax revenue at $1.1M and the possible millage rate increase to 3.5%. – FIRST TIME district has filed for a tax exception to balance budget!
TAXES: District Perspective Real Estate Millage Increase based on assessed property value 1 mil = $1.3M in new reoccurring revenue Adjusted Index +2.3% Retirement Exception To +3.5% Additional Real Estate Revenue projected Maximum new real estate revenue $715,000$400,693 $1,115,693
TAXES: Taxpayer Perspective Real Estate Millage Increase based on assessed property value $ 100k$ 150k$ 200k Adjusted Index to 2.3% Retirement Exception to 3.5% Real Estate Tax bill (assuming AI + Ret Exc) +$ 55 +$ 85 $2,511 +$ 82.50 +$127.50 $3,766.5 +$ 110 +$ 170 $5,022
Ways to Balance Budget REVENUENEW REVENUE EXPLORATION IDEA Governor's state budget proposal+1.7% BEF increase: +$208k Local Real estate: New LERTA propertyNew $20M business in EMT: +$70k Aquatic CenterAttract diving clubs: +$3k Considering taking back pool from YMCA AthleticsPay to play – proposal to committee: +$93k Taxes(See later)
Expenditure Reductions MAJOR EXPENDITURECOST CUTTING EXPLORATION IDEA Salaries and BenefitsConvert Full Day Kindergarten to ½ K: Board rejected this proposal to save $325k Salary and Benefits: AdministrationEliminated 1 Asst. Superintendent position: $150k Salaries and Benefits: ProfessionalDo not replace teacher retirements: $286k Salaries and Benefits: ProfessionalProgram elimination of several positions: $126k Salaries and Benefits: ClassifiedDo not replace HS custodian resignation: $20k Replace Warehouse Coordinator’s retirement w/ ½ position in district: $18k Benefits: ClassifiedIncreased Classified contribution to health insurance to reduce employer cost: +$20k TechnologyRemove new phone request: $70k OperationsNO use of fund balance NO transfer to Capital Reserve fund: $175k Salary, Benefits, and OperationsRolling Furlough: 1 day over 2 year: $140 each yr
Rolling Furlough Shutdown for 1 school day in 2013-14 and 1 school day in 2014-15 Saves district $140k per year of reoccurring savings Amend (not open) professional contract through an MOU to have 189 work and paid days and reduce the student days to 180. Amend calendar to have furlough last day of year after the clerical day
Final Thoughts Financial: – Revenue – Expenditures – Fund Balance – Taxation – Budget Forecast
Northeastern School District: One Family "Although the 2013-14 budget and forecasted upcoming budgets probably will require both tax increases and significant cost cutting to balance, Northeastern School District will balance its budgets while providing a quality education for all of our students." - Brian Geller, Director of Operations “Northeastern School District, in partnership with the community, is committed to provide a high quality education to our students while developing a fiscally responsible long-term plan. Achievement of this goal is only made possible by all stakeholders working together.” –Dr. Shawn Minnich, Asst. Superintendent of Curriculum & Instruction