1. JOINT SCHOOL DISTRICT NO. 2 (MERIDIAN) 2014-2015 Proposed Annual Budget Ada & Canyon Counties

2. 2014-2015 Annual Budget DIRECTOR OF FINANCE Alex Simpson BUDGET & FINANCE STAFF Gloria Rolland Lohrea Hatch SUPERINTENDENT Dr. Linda Clark BOARD OF TRUSTEES Tina Dean - Zone 1 Juan (Mike) Vuittonet- Zone 2 Carol Sayles – Zone 3 Anne Ritter– Zone 4 Janet Calinsky – Zone 5

3. State Education Budget for 2014-15 Steps/lanes for all staff 1% Increase to the base for all staff Certified minimum increased to 31,750 from 31,000 (2.4% Increase) State Professional Development Funds - (New) State Leadership Fund – (New) School Net Support – (New) Safe & Drug Free – (New) Technology Staffing – (Cont.) Content & Curriculum – (New) Classroom Technology – (Cont.) State of Idaho Advanced Opportunities Programs: 8 in 6, $200/$400, and Dual Credit for Early Completers

5. General Fund Revenue for 2014-2015 Total estimated state funding increase: $7.095 million Based on a projected increase of 650 students for fall 2014 Increase in support units – 24.8 estimate Discretionary revenue is up $2,401.15 per support unit Total attendance average is close to 95.8% 1% increase to base salary for administration, certified, or classified Certified minimum increased to 31,750 from 31,000 Estimated fund balance carryover from the 13-14 budget: $6.65 million (includes savings of $3.5M) Emergency Levy is projected to be the same as 2013-14 Supplemental levy passed March 2014: $14 million (expires after 2015-16)

6. Other Funding Sources 2014-2015 $765,750 State Professional Development Fund $1,946,656 State Leadership Fund $238,050 School Net Support $226,250 Safe & Drug Free $211,600 Technology Staffing $491,739 Content & Curriculum $1,018,603 Classroom Technology

7. Transfers In to General Fund from Other Funds Funds transferred from other funds if indirect costs are allowed to cover general operating costs. Transfers from Medicaid has also helped with General Operating Costs. In 2010-11 and 2011-12 the State of Idaho allowed districts to vote on moving funds from Capital Outlay to General Fund. The districts patrons voted to move $4,000,000 for two years only.

10. General Fund Revenue 2013-2014 Amended 2014-2015 Proposed

11. General Fund Budget Changes for 2014-2015 Estimated Changes in General Fund Expenditures $1,989,430 Add 33 FTE - Certified Staff $266,866 Add 2.5 FTE – Administrative Staff $132,842 Add 3.5 FTE – Classified Staff $1,303,386 Increase 1% to Base for All Staff $1,985,132 Step for all Staff $45,000 Career Enhancement (1 step for all staff-1 yr) $25,000 Increase for SRO $860,078 Health Insurance Premium Increase (4%) $52,878 Utility Increase $367,304 Eliminated Early Retirement Incentive $41,810 Decreased Short Term Disability 12% * Red indicates increases in expense

12. General Fund Expenditures 2014-2015 By Function By Object

13. General Fund Revenue Compared to Expenses Revenue Sources Compared to Expense * Chart does not include transfers in * Transfers in are included in revenue

14. Joint School District No. 2 Ending Fund Balance Summary The District’s fund balance at it’s peak in 2008-2009 was $18.5 million. The District has been using the Fund Balance to balance the budget since 2009. One time monies from the Federal Jobs Bill and the State Maintenance Money helped replenish the Fund Balance in 2011 and 2012. The District has been using Fund Balance at an unsustainable rate. The District may need to remain flat or even cut expenses in 2015-16 in order to balance the budget unless we have more growth unit funding from the State or budget savings. 2014 & 2015 are estimated fund balances

15. Projected Rough Seas Ahead in 2015-16 What is making it hard to right the budgetary ship… The District will only be able to count on growth due to rolling up grades for another year (kindergarten and 12th grade enrollment will then equal). The Emergency Levy Revenue is based on growth and the “roll up” number is smaller. Currently expenses are greater than revenue and the district is using fund balance to balance the budget. At the current funding and spending level it is projected that there will not be enough fund balance to cover current expenses. The current $14 million supplemental levy expires after 2015-16 school year.

16. How to Avoid Capsizing in 2015-2016 Growth Increased State Funding per Unit Savings in the Budget Reduction in Expenses Or A combination of some or all four

17. If the Ship Begins to Sink in 2015-2016 The life preserving options are… Since the District’s General Fund Budget is over 90% salaries and benefits the District would need to consider the following options in order to balance the budget: Furlough Days Reduced Benefits Reduction in Force Others?

18. Market Values *Estimate

20. Joint School District No. 2 Total Levy Rate Per Thousand Taxable property value of $100,000 will pay $432.76 Taxable property value of $50,000 will pay $216.38 Includes Emergency Levy and Tort Levy Estimate

21. School Plant Facilities Levy This levy has been adjusted from year to year in an effort to maintain a consistent levy rate. Some of the major projects scheduled this year from school plant: Meridian High School Remodel Construction of Willow Creek Elementary Computer Equipment * 2014-15 is projected

22. Capital Outlay 2014-2015

24. All Funds Revenue 2014-2015

25. All Funds Expenditures 2014-2015 By FunctionBy Object

26. A copy of this presentation is available on the District’s website at www.meridianschools.org If you have any questions please contact: Alex Simpson, Director of Finance 208-855-4500 Or e-mail simpson.alex@meridianschools.org