1. Budget Message 2012-2013 Fiscal Year Presented by Kelly Muzzey

2. *The school budget provides an outline of probable expenditures and anticipated revenues *The budget was developed after a detailed review of revenue and expenditures were conducted. *The budget process consists of the following phases: planning, preparation, summarization of the information and implementation *Northwest R-1 includes a Budget Message prepared by the Superintendent of Schools and a Presentation Message prepared by the Executive Director of Finance

3. School Budget Requirements The budget must include five specific pieces of information per section 67.010, RSMo. 1. The budget message 2. Estimated revenues to be received from all sources for the budget year, with a comparative statement of actual or estimated revenues for the prior two years. 3, Proposed expenditures for each department, office, commission, and other classification for the budget year, together with a comparative statement for actual or estimated expenditures for the prior two years, itemized by year, fund, function, and object. 4. A schedule detailing the required amount for payments of interest, amortization, and redemption charges on the debt. 5. “The General Budget Summary” and the “Budget Transfer Summary Detail”

4. Budget Planning *Budget planning begins early in the spring semester- *Executive Directors review their program budgets and that information is presented to the BOE. *In March budgets for Lion’s Care, health services, library and media, student activities, building allocations, textbooks, assessment, and information and instructional technology. *In April the budgets for the facilities and maintenance, food service, federal title programs, at risk, early childhood-including parents as teachers, gifted, ELL, and professional development. *Interest Based Negotiations (IBN) with certified staff are completed the last week of June 2012. The salary increase presented in this budget is a step, longevity and lateral movement raise for all eligible employees.

5. Budget Planning *Preliminary revenues includes amounts from the seventh year of the new state funding formula, less an 8% anticipated withholding and anticipated assessed evaluation amounts. *The expenditures were calculated based on the 2011-2012 amended budget amounts and adding the cost for known increases and decreases such as transportation, utilities, liability and workers comp insurance, employee step, longevity and track raise, and reductions from employee position reductions from open positions. This budget was built with no increase to health care costs for next plan year and a slight savings in transportation services.

6. Budget Preparation *Projections of membership, average daily attendance, assessed valuation, and other State and Federal revenues were compiled. *The new foundation formula was estimated using the Weighted Average Daily Attendance (WADA) of 6722.4658, State Adequacy Target of $6,131 and final 2005-2006 state funds of $26,801,216 for our district. *This estimate of 2012-2013 state funds includes an WADA based on our best 3 year WADA, from 2010-2011(possibly 2011-2012 after calculated) with an estimate of our 2012 summer school. *Attendance percentages have improved over the past several years. In the past our enrollment has been declining about 100 children per year, but over the last two years, this has leveled off. *Over the past four years, we will have had nearly $5 million withheld from the state.

7. Budget Preparation *We are estimating no increase in local assessed valuation (it is a non- reassessment year). *This past year we received a small amount of the remaining federal stimulus money, with our No Child Left Behind sanctions, including transportation and professional development. *We also received ARRA funding to help support the state’s basic formula revenues-including State Formula Stabilization Funding, Government Services funding and a small portion of Jobs Bill Funding (as part of our total basic formula calculations).

8. Budget Summary *This budget includes an estimated savings of and additional $343,000 from positions not being filled by the district. The reduction of staffing costs are not related to lay offs. As positions have been vacated in the district by retirement or resignation each positions is analyzed to determine if replacement is necessary. *The district was able to gain a slight savings through transportation services, as they were up for bid this year. *The district will have a slight increase in Proposition C. *The budgeting procedure allocates resources to buildings on a per pupil basis. Allocations were made for instructional supplies, textbooks, special education, library materials, and office supplies. *We are anticipating ending the 2011-2012 fiscal year in a better position than the amended budget presents. Based on using amended budget amounts as the beginning balances, we are estimating an ending General Fund unrestricted balance of 11.8%.

9. Budget Implementation *The budget is a working document that changes through BOE approved amendments as actual financial data changes. *A budget revision will be presented in the fall following the official 2012 assessed valuation and tax rate hearing. *New total salaries will be determined after the completion of IBN and vacant positions are filled. *Amendments will also be made to include revenue and expenditure changes. *Expenditures are monitored during the fiscal year to ensure that they do not exceed authorized amounts and that they are used for intended purposes. Expenditure budget amounts will be presented to the BOE as necessary to include necessary needs and changes in revenue and expenditure estimates.

10. Final Notes *Northwest R-1continued to serve as the fiscal agent for the Jefferson County Special Education Co-Op. Due to changes in participating districts’ needs the Co-Op was shut down in June of 2008. Currently Northwest will be disbursing the majority of the major funds to the member school districts and retain a small balance for future unemployment claims. The budget includes the Northwest budget with and without the Co-Op. *With the slow economic recovery and the discontinuance of federal stimulus funding, we continue to take a very conservative approach to predicting revenues.