Five Year Forecast Green Local Schools Update May 2013

Future Revenue?? Property values have declined from the previous year - $( 32 Million) HB920 will cause levies’ effective millage to increase to offset this decline The district is assuming the passage of the renewal levies in 2014 and 2016

State Revenue….hmmm Casino Revenue is estimated from the Dept of Tax. at $52 per student. This is paid in August and January. The new biennium budget has yet to be released though the new fiscal year begins in 32 days.

Budget Bill 2014 Without a passage of HB 59 districts are forced to guess as to whether we will see an increase in state aid over the next 2 fiscal years. Green Local Schools has flat lined their state revenue until it is passed into law.

Governor Kasich’s original plan called for GLS to receive $86,000 additional revenue per year The House version is promising between $560K to $600K per year in additional state dollars The Senate held a press conference today at 2:00 and is proposing $622K in year one and a million dollar increase in year 2

So why flat line revenue? Gov. Kasich’s plan did not address the increase in dollars his plan would give to charter schools. Both the House and Senate have not addressed this issue either but both say they plan to change the way charter schools are funded. Transportation funding is mysteriously left out of all plans

Expenses….Expenses 80% of our expenses comes from staff salaries and benefits. GLS was awarded 3 premium holidays in FY13 and 2 holidays in FY14 for insurance. That is a savings of nearly $2.5 million over the 2 year period. Medical insurance rates for FY14 have increased just 4.5% - industry standard = 10%

Legal fees for FY13 are over 10X the normal average from the last 5 years and have caused significant budget constraints. HVAC and elevator repairs have caused a shift in maintenance expenses from PI to general funds

Budget Cuts With the uncertainty of the Budget Bill the district has been forced to implement budget cuts for next year: 20% of building budgets for supplies/materials The reduction of 7 staff members thru attrition The reduction of building projects, professional development and technology equipment

Significant Assumptions: Personnel Costs will be reduced by a large amount of retirements due to new STRS laws taking effect in 2015 No base increases in salaries in this forecast Approval of 2 renewal levies in 2014 & 2016 Legal fees will be reduced to normal levels At least 1 or more medical insurance premium holidays

Where are we ending up? 2013$2,080, $1,497, $ 673, $( 161,351) 2017$(2,180,588)