Preliminary Budget Proposal and Summary

Proposed Budget Overview John Fronk, Superintendent Kenn Medina, Business Manager Mark Seibert, Finance Committee Chairman John Fronk, Superintendent Kenn Medina, Business Manager Mark Seibert, Finance Committee Chairman

Description 30,000-foot overview of the proposed budget Elicit discussion regarding major areas: Revenues Expenditures Taxation 30,000-foot overview of the proposed budget Elicit discussion regarding major areas: Revenues Expenditures Taxation

Where are we in the Budget Process This is not the final budget Preliminary: required by Act 1 Completed as accurately as possible State information is not yet available Uses probability of specific events This is not the final budget Preliminary: required by Act 1 Completed as accurately as possible State information is not yet available Uses probability of specific events

Budget Process Began Earlier Longer from the end of a budget year means less exact estimations Administration continues to plan the course of the District Learning-Focused Schools Special Education Population Growth Longer from the end of a budget year means less exact estimations Administration continues to plan the course of the District Learning-Focused Schools Special Education Population Growth

Other Information Sources Energy Industry Consumer Price Index trend Insurance Industry Transportation industry Energy Industry Consumer Price Index trend Insurance Industry Transportation industry

Conservative plan for Revenue & Expenses

Projections & Assumptions Average Salary Increase of 4.2% MAEA contract & salary schedule Administrators Secretaries Custodial staff Coaches Average Salary Increase of 4.2% MAEA contract & salary schedule Administrators Secretaries Custodial staff Coaches

Projections & Assumptions Health insurance contract: cost changes from plan to plan Consumer Price Index: increase 3.7% Energy costs: increase 6.3% Liquid Fuels costs: increase 4.1% Current Real Estate: increase 0.6% in assessed value Basic Instructional Subsidy: increase 2.2% Health insurance contract: cost changes from plan to plan Consumer Price Index: increase 3.7% Energy costs: increase 6.3% Liquid Fuels costs: increase 4.1% Current Real Estate: increase 0.6% in assessed value Basic Instructional Subsidy: increase 2.2%

Revenue Analysis & Overview Trend Analysis of top ten categories: Percentage of revenue derived from the Basic Instructional Subsidy continues to decrease Difference must be made up with local tax effort Not unique to our district Planning for change in funding continues to be examined Trend Analysis of top ten categories: Percentage of revenue derived from the Basic Instructional Subsidy continues to decrease Difference must be made up with local tax effort Not unique to our district Planning for change in funding continues to be examined

State Effort vs. Local Effort 2002 Actual through 2008 Projected

Revenue Analysis & Overview Remaining eight of top ten: flat trend line No major changes are anticipated Proposal includes reduction in revenue from possible assessment change for a particular commercial property Remaining eight of top ten: flat trend line No major changes are anticipated Proposal includes reduction in revenue from possible assessment change for a particular commercial property

Expenditure Analysis & Overview Contractual salary increases for MAEA staff. Agreements for wage & salary increases for non-MAEA employees 10.7% increase in the Retirement Contribution Rate Health & Dental Insurance rates are flat, but increased participation by families increases cost Contractual salary increases for MAEA staff. Agreements for wage & salary increases for non-MAEA employees 10.7% increase in the Retirement Contribution Rate Health & Dental Insurance rates are flat, but increased participation by families increases cost

Expenditures Current & Proposed

Expenditure Analysis & Overview Salaries & benefits comprise 67% of expenditures Building maintenance costs increasing: aging facilities & equipment No provision for Feasibility Study for construction or combined efforts Teachers & administrators reduced controllable requisitions: net reduction over $41,000 from last budget Salaries & benefits comprise 67% of expenditures Building maintenance costs increasing: aging facilities & equipment No provision for Feasibility Study for construction or combined efforts Teachers & administrators reduced controllable requisitions: net reduction over $41,000 from last budget

Expenditure Analysis & Overview Expenditures budgeted conservatively No hidden expenses: Most likely scenario - Expenses will be realized Administration continues to curtail or defer expenses - if doing so will not harm the educational process Remaining fund balance directed to the Capital Projects Fund for future building or significant equipment failure Expenditures budgeted conservatively No hidden expenses: Most likely scenario - Expenses will be realized Administration continues to curtail or defer expenses - if doing so will not harm the educational process Remaining fund balance directed to the Capital Projects Fund for future building or significant equipment failure

Fund Balance Analysis

Preliminary Budget Summary Planned Expenditures & Needed Revenue

Expenditures Proposed increase in expenditures is $449,278, or 3.9% Includes reductions by administrators, educators, and staff Self-imposed reductions keep costs low without harming the educational process Proposed increase in expenditures is $449,278, or 3.9% Includes reductions by administrators, educators, and staff Self-imposed reductions keep costs low without harming the educational process

Revenue Includes an increase of $137,468 in total Current Real Estate Tax revenue The mills needed is an increase of 4.5% - our district’s index An increase over 4.5% would require approval via a May 2007 referendum Includes an increase of $137,468 in total Current Real Estate Tax revenue The mills needed is an increase of 4.5% - our district’s index An increase over 4.5% would require approval via a May 2007 referendum

Preliminary Budget Summary Discussion & Vote