Proposed Budget Update Finance Committee Meeting June 19, 2014

Budget - Timeline 03/21/14 - Budget update provided the Board 04/04/14 - Budget update provided the Board 04/11/14 - Budget update provided the Board 04/25/14 - Budget update provided the Board 05/01/14 - Finance Committee Meeting 05/02/14 - Budget update provided the Board 05/07/14 - Agenda Setting Meeting – Preliminary Budget Review 05/14/14 - Legislative Meeting – Adopt Proposed Final 2014/15 Budget 05/21/14 - Special Legislative Meeting – Adopt Proposed Final 2014/15 Budget 06/11/14 - Agenda Setting Meeting – 2014/15 Budget Update 06/19/14 - Finance Committee Meeting – 2014/15 Budget Update 06/25/14 - Special Legislative Meeting – Adopt Final 2014/15 Budget 2 06/19/2014

Projected Budget 2014/15 Status Quo Projected 2014/15 Deficit Spending ($7,146,083) 07/01/2014 Beginning Fund Balance $7,665,480 Projected Year End Fund Balance 2014/15 $ 519, /19/2014

Major Cost Drivers Pension funding Contractual Wage Increases Increased Health Care Costs 406/19/2014

Problem 2014/15 Deficit Spending of ($7,146,083) At 07/01/2015 left with only $519, /19/2014

Expenditures need reduced Revenues need increased Proposal Net Reduction In Workforce Real Estate Tax Increase to Index 606/19/2014

Position Adjustments Teacher Reductions- 13.0$(852,672) Create Director of Teaching & Learning $ 130,007 Net savings from position adjustments $722, /19/2014

Millage increase to Act 1 index Current Millage22.40 mills Allowable increase from index 2.8% (0.62 mill increase) A home with a $ 100,000 assessed value would have a $62 tax increase A home with a $ 50,000 assessed value would have a $31 tax increase A home with a $ 25,000 assessed value would have a $15.50 tax increase New Millage mills Value of millage increase $1,118, /19/2014

Net Affect Positions Changes and Increase to Index Position Changes$ 772,665 Increase to Index$1,118,046 Total$1,890, /19/2014

Projected Budget 2014/15 Status Quo With Changes Projected 2014/15 Deficit Spending ($7,146,083) ($5,305,371) 07/01/2014 Beginning Fund Balance $7,665,480 $7,665,480 Projected Year End Fund Balance 2014/15 $ 519,397 $2,360, /19/2014

2014/15 Preliminary Budget Revenue Assumptions Real Estate Tax – Based on County Certified Assessment File – base year collections Earned Income Tax – Adjusted to current trend State Basic Education Subsidy, Special Education, Transportation – Governor's proposed budget State Reimbursement for Social Security & Retirement - remain at current 50%. Federal Revenue – based on 2013/14 funding 1106/19/2014

2014/15 Preliminary Budget Expenditures Assumptions Salaries based on agreed upon contracts Healthcare rates based on current projection from ACSHIC Retirement rate based on current projection from PSERS Charter School enrollment remains same as 2013/14 Special Education services remain same as 2013/ /19/2014

Budget Proposals Expenditures2014/15 Status Quo2014/15 With Changes Instruction$55,045,370$54,134,698 Support22,649,46222,888,168 Non-Instruction1,734,335 Facilities-- Other6,526,468 Budget Reserve-- Total Expenditures$85,955,635$85,283, /19/2014

Budget Proposals Revenues2014/15 Status Quo2014/15 With Changes Local$47,651,693$48,820,439 State28,216,671 Federal2,941,188 Other-- Total Revenues$78,809,552$79,978,298 Total Expenditures85,955,63585,283,669 Net$(7,146,083)$(5,305,371) 14 06/19/2014

Budget Proposals By Object Expenditures2014/15 Status Quo2014/15 With Changes Salaries$28,688,76428,276,117 Employee Benefits18,074,12317,677,718 Professional Services5,221,141 Purch. Property Serv.2,124,3822,232,382 Other Purch. Services23,405,122 Supplies1,504,8301,533,916 Property256,925 Other Objects603,880 Other Financing Uses6,076,468 Totals$85,955,635$85,283, /19/2014

Adopted Budget compared with Status Quo Budget Expenditures2013/14 Final Budget 2014/15 Status Quo Variation (2%) Salaries$29,409,458$28,688,764$(720,694) Employee Benefits16,796,26018,074,1231,277,863 Professional Services5,524,4235,221,141(303,272) Purch. Property Serv.2,278,4872,124,382(154,105) Other Purch. Services22,527,55023,405,122877,572 Supplies1,761,5421,504,830(256,712) Property231,244256,92525,681 Other Objects2,160,380603,880(1,556,500) Other Financing Uses7,199,7256,076,468(1,123,257) Totals$87,889,059$85,955,635$(1,933,424) 16 06/19/2014

Budget - Timeline 03/21/14 - Budget update provided the Board 04/04/14 - Budget update provided the Board 04/11/14 - Budget update provided the Board 04/25/14 - Budget update provided the Board 05/01/14 - Finance Committee Meeting 05/02/14 - Budget update provided the Board 05/07/14 - Agenda Setting Meeting – Preliminary Budget Review 05/14/14 - Legislative Meeting – Adopt Proposed Final 2014/15 Budget 05/21/14 - Special Legislative Meeting – Adopt Proposed Final 2014/15 Budget 06/11/14 - Agenda Setting Meeting – 2014/15 Budget Update 06/19/14 - Finance Committee Meeting – 2014/15 Budget Update 06/25/14 - Special Legislative Meeting – Adopt Final 2014/15 Budget 1706/19/2014

Proposed Budget Update Finance Committee Meeting June 19, 2014